By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks opened sharply higher Friday as Wall Street welcomed reports of a cease-fire in Libya and a coordinated effort by industrialized nations to bring the Japanese yen down from historic highs.
The Dow Jones Industrial Average (DJIA 11,890, +115.45, +0.98%) rose 144.63 points to 11,919.22, with General Electric Co. (GE 19.62, +0.40, +2.07%) and Caterpillar Inc. (CAT 104.98, +1.86, +1.80%) leading gains that included all of its 30 components.
The Standard & Poor’s 500 Index (SPX 1,285, +11.44, +0.90%) gained 14.37 points to 1,288.09.
The Nasdaq Composite Index (COMP 2,651, +14.68, +0.56%) added 26.57 points to 2,662.62.
Advancers ran ahead of decliners nearly 6 to 1 on the New York Mercantile Exchange, where 373 million shares traded by 9:45 a.m. Eastern.
Oil prices reversed lower on reports that Libya’s foreign minister had declared a ceasefire and said the government would halt military operations in the North African nation.
After rising to an intraday high of $103.66 a barrel, crude-oil futures for April delivery (CLJ11 100.77, -0.65, -0.64%) were lately off 66 cents at $100.76 a barrel on the New York Mercantile Exchange.
Higher oil prices have weighed on stocks in recent weeks, as investors worried escalating energy costs would dent consumer spending.
The announcement came after the United Nations declared a no-fly zone over Libya Thursday night and approved military operations to protect civilians in the wake of a month-long rebellion against Moammar Gadhafi’s regime. Read more on Libya.
Wall Street sentiment was also bolstered as the world’s seven biggest industrialized nations agreed to a plan to bring the Japanese yen down from historic highs. Read more on G-7 intervention.
The yen has surged since a devastating earthquake last week, fueling worry about the possible impact on the Japanese economy, which is largely driven by exports. Read more on yen’s tumble.
