Toronto stocks ended higher on Friday snapping a two-day losing streak. The S&P/TSX composite index closed up 45.30 points at 7,114.65. On the week, the index gained 0.5%.

Tech stocks rebounded amid news of a $1 billion deal by Cinram and positive results from software giant Microsoft.

The information technology sector climbed 2.38%, boosted by news of Cinram agreement to buy AOL Time Warner’s CD and DVD manufacturing business for US$1.05 billion.

Cinram shares soared $4.95, or 29%, to $22 as 6.4 million shares changed hands, making it the TSX’s top net gainer.

ATI Technologies rose 97¢ to $15.14 and Nortel Networks rose 16¢ to $4.14. Nortel said it plans to acquire the remaining stake in its French and German telecoms holdings from EADS.

Telecom issues gained 2% with Telus finishing ahead 80¢ at $23.71.

The junior TSX Venture composite index rose 5.32 points to 1,113.78.

In New York, buyers returned in earnest, lured by Microsoft’s upbeat outlook and lower prices after three days of declines. On Thursday Microsoft announced that it was raising its outlook for fiscal year 2004. That was just the kind of news investors were craving.

The Dow Jones industrial average closed up 137.33 points, or 1.5%, at 9,188.15, more than wiping out the 126.33-point loss from the previous three sessions.

The broader market also rallied. The Nasdaq composite index rose 10.48 points to 1,708.50. The S&P 500 index advanced 11.59 to 993.32.

For the week, the Dow rose 0.8%, but the Nasdaq fell 1.5% and the S&P slipped 0.5%.

The Canadian dollar fell sharply again on Friday It closed at US71.06¢, down 0.56 of a cent. On Thursday, the loonie lost half a cent after the Bank of Canada’s forecast that growth this year will be 2%.