The S&P 500 Index ($SPX) (SPY) Friday closed up +0.20%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.24%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.09%. US stocks Friday recovered from early losses and posted modest gains, with the S&P 500 and Dow Jones Industrials climbing to 2-week highs and the Nasdaq 100 climbing to a 3-week high. Short covering emerged in stocks Friday after the University of Michigan US Aug consumer sentiment index rose more than expected. Stocks were also supported by lower T-note yields, which fell on the weaker-than-expected US housing starts r…