[R]2:30PM NY, U.S. Market Movers[/R]

General Electric Co. (GE: chart) shares rose 1.7% after a media report that the conglomerate was close to picking a winning bidder for its plastics division in a deal that could pull in $11 billion.

CalAmp Corp. (CAMP: chart) shares tumbled 37.3% after the company said that its fourth-quarter net earnings declined to $732,000, or 3 cents per share, compared with $3.47 million, or 15 cents per share, in the year-ago period. Revenue climbed to $57 million versus $47.8 million. CalAmp forecasts a first-quarter net loss of 6 cents to 9 cents per share on revenue of $44 million to $47 million.

Sonic Solutions Inc. (SNIC: chart), software company, said its preliminary fourth-quarter revenue totaled $38.1 million. Shares of Sonic Solutions tumbled 11.8% after reported fiscal fourth-quarter net revenue of $38.1 million and said it expects first-quarter revenue of $33 million to $35 million.

AQuantive (AQNT: chart) shot up 77.4% after Microsoft announced a $6 billion deal to buy the digital marketing technology provider. After an echo of moves made by the tech giant''s competitors, Microsoft fell 1.1%.

Trump Entertainment Resorts (TRMP: chart) climbed 20.5% after the company said that a potential buyer could be in the wings for the company, lifting it off its year lows.

[R]1:00PM NY, 5:00 PM Frankfurt European stocks closed higher on extended rally in the energy sector.[/R]

European stock markets closed notably higher on Friday, hitting new multi-year highs on the back of extended rally in the energy sector and U.S. gains, generated by merger activity. Oil giants Royal Dutch Shell, Total and BP all posted gains above 2%. Shares of Bayer AG rose 3.5% on reports that the GE plastics unit could be sold for nearly $11 billion. TradeDoubler soared 9% as Microsoft''s agreed buy of aQuantive, WPP''s deal for 24/7 Real Media and Google''s deal for DoubleClick put a premium on online advertising firms.

At the same time, airline stocks showed some weakness. British Airways fell 2.9% after the U.K. airline reported a quarterly loss. Lufthansa fell 1% and Air France-KLM declined 1.3%. However, Airbus parent EADS added 3.3% on expectations that the French government will put more money into the company. The German DAX 30 rose 1.4% to a seven-year high of 7,607.54, the French CAC 40 advanced 1.2% at 6,101.14, and the U.K. FTSE 100 climbed 0.9% at 6,640.90, its highest level since September 2000.


[R]11:30AM Market averages rallied, buoyed by deal news and strong consumer sentiment.[/R]
Takeover news and stronger-than-expected reading on consumer sentiment drove U.S. market averages higher. Internet stocks contributed significantly to the gains, with aQuantive (AQNT: chart) leading the sector higher after it agreed to be acquired by Microsoft (MSFT: chart) for about $6 billion in cash. Trump Entertainment (TRMP: chart) climbed 19% after the casino and hotel operator said it received indications that would-be suitors show interest in buying the company. In earnings news, Intuit (INTU: chart) rose 13% after the software maker reported 23% profit increase in Q3. The company posted better-than-expected full-year outlook.

Energy stocks also posted strong gains, benefiting from rising oil prices. Crude for June delivery rose 25 cents to $65.11 a barrel amid concerns about gasoline supplies ahead of the summer driving season. Exxon Mobil (XOM: chart) gained 1.3%. On the side of the losers, semiconductor, disk drive, and airline stocks declined, helping to pull the major averages down off their best levels of the day.

In late morning trading, the Dow Jones industrial average rose 57.38, or 0.43%, to 13,534.10. The blue chips set a fresh trading high of 13,551.82. The Standard & Poor''s 500 index rose 6.09, or 0.40%, to 1,518.84. The Nasdaq composite index rose 6.91, or 0.27%, to 2,546.29. Bonds fell as the market shrugged off China''s announcement of an interest rate increase and a widening of the range at which the yuan can trade against the dollar. The yield on the benchmark 10-year Treasury note rose to 4.77%from 4.76% late Thursday.


[R]9:45AM U.S market averages opened higher, boosted by merger activity.[/R]
Wall Street gained ground on Friday, boosted by takeover activity including a Microsoft Corp. acquisition of online advertising firm Aquantive and a potential divestiture by General Electric Co. Stronger-than-expected reading on consumer sentiment also contributed to the solid gains. The preliminary University of Michigan index of consumer sentiment for May came in at 88.7, vs. expectations of unchanged index at 87.1.

Shares of Aquantive (AQNT: chart) surged 77% in early trading, while Microsoft (MSFT: chart) lost 1.2%. General Electric (GE: chart) advanced 1% amid reports that it is close to a deal to sell its plastics division for nearly $11 billion to Saudi Basic Industries Corp. Again in the Dow, Intel (INTC: chart) jumped 2.3% after Merrill Lynch upgraded the stock.

Among the most notable movers, CalAmp Corp. (CAMP: chart), wireless communications equipment maker, tumbled 37% after it said Q4 profit fell sharply on higher expenses and predicted Q1 net loss, citing near term challenges with one of its products. Trump Entertainment (TRMP: chart) rose 19% after the casino and hotel operator said it received indications that would-be suitors show interest in buying the company.

In the first hour of trading, the Dow Jones industrial average rose 47.06, or 0.35%, to 13,523.78. The Standard & Poor''s 500 index rose 4.90, or 0.32%, to 1,517.65. The Nasdaq composite index rose 4.72, or 0.19%, to 2,544.10. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.78% from 4.76% late Thursday.


[R]9:30AM The FTSE 100 gains Friday, aided by Cadbury Schweppes and oil large-caps.[/R]