Stocks advance on drop in oil, corporate deals

NEW YORK The stock market notched its second straight daily advance yesterday, with investors assuaged by a pullback in oil prices and some corporate deals.

Wall Street has been worried about cash-strapped consumers paring their spending, so it was pleased that the energy markets gave up early gains that briefly drove crude oil above $125 per barrel.

In other positive signs, major companies including General Electric Co. and CBS Corp. were making deals.

Still, the Labor Department said the number of laid-off workers applying for jobless benefits rose last week by 6,000 to 371,000.

The technology-laden Nasdaq composite index got a boost from Intel Corp., which rose $1.13, or 4.7 percent, to $24.97 after a Lehman Brothers analyst lifted his price target on the chip maker.

In deal-making news, CBS agreed to buy online technology news and entertainment company CNet Networks Inc. for about $1.75 billion. CBS fell 59 cents, or 2.4 percent, to $24.23, while CNet rose $3.47, or 44 percent, to $11.42.

General Electric plans to auction off its Louisville, Ky.-based appliances business, according to The Wall Street Journal. The sale is seen yielding between $5 billion and $8 billion. GE slid 14 cents to $32.37.

Meanwhile, IAC/InterActiveCorp's Ask.com has bought a stable of Internet reference sites . IAC/InterActiveCorp fell 2 cents to $23.71.

J.C. Penney's quarterly profit helped its shares rise $2.07, or 4.7 percent, to $46.32.