Wall Street Cheers Deals

Other reporters included toymaker Mattel (MAT Quote), which posted a first-quarter profit that beat expectations. Excluding items, Eaton (ETN Quote) reported a first-quarter profit of $1.62 a share, topping estimates. Mattel dipped 0.9% to $28.10, while Eaton closed higher by 2.8% to $87.50.

Among ratings changes, Friedman Billings and Prudential downgraded shares of MedImmune (MEDI Quote) to market perform and neutral, respectively. Meanwhile, Goldman Sachs upgraded Dow component Merck (MRK Quote) to neutral from sell.

MedImmune gained $1.25, or 2.8%, to $45.44, after billionaire investor Carl Icahn said he would not oppose a sale of the company. Merck tacked on 11 cents, or 0.2%, to $50.32.

Away from stocks, commodities finished mixed following a volatile session. Crude oil futures slipped by 2 cents at $63.61 a barrel. Gold finished up $4.60 to $694.50 an ounce.

"Once the initial dust settles, investors will have to keep an eye on oil and interest rates," said Marc Pado, U.S. market strategist with Cantor Fitzgerald. "Those are two bearish pulls on the market. While they are not on the front burner at the moment, they are simmering in the background. If one or the other begins to boil over, it will be a negative distraction for investors."

On the economic front, the Commerce Department said retail sales rose 0.7% last month, slightly above economists' expectations. Excluding autos, retail sales were up 0.8% in March, also ahead of forecasts.