Stocks Fight Off U.K. Scare

Breadth was slightly positive to end the week. On the New York Stock Exchange 2.70 billion shares changed hands, as advancers topped decliners by a 6-to-5 margin. Volume on the Nasdaq reached 1.57 billion shares, with winners outpacing losers nearly 8 to 7.

On Thursday, positive headlines out of blue-chip giants McDonald's (MCD Quote) and General Motors (GM Quote) helped U.S. major averages notch a winning session.

The Dow rose 133.23 points, or 1%, to 13,424.88, and the S&P 500 was up 12.39 points, or 0.84%, at 1483.95. The Nasdaq lagged behind but was better by 8.99 points, or 0.35%, at 2601.06.

These gains came despite record oil prices, as the October front-month crude contract finished above the $80-a-barrel level for the first time. During Friday's session, though, oil slid 99 cents to end at $79.10 a barrel. The contract notched a 3.1% increase for the week.

GM was in focus again in the new session, as the automaker reportedly is the lead company in labor negotiations with the United Auto Workers union. The current labor contract expires at midnight. Shares of GM rose 93 cents, or 2.8%, at $34.22.

Dow components Intel (INTC Quote) and American Express (AXP Quote) were lower after Merrill Lynch downgraded both to neutral from buy. Intel ended down 42 cents, or 1.7%, at $24.93. American Express fell $1.66, or 2.7%, to $58.94.

On the other hand, shares of handheld PC maker Palm (PALM Quote) were higher after Morgan Keegan upgraded the stock to outperform from market perform, based on valuation. Palm climbed 59 cents, or 4%, to $15.50.

Research in Motion (RIMM Quote) was started with an outperform rating and a $100 price target at BMO, and RBC raised its target on the stock by $27 to $110. RIM finished higher by $1.52, or 1.8%, to $87.26.