At 7:45 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were lower.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks ended in positive territory Tuesday, boosted by an increase in pending home sales and a smaller-than-expected decline in auto sales, but gains were modest and trading was volatile.

Ken Wattret, economist with BNP Paribas in London, said investors are still worried about the economy, particularly the job market.

"The sense we have is that the labor market is still extremely weak," said Wattret. "The worst is behind us, but nonetheless it's still a very difficult environment. If you have a job, you're worried about losing it. If you don't have a job, you're struggling to get one."

Jobs: The outplacement firm Challenger, Gray & Christmas released a report showing that job cuts by U.S. employers totaled 111,182 in May, a 16% decline from 132,590 in April.

That's followed by a report on private-sector jobs from payroll manager ADP at 8:15 a.m. ET.

The two readings come ahead of the U.S. Labor Department's monthly report on employment, which comes out Friday.

Autos: A federal court agreed Tuesday to hear a challenge by pension funds opposing the sale of Chrysler's assets to Fiat. Arguments in the appeal will be held Friday and could delay Chrysler's emergence from bankruptcy.

The Senate Commerce Committee is due to hold a hearing on the bankruptcies of Chrysler and General Motors (GMGMQ) at 2:30 p.m. ET.

Economy: Bernanke is due to appear before the House Budget Committee at 10 a.m. ET. The Fed chief will discuss the condition of the federal budget.

Companies: Stocks to watch include Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), whose future will be discussed at a hearing held by a House Financial Services subcommittee.

World markets: Asian stocks finished in positive territory. But in Europe, major markets were lower in midday trading.

Oil and money: The dollar rose versus the major international currencies, including the euro, the yen and the British pound. The price of oil rose 76 cents a barrel to $67.79. 

The Dow Jones industrial average (INDU) added 19 points or 0.2%. The index briefly turned positive for the year for the first time since Jan. 7.

The S&P 500 (SPX) index added 2 points or 0.2%. The Nasdaq composite (COMP) gained 8 points, or 0.4%.

Stocks had seesawed on both sides of the unchanged line throughout the session, managing gains just after the release of the housing market report and then again through the close.

The fact that stocks were mostly hanging in after Monday's big move was positive, said Ron Kiddoo, chief investment officer at Cozad Asset Management.

Pending home sales jumped 6.7% in April, and posted year-over-year increases in every region but the West, according to a National Association of Realtors report released on Tuesday. The report added to hopes that the housing market is starting to find its footing.

The collapse of the housing market set the recession in motion and investors have been looking for signs that it is nearing a recovery.

Stocks in the U.S. and abroad jumped Monday after upbeat reports on manufacturing, construction and consumer spending added to hopes that the pace of the recession is slowing.

Such bets have helped lift the stock market over the past three months, after the Dow and S&P 500 slumped to more than 12-year lows.

"On an almost daily basis, we're seeing signs of a lessening of the recession," Kiddoo said. "It's not the same as a recovery, but it's a sign that we're moving in the right direction."

Wednesday brings a number of closely-watched economic reports. The standout is the May report on private-sector employment from payroll services firm ADP.

Employers are expected to have cut 525,000 jobs after cutting 491,000 jobs in the previous month. The report sets the tone for the broader May non-farm payrolls report due out on Friday.

Other reports on tap for Wednesday include the May manufacturing report from the Institute for Supply Management and the weekly crude inventories report from the Energy Information Administration.

Financials: Three more banks announced plans to repay the government bailout money.

JPMorgan Chase (JPM, Fortune 500) said late Monday it plans to raise $5 billion toward the $25 billion it owes the government. American Express (AXP, Fortune 500) also said late Monday that it will raise $500 million toward the $3.4 billion it owes.

Morgan Stanley (MS, Fortune 500) said Tuesday that it plans to raise $2.2 billion.

The Federal Reserve is expected to announce next week which of the 19 banks that it stress tested are in good enough shape to pay back bailout funds. In order for banks to pay back the government, they must prove that they can raise money without depending on guarantees against losses provided by the Federal Deposit Insurance Corp. (FDIC).

