US stocks rose on Friday as take-over news, including Nasdaq's plan to buy Nordic exchange company OMX, boosted investor optimism, although trading was light ahead of a long holiday weekend. Nasdaq Stock Market Inc's planned $3.7 billion acquisition of OMX would give the second-largest US stock exchange a platform to expand in Europe, following a series of mergers in the sector.
Dow component Coca-Cola Co also said it would buy Glaceau, maker of the vitamin water brand, for $4.1 billion. "Today was generally more positive than I would have thought," said Manny Weintraub, managing director at Integre Advisors in New York. "We're seeing some stocks trading higher on take-over news, and as long as interest rates stay reasonable, I think that will continue to support the market."
The Dow Jones industrial average gained 66.15 points, or 0.49 percent, to end at 13,507.28. The Standard & Poor's 500 Index rose 8.22 points, or 0.55 percent, to finish at 1,515.73. The Nasdaq Composite Index climbed 19.27 points, or 0.76 percent, to close at 2,557.19.
Despite Friday's gains, all three major stock indexes ended the week lower, with the S&P 500 and the Dow snapping a 7-week streak of gains. The Dow ended the week down 0.36 percent, the S&P 500 fell 0.46 percent and the Nasdaq dipped 0.05 percent.
Stocks have been under pressure this week on concerns about China, worries about higher interest rates and as the S&P 500 battled a resistance level of its record closing high. Apple led the Nasdaq higher, gaining 2.7 percent to $113.62, after Prudential raised the price target on the computer maker's stock to $125 from $115.
Helping to extend the Nasdaq's gains were shares of Electronic Arts Inc The video game publisher late on Thursday said it could begin a management overhaul next week, sending its stock up 2.7 percent to $47.87.
Coca-Cola helped boost the Dow, rising 1.3 percent at $51.89 on the New York Stock Exchange on the Glaceau deal, while the Nasdaq Stock Market's shares fell 3.4 percent to $32.84 on the Nasdaq on its plans to buy OMX.
Energy stocks lent support, as US crude oil futures kept hefty gains on short covering ahead of the Memorial Day weekend, which ushers in the summer driving season. Exxon Mobil rose 1.5 percent to $83.51, and was among the biggest boosts to the Dow and the S&P. July crude climbed $1.02, or 1.6 percent, to settle at $65.20 a barrel.
The market briefly pared gains in the morning after data showed a drop in existing-home sales last month to the lowest in nearly four years. Shares of Home Depot Inc fell 1.5 percent to $38.38 after the housing data.
But trading was very light on the NYSE, with about 1.23 billion shares changing hands, far below last year's estimated daily average of 1.84 billion. On the Nasdaq, about 1.56 billion shares traded, also sharply below last year's daily average of 2.02 billion.
Advancing stocks outnumbered declining ones by a ratio of about 5 to 2 on the NYSE and by about 3 to 2 on the Nasdaq. All US financial markets will be closed on Monday in observance of the Memorial Day holiday.
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