NEW YORK (TheStreet) -- Wall Street enjoyed a solid start to May with stocks rebounding on possible deal talks and better-than-expected earnings from the likes of Gilead Sciences (GILD) and CVS Caremark (CVS).
Markets had suffered a tech and biotech selloff on Thursday that saw all of the benchmark indexes tumble 1%.
The S&P 500 added 1.1% and the Nasdaq climbed 1.3%. The Dow Jones Industrial Average gained 1%, or 180 points.
Altera (ALTR) led the Nasdaq higher on reports Intel (INTC) could launch a hostile bid for the chipmaker by June. Intel had signed a standstill agreement with Altera amid previous deal talks which expire on June 1, according to Reuters. Altera spiked 9.8%.
Yum! Brands (YUM) jumped more than 6% after CNBC reported activist investor Corvex has taken a significant position in the fast food chain owner. Shares were already higher after investment firm Third Point disclosed a new position on Thursday based on expectations of a sharp turnaround in profit at Yum!.
CVS Caremark edged higher after reporting quarterly earnings of $1.14 a share, 6 cents better than expected. Revenue of $36.33 billion came in 11.1% higher than a year earlier.