* Cyprus says it is close to a bailout deal
* S&P 500 on track for second negative week of the year
* PepsiCo, Mondelez jump on report of activist investor
* Nike shares hit record, Micron at near two-year high
* Dow up 0.5 pct, S&P 500 up 0.5 pct, Nasdaq up 0.5 pct
By Caroline Valetkevitch
NEW YORK, March 22 (Reuters) - U.S. stocks rose on Friday as
investors were optimistic that a deal to bail out Cyprus could
Nike shares jumped 12.4 percent to a record intraday
high a day after the maker of athletic shoes and apparel posted
results and lifted consumer discretionary stocks. The consumer
discretionary sector index shot up 1 percent, leading
the benchmark S&P 500's gains.
Cyprus was close to a deal to raise billions of euros and
unlock a bailout from the European Union that could avert a
financial meltdown and its exit from the euro, its ruling party
The FTSEurofirst-300 index of pan-European stocks
dipped 0.1 percent, while Wall Street advanced in Friday's
session. But the three major U.S. stock indexes were down for
the week, with Cyprus weighing on markets since Monday.
The lingering concern among investors is that were Cyprus to
leave the euro zone, it would open the door for other larger
countries to follow suit and debilitate the bloc.
"If in fact the talk of departures from the euro were to get
front and center, that could scare investors at the macro level,
but it's unlikely the Cyprus thing turns into that," said Sandy
Lincoln, chief market strategist at BMO Asset Management US in
The Dow Jones industrial average was up 70.81 points,
or 0.49 percent, at 14,492.30. The Standard & Poor's 500 Index
was up 7.85 points, or 0.51 percent, at 1,553.65. The
Nasdaq Composite Index was up 16.61 points, or 0.52
percent, at 3,239.20.
The S&P 500 is still on track to post only its second weekly
decline so far this year. Although the index was down a modest
0.5 percent, it was also the largest weekly percentage decline
since the last week of 2012.
Nike's shares hit an all-time intraday high at $60.23 a day
after its quarterly profit beat Wall Street's expectations as
margins increased and global future demand for its apparel and
shoes rose. In late afternoon trading, the stock was up 11.2
percent at $59.60.
Tiffany & Co reported a slightly higher profit for
the quarter that included the holiday season, and said the pace
of its worldwide sales growth would pick up this year. Tiffany's
stock gained 1.9 percent to $69.22.
Shares of food makers Mondelez International and
PepsiCo rose on Friday after a UK newspaper reported
that activist shareholder Nelson Peltz has been building stakes
in both companies.
Mondelez rose 4.2 percent to $29.76. PepsiCo gained 3
percent to $78.45.
Micron Technology posted a quarterly net loss on
Thursday, but the chipmaker said the outlook for memory chip
prices is improving. The stock gained 11.6 percent to $10.12
after climbing intraday to $10.27 - its highest in almost two