Stocks end mixed as Nasdaq sets new closing high

Stocks ended mixed Friday after a flat and disappointing reading on overall July retail sales caused a mild hangover on Wall Street, a day after investors were partying like it's 1999 after the Dow, S&P 500 and Nasdaq all hit records on the same day for the first time since New Year's Eve in 1999.

The Nasdaq composite managed a 0.1% gain, which built upon Thursday's record high close, to set its new record mark of 5232.89.

Losing on the day were the Dow Jones industrial average and the S&P 500, down 0.2% and 0.1%, respectively.

All three market gauges gained for the week. The surging Nasdaq has climbed for seven straight weeks now — its longest winning streak since 2012, CNBC reported.

The retail sector was driving the action on Wall Street for the second straight day. Early Friday, overall retail sales came in flat for July, well below the gain of 0.5% economists had forecast. That soured sentiment a day after better-than-anticipated earnings from individual retailers, such as department store players Macy's (M), Kohl's (KSS) and Nordstrom (JWN), powered a big rally in retail shares that spread to the broad market.

Retail sales flatline as consumers take breather

Wall Street is keenly interested in retail data, as consumers account for roughly two-thirds, or 70%, of U.S. economic activity. What's more the second-quarter GDP gain of 1.2% was driven by consumer spending as business investment was very weak. Any sign of the consumer faltering would be viewed as a negative by Wall Street, especially with the stock market trading at or near record highs and valuations for the S&P 500 higher than its historical average.

In the fixed income market, the yield on the 10-year Treasury note was down to 1.51% from a close of 1.57% Thursday. Oil prices rose 2.3%, to $44.99 a barrel

In foreign stock markets, shares in Europe were mildly lower, with the broad Stoxx Europe 600 off 0.2% and the German DAX off 0.3% and the CAC 40 in Paris 0.1% lower.

Stocks closed higher in Asia, following the lead of Wall Street's surge Thursday. Stocks in Japan, Hong Kong and mainland China all finished solidly in the black.