In other financial news, Citigroup (C, Fortune 500) will withhold severance payments worth tens of millions of dollars to five former executives, according to a published report.

Citigroup will be kicked out of the Dow, with home, auto and commercial insurer Travelers (TRV, Fortune 500) taking its place starting Mon., June 8. The government now owns a large stake in Citi and the company is undergoing a restructuring.

Goldman Sachs (GS, Fortune 500) raised over $1.9 billion after selling part of its stake in Industrial & Commercial Bank of China.

GM: General Motors (GMGMQ) is selling its Hummer truck brand to Chinese industrial company Sichuan Tengzhong. The deal was announced one day after GM filed for bankruptcy protection, bringing an end to an era for the automaker.

The bankruptcy is seen as necessary by lawmakers who say the industry requires a broad overhaul. GM's bankruptcy will result in 20,000 job losses and the closure of 12 plants.

GM is now trading under the symbol GMGMQ, as of Tuesday. It will be removed from the S&P 500 at the close of trading Tuesday and is also being kicked out of the Dow. Cisco Systems (CSCO, Fortune 500) takes its place in the Dow starting Monday.

Separately, GM said that May auto sales fell 29% from a year ago, versus forecasts for a drop of nearly 37%. The May performance was the automaker's best of the year.

Auto sales: Other companies also reported narrower-than-expected sales drops.

Ford Motor (F, Fortune 500) said Tuesday that May auto sales fell 24%, versus forecasts for a drop of 28.5%. The results were the best monthly performance for the company since last July.

Chrysler - which filed for bankruptcy April 30 - said sales dropped 47% from a year ago, versus forecasts for a slide of almost 54%. It was the automaker's best monthly performance of the year.

The exception was Toyota Motor (TM), which slumped 40.7%, roughly in line with forecasts for a slide of 40.6%.

Market breadth was positive. On the New York Stock Exchange, winners beat losers three to two on volume of 1.41 billion shares. On the Nasdaq, advancers topped decliners five to four on volume of 2.42 billion shares.

Bonds: Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.61% from 3.67% Monday. Treasury prices and yields move in opposite directions.

Other markets: In global trading, Asian and European markets ended mixed.

In currency trading, the dollar fell versus the euro and yen.

U.S. light crude oil for July delivery fell 3 cents to settle at $68.55 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery rose $4.40 to settle at $984.40 an ounce. 

The Dow Jones industrial average (INDU) added a few points in the early going. The S&P 500 (SPX) index was barely changed. The Nasdaq composite (COMP) lost a few points.

U.S. stocks roared Monday after upbeat reports on manufacturing, construction spending and consumer spending added to bets that the pace of the recession is slowing.

World markets surged as well Monday. However, the momentum didn't carry over Tuesday morning, as investors shed some of the financial and tech stocks that had led the advance.

Manus Cranny, market analyst at MF Global in London, said the markets might have overextended themselves with Monday's rally.

"The fundamentals haven't quite caught up with the sentiment and the momentum in the market itself," said Cranny.

Financials: JPMorgan Chase (JPM, Fortune 500) and American Express (AXP, Fortune 500) both announced plans late Monday to sell stock, while Morgan Stanley (MS, Fortune 500) made a similar announcement Tuesday morning. They are the latest banks looking to raise money to repay government bailout funds.

The Federal Reserve is expected to announce next week which of the 19 banks that it ran so-called stress tests on will be allowed to pay back bailout funds.

Citigroup (C, Fortune 500) has decided to withhold severance payments worth tens of millions of dollars to five former executives, according to a report in the Wall Street Journal.

GM: General Motors announced the sale of its Hummer truck brand, though it wouldn't name names or price. GM said the deal would close by the end of the third quarter.

The move comes after GM (GMGMQ) filed for bankruptcy protection Monday, bringing an end to an era for the iconic automaker. The bankruptcy was hailed by President Obama, who wants a complete overhaul of the U.S. auto industry, even though GM's Chapter 11 will result in 20,000 job losses and the closure of 12 plants.

GM is now trading under the symbol GMGMQ, as of Tuesday.

Economy: A report on pending home sales in April is on tap at 10 a.m. ET. Auto and truck sales for May also are slated for release.

