U.S. stocks up: Can anything stop bull market?

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NEW YORK (CNNMoney)

Apparently not the U.S. stock market, which is showing signs of resistance despite multiple flare-ups around the globe, most recently in Ukraine and Gaza.

Here's what you need to know this summer Friday:

Stocks perk up. U.S. stocks were recovering Friday after Thursday's sharp sell-off, in which the Dow dropped 161 points for its biggest drop in two months.

But on Friday, the sun was starting to shine through the clouds. The Dow rose 50 in morning trading, and the Nasdaq was up around 0.7%. The S&P 500 also moved higher.

Thursday's drama started after news broke of downed Malaysian airliner flight 17 over an area of Ukraine controlled by pro-Russian rebels, of whom many in Ukraine and the West blamed for the incident. Market tensions stabilized after the event, but were then exacerbated after Israel sent ground troops into Gaza.

Related: 6 events that spooked the market in 2014

Fear in the market? The flurry of geopolitical concerns sent the VIX (VIX), a key measure of market volatility to its highest level in three months Thursday. And CNN'Money's Fear and Greed Index, which tracks seven gauges of market sentiment, is now in "fear mode" after sitting in "greed" and "extreme greed" for the last month.

Still, some market watchers were suggesting that the market fallout from the shot-down plane might be confined to a single session.

"I would say this has blown over, at least as far as its effect on the market is concerned, even though it's in no way blown over for the people who are involved," said Dr. John Edmunds, finance professor at Babson College near Boston.

Tax inversion deal: Drugmakers AbbVie (ABBV) and Shire (SHPG) announced jointly their plans to merge on Friday. The $54 billion acquisition is the latest by a U.S. firm looking to move its tax base overseas to save money. Abbievie stock was flat, while Shire shares were up 3% in London.

Such mergers have become more frequent lately, and critics argue that they should be banned. Others, however, say the rise in inversion deals is yet another sign of the urgent need for corporate tax reform.

Related: Boom time for mergers and acquisitions

Earnings roll in -- Google, GE: Google (GOOGL, Tech30) shares rallied 2% after the tech firm reported another quarter of surging sales growth after the bell Thursday, driven by 25% increase in ad viewing compared to the year earlier. News that Japan's Softbank has hired away Google's global sales chief Nikesh Arora may also being piquing investor interest.

Honeywell (HON) rose after its second quarter earnings beat expectations thanks to a 6% uptick in sales. The company also raised its profit outlook for the year.

But shares of General Electric (GE), another manufacturing powerhouse, fell Friday even though the conglomerate reported growth in second quarter revenue and earnings, buoyed by a solid jump in its industrial segment.

Related: CNNMoney's Tech30

World markets not looking so hot: World markets were mostly lower Friday on fear of escalating tensions in Ukraine. The U.S. believes Flight MH17 was brought down by a surface-to-air missile over a region that has seen heavy fighting between pro-Russian separatists and Ukrainian government forces.

Analysts say the tragedy could damage business confidence, particularly in Europe, but may also bring the crisis in Ukraine to a head by increasing the pressure on Moscow to resolve the conflict.