Stocks surged higher Friday as another round of corporate takeovers prodded investors to continue a largely uninterrupted buying streak, according to AP. Beyond the buyout news, which has for months lent buoyancy to the markets, a stronger-than-expected reading on consumer sentiment helped investors set aside some concern that consumers unnerved by higher gas prices would pare back spending and upend the economy's smooth slowdown. The latest takeover news, including deals involving marquee names like General Electric Co. and Microsoft Corp., signaled the enormous amount of liquidity that has lubricated global stock markets in recent months doesn't appear on the verge of evaporating. «The M&A activity and earnings seem to be holding up better than expected. I think you're going to see more of this,» said Bill Dwyer, Chief Investment Officer at MTB Investment Advisors, referring to merger and acquisition deals as well as surprisingly strong profits. In midday trading, the Dow Jones industrial average rose 44.30, or 0.33 percent, to 13,531.02. The blue chips set a new trading high of 13,551.82, having crossed 13,500 for the first time on Thursday. The Dow has been on a strong run since early April. Broader stock indicators also advanced. The Standard & Poor's 500 index rose 5.12, or 0.34 percent, to 1,517.87. The S&P rose to its highest level of the year in trading Friday and came within about 7 points of its record close of 1,527.46, set in March 2000. The Nasdaq composite index rose 5.22, or 0.21 percent, to 2,544.60. Bonds fell as the market appeared to look past China's announcement of an interest rate increase and a widening of the range at which the yuan can trade. A rising Chinese currency would make Chinese imports less competitive in the United States. The yield on the benchmark 10-year Treasury note rose to 4.77 percent from 4.76 percent late Thursday. The dollar was mixed against other major currencies, while gold prices rose. Light, sweet crude rose 8 cents to $64.94 per barrel on the New York Mercantile Exchange. Investors appeared unfazed by rising oil prices, instead focusing on corporations' continued appetite for mer$11 billion. GE rose 53 cents to $37.06. Microsoft struck an agreement to acquire online advertising company aQuantive Inc. for about $6 billion (¤4.45 billion) in cash, paying a premium following a rush of major ad deals by its competitors in the past six weeks. AQuantive soared $27.82, or 77.6 percent, to $63.69, while Microsoft slipped 38 cents to $30.60. The buyout news came alongside favorable economic findings. The preliminary Reuters/University of Michigan index of consumer sentiment for May came in at 88.7. Wall Street had expected the reading would be unchanged from April at 87.1. The mood of consumers remains important to the economy as consumer spending makes up two-thirds of U.S. economic activity. Perhaps giving investors further room for confidence, retailers J.C. Penney Co., Kohl's Corp. and Nordstrom Inc. on Thursday each posted earnings that topped Wall Street's expectations. The reports came amid record gasoline prices _ which are averaging more than $3 per gallon (80 cents a liter) nationwide. Higher gas prices could dent consumer spending, however, particularly at retailers such as Wal-Mart Stores Inc., whose primary customers are often sensitive to increases at the pump. In other corporate news Friday, Trump Entertainment Resorts Inc. rose $2.80, or 21.4 percent, to $15.87 after the casino and hotel operator said would-be suitors have shown interest in buying the company. Trump, which last year hired Merrill Lynch to explore the company's options, did not disclose the interested buyers. -- SPA
