Led by a rally on the Nasdaq Composite, Wall Street ended the week in positive territory thanks to sliding oil prices and three better-than-expected reports that gave some traders much-needed optimism on the nation's economy. 

Today's Market

The Dow Jones Industrial Average rose 21.41 points, or 0.19% to 11370.69, the Standard & Poor’s 500 index gained 5.22 points, or 0.42%, to 1257.76 and the Nasdaq Composite Index picked up 30.42 points, or 1.33%, to 2310.53. The consumer-friendly FOX 50 added 2.41 points, or 0.27% to 892.22.

Economic data took center stage on Friday as the day's agenda lacked big-name earnings reports. A trio of reports on durable goods, new home sales and consumer sentiment sparked an a rally on Wall Street that cooled off as the day went on.

Still, the market managed a slight rebound from the selloff that sent the Dow almost 300 points into the red a day ago -- its worst one-day declines since June 26. 

“People are getting a much more positive tone on things. This market is trying to tell everyone, ‘Hey we’re going to be okay,'" Dave Henderson of Raven Securities told FOX Business. 

Software giant Microsoft (MSFT) jumped 2% to lead the way higher among the blue chips on Friday. Also, Boeing (BA) showed some strength, rising 2%. On the downside, General Motors (GM) slumped 8% on a report that the auto maker is offering employee incentives to non-employees. Financial giant Bank of America (BAC) closed sharply lower as well. 

The Nasdaq Composite posted much bigger gains than the broader market, closing 1.3% higher. Juniper Networks (JNPR) soared 17% to lead the advancers on the Nasdaq 100 after the company boosted its full-year outlook and named a new CEO. Big-name tech stocks like Google (GOOG) and eBay (EBAY) also posted big gains.

Financial stocks limited some of the market's gains on Friday. Names like Wachovia (WB) and Merrill Lynch (MER) were solidly in the red yet again. The sector wasn't helped much by news that S&P is placing Fannie Mae (FNM) and Freddie Mac (FRE) on credit watch negative, sending shares of the mortgage giants lower. 

The Commerce Department's report on durable goods orders showed unexpected strength for June, helping to fuel some buying on the stock market. The government said these orders of big-ticket items like refrigerators jumped 0.8% last month -- the fastest jump in four months.

The manufacturing orders were bolstered by a 1.8% increase in auto orders -- the largest one-month gain since July 2007. Economists surveyed by Dow Jones had expected durable goods orders to decline 0.5% last month. Durable goods are products designed to last three years or longer and are used to gauge long-term economic demand for goods. 

Home builders like Lennar (LEN) and DR Horton (DHI) rose sharply after the government reported new home sales declined by 0.6% in June to a rate of 530,000. Wall Street had been bracing for a much worse reading of 505,000. New home sales make up a much smaller portion of the housing market and are not watched as closely as existing home sales, which disappointed the bulls a day ago.

Despite the gloomy economy and near-record oil prices, consumer sentiment unexpectedly rebounded in July. The Reuters/University of Michigan consumer sentiment index rose to 61.2 this month from 56.4 in June. Economists had been expecting the reading to match June's level. 

Meanwhile, crude oil futures took another tumble, falling as much as $3 to briefly tumble below $123 a barrel. Oil closed down $2.23 to $123.26 a barrel. Crude has plunged more than $20 from all-time highs, including down 4% this week alone. Oil has been pushed lower by fears that record prices will cool demand. 

Corporate Movers

General Motors (GM) closed more than 8% in the red after The Wall Street Journal reported that the struggling auto maker is offering employee discounts to non-employees. The plan, which was announced via email a day ago, allows employees to give away one discount until the end of July, the newspaper reported. GM and other auto makers have been offering a flurry of incentives to boost sales, which have plunged in recent months as fuel costs have soared. Meanwhile, GM CEO Rick Wagoner told reporters his company has heard from interested bidders for the company's Hummer brand. 

General Electric (GE) announced plans to restructure its six business segments into four: GE Technology Infrastructure, which includes aviation and transportation; GE Capital; GE Energy Infrastructure and NBC Universal. The corporate conglomerate also named John Krenicki, head of its energy business, the new vice chairman. 

Crocs (CROX) plunged nearly 50% on a significantly-lowered second-quarter and 2008 profit outlook. Citing a "challenging" domestic market, the shoemaker now sees 2008 earnings of 16 cents per share, well off an earlier forecast of $1.54 to $1.64. Shares of Crocs slid under $5 a share. As recently as October its stock was worth as much as $75 per share. 

Genentech (DNA) formed a special committee to advise it on an $89-a-share takeover offer from Roche Group, which already owns a 56% stake in the biotech giant. Genentech said it won't act until the three-person committee reviews the offer. It also said neither the company nor the special committee is under "any obligation" to sign off on the deal, which it said was unsolicited. 

Delta Airlines (DAL) jumped 6% after the company was reportedly upgraded to "buy" from "neutral" at Merrill Lynch. The analyst said Delta is better positioned than its peers as far as capacity changes, financial leverage and operating leverage, according to Thomson Reuters. Merill also reportedly upped its price target on Delta to $12. 

Arch Coal (ACI), the second-largest coal maker in the United States, tripled its second-quarter profit thanks to surging prices. The company said it earned 78 cents a share on $785.1 million in revenue. Analysts had been expecting 64 cents on $737.1 million in revenue. Arch Coal also upped its 2008 forecast. 

Fortune Brands (FO) beat the Street with adjusted-earnings of $1.25 per share, topping estimates by a nickel. The company, which makes everything from Titleist golf balls to Jim Beam bourbon, said its sales tumbled 8.6% to $2.10 billion. Fortune Brands had recently lowered its earnings forecast, citing consumer sentiment and the economic conditions.

Wachovia (WB) announced the departure of Chief Financial Officer Thomas Wurtz, who had been with the nation's fourth-largest bank since 1994. Just a month ago Ken Thompson was ousted as CEO, replaced by former Treasury undersecretary Robert Steel. 

Cheesecake Factory (CAKE) slid 7% to a 52-week low a day after reporting quarterly results. The restaurant chain's profit met the Street's estimates but a 9% increase in revenue missed average estimates. The results led analysts to downgrade the stock and lower price targets. 

Cleveland-Cliffs (CLF) may have to rethink its $10 billion deal to acquire Alpha Natural Resources (ANR). According to a report in The Wall Street Journal, a major hedge fund and the Cleveland-based iron-ore producer's largest shareholder opposes the move and has started pushing for Cleveland-Cliffs to put itself up for sale instead. The hedge fund, Harbinger Capital, never signed off on the $10 billion deal for Alpha and believes Cleveland-Cliffs could sell for $14 billion, the newspaper reported.  

Abercrombie & Fitch (ANF) fell sharply after the teen apparel retailer announced the departure of Chief Financial Officer Michael Kramer to clothing maker Kellwood. The resignation takes effect on Aug. 18. Kramer will take over as president and CEO of Kellwood. The move prompted several analyst downgrades, including one from Bank of America to "neutral" from "buy."

World Markets

The Dow Jones Euro Stoxx 50 Index, a gauge of the 50 biggest companies in Europe, fell 3.45 points, or 0.1%, to 3351.13. The FTSE 100, London's benchmark index, lost 9.70 points, or 0.18%, to 5352.60.

On the continent, Paris' CAC 40 added 29.19 points, or 0.67%, to 4377.18, while Germany's DAX declined 3.99 points, or 0.06%, to 6436.71.

In Asia, Hong Kong's Hang Seng fell 347.01 points, or 1.5%, to 22740.71. The Nikkei 225 fell 268.55 points to 13334.76.