Stocks rise at year-end

NEW YORK (CNNMoney.com) -- Stocks rose modestly Friday morning, with investors extending gains at the end of a strong year on Wall Street.

The Dow Jones industrial average (up 12.34 to 12,513.86, Charts) added a few points more than an hour into the session, after hitting a record trading high in the previous session. The broader S&P 500 (up 1.21 to 1,425.94, Charts) index was little changed and the Nasdaq (up 9.50 to 2,435.07, Charts) composite gained 0.3 percent.

Stocks dipped Thursday in response to Apple's options woes, volatile oil prices, upbeat economic news and a spike in Treasury bond yields.

With little corporate or economic news Friday, investors seemed content to build on the recent momentum.

All financial markets were closed Monday for Christmas and will be closed Monday for New Year's Day. Markets will also be closed Tuesday for a national day of mourning in honor of President Gerald Ford, who passed away Tuesday night.

2006 is set to become the fourth year in a row that the S&P 500 and Nasdaq composite have posted gains. For the Dow, it will be the third of four years, after the blue-chip average saw a slight decline in 2005.

Since bottoming in July, stocks have been on a tear, leaving the Dow up 16.7 percent this year as of Thursday's close, while the S&P 500 is up just a little more than 14 percent.

The Nasdaq composite has gained 10 percent, and the Russell 2000 (up 1.20 to 795.68, Charts) small-cap index has jumped 18 percent in 2006.

In the latest development in the Apple stock options case, the company restated its earnings and acknowledged that stock options were wrongly dated. However, it also said that CEO Steve Jobs didn't benefit as a result. Apple (up $4.39 to $85.26, Charts) stock rallied. (Full story).

In other news, Marsh & McLennan (up $0.13 to $30.85, Charts) will sell its Putnam Investments unit to fellow financial firm Power Corp. of Canada for $3.9 billion, the Wall Street Journal reported.

AT&T (up $0.56 to $36.06, Charts) rose on news that it has offered two concessions that should lead the way to winning approval of its $85 billion buyout of BellSouth (up $0.78 to $47.58, Charts).

Treasury prices slipped, raising the yield on the benchmark 10-year note to 4.71 percent from 4.68 percent late Thursday. Bond prices and yields move in opposite directions.

U.S. light crude oil for February delivery fell 46 cents to $60.07 a barrel on the New York Mercantile Exchange.

COMEX gold rose 10 cents to $637 an ounce.

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