World markets: Asian stocks ended mixed, with Japan's Nikkei posting mild gains and Hong Kong's Hang Seng falling 2.6%. Major European markets slumped in afternoon trading.

Money and oil: The dollar slipped versus the major international currencies, including the euro, the yen and the British pound. The price of oil fell $1 to $67.58. 

NEW YORK (CNNMoney.com) -- Stocks rallied Monday, sending the Dow Jones industrial average near the breakeven point for the year, as better-than-expected readings on manufacturing activity raised hopes that a global economic recovery is brewing.

The Dow Jones industrial average (INDU) surged 221 points, or 2.6%, to close at 8,721.44 points. The bluechip average is within 55 points of breaking even for the year.

The broader S&P 500 (SPX) rose 24 points, or 2.6%, to about 943 points - its highest level of the year. The Nasdaq composite (COMP) jumped 54 points, or 3%.

The rally was broad based, with industrial and technology stocks leading the pack. Boeing (BA, Fortune 500) rose 6.5% and United Technologies Corp. (UTC) gained 5.3%. Shares of energy producers Exxon Mobil (XOM, Fortune 500) and Chevron (CVX, Fortune 500) rose as oil topped $68 a barrel.

As stocks advanced, demand for safe-haven assets evaporated. The yield on the benchmark 10-year note rose to 3.7% as its price fell sharply.

Stocks opened higher as investors looked past an official declaration of bankruptcy by General Motors, which had been widely expected. The rally gained steam after an industry report showed U.S. manufacturing activity shrank at a slower pace last month.

"Today's data were better than expected, both here and abroad," said Phil Orlando, chief equity market strategist at Federated Investors. The recession has "reached its nadir" and the improved economic outlook has helped "draw some cash off the sidelines," he said.

Wall Street rallied Friday, with the major indexes ending May in positive territory. That marked the third consecutive month that stocks have risen, though May's gains were smaller than those posted in the previous two months.

Looking ahead, automakers report monthly sales figures Tuesday. And investors are already bracing for the government's closely-watched jobs report due Friday.

Economy: The manufacturing sector contracted in May, but the pace of deterioration was slower than expected, according to an industry report.

The Institute for Supply Management said its index of national factory activity rose to 42.8 from 40.1 in April. Economists had expected the index to increase to 42, according to a survey by Briefing.com.

A reading below 50 in the index indicates the manufacturing sector is contracting. But May's gain puts the index over the tipping point that suggests expansion in the overall economy. A reading above 41.2%, over a period of time, is generally consistent with growth in gross domestic product.

Meanwhile, two separate reports showed manufacturing activity in China expanded last month. A measure of India's manufacturing sector rose to its highest level in eight months.

European manufacturing activity shrank at a slower pace in May, with a euro zone purchasing managers index marking its biggest monthly jump on record.

In the United States, construction spending unexpectedly rose 0.8% in April, its biggest increase in eight months, the Commerce Department reported. Analysts had forecast spending to fall 0.8%.

Separately, personal income rose 0.5% in April, the biggest increase in 11 months, the government reported Monday. But consumer spending dropped 0.1%.

Dow changes: Two Dow components, General Motors and Citigroup (C, Fortune 500), will be officially removed from the average June 8, Dow Jones announced Monday. Travelers Companies (TRV, Fortune 500) will take the place of Citi; Cisco Systems (CSCO, Fortune 500) will fill GM's slot on the Dow.

"I think getting some of the dogs out of the Dow is helping [to] feed the psychology," said Nick Kalivas, vice president of financial research at MF Global. But Monday's manufacturing reports were the main driver of the rally, he added.

Autos: GM (GM, Fortune 500) filed for bankruptcy protection Monday in a move aimed at helping the once-mighty automaker emerge with only its more profitable plants, brands, dealerships and contracts.

GM's stock rose 18% earlier in the session. Analysts said the rally was related to short selling, a strategy that allows investors to sell stock they don't yet own and then buy it later when the price falls. On Monday investors were buying back shares to cover their short positions, driving up the price. Shares closed 8% higher.

