Stocks rose on Friday as resurgent oil prices lifted energy shares, while a sliding dollar boosted the allure of multinationals like Coca-Cola Co and further signs of economic stabilization underpinned sentiment.

U.S. front-month crude-oil futures jumped 1.2 percent, or 82 cents, to $65.87 a barrel, supporting gains in such stocks as Chevron , Exxon Mobil and ConocoPhillips . The S&P energy index <.GSPE> was up nearly 1 percent.

Shares of beverage maker Coca-Cola, which gets the bulk of its sales from abroad, jumped 2.1 percent, as the dollar slid to five-month lows against a basket of currencies.

Friday's economic data included a Commerce Department report showing that the U.S. economy's contraction in the first quarter was slightly less than initially estimated by the government earlier in the quarter, and corporate profits rebounded.

Additionally, the Reuters/University of Michigan Surveys of Consumers showed consumer confidence in May improved to its highest level since last September.

It's clear to me, based on the market action, that we've turned a corner in this economy, said Sasha Kostadinov, portfolio manager and research analyst at Shaker Investments in Cleveland. The question that I have is, when we get clear view of what's around the corner, is it going to be better growth and moderate inflation, or is it going to be slow growth and bad inflation?

The Dow Jones industrial average <.DJI> rose 18.48 points, or 0.22 percent, to 8,422.28. The Standard & Poor's 500 Index <.SPX> gained 4.06 points, or 0.45 percent, to 910.89. The Nasdaq Composite Index <.IXIC> added 3.25 points, or 0.19 percent, to 1,755.04.

Since hitting a 12-year low in early March the S&P 500 has risen 34.6 percent, and was on track for third straight monthly advance -- its longest monthly winning streak since fall 2007.

While rising oil prices are a boon for energy companies, a jump in energy costs could present a significant headwind for consumers and businesses at a time when investors are looking for a spending recovery to underpin an economic rebound.

Chevron shares were up 0.8 percent to $66.33, while ConocoPhillips climbed 0.8 percent to $45.99, and Exxon Mobil gained 0.6 percent to $69.61.

The slumping dollar also lifted prices of commodities like gold, which boosted shares of other natural resources companies, including miner Freeport-McMoran Copper and Gold Inc , up 2.3 percent to $53.41.

U.S. gold futures touched $982 an ounce, its highest since late February, while benchmark 10-year Treasury notes were on pace for their worst two-month sell-off since 2003 despite recovering slightly on Friday.

On Nasdaq, shares of Web search leader Google Inc were a top boost, rising 1 percent to $414.56.

In the Dow, shares of General Motors Corp plunged more than 30 percent to $0.78 as the beleaguered automaker drew closer to filing for bankruptcy protection.

While the looming bankruptcy has been expected for some time, analysts say there remains a worry about its implications on jobs, business and consumer sentiment in the months ahead.

(Editing by Padraic Cassidy)

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