Dow, S&P at five-year highs
Morgan Stanley was the latest Wall Street bank to report strong results. Its better-than-expected earnings followed similar report cards from Goldman Sachs Group Inc. and JPMorgan Chase & Co. earlier in the week.
Shares of Morgan Stanley shot up 7.86 percent to $22.38. It reported a fourth-quarter profit after a year-earlier loss, helped by higher revenue at the bank's institutional securities business.
But Friday's rise was held back by shares of Intel Corp., which slumped a day after it forecast quarterly revenue below analysts' estimates.
Another factor that has been weighing on the market before a three-day weekend is uncertainty about the federal debt limit and spending cuts. U.S. markets will be closed on Monday for the Martin Luther King Jr. holiday.
The Dow closed up 53.68 points to 13,649.70; the S&P rose 0.34 percent to 1,485.98. The Nasdaq index, however, fell 0.04 percent to 3,134.71.