ConAgra agreed to acquire Ralcorp in a deal worth nearly $5 billion to become the biggest private label food company in North America.
Facebook rose to hit a four-month high after Nomura boosted its price target on the social-networking giant to $32 from $27 a share.
Yelp gained after Cantor Fitzgerald raised its rating on the business review site to "buy."
In a quiet day for earnings, home security firm ADT posted better-than-expected earnings and said its board approved a $2 billion share repurchasing program over three years.
Green Mountain and Analog Devices are scheduled to post earnings after the closing bell.
Corning rallied after the glass manufacturer said it sees stronger-than-expected fourth-quarter LCD glass volume and full-year sales of its gorilla glass approaching $1 billion, thanks to robust demand for LCD televisions and other consumer electronic devices in North America and China.
Dollar General will replace Cooper Industries to join the S&P 500 index after the close of trading Friday. The move comes as a result of Eaton's plans to acquire Cooper.
On the economic front, home prices rose for the sixth-consecutive month in September, according to the S&P/Case-Shiller home price index. Meanwhile, consumer confidence rose to its highest level in 4-1/2 years in November, according to the Conference Board.
And durable goods were unchanged in October, according to the Commerce Department.
The government auctioned $35 billion in 2-year notes at a high yield of 0.27 percent. The bid-to-cover was 4.07.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
WEDNESDAY: Weekly mortgage apps, new home sales, oil inventories, 5-yr note auction, Fed's Beige Book, Microsoft shareholders mtg; Earnings from Ann, Express, Aeropostale, La-Z-Boy, TiVo
THURSDAY: GDP, jobless claims, corporate profits, pending home sales, 7-yr note auction, chain-store sales; Earnings from Kroger, Tiffany, Barnes & Noble
FRIDAY: Personal income & outlays, Chicago PMI, farm prices
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