By Mark DeCambre and Carla Mozee, MarketWatch

U.S. markets are closed July 4th

U.S. stocks extend their post-Brexit gains to a fourth session Friday, putting the S&P 500 and the Dow on track to register their best weekly advance this year.

The weekly gains cap a fourth straight day of gains for the three main indexes as better-than-expected manufacturing data combined with fading worries about the U.K.'s decision to leave the European Union, dubbed Brexit, stoked buying appetite.

Read:Which markets are closed for July 4th? (http://www.marketwatch.com/story/which-markets-are-closed-for-us-independence-day-2016-06-30)

Although choppy, stock-market indexes were holding higher, with the Dow Jones Industrial Average up 34 points, or 0.2%, at 17,964. Home Depot Inc. shares, up 1.5%, leading blue-chip advancers. Earlier in the session, the Dow was within a whisker of its pre-Brexit close of 18,011 before retreating later in the day.

Meanwhile, the S&P 500 index recaptured the psychologically significant 2,100 level, and was most recently trading at 2,104. A 0.9% rise in consumer-discretionary shares, led by a 16% jump in shares of Harley-Davidson Inc.(HOG), underpinned positive momentum for the broad-market benchmark.

Both the S&P 500 and the Dow, each up 3.3%, were set to mark their best weekly gains since the week ended Nov. 20, 2015, according to FactSet data.

Meanwhile, the Nasdaq Composite Index rose 22 points, or 0.5%, to 4,865. The Nasdaq was on pace for its best weekly rise, up 3.4%, since the week ended May 27.

Trading volume is lighter-than-usual ahead of the July 4th holiday on Monday when U.S. markets will be closed. Light volume can lead to exaggerated market moves.

Over the past three trading sessions, the Dow (http://www.marketwatch.com/story/us-stock-futures-nudge-up-as-oil-pulls-back-from-rally-2016-06-30) has risen by nearly 800 points, while the S&P leapt about 5% over the last several sessions, as markets rebounded sharply from concerns about the so-called Brexit, or British exit from the EU. That vote roiled markets last Friday and Monday.

"Markets are coming to the determination that [Brexit] matters but it is not the catastrophic event people had feared," said Jonathan Golub, chief U.S. equity strategist at RBC Capital Markets.

On Friday, markets also were boosted by data that showed U.S. manufacturing activity grew in June at the fastest pace in 15 months. The Institute for Supply Management said its manufacturing index jumped to 53.2% in June from 51.3% (http://www.marketwatch.com/story/us-manufacturers-grow-at-fastest-pace-in-15-monthsism-finds-2016-07-01) in May, an uptrend after a bout of extended weakness.

Robert Pavlik, chief market strategist at Boston Private Wealth, attributed Friday's climb to the strength in manufacturing, investors rebalancing their portfolios to start the second half of 2016 and other traders playing catch-up in equities following a multiday climb for stocks..

"There's this other group of investors that are late to the party and want to jump on the bandwagon," Pavlik said. He warned that the stock market could lose momentum later in the day as market participants in the U.S. prepare to leave for the extended weekend.

" I do think that it starts to peter out as people move on to get an early start to their vacation," he said.

On Thursday, investors got a boost after Bank of England Gov. Mark Carney hinted at further easing (http://www.marketwatch.com/story/bank-of-englands-mark-carney-hints-at-rate-cut-this-summer-2016-07-01), a move intended to brace the economy after the U.K. voted to leave the European Union.

Earlier in the day, stocks were under pressure as yields on government bonds touched record lows (http://www.marketwatch.com/story/us-treasury-yields-hit-all-time-lows-2016-07-01), suggesting that investors harbored lingering fears about Brexit and worries about economic growth in the rest of the world. The yield on the 10-year note briefly dropped 11.4 basis points to 1.378%, while the 30-year yield fell 11.1 basis points to 2.187%. Bond yields move inversely to price.

"The Brexit uncertainty has not passed," said Charles Schwab's chief investment strategist, Liz Ann Sonders.

However, she said that bond buys reflected the recent rush to havens following Brexit and are less about investors fearing a coming calamity.

"The downward pressure on yields has, in my opinion, less to do with the bond market sniffing out some economic problem and more to do with a massive amount of safe-haven buying," she said.

Sonders also was sanguine about the prospects for stocks ahead of second-quarter earnings, which she believed might be stronger-than-expected.

Fed speakers: Federal Reserve Vice Chairman Stanley Fischer on CNBC said that he saw the U.S. economy improving.

