US STOCKS-Market rises on data but caution settles on Wall Street
* China, German trade data signal growth in demand
* Narrower U.S. trade deficit should boost GDP
* Shares of LinkedIn surge after earnings, outlook
* Indexes up: Dow 0.3 pct, S&P 0.4 pct, Nasdaq 0.8 pct
By Angela Moon
NEW YORK, Feb 8 (Reuters) - U.S. stocks edged higher on Friday, with the benchmark S&P index hitting a five-year high after a batch of positive economic reports, but gains were capped as investors grew cautious about a further advance.
Data showing stronger international trade from China and Germany and a report showing a smaller U.S. trade deficit in December were seen as encouraging signs of global demand.
Among stocks on the rise, the technology sector was boosted by gains in LinkedIn Corp and AOL Inc following their quarterly results.
The S&P 500, up 6.3 percent for the year, is on track for six straight weeks of gains. But the index has found it tougher to climb in recent days as investors await strong trading incentives to drive it further upward. Continued...