US STOCKS-Wall St extends recovery at the end of volatile week

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* Disney shares drop as subscriber additions disappoint
* General Mills slips on $1.2 bln deal to buy pet treats
unit
* Airbnb dips after quarterly results
* Indexes up: Dow 0.77%, S&P 0.91%, Nasdaq 0.97%

(Updates to market open)
By Medha Singh and Sruthi Shankar
May 14 (Reuters) - U.S. stocks rose on Friday with
broad-based gains as investors looked to economic recovery
prospects after worries about a prolonged period of inflation
sparked a volatile week of trading.
Futures pared some gains after data showed U.S. retail sales
unexpectedly stalled in April, as a boost from stimulus checks
faded. "The disappointing retail sales numbers shouldn't really
come as a huge surprise given that last month encompassed
stimulus money hitting bank accounts," said Mike Loewengart,
managing director of investment strategy at E*TRADE Financial.
"It probably supports the point of view that the dip we
experienced this week is a buying opportunity as all sectors
march toward full recovery."
Wall Street's major indexes are set for their steepest
weekly drop since February after stronger-than-expected
inflation data, signs of labor shortage and higher commodity
prices this week raised bets the Federal Reserve would have to
pare back its crisis level support.
The three main indexes snapped a three-day losing streak on
Thursday after better-than-expected weekly jobless claims data.
In signs that life was returning to normal, revised guidance
from the U.S. Centers for Disease Control and Prevention said
fully vaccinated people do not need to wear masks outdoors and
can avoid wearing them indoors in most places. All major S&P sectors were higher, with energy .SPNY
leading gains as oil prices gained ground. O/R
The CBOE volatility index .VIX , a measure for investors'
anxiety, slipped to 20.57 after spiking to a more than two-month
high earlier this week.
At 9:51 a.m. ET, the Dow Jones Industrial Average .DJI was
up 261.03 points, or 0.77%, at 34,282.48, the S&P 500 .SPX was
up 37.47 points, or 0.91%, at 4,149.97. The Nasdaq Composite
.IXIC was up 127.14 points, or 0.97%, at 13,252.13.
Mega-cap growth stocks, which have been beaten down this
week on concerns over their lofty valuations, led gains in early
trading with Apple Inc AAPL.O , Amazon.com Inc AMZN.O and
Microsoft Corp MSFT.O gaining about 1% each and Tesla Inc
TSLA.O adding 2%.
Disappointing subscriber additions for Walt Disney Co's
DIS.N namesake streaming service overshadowed
better-than-expected overall profits, driving down shares of the
entertainment company by 4.8%. Airbnb Inc ABNB.O rose 0.7% despite beating analysts'
expectations for first-quarter gross bookings and revenue.
General Mills Inc GIS.N edged up 0.4% on a deal to buy
Tyson Foods Inc's TSN.N pet treats business for $1.2 billion
in cash, as the cereal maker builds its pet food portfolio.
Tyson shares added 1.2%.
Advancing issues outnumbered decliners by a 5.87-to-1 ratio
on the NYSE. Advancing issues outnumbered decliners by a
3.26-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new
lows, while the Nasdaq recorded 40 new highs and 26 new lows.