In London, the Fed's Cleveland President Loretta Mester said the central bank risks destabilizing markets by waiting too long to hike benchmark interest rates in 2016. She also said she didn't vote for a rate increase at the Fed's most recent meeting because of Brexit worries.

"Waiting too long increases risks to financial stability and raises the chance that we would have to move more aggressively in the future, which poses its own set of risks to the outlook." Mester said in a speech to European Economics Financial Centre (http://www.marketwatch.com/story/feds-mester-doesnt-want-to-wait-too-long-for-next-interest-rate-hike-2016-07-01). During his CNBC interview, Fischer appeared to imply that strong data could warrant a rate increase sooner than later.

Economic docket: On the data front, spending on construction tumbled in May, with weakness mostly concentrated in the public sector, the Commerce Department said Friday. However, comparatively, construction spending was still better than the same period a year ago (http://www.marketwatch.com/story/construction-spending-declines-08-in-may-2016-07-01).

Auto makers are on track for their best June U.S. auto sales in more than a decade, according to The Wall Street Journal (http://www.marketwatch.com/story/us-auto-sales-on-track-for-best-june-in-11-years-2016-07-01), as summer sales started to heat up during the month.

Ford Motor Co.(F) said that vehicle sales rose 6.4% in June. General Motors Co.(GM) reported overall sales slipped 1.6% as the auto maker continues with a planned cut back of less profitable fleet sales. Retail sales, though, rose 1%, on strength in the Chevrolet, Buick and Cadillac brands, WSJ said.

Corporates:Tesla Motors Inc. shares (TSLA) rose 1.7% even after the electric-car maker confirmed late Thursday that the National Highway Traffic Safety Administration is investigating Tesla's autopilot feature (http://www.marketwatch.com/story/tesla-falls-as-feds-investigate-fatal-crash-of-model-s-in-self-driving-mode-2016-06-30). That probe comes after a Model S using the autonomous-driving feature was involved in a deadly crash (http://www.marketwatch.com/story/driver-in-fatal-tesla-crash-previously-had-posted-video-of-autopilot-saving-him-2016-06-30)in Florida.

Stock in Chipotle Mexican Grill Inc.(CMG) fell 2.4% after the restaurant chain put Mark Crumpacker, chief creative and development officer, on administrative leave (http://www.wsj.com/articles/chipotle-executive-involved-in-new-york-cocaine-bust-1467331439) following his indictment in Manhattan over his alleged involvement in a cocaine drug ring.

Apple Inc.(AAPL) is in exploratory talks to buy Tidal (http://www.marketwatch.com/story/apple-is-in-talks-to-acquire-tidal-jay-zs-streaming-music-service-2016-06-30), the music-streaming service founded by rap mogul Jay Z, according to The Wall Street Journal. Apple's shares are up 0.5%.

Hewlett-Packard Inc.(HPQ) late Thursday won a $3 billion judgment (http://www.marketwatch.com/story/hewlett-packard-wins-3-billion-judgment-from-oracle-2016-06-30)in a court battle against Oracle Corp.(ORCL). Oracle plans to appeal.

Micron Technology Inc. shares (MU) dropped nearly 10% after the memory-chip maker Thursday evening swung to a quarterly loss (http://www.marketwatch.com/story/micron-to-slash-jobs-after-quarterly-loss-2016-06-30)and said it would cut jobs as part of a cost-cutting plan.

Shares of Herc Holdings Inc. will begin trading Friday on the New York Stock Exchange. The equipment-rental business was separated from car-rental provider Hertz Global Holdings Inc. .

Williams Cos. shares (WMB) fell 4.4% after nearly half of the energy company's board resigned (http://www.marketwatch.com/story/nearly-half-of-williams-cos-directors-resign-in-leadership-battle-2016-06-30) following a failure to oust Chief Executive Alan Armstrong, The Wall Street Journal reported. The leadership battle came after the company's collapsed merger with Energy Transfer Equity LP (ETE), the report said.

(http://www.marketwatch.com/story/oil-gains-more-ground-after-eia-reports-41-million-barrel-fall-in-us-crude-supplies-2016-06-29)Other markets:Asian stocks (http://www.marketwatch.com/story/asian-markets-end-higher-after-boe-signals-more-easing-2016-07-01) closed higher Friday, bolstered after the speech by the BOE's Mark Carney.

Gold futures climbed more than 1% to $1,335.10 an ounce and silver was on track for its best weekly gain in 15 months. Oil prices pared their loss to 0.3%. The ICE U.S. Dollar Index fell 0.7% to 95.694.

(END) Dow Jones Newswires

July 01, 2016 16:07 ET (20:07 GMT)

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