NEW YORK (AP) – Stocks rose for a fourth day Friday after China renewed Google’s license to operate in the country.

Big stock movements, though, are being kept in check as investors avoid taking any risky positions ahead of earnings season, which starts next week. Stocks rose sharply earlier in the week.

The Dow Jones industrial average rose about 15 points in afternoon trading after posting its biggest three-day advance since mid-May. Broader indexes posted bigger gains, helped by Google’s advance. Trading volume was light, signaling many investors were staying out of the market.

The renewal of Google’s license was in doubt because of a strained relationship between the company and China’s government over censorship of search results. Google rose 1.7 percent.

News on the economy wasn’t as upbeat. Inventories held by wholesalers rose in May for a fifth straight month although sales dropped for the first time in more than a year. The government said wholesale inventories increased 0.5 percent and sales dropped 0.3 percent. It was the first drop since March 2009, when major stock indexes hit a 12-year low.

The moderate buying came as investors prepared for earnings reports that start next week. Traders often avoid making big bets just before earnings releases because the reports provide a good picture of how companies are performing. Forecasts for future growth will be scrutinized because disappointing economic reports in recent months have called into question the pace of a recovery.

Investors will want to know whether companies are feeling the effects of slower growth and whether corporations believe the recovery will gain momentum in the coming months. Stocks consistently fell over the past couple of months because data showed the economy was growing, but not as fast as had been forecast.

Earnings season kicks off with aluminum producer Alcoa Inc. on Monday. Other companies scheduled to release results next week include banking giants JPMorgan Chase & Co. and Bank of America Corp. General Electric Co. and chipmaker Intel Corp. are also scheduled to report earnings next week.

Overseas markets rose after a surprise interest rate hike in South Korea was seen as a sign of confidence that the global economy will continue expand. Central banks around the world, including the U.S., have kept rates at historically low rates to stimulate growth.

In early afternoon trading, the Dow rose 14.16, or 0.1 percent, to 10,153.07. The Standard & Poor’s 500 index rose 2.80, or 0.3 percent, to 1,073.05, while the technology-focused Nasdaq composite index rose 8.02, or 0.4 percent, to 2,183.42.

Stocks jumped for a third straight day on Thursday after a better-than-expected report on weekly jobless claims. Weak employment reports over the past two months had often sent stocks lower, so the steep drop in claims for unemployment benefits was a welcome sign that maybe significant job growth could occur this year.

The Dow rose nearly 121 points Thursday and was up nearly 5 percent for the holiday-shortened week heading into Friday.

Bond prices traded in a tight range. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.05 percent from 3.04 percent late Thursday.

Crude oil rose 15 cents to $75.59 per barrel on the New York Mercantile Exchange.

Google rose $7.90 to $464.46.

About two stocks rose for every one that fell on the New York Stock Exchange on the New York Stock Exchange, where volume came to 410 million shares compared with 528 million shares traded at the same point Thursday.

The Russell 2000 index of smaller companies rose 2.44, or 0.4 percent, to 622.71.

Britain’s FTSE 100, Germany’s DAX index, France’s CAC-40 and Japan’s Nikkei stock average each rose 0.5 percent.

If you enjoyed this post then Subscribe to Savvy Investor via RSS