"$SODA I believe a $PEP deal is coming," he said. "Pepsi has GOT TO respond to what $KO did. We have the machine NOW. Not in 2 yrs. NOW. Pep can kill KO...Bullish."
Akamai Technologies, an Internet content delivery network, surged more than 20 percent after a strong earnings report.
AOL shares lost ground despite the fact that the company's quarterly revenue came in higher than expectations thanks to stronger ad sales.
LinkedIn reported earnings and revenues after the closing bell that beat forecasts. But investors were disappointed by the company's guidance. Shares plunged more than 10 percent in after hours trading.
Despite the day's gains, the three main indexes are still down about 5 percent from their most recent highs.
Peter Cardillo, chief market economist at Rockwell Global Capital, said that markets could have a tough time holding onto gains.
"You're looking at one step forward and two steps backward," he said.
European markets closed more than 1 percent, while Asian markets also mostly ended with modest gains. The European Central Bank kept interest rates on hold Thursday, despite growing concerns about the threat of deflation in the eurozone and the outlook for global growth.