Investing.com - U.S. stocks jumped up on Friday on better-than-expected earnings and on data revealing U.S. consumer sentiment made its biggest jump since July of 2007.
At the close of U.S. trading, the Dow 30 rose 1.63%, the S&P 500 index rose 1.29%, while the NASDAQ Composite index rose 0.97%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was down 12.74% at 21.99.
Stocks rallied earlier after Morgan Stanley (NYSE:MS) and General Electric Company (NYSE:GE) released earnings that beat market expectations, while a cheery consumer sentiment report fueled demand for equities as well.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index rose to a seven-year high 86.4 for October from 84.6 in September. Analysts had expected the index to slip to 84.1 in October, and the surprise firmed the dollar.
Elsewhere, mixed housing data failed to bring broader stock indices down.
Elsewhere, the Census Bureau reported that U.S. building permits rose 1.5% to 1.018 million in September, disappointing expectations for an increase of 2.8% to 1.0.29 million units, after a 5.1% drop to 1.003 million units in August.
Construction on new homes, however, drew applause.
The report also showed that U.S. housing starts rose 6.3% in September to 1.017 million units, beating expectations for a 4.8% gain. Housing starts for August were revised to a 12.8% fall from a previously estimated 14.4% decline.
Leading Dow Jones Industrial Average performers included UnitedHealth Group Incorporated (NYSE:UNH), up 3.30%, American Express Company (NYSE:AXP), up 2.95%, and Walt Disney Company (NYSE:DIS), up 2.53%.
The Dow Jones Industrial Average's worst performers included Nike Inc (NYSE:NKE), up 0.17%, Wal-Mart Stores Inc (NYSE:WMT), up 0.41%, and Pfizer Inc (NYSE:PFE), up 0.45%.
European indices, meanwhile, ended the day higher on expectations for new European Central Bank stimulus reports.
After the close of European trade, the DJ Euro Stoxx 50 rose 3.05%, France's CAC 40 rose 2.92%, while Germany's DAX rose 3.12%. Meanwhile, in the U.K. the FTSE 100 rose 1.85%.