S&P Logs Best Win Streak Since 2004; For the Week, AAPL Skids 12%, NFLX Soars 70%

Stocks closed higher Friday, with the S&P 500 ending above 1,500 and logging its longest winning streak since November 2004, boosted by a batch of upbeat corporate earnings reports. All three major averages turned in their fourth-consecutive weekly gain.

"Slowly but steadily, things have moved up and we've seen some signs money being diverted into stocks instead of bond funds," said Art Cashin, director of floor operations at UBS Financial Services. "But having said that, none of the rally has turned into an outright stampede—We haven't seen huge volume or a sense of short squeeze."

Meanwhile, Apple fell to hit a 52-week low, extending losses a day after the iPhone maker plunged more than 12 percent. Apple has plunged nearly 40 percent from its all-time high of $705 a share in September. Apple lost its title as the world's most valuable company by market cap to oil giant ExxonMobil. (Read More: Why Apple No Longer Drives Markets )

The Dow Jones Industrial Average gained 70.65 points, or 0.51 percent, to close at 13,895.98, led by Procter & Gamble and JPMorgan. The blue-chip index is up more than 6 percent for the month so far, on track for its best January performance since 1989. (Read More: Dow Nears Record, But Is It Just Another Bubble?)

The S&P 500 climbed 8.14 points, or 0.54 percent, to finish at 3,149.71, closing above 1,500 for the first time since December 2007. The Nasdaq rose 19.33 points, or 0.62 percent, to end at 3,149.71. (Read More: S&P Tops 1,500: Where the Market Goes From Here)

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended above 12. (Read More: Why One Trader Is Getting Into the VIX )

For the week, the Dow jumped 1.80 percent, the S&P 500 rallied 1.14 percent, and the Nasdaq advanced 0.48 percent. IBM was the best weekly performer on the Dow, while Caterpillar slumped.

Nine out of the key 10 S&P sectors finished in positive territory for the week, led by consumer discretionary, while techs finished in the red.

"Although the accommodative stance of the Fed's monetary policy is a powerful force which we think will exert further upward pressure on equity prices, we forecast the index to creep up only a little further—to 1,550—by mid-year. What's more, we think it will be back down to its current level by the end of 2013," economists John Higgins and Paul Dales of Capital Economics said.

Among earnings, Procter & Gamble rose after the consumer goods manufacturer topped quarterly expectations and said this year's earnings should come in ahead of its earlier forecast and sales should rise at the higher end of its prior outlook.

Microsoft posted earnings that edged past expectations by a penny, but posted revenue that fell short of estimates. Still, shares finished in positive territory.

Honeywell eked out a gain after the diversified manufacturer reported quarterly results a shade above expectations.

Kimberly-Clark reported quarterly results that edged past forecasts. In addition, the company handed in full-year 2013 earnings and revenue guidance that were mostly in line with Wall Street projections. But shares of the paper-based consumer products company ended lower.

Tempur-Pedic soared after the mattress maker posted better-than-expected quarterly results, offsetting a downbeat earnings outlook for 2013. Meanwhile, smaller rival Select Comfort plunged after the company missed earnings and revenue forecasts and said its 2013 profit outlook was below Wall Street estimates.

Netflix surged more than 15 percent to lead the S&P 500 gainers for a second session after skyrocketing more than 40 percent in the previous session, thanks to better-than-expected earnings.

So far, 147 S&P 500 companies have posted quarterly results this quarter, with 68 percent of firms topping earnings estimates and 65 percent have exceeded revenue expectations.

On the economic front, new home sales declined by 7.3 percent in December to a seasonally adjusted annual rate of 369,000, according to the Commerce Department. Economists in a Reuters survey expected a total of 385,000 sales, up from 377,000 in November.

European shares closed higher after Germany's Ifo business climate index in January gained to its highest level in six months, providing further evidence of a turnaround after contracting late last year.