The S&P 500 was up 0.7%, the Dow Jones Industrial Average rose 0.82%, and the Nasdaq added 0.79%.
JPMorgan rose nearly 2% after topping lowered earnings estimates in its recent quarter. Profit in the third quarter slid 7.6% as a volatile market and a low interest-rate environment depressed the bottom line. Per-share earnings of $1.58 fell a dime from a year earlier, but beat estimates of $1.39 a share. The largest U.S. bank by assets also reported a 8.4% increase in revenue to $25.51 billion, exceeding forecasts of $24 billion.
The big bank kicked off the earnings season for the financials sector. Financials endured a rocky quarter in the wake of the Brexit decision in late June which caused market turmoil. Banks have also had to weather an environment of low interest rates with a cautious Federal Reserve holding its monetary policy at crises levels.
Citigroup (C - Get Report) climbed after exceeding analysts' estimates on its top- and bottom-lines in its third quarter. The bank earned $1.24 a share, 8 cents above forecasts. Revenue slid 4% to $17.76 billion, edging past estimates by $420 million.
Wells Fargo (WFC - Get Report) also moved higher following a better-than-expected third quarter. The bank, which has recently been embroiled in a sales scandal, earned $1.03 a share over its recent quarter. Analysts had anticipated earnings of $1.01 a share. Revenue climbed nearly 2% to $22.3 billion, narrowly beating forecasts by $80 million.
The financials sector was one of the top performers on markets Friday. Major industry stocks including Berskhire Hathaway (BRK.A - Get Report) , Bank of America (BAC - Get Report) and HSBC (HSBC) moved higher, while the Financial Select Sector SPDR (ETF) rose 1%.
Consumer sentiment dropped unexpectedly in October as worries over the presidential election reached a peak. The index fell to 87.9 in early October, its second-lowest level in two years, from 91.2 in September, according to the University of Michigan. Consumer expectations fell to a two-year low of 76.6.
Retail sales in the U.S. climbed 0.6% in September, a sign the consumer sector remains a strong point in the U.S. economy. Analysts had expected a slightly stronger increase of 0.7%. The measure rebounded from a slight decline in August. Excluding gas and autos, sales rose 0.3%, as expected, after a flat reading in August.
Sales at electronics and appliance stores fell 0.9% month over month in September, according to the retail sales data, a figure that spooked Best Buy (BBY - Get Report) investors. Sales fell 3.8% from the year-ago period. Analysts expected to see a boost in electronics spending after the September release of the iPhone 7. Best Buy shares fell 0.6% on Friday.
"Consumers were still engaged in the economy during the third quarter but they were not as strong as the pace shown during the second quarter of the year," said Eugenio J. Aleman, senior economist at Wells Fargo. "Still, consumer demand remains in the driver's seat of U.S. economic performance."
The Fed may have to raise rates faster than current projections indicate, Boston Fed Eric Rosengren said on Friday.
"My own view is that if the unemployment rate falls as much as I'm expecting, then it is possible that we'll have to raise rates faster than the summary of economic projections," Rosengren, a hawkish member of the Federal Open Market Committee, told CNBC.
Rosengren anticipated the unemployment rate to decline to 4.5% next year, an unsustainable level that may force the Fed to act. Current projections put interest rates at just above 1% by the end of next year. Another rate hike at the December meeting is widely expected.
Business inventories in the U.S. in August rose slightly, the Census Bureau reported on Friday. The measure increased 0.2% to $1,816.9 billion, double the expected increase analysts had expected.
Producer prices in the U.S. rose in September at a faster pace than expected. The Bureau of Labor Statistics reported a 0.3% increase in prices in September, above 0.2% expected and a flat reading in August. Core producer prices rose 0.1%, in line with estimates.
Wall Street clawed back from a heavy selloff on Thursday to settle modestly lower after worries over China's economic growth faded and crude oil regained a level above $50 a barrel. Weak imports data from China had triggered worries over growth in the second-largest economy.
HP (HPQ - Get Report) slid nearly 2% after issuing a weak forecast and detailing plans to cut between 3,000 and 4,000 jobs over the next three years. The company said it expects free cash flow of $2.3 billion to $2.6 billion over its fiscal year ending October 2017, below estimates of at least $2.76 billion. HP said it continued to face weakness in the printer and personal computer markets.
Hershey (HSY - Get Report) was on watch after CEO John Bilbrey announced plans to retire next summer. The board has set up a special committee to find a replacement when Bilbrey cedes the position on July 1, 2017.
Viacom (VIAB - Get Report) hired financial advisers to assess a potential merger with CBS (CBS - Get Report) . The media company said it would not speak on the matter further "unless and until it determines that additional disclosure is appropriate." Sumner Redstone's National Amusements pushed for the two companies to explore a merger two weeks ago.
Conagra (CAG - Get Report) was upgraded to outperform with a $54 price target at RBC Capital. The firm said Conagra is trading at a discount to its peers and can expand gross margin in the coming quarters.