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NEW YORK (CNNMoney.com) -
Stocks staged a late-session rally Friday, pushing the Nasdaq and S&P 500 to fresh four-and-a-half year highs.
The Dow Jones industrial average (up 46.11 to 10,766.33, Charts) and the S&P 500 (up 5.47 to 1,248.27, Charts) index both gained around 0.4 percent. The Nasdaq composite (up 6.61 to 2,227.07, Charts) added 0.3 percent.
Treasury prices fell, boosting the corresponding yields and the dollar was mixed versus other major currencies.
Stocks swung back and forth across the unchanged line throughout the session as investors welcomed GE's improved outlook and other positive earnings news, but stayed cautious after the recent run. But stocks jumped in the last half hour of trading.
All three major stock gauges have gained for four weeks in a row. After such a run, stock investors may need a breather.
"I wouldn't discount the likelihood that next week will be flat to lower," said Tom Schrader, managing director of U.S. equity trading at Legg Mason. "It's a holiday week, volume will be light, and after four up weeks we'll need a pause."
All financial markets are closed for Thanksgiving Thursday. Markets will also close early Friday. The Treasury bond market also closes early Wednesday.
Next week brings few earnings or economic reports. Notable standouts include the minutes from the last Fed policy meeting, due Tuesday, and the consumer sentiment index from the University of Michigan, due Tuesday.
Friday's movers
Market breadth was positive and volume was robust. On the New York Stock Exchange, winners beat losers by more than nine to seven on volume of 1.80 billion shares. On the Nasdaq, advancers beat decliners three to two as 2.04 billion shares changed hands.
Dow component General Electric (up $1.09 to $35.75, Research) upped its 2006 earnings forecast and boosted its dividend and stock buyback plan. The Dow component also agreed to sell most of its reinsurance business to Swiss Re for $6.8 billion. GE shares rose more than 3 percent.
General Motors (up $1.42 to $24.05, Research) jumped 6.3 percent after the Detroit News reported that the automaker could announce a restructuring plan and at least 25,000 job cuts as soon as next week.
GM shares tumbled this week amid worries about bankruptcy, but managed to recover Thursday after the CEO said such worries were overblown.
Hewlett-Packard (up $0.40 to $29.40, Research) reported quarterly earnings and revenue late Thursday that topped analysts' average estimates. Shares gained 1.3 percent.
Tech bellwether Cisco Systems (down $0.35 to $17.02, Research) said it was buying Scientific-Atlanta (up $0.70 to $42.15, Research), a maker of cable television set-top boxes, for $6.9 billion. Cisco shares fell 2 percent, while Scientific-Atlanta shares gained 1.7 percent.
In the retail space, Liz Claiborne (up $0.51 to $36.10, Research) made a hostile takeover bid for J. Jill after failing to secure a so-called friendly deal. The cash offer is roughly $366 million, or $18 a share. J. Jill (up $5.72 to $18.51, Research) shares jumped nearly 45 percent on the news, while Liz Claiborne stock inched higher.
Marvell Technology Group (up $6.55 to $57.04, Research) reported quarterly earnings late Thursday that more than doubled from a year earlier and beat estimates. The chipmaker also said its current-quarter revenue and profit margins would continue to rise.
A variety of chip stocks gained, sending the Philadelphia Semiconductor (up 11.67 to 478.46, Charts) index, or the SOX, up 2.5 percent.
On the downside, Walt Disney (down $0.79 to $25.20, Research) slipped 3 percent after it reported lower quarterly profit late Thursday on weakness in its movie business.
Autodesk (down $8.36 to $38.74, Research) tumbled almost 18 percent after issuing fourth-quarter earnings and revenue guidance that was shy of forecasts. That overshadowed the software maker's strong third-quarter's earnings report.
U.S. light crude oil for December fell 20 cents to settle at $56.14 a barrel on the New York Mercantile Exchange.
Treasury prices slipped, raising the yield on the 10-year note to about 4.49 percent from 4.46 percent late Thursday. Treasury prices and yields move in opposite directions.
The dollar fell versus the euro and gained versus the yen.
COMEX gold fell 70 cents to settle at $486.20 an ounce.
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