GM stock will begin trading on the "Pink Sheets" on Tuesday morning, said Cromwell Coulson, CEO of Pink OTC Markets Inc. Pink sheets allow for trading in certain stocks that are not listed on an exchange or the Nasdaq.

GM's bankruptcy filing occurred just hours after a U.S. Bankruptcy Court judge in New York approved Chrysler's sale of most of its assets to Italian carmaker Fiat.

Bonds: Treasury prices fell, with the yield on the benchmark 10-year note rising to 3.71% from 3.46% Friday. Bond prices and yields move in opposite directions.

Other markets: Asian stocks soared, with Japan's Nikkei adding 1.6%. European markets rallied, with shares gaining between 2% and 4%.

In currency trading, the dollar fell against the euro and the British pound. It rose against the Japanese yen.

NYMEX oil for July delivery rose by $2.27 a barrel to settle at $68.58.

COMEX gold for August delivery fell 30 cents to close at $980 an ounce. 

NEW YORK (CNNMoney.com) -- Stocks rallied Monday as investors looked past the bankruptcy of General Motor to focus on upbeat economic reports.

The Dow Jones industrial average (INDU) surged 196 points, or 2.5%, after about 45 minutes of trade. The broader S&P 500 (SPX) rose 23 points, or 2.5%. The Nasdaq composite (COMP) jumped 47 points, or 2.7%.

Two Dow components, General Motors and Citigroup (C, Fortune 500), will be officially removed from the average June 8, Dow Jones announced Monday. Travelers Companies (TRV, Fortune 500) will take the place of Citi; Cisco Systems (CSCO, Fortune 500) will fill GM's slot.

Stocks closed higher Friday, with the major indexes ending May in positive territory. That marked the third consecutive month that stocks have risen, though May's gains were smaller than those posted in the previous two months.

Economy: The manufacturing sector contracted in May, but the pace of deterioration was slower than expected, according to an industry report.

The Institute for Supply Management said its index of national factory activity rose to 42.8 from 40.1 in April. Economists had expected the index to increase to 42, according to a survey by Briefing.com.

Meanwhile, two separate reports showed manufacturing activity in China expanded last month.

Construction spending unexpectedly rose 0.8% in April, its biggest increase in eight months, the Commerce Department reported. Analysts surveyed by Briefing.com had forecast spending to fall 0.8%.

Separately, personal income rose 0.5% in April, the biggest increase in 11 months, the government reported Monday. But consumer spending dropped 0.1%.

Autos: GM (GM, Fortune 500) filed for bankruptcy protection Monday in a move aimed at helping the once-mighty automaker emerge with only its more profitable plants, brands, dealerships and contracts.

GM's bankruptcy filing occurred just hours after a U.S. Bankruptcy Court judge in New York approved Chrysler's sale of most of its assets to Italian carmaker Fiat.

Bonds: Treasury prices rose, with the yield on the benchmark 10-year note slipping to 3.59% from 3.46% Friday. Bond prices and yields move in opposite directions.

Other markets: Asian stocks soared, with Japan's Nikkei adding 1.6%. Major European markets traded in positive territory in morning trading.

In currency trading, the dollar fell against the euro and the British pound. It rose against the Japanese yen.

NYMEX oil for July delivery rose by $1.41 a barrel to $67.72.

COMEX gold for August deliver was up $390 an ounce to $984.20. 

The Dow Jones industrial average (INDU) surged 105 points, or 1.2% shortly after the opening bell. The broader S&P 500 (SPX) rose 11 points, or 1.2%. The Nasdaq composite (COMP) jumped 11 points, or 1.1%.

Two Dow components, General Motors and Citigroup (C, Fortune 500), will be officially removed from the average June 8, Dow Jones and Company announced Monday. Travelers Company (TRV, Fortune 500) will take the place of Citi and Cisco Systems (CSCO, Fortune 500) will fill GM's slot.

Stocks closed higher Friday, with the major indexes ending May in positive territory. That marked the third consecutive month that stocks have risen, though May's gains were smaller than those posted in the previous two months.

