US STOCKS-S&P 500 edges up to set new record; best month since Feb
* Trading volumes light ahead of Labor Day holiday
* Major indexes notch fourth straight week of gains
* Chicago PMI, consumer sentiment both top forecasts
* Indexes up: Dow 0.11 pct, S&P 0.33 pct, Nasdaq 0.5 pct (Updates to close)
By Chuck Mikolajczak
NEW YORK, Aug 29 (Reuters) - U.S. stocks closed out a strong month on a quiet note on Friday, with the S&P 500 posting a modest gain to close at a new record as the latest positive data helped extend a rally that had been briefly threatened by overseas concerns.
Since falling to a near three-month low on Aug. 7, the S&P 500 has risen in 12 of the past 16 sessions. It is also closed out its fourth straight weekly advance and sixth positive month of the past seven. Friday's gains pushed the index to its latest record close of 2,003.37, its third finish above 2,000 this week.
Wall Street initially lost ground after Britain introduced a note of caution into the market, raising its international terrorism threat level to the second highest in response to possible attacks being planned in Syria and Iraq.
In the latest economic data, business activity in the U.S. Midwest rebounded more than expected in August, signaling a pickup in that region's economy. Separately, U.S. consumer sentiment rose more than expected, according to the final August reading from the Thomson Reuters/University of Michigan Surveys of Consumers. Continuación...