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NEW YORK - US stocks ended higher on Friday, pushing the Dow Jones industrial average to its fourth straight record close, helped by talk of potential takeovers and economic data that calmed inflation concerns.
Reports that Microsoft Corp. may buy Yahoo Inc. boosted the internet media company's shares 10 per cent and propelled the Nasdaq to its fifth straight week of gains, its longest winning streak in nearly 18 months.
US government data on Friday showed the economy last month added the smallest gain in jobs in more than two years. The news calmed inflation concerns, but some analysts said it painted a worrying picture about the outlook for corporate profits.
"There's no question that M&A is acting as a positive bid underneath the market," said Christopher Zook, chairman and chief investment officer at CAZ Investments in Houston, Texas.
"What bothers me is that we're getting more and more indication of the consumer slowing down, yet the market continues to rally based on M&A and private equity activity. The jobs number was not good," he added.
The Dow Jones industrial average finished up 23.24 points, or 0.18 per cent, at 13,264.62 -- its 19th record finish so far in 2007. The Standard & Poor's 500 Index closed up 3.23 points, or 0.21 per cent, at 1,505.62. The Nasdaq Composite Index rose 6.69 points, or 0.26 per cent, to end at 2,572.15.
During the session the Dow climbed to an intraday record of 13,284.53 and the S&P extended its climb beyond the 1,500 level to its highest in more than six years.
The close marked he Dow's 41st record finish since the beginning of October and its 19th record close since the start of 2007. For the week, the Dow rose 1.1 per cent, the S&P 500 gained 0.8 per cent and the Nasdaq rose 0.6 per cent.
Yahoo's stock notched its biggest advance in 4-1/2 years, but gave up most of its gains toward the close to end up 10 per cent at $30.98, after earlier soaring as much as 19 per cent to $33.61 -- its biggest advance since October 2002.
Yahoo shares were among the biggest advancers on both the Nasdaq and the S&P 500.
But shares of Microsoft ended down 1.3 per cent at $30.56 and were among the biggest drags on the Dow, the Nasdaq and the S&P 500 indexes.
In other deal news, Clear Channel Communications Inc., the largest US radio station operator, said late on Thursday it had rejected a revised $19.6 billion bid from a private equity group, days before a crucial vote on the deal. Shares finished up 2.5 per cent to $36.85.
In the media sector, Reuters Group Plc, the financial information and news provider, said it had been approached by an unnamed third party about a possible takeover.
Reuters shares finished up 25.1 per cent in London. Reuters ADRs traded on the NYSE ended up 26.9 per cent at $74.76 on the NYSE.
Canada's Globe and Mail newspaper said on Friday that Thomson Corp. is in talks to buy Reuters, citing unidentified sources close to both companies. A Thomson spokesman said the company had no comment.
The development capped a busy week in publishing after a surprise $5 billion bid by Rupert Murdoch's News Corp. on Tuesday for Dow Jones & Co., Inc., publisher of The Wall Street Journal.
Government data showed the economy last month added the smallest gain in jobs in more than two years and the unemployment rate edged upward.
- REUTERS
