Stocks maintained big gains on Friday morning as a better-than-expected quarter from Applied Materials (AMAT - Get Report) alleviated worries over the health of the tech sector. 

The S&P 500 was up 0.7%, the Dow Jones Industrial Average climbed 0.64%, and the Nasdaq added 1.2%.

Applied Materials rose 13% after beating second-quarter estimates and reporting a double-digit boost in orders. The chipmaker reported a 52% quarter-on-quarter orders gain, while earnings of 34 cents a share beat by 2 cents. Its third quarter also looks strong with expected sales growth of 14% to 18% quarter on quarter, far higher than consensus of 2% growth.

The tech sector has been hard hit over this earnings season with big misses from industry giants including Apple (AAPL - Get Report) and Alphabet (GOOGL - Get Report) .

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Sales of previously owned homes increased 1.7% in April to a seasonally adjusted annual rate of 5.45 million, according to the National Association of Realtors. Analysts had expected a pace of 5.41 million. A housing shortage and higher prices is pressuring the market, though demand remains robust. 

Markets saw relief on Friday as investors came to terms with the increased likelihood of a rate hike in June. Minutes from the Fed's April meeting released on Wednesday suggested many members would be comfortable raising rates as soon as next month, more quickly than even the most hawkish of economists' forecasts. A June rate hike now has a 30% probability, according to CME Group. The likelihood had been priced in at less than 10% chance at the beginning of May.

Crude oil was lower after big swings earlier in the week. Commodities have been under relief on supply outages in Nigeria, reduced production in wildfire-stricken Alberta, Canada, and a bullish turn for a number of analysts. West Texas Intermediate crude oil was down 1.1% to $47.63 a barrel.

Deere & Co. (DE - Get Report) was 5% lower after a challenging second quarter. The farm machinery maker reported a 28% decline in profit and 4% slide in revenue, a reflection of the "downturn in global farm economy." The company expects equipment sales to drop 9% in fiscal 2016.

Gap (GPS - Get Report) climbed after announcing plans to shut down all 53 of its Old Navy stores in Japan and a number of international Banana Republic stores as part of its streamlining efforts. The closures will result in annual pretax savings of $275 million. The retailer also reported in-line first quarter results.

Foot Locker (FL - Get Report) fell more than 6% on a mixed first quarter. The shoe retailer earned $1.39 a share over the quarter, as analysts expected, while sales climbed 3% to $1.99 billion. However, top-line growth fell just short of estimates of $2 billion. Same-store sales growth of 2.9% missed forecasts of 4.5%.

Brocade Communications (BRCD) fell 3% after reporting disappointing revenue in its second quarter. The networking-tech company reported a 4.3% decline in sales to $523 million, falling short of estimates by $7.5 million. Earnings of 22 cents a share was in line with consensus.

Campbell Soup (CPB - Get Report) inched higher after topping quarterly profit and raising full-year earnings guidance. The canned goods company expects full-year adjusted earnings between $2.93 and $3 a share, up from a previous range of $2.88 to $2.96 a share. Campbell reaffirmed expected full-year sales down 1% to flat.

InterOil (IOC) surged after Oil Search agreed to acquire the Papua New Guinea oil company in a deal worth $2.2 billion. Australia's Oil Search shares were on watch.

Dick's Sporting Goods (DKS - Get Report) was upgraded to buy from neutral with a $53 price target at Goldman Sachs. Analysts said the company is best positioned to gain market share from Sports Authority, which is currently closing all its stores. 

Lowe's (LOW - Get Report) was upgraded to buy with a $90 price target at Citigroup. The firm said the DIY retailer was leveraged to higher industry spending.