Autos: GM (GM, Fortune 500) filed for bankruptcy protection Monday in a move aimed at helping the once-mighty automaker emerge with only its more profitable plants, brands, dealerships and contracts.

GM's bankruptcy filing occurred just hours after a U.S. Bankruptcy Court judge in New York approved Chrysler's sale of most of its assets to Italian carmaker Fiat.

Economy: Personal income rose 0.5% in April, the biggest increase in 11 months, the government reported Monday. But consumer spending dropped 0.1%.

A closely watched gauge of manufacturing activity is on tap at 10 a.m. ET, as is a report on construction spending.

Bonds: Treasury prices rose, with the yield on the benchmark 10-year note slipping to 3.59% from 3.46% Friday. Bond prices and yields move in opposite directions.

Other markets: Asian stocks soared, with Japan's Nikkei adding 1.6%. Major European markets traded in positive territory in morning trading.

In currency trading, the dollar fell against the euro and the British pound. It rose against the Japanese yen.

NYMEX oil for July delivery rose by $1.04 a barrel to $67.34.  

NEW YORK (CNNMoney.com) -- Wall Street will return for the first trading day of a new month Monday with the economic outlook still unclear and the bankruptcy of a major American business icon looming large.

General Motors is expected to file Chapter 11 after its restructuring bid fell short of the government's June 1 deadline. The company's stock fell below $1 for the first time since the Great Depression on Friday.

Still, GM officially going bust may not be the big market mover of the week, since most investors have already factored it in. There's also the economy, which will likely grab the spotlight.

Economic indicators due next week include, among other things, a closely watched manufacturing index on Monday and the all-important government jobs report Friday.

At the same time, investors are nervous about growing turmoil in the bond market and a weakened U.S. dollar.

"The biggest issue facing investors now is trying to make sense of the bond market implications for the economy, as well as what's going on with the dollar," said Gary Flam, a portfolio manager at Bel Air Investment Advisors.

Last week, the yield on the 10-year Treasury note spiked to a 6-month high. The abrupt rise stirred fears that more costly borrowing, particularly mortgage rates, could derail an economic recovery.

The dollar, which fell to a 5-month low Friday, also put investors on edge. However, the greenback's decline has had a silver lining. A weaker dollar helped boost the price for crude oil some 30% in May, which has driven shares of energy producers higher.

Indeed, the rally in energy stocks was one of the main reasons why the major indexes managed to end May in positive territory as optimism about the economy faded.

May marked the first time stocks have risen for three consecutive months since October 2007. But the Dow's 3.8% advance in May was tame compared to the 30% rally on Wall Street during March and April.

Given all of the cross currents in the market, analysts say stocks are likely to remain rangebound until a significant catalyst comes along to provide direction one way or the other.

"Certainly there's money on the sidelines that could be coming into this market," said Quincy Krosby, chief investment strategist at The Hartford. "But investors want to get a clearer picture of the economy."

Monday: Before the opening bell, the government is set to release figures on April personal income and spending. A report on construction spending in April and a closely watched manufacturing index are due out shortly after trading begins.

Troubled automaker General Motors is expected to declare bankruptcy after efforts to restructure before the government's June 1 deadline fell short.

Tuesday: A report on pending home sales comes out at 10 a.m. ET. May auto sales are also on tap. Last month, overall industry sales tumbled 34%.

The technology sector will focus on the annual E3 electronic entertainment expo in Los Angeles.

Wednesday: Economic indicators are forecast to show an increase in service sector activity and a rebound in factory orders.

A report from payroll-processing firm ADP is expected to show private-sector employment shrank by 543,000 jobs in May after a decline of 491,000 jobs the month before.

Homebuilder Toll Brothers (TOLL) is expected to report a quarterly loss of 44 cents per share, according to analysts surveyed by Briefing. com. That compares with a loss of 59 cents in the same period a year ago.

At 10 a.m. ET., Federal Reserve chairman Ben Bernanke will testify before House Budget Committee on the condition of federal budget.

Thursday: Retailers report May chain store sales. The government reports on weekly jobless claims before the opening bell.

The European Central Bank will announce its decision on interest rates.

