NEW YORK (AP) — Stocks rose in quiet session as investors adjusted positions ahead of a long holiday weekend and tried to determine whether a lacklustre week presaged a departure from Wall Street's months-long run-up or merely a temporary pause.

Stocks rose coming off a pullback Thursday and as investors drew some optimism from the Nasdaq Stock Market Inc.'s deal to acquire Sweden's OMX AB. Also Friday, investors showed little reaction to the National Association of Realtors' report that sales of existing homes fell 2.6 percent in April to 5.99 million units, the slowest sales rate in almost four years.

The gains followed four mostly negative sessions for Wall Street's major indexes. Given Wall Street's robust performance in recent months, a pullback in which investors consolidate gains wasn't unexpected. However, the week began with a flourish that could have suggested a continued climb: The Standard & Poor's 500 index traded above its record close for the first time in more than seven years.

But concerns over the continued strength of the market's run and comments from former Federal Reserve Chairman Alan Greenspan about the possibility of a sharp pullback in Chinese stocks left some investors unnerved.

"It's just a very, very wacky market," said Ted Aronson, a partner at Aronson Johnson Ortiz, referring to the overall mood on Wall Street. He contends the implications of a still-settling housing market are difficult to quantify and give him pause though he is still mostly bullish.

In late afternoon trading, the Dow Jones industrial average rose 42.99, or 0.32 percent, to 13,484.12. The Dow has fallen in the last four sessions.

Broader stock indicators also rose. The Standard & Poor's 500 index advanced 6.49, or 0.43 percent, to 1,514.00, and the Nasdaq composite index rose 19.03, or 0.75 percent, to 2,556.95.

Bonds fell following the housing data and as stocks regained lost ground Friday. The yield on the benchmark 10-year Treasury note rose to 4.87 percent from 4.84 percent late Thursday. The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude rose 82 cents to $65 per barrel on the New York Mercantile Exchange.

Stocks managed gains Friday in part after Nasdaq announced its $3.67 billion deal. The move gives the stock market entrance to Europe through OMX, which operates exchanges in seven Nordic countries. It will become the world's second trans-Atlantic exchange after the New York Stock Exchange bought Paris-based Euronext earlier this year.

The gains come after Wall Street retreated Thursday following housing data that showed sales of single-family homes surged in April by the largest amount in 14 years but that prices fell sharply as well. While a resilient housing market would likely be good for the economy, it could also reduce the likelihood the Federal Reserve would reduce interest rates.

In corporate news, Nasdaq's stock fell $1.16, or 3.4 percent, to $32.83 after announcing its OMX bid. The combined operations will form the world's second trans-Atlantic exchange.

Retailer Gap fell six cents to $18.23 after reporting its first-quarter profit fell 26 percent. Results excluding costs for shutting the company's handful of Forth & Towne stores topped Wall Street's forecast.

Coca-Cola, one of the 30 stocks that makes up the Dow industrials, rose 58 cents to $51.82 after the beverage maker said it would acquire Vitaminwater maker glaceau for $4.1 billion in a bid to expand its non-carbonated beverage line.

SourceForge, formerly VA Software Corp., said its third-quarter profit rose as a result of the sale of its enterprise software business. The stock jumped 53 cents, or 14.2 percent, to $4.26.

Verigy Ltd. jumped $4.83, or 19.6 percent, to $29.46 after the Singapore chip-testing equipment maker forecast stronger-than-expected sales.

RF Micro Devices, which makes radio frequency components used in mobile devices, advanced 37 cents, or six percent, to $6.53 after an analyst raised his rating on the stock, contending demand for the company's products will improve in the second half of the year.