(CNBC) U.S. stocks rallied on Friday, softening a fourth week of losses, as investors bet on further stimulus from central banks and corporations including General Electric and Morgan Stanley reported profits that topped expectations.
"The earnings season is coming along beautifully. No one is talking down the next quarter or next year based on currency, particularly the big multinationals doing business overseas. Their visibility is still okay," said Phil Orlando, chief market strategist at Federated Investors, referring to concerns that the strength of the U.S. dollar might increase the price and reduce the appeal of U.S. goods and services sold outside the U.S.
Morgan Stanley gained after the investment bank tallied third-quarter earnings that beat estimates. General Electric climbed after its quarterly profit exceeded expectations.
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The CBOE Volatility Index, a measure of investor uncertainty, dropped almost 13 percent to 21.99, a level that has it up nearly 74 percent from a month ago.