In the United States, the Federal Reserve kicks off a two day conference on financial markets and monetary policy in Washington.

Friday: The government's closely watched monthly jobs report is due before the market opens. Economists think the nation lost 550,000 jobs in may, an increase of 11,000 from the previous month total. The unemployment rate likely rose to 9.2% from 8.9%.

Another government report is expected to show consumer borrowing fell by $6 billion in May after plunging by a record $11.1 billion the month before.  

NEW YORK (CNNMoney.com) -- Stocks ended a choppy session higher Friday after a late-session rally pushed the major indexes to their biggest three-month run since 2007.

The Dow Jones industrial average (INDU) rose 97 points, or 1.1%, according to early tallies. The broader S&P 500 (SPX) gained 12 points, or 1.3%. The Nasdaq composite (COMP) advanced by 12 points, or 1.3%.

Friday's advance caps an upbeat week for Wall Street. The tech-heavy Nasdaq rose 4.6% over the last 5 trading days. The S&P 500 rose 3.4% and the Dow gained 2.5%.

For the month, the Dow jumped 3.8%, while the S&P 500 rose 5.2% and the Nasdaq advanced 3.6%. May's gains mark the first time stocks have risen for three consecutive months since October 2007.

Stocks had seesawed for most of the session but began to move higher in the last hour of trade, with blue-chip stocks like IBM (IBM, Fortune 500) and Coca Cola Inc. (KO, Fortune 500) leading advancers on the Dow.

Strong oil prices lifted energy shares, which helped prop up the broader market.

"On the upside, the market was propelled by higher oil prices lifting the energy sector," said Quincy Krosby, chief investment strategist at The Hartford. But gains were limited by "the dollar weakening and pressure in the bond market," she added.

Rising oil prices have helped lift the markets in recent days. Oil prices have jumped around 30% this month, marking the largest monthly rise since March 1999. Crude closed above $66 a barrel as the dollar fell to a 5-month low. The yield on the 10-year Treasury note slid to 3.46% as its price ticked up.

Stocks rose Thursday after a government debt auction elicited solid demand, tempering fears that borrowing costs would rise. The major gauges all added about 1%.

Meanwhile, Monday brings a new month and a new week. The old adage "sell in May and go away" may be just that...an adage. Stocks do not, in fact, always fare so poorly in the summer months that 'going away' is a good idea. (Full story)

Economy: The government said first-quarter gross domestic product fell at a revised annual rate of 5.7%, narrower than the originally reported 6.1%. Economists expected the revision to result in a 5.5% rate of decline.

A measure of business activity in the Midwest surprisingly fell in May. The ISM-Chicago Purchasing Managers Index dropped to 34.9 in May from 40.1 in April, signaling contraction. Economists had expected it to rise to 42.

Companies: After the stock market closed Thursday, Dell (DELL, Fortune 500) reported a drop in sales and earnings. The company said a slowdown in PC sales pressured its bottom line.

Before the opening bell Friday, luxury retailer Tiffany & Co. (TIF) reported first-quarter earnings of 20 cents per share, slightly lower than the 21-cent-per-share profit analysts had expected. But the jewelry maker maintained its full-year earnings forecast.

Activist investor William Ackman's quest to overhaul the board of Target (TGT, Fortune 500) fell flat at the retailer's annual shareholder meeting. None of Ackman's candidates for the board won a seat.

Shares of General Motors (GM, Fortune 500) fell below $1 for the first time since the Great Depression as the troubled automaker appeared set to enter bankruptcy despite winning key concessions from the United Auto Workers.

Bonds: Treasury prices rose, with the yield on the benchmark 10-year note slipping to 3.46% from 3.67% Thursday. Bond prices and yields move in opposite directions.

The yield on the 10-year note jumped to a 6-month high of 3.71% earlier this week, raising fears that higher borrowing costs, particularly mortgage rates, could hinder an economic recovery.

Other markets: Stocks around the world rose on the back of Wall Street's rally. In Japan, the Nikkei added nearly 1%. European markets closed higher.

In currency trading, the dollar plummeted against major international currencies. The dollar index, which measures the greenback's performance against a basket of other currencies, sank to a session low of 79.287, its lowest since mid-December.

