At midday, the tech-focused Nasdaq composite index added 23.74, or 1.2%, to 1,987.62. The Dow Jones industrial average gained 38.37, or 0.4%, to 10,227.85, while the Standard & Poor's 500 index rose 3.48, or 0.3 %percent, at 1,162.84.

The University of Michigan's consumer sentiment index showed a drop in confidence. The May index came in at 85.3, lower than the 88.3 anticipated by analysts.

The Labor Department announced that import prices advanced 0.8% in April mainly on higher oil, chemicals and raw materials but still the gains marked the slowest pace in three months.

The dollar traded at 107.18 yen, up vs. 106.77 yen late Thursday, while the euro slipped vs. the greenback to $1.2634 from $1.2706.

Oil prices declined sharply to below $49 a barrel. In early trading Friday, crude futures were down 29 cents to $48.25 a barrel.

The June gold contract lost $1.90 to $420.30 an ounce in New York.


Shares UP:

Dell's shares climbed 6.2%.
Delphi Corp.'s shares rallied 12%.
Tiffany & Co.'s shares added 2.2%.
C&F Financial Corp. shares rallied 7.7%.


Shares DOWN:

Alcoa Inc.'s shares lost 1.9%.
Continucare Corp. dropped 27%.
The Pep Boys shares slid 13.7%.
Shares of Sigma Designs fell 16%.