SAN FRANCISCO - U.S. stocks surged Friday, lifting two major indexes into weekly gains, as optimism ahead of a weekend European Union summit, the past days' economic data, and McDonald's Corp. profit triggered buying momentum that built into the close.
The Dow Jones industrial average ended up 267.01 points, or 2.3 percent, at 11,808.79, closing near its highs of the session. All but two of 30 components ended higher, led by Travelers Cos. and American Express Co.
McDonald's was among the big gainers, with shares rising 3.7 percent, after the restaurant chain reported a nearly 9 percent gain in earnings, helped by a boost in sales both in the U.S. and Europe. The stock tapped an intraday high of $92.45 before closing at a record.
"Stocks are being driven by strong earnings, economic numbers that aren't awful, and hope that Europe won't be a disaster," said Matthew Tuttle, chief investment officer at Tuttle Wealth Management in Stamford, Conn.
So far in the third-quarter earnings season, 75 percent of companies have reported earnings per share above estimates. That's roughly in line with the 74 percent that beat in the past four quarters, according to FactSet.
Wall Street, however, was cool to a handful of bellwether stocks following results.
General Electric Co. shares fell 1.9 percent, leading Dow decliners, after the financial and industrial conglomerate matched but did not top Wall Street views, a first since 2008, and analysts noted a slower growth in industrial orders.
Microsoft Corp. edged up 0.4 percent after the tech company reported results largely in line with analysts' expectations.
