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NEW YORK (CNNMoney.com) — U.S. stocks began the new month higher, clawing out gains Friday as a better-than-expected reading on personal income overshadowed a mixed manufacturing report.

The Dow Jones industrial average (INDU) ended 42 points higher, or 0.4%, after gaining more than 70 points earlier. The S&P 500 (SPX) rose 5 points, or 0.4%, and the Nasdaq (COMP) edged up 2 points, or 0.1%.