Wall Street Cheers Deals

Though corporate earnings are starting to flood in, a round of dealmaking dominated the early headlines. The biggest takeover will see student lender Sallie Mae (SLM Quote) acquired by an investor group led by J.C. Flowers in a $25 billion transaction.

Shares of Sallie Mae soared 18.4% to close at $55.35 after the $60-a-share offer was disclosed.

Elsewhere, Google (GOOG Quote) set plans late Friday to pay $3.1 billion for Internet ad outfit DoubleClick in a bid to tap into the market for graphics-based advertising. Google rose $7.98, or 1.7%, to $474.27.

Meanwhile, the day's earnings were generally positive for the top names on the schedule.

Citigroup (C Quote) said it earned $5 billion, or $1.01 a share, in the latest quarter, down from $5.56 billion and $1.11 a share a year earlier, but adjusted earnings of $1.18 were 9 cents better than estimates. Citigroup added $1.33, or 2.6%, to $52.93.

Drugmaker Eli Lilly (LLY Quote) topped analysts' first-quarter expectations and said it should earn $3.30 to $3.40 a share for the full year, up from its earlier target of $3.25 to $3.35. The stock ended up $1.52, or 2.7%, to $58.40.

Wachovia (WB Quote) posted a first-quarter profit of $2.3 billion, or $1.20 a share, an increase of 33% from the year-ago period. The Thomson First Call consensus was for earnings per share of $1.16. Shares of Wachovia climbed $1.08, or 2%, to $55.06.