US Stocks surge on Libya cease fire (ext)

NEW YORK (CNNMoney) -- U.S. stocks rose for a second day in a row on Friday, as news of a cease-fire in Libya eased traders' concerns about developments in the Middle East. However, the ongoing turmoil in Japan led U.S. stocks to fall for the week.

The Dow Jones industrial average (INDU) climbed 84 points, or 0.7%, to 11,859; the S&P 500 (SPX) added 5.5 points, or 0.4%, to 1,279; and the Nasdaq Composite (COMP) rose 7.6 points, or 0.3%, to 2,644.

Stocks were higher throughout Friday's trading session as investors welcomed two pieces of encouraging news: Libya's cease-fire and the G7's Japanese yen intervention plan.

The financial sector kept the momentum going, after the Federal Reserve gave the green light for several big banks to raise dividends and buy back shares.

The Libyan government announced an immediate cease-fire after the United Nations voted to impose a no-fly zone over the country. However, witnesses in the besieged city of Misrata told CNN a fierce pro-government assault was persisting.

Oil prices, which had ticked higher on the U.N. vote, turned lower after the cease-fire announcement. Crude prices fell 25 cents to $101.15 a barrel. Earlier in the session, prices neared $104.

And while Japan continues to struggle with its nuclear power plants, the Group of Seven major economic powers announced a coordinated intervention to prevent the Japanese yen from rising further. The announcement helped the yen ease and boosted the Nikkei 2.7%.

"It's good to see leaders acting to provide stabilization in the currency market -- it gives the market confidence," said Anthony Conroy, head trader with BNY ConvergEx.

The dollar fell against the euro, but gained versus the British pound.

Gold futures for April delivery rose $11.90, or 0.8%, to trade at $1,416.10 an ounce.