New York, July 13 -- U.S. stocks were modestly higher in afternoon trading on Friday, as declines in health care stocks were offset by gains in technology, consumer discretionary and industrial company stocks.

The gains came a day after the Dow Jones Industrial Average closed above 27,000 points for the first time.

Investors remain focused on the Federal Reserve. The Fed is expected to cut its benchmark interest rate later this month for the first time in more than a decade to help counter slowing growth. Investors have bet heavily that the Fed is moving that direction, moving stock and bond yields higher in the last two weeks.

The Dow rose 178 points, or 0.7%, to 27,264 as of 3:15 p.m. ET. The Standard & Poor's 500 index rose 0.3% and...