Stocks fluctuated at times during the session, however, as investors weighed seemingly contradictory readings on the economy. Wall Street was pleased by Microsoft's $44.6 billion bid for Yahoo. Merger news, which often energizes stocks, has been in short supply for months.

But a mix of economic news reminded investors of the continuing fallout from the housing and mortgage crisis and made for somewhat volatile trading.

According to preliminary calculations, the Dow Jones industrial average rose 92.83, or 0.73 percent, to 12,743.19 after climbing more than 200 points Thursday.