Stocks surge on tech advance
Wall Street advances as investors weigh fluctuating oil prices, mixed economic news, corporate deals and speculation.
NEW YORK (CNNMoney.com) -- Stocks rallied Thursday, with technology leading the way, as investors eyed the day's economic news, fluctuating oil prices and corporate deal-making activity.
The Dow Jones industrial average (INDU) gained 0.7%. The broader Standard & Poor's 500 (SPX) index added over 1%. The Nasdaq composite (COMP) climbed 1.5%.
Stocks struggled to rise in the morning amid spiking oil prices, mixed economic reports and a rash of deal news and speculation. But the tone turned positive in the late morning, despite fluctuating oil prices.
Stocks have essentially been on the rise for the past two months as investors breathe a sigh of relief that the credit crisis seems to have hit a turning point and the economy appears to be stabilizing.
"A lack of continued negative surprises is helping," said Rob Lutts, chief investment officer at Cabot Money Management. "There are still issues out there being dealt with, but there's a sense that the worst has passed."
In addition, he said that many Wall Street pros have a lot of cash that's been sitting on the sidelines for some time and there's a shift right now to put that money to work.
Thursday's economic news was mixed. Jobless claims rose a bit, New York-area manufacturing worsened and Philadelphia-area manufacturing weakened less than had been expected. Industrial production and capacity utilization declined more than expected in April and homebuilder confidence fell again in May.
Friday brings economic reports on housing starts, building permits and consumer sentiment.
Icahn v. Yahoo: Activist shareholder Carl Icahn launched a campaign to unseat Yahoo's board of directors as part of an effort to restart deal talk with would-be buyout partner Microsoft. Yahoo (YHOO, Fortune 500) shares gained 2.2%.
CBS buying CNet: The broadcaster is buying the Internet company for $1.8 billion in cash, in a deal that will make CBS one of the top 10 Web companies in the United States. CBS shares fell 2.4%, while CNet shares rallied 43.5%.
GE could sell appliance division: The conglomerate has reportedly hired Goldman Sachs to seek buyers for the sale of its business, which could be worth between $5 billion and $8 billion. GE shares inched lower.
Other movers: A variety of big technology shares rose, including Apple (AAPL, Fortune 500), Intel (INTC, Fortune 500), Hewlett-Packard (HPQ, Fortune 500) and Cisco Systems (CSCO, Fortune 500).
JC Penney (JCP, Fortune 500) reported weaker quarterly results that nonetheless beat forecasts. The retailer also said second-quarter earnings would come in just ahead of analysts' forecasts, but that full-year conditions will be difficult amid the tougher consumer spending environment. Shares gained more than 4%.
Market breadth was positive and volume was moderate. On the New York Stock Exchange, winners topped losers seven to three on volume of 1.20 billion shares. On the Nasdaq, advancers beat decliners three to two on volume of 2.22 billion shares.
Economic news: The number of Americans filing new claims for unemployment rose 6,000 last week to 371,000, just topping forecasts for a rise to 370,000.
The N.Y. Empire State index, which measures manufacturing in the New York region, came in at minus 3.2, versus forecasts for a flat reading. Any negative reading indicates weakness in the sector.
The Philadelphia Fed index, which measures manufacturing in the Philadelphia area, came in at minus 15.6 for May, versus forecasts for a reading of minus 19.
Commodity prices: U.S. light crude oil for June delivery fell 10 cents to settle at $124.12 a barrel on the New York Mercantile Exchange following a volatile session.
Meanwhile, the national average price for a gallon of regular unleaded gas rose to a record $3.776 from $3.758 the previous day, according to AAA. It was the eighth record in a row.
COMEX gold for August delivery rose $13.30 to settle at $884.10 an ounce.
Other markets: The dollar rose versus the euro and slipped versus the yen.
Treasury prices rose, lowering the yield to 3.83% from 3.90% late Wednesday. Bond prices and yields move in opposite directions. 
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