NYMEX oil for July delivery rose $1.23 to settle at $66.31 a barrel. It was the highest closing price since Nov. 4, when crude settled at $70.53.

COMEX gold for August delivery gained $17.30 an ounce to settle at $978.80. 

NEW YORK (CNNMoney.com) -- U.S. stocks were set to rise at Friday's open, as momentum from the previous session's rally held up and oil prices rose.

At 6:45 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks climbed Thursday after a government debt auction elicited solid demand, tempering fears that borrowing costs would rise. The major gauges all added about 1%.

Economy: Trading on Wall Street has been volatile recently amid uncertainty about the economic outlook.

Reports on gross domestic product, regional manufacturing and consumer sentiment all are on tap and could influence market direction.

At 8:30 a.m. ET, the government will release figures for the gross domestic product. The preliminary GDP is expected to have fallen 5.5% in the first quarter, according to a consensus forecast from Briefing.com. In the prior quarter, the GDP dropped 6.1%.

Companies: After U.S. markets closed Thursday, Dell (DELL, Fortune 500) reported a drop in sales and earnings. The company said a slowdown in PC sales pressured its bottom line.

Activist investor William Ackman's quest to overhaul the board of Target (TGT, Fortune 500) fell flat at the retailer's annual shareholder meeting. None of Ackman's candidates for the board won a seat.

World markets: Stocks around the world rose on the back of Wall Street's rally. In Japan, the Nikkei added nearly 1%. European markets were all higher in morning trading.

Oil and money: Crude prices kept on rising, climbing above $65 a barrel, as traders bet that an economic recovery would lead to a pick up in demand. Most recently, the price of oil rose 99 cents to $66.07 a barrel. The dollar fell against major international currencies, including the yen, the euro and the British pound. 

The Treasury market worked through three major auctions this week totaling $101 billion.

The auctions were center stage as investors tried to assess whether there is enough demand to continue funding the government's massive deficit spending program. On Wednesday, yields spiked, with the benchmark 10-year rate topping 3.7%, and the surge spooked Wall Street.

There is more debt in the pipeline, contributing to falling prices and rising yields. In mid-January, the benchmark yield was hovering between 2.25% and 2.40%. In recent sessions, the benchmark yield has passed 3.7%, before easing back to 3.62% early Friday.

But with key lending rates -- including the 30-year fixed mortgage rate -- tied to the benchmark, higher Treasury yields could stifle a recovery in the housing market.

The Federal Reserve and the Obama administration have been trying to stimulate the housing market, a critical artery in the economy. The bursting of the housing market bubble was the first shoe to drop in the recession that still plagues the global economy.

The Fed has been working to buy back its own debt to stimulate demand in the market and try to keep a cap on yields. But analysts say that the $300 billion campaign is not big enough to move the multi-trillion bond market.

Rising bond yields can also be an indication of investor confidence. Investors tend to rush to the safety of government debt in times of market uncertainty.

One analyst said that the market may have gotten ahead of itself.

"The U.S. 10-year Treasury price is expected to work sideways to higher through May," said Nick Kalivas, vice president of financial research at MF Global, in a research note. "Yields are rising too fast for the pace of economic activity."

Bond prices: The benchmark 10-year note ticked down 4/32 to 95-25/32 and its yield edged up to 3.64%. Bond prices and yields move in opposite directions.

The 30-year bond eased 9/32 to 95-25/32 and its yield rose to 4.51%.

The 2-year note edged up less than 1/32 to 99-27/32 and its yield dipped to 0.97% from 0.98%. The yield on the 3-month note was unchanged at 0.14%.

Lending rates: One key bank-to-bank lending rate held at a record low. The 3-month Libor retreated back to 0.66% from 0.67% Thursday, according to Bloomberg.com.

Meanwhile, the overnight Libor rate rose to 0.27% from 0.26%.

Libor, the London Interbank Offered Rate, is a daily average of rates that 16 different banks charge each other to lend money in London. The closely watched benchmark is used to calculate adjustable-rate mortgages. More than $350 trillion in assets are tied to Libor.