Stocks Finish Higher On Spanish Bailout Rumors; iPhone5 Buzz

U.S. stocks closed higher Friday as reports that Spain is one step closer in requesting a formal bailout by European authorities provided positive sentiment. Also adding to the upside was the retail launch of Apple's (AAPL) iPhone5, which boosted the tech sector and some retail stocks.

European Union authorities reportedly are working with Spanish authorities to put together an economic reform program in advance of Spain requesting a new rescue package. The reform program could be unveiled as soon as next week, according to the Financial Times, with the rescue package revealed in the following weeks. Experts largely expect the program to include unlimited bond buying previously announced by the European Central Bank.

Stateside, the economic agenda was thin. A report from the Bureau of Labor Statistics showed a large decline in Mass layoffs in August. 1267 mass layoff events for August resulted in 127,454 initial unemployment claimants on a seasonally adjusted basis, a decline of 10,000 compared to the previous month.

Commodities closed mostly higher as a weaker greenback boosted international demand for dollar denominated commodities. Crude for November delivery added 47 cents, or 0.5%, to settle at $92.89 a barrel on the New York Mercantile Exchange. Gold rose $9.80, or 0.6%, to $1,780 an ounce on the Comex division of the New York Mercantile Exchange.

Here's where the markets stood at end-of-day:

NYSE Composite Index up

Dow Jones Industrial Average up

S&P 500 up

Nasdaq Composite Index up

GLOBAL SENTIMENT

Nikkei 225 Index up 0.25%

Hang Seng Index up 0.70%

Shanghai China Composite Index up 0.09%

FTSE 100 Index up 0.07%

UPSIDE MOVERS

(+) AEZS, Initiated at a Buy by Roth Capital

(+) KORS, Boosts Q2 view above prior estimates

(+) KS, Upgraded to Buy from Hold at Deutsche Bank

DOWNSIDE MOVERS

(-) VVUS, doesn't expect European Agency to approve Qsiva

(-) IQNT, Raymond James downgrades to Underperform from Market Perform

(-) NOK, (-3.8%) Short positions at record levels