S&P 500 reaches five-year high

The Standard and Poor’s 500 edged up to a five-year high Friday, extending a ­rally that started in January. The index is at its highest since November 2007 and has advanced for six weeks, the longest streak of gains since August. A last-minute budget deal in Washington to avoid the fiscal cliff of tax hikes and spending cuts helped powered the rally, as did as optimism about the housing sector and gradual improvements in the jobs market. Largely positive corporate earnings reports and a report that showed that the US trade deficit narrowed sharply in December provided more fuel for the market’s advance Friday.