* Cyprus says it is close to a bailout deal
* S&P 500 marks 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 0.6 pct, S&P 500 up 0.7 pct, Nasdaq up 0.7 pct
By Caroline Valetkevitch
NEW YORK, March 22 (Reuters) - U.S. stocks rose on Friday on
optimism that a deal to bail out Cyprus would be reached, but
ended lower for the week for just the second time this year.
Nike shares jumped 11.1 percent to $59.53 and hit a
record intraday high at $60.23, a day after the athletic shoe
maker reported stronger-than-expected results. The news lifted
consumer discretionary stocks, with the S&P 500 consumer
discretionary sector index ending up 1.2 percent,
leading the S&P 500 higher.
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 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 Chicago.
The S&P 500 ended the week down 0.2 percent, which was just
its second weekly decline of the year, as investors were alarmed
that Europe's debt crisis would again roil markets over Cyprus'
Stocks have been gaining on news of a strengthening
recovery and the view that the Federal Reserve would continue to
support the economy. The S&P 500 is still up 9.2 percent for the
The Dow Jones industrial average rose 90.54 points,
or 0.63 percent, to end at 14,512.03. The Standard & Poor's 500
Index gained 11.09 points, or 0.72 percent, to finish at
1,556.89. The Nasdaq Composite Index advanced 22.40
points, or 0.70 percent, to close at 3,245.00.
For the week, the Dow dipped just 0.01 percent, while the
Nasdaq slipped 0.1 percent.
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 $69.23.
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 4.1 percent to $29.73. PepsiCo gained 3.3
percent to $78.64.
Other upbeat news came from Micron Technology. It
posted a quarterly net loss on Thursday, but the chipmaker said
the outlook for memory chip prices is improving. The stock
gained 10.7 percent to end at $10.04 after hitting an intraday
high of $10.27 - its highest in almost two years.
Volume was roughly 5.4 billion shares traded on the New York
Stock Exchange, the Nasdaq and the NYSE MKT, compared with the
2012 average daily closing volume of about 6.45 billion.
Advancers outpaced decliners on the NYSE by nearly 9 to 5
and on the Nasdaq, by about 3 to 2.