US close: Stocks rally amid positive news from Europe and China

US stocks rallied on Friday, as oil and metal prices rose after a surprise rate cut from China’s central bank.

The Dow Jones Industrial Average closed 91.06 points up at 17,810.06, while the S&P 500 ended the final session of the week 10.75 points up at 2,063.50 and the Nasdaq-100 rose 9.23 points to 4,251.32.

China’s central bank took the surprising decision to cut its one-year loan rate by 40 basis points and its one-year deposit rate by 25 basis points, adding it would allow more flexibility in deposit rates.

Over in Europe at a banking conference in Frankfurt, president of the European Central Bank (ECB) Mario Draghi said the bank will do what it “must to raise inflation and inflation expectations as fast as possible”.

“We will continue to meet our responsibility — we will do what we must to raise inflation and inflation expectations as fast as possible, as our price stability mandate requires of us,” Draghi said.

The comments were taken as a sign the ECB will step-up asset buying.

"There is clearly a step up in rhetoric from Draghi in signalling the ECB’s willingness to take further monetary policy accommodation on the back of a 'challenging' disinflationary environment in the Eurozone," said Gizem Kara, senior European economist at BNP Baripas.

"With the upcoming ECB staff growth and inflation projections likely to show significant downward revisions the central bank’s credibility in achieving its mandate of price stability will be challenged further.

"This should pave the way for additional easing, via a broadening of asset purchases, possibly as early as the December policy meeting."

In corporate news, Foot Locker's profit and sales beat estimates but shares fell 4.30%, while sector peer Hibbett Sports rose 3.96% after raising its outlook.

Gap slid 4.19% after announcing late on Thursday its results missed Wall Street forecasts and the clothing firm also delivered a disappointing full-year outlook, while Splunk gained 3.06% after results topped analysts forecasts.

Wynn Resorts advanced 0.98% despite a Wall Street Journal report suggesting that the casino operator was being investigated by federal authorities over whether it broke money-laundering rules.

Allegheny Technologies gained 5.83%, while Freeport-McMoRan advanced 3.57% as materials companies were boosted by news from China.

Ross Stores jumped 7.32% after the retail chain forecast full-year earnings of as much as $4.32 a share, up from a maximum of $4.26 a share earlier, topping the average analyst projection of $4.25, while GameStop plunged 13.05% after lowering its forecast for earnings in 2015 to $3.55 a share, after previously estimating as much as $3.70 against analyst projections of $3.69.

The dollar fell against the yen but rose against the pound and gained over 1% versus the euro, as the European currency showed signs of weakening after Draghi's comments.

Gold future rose to $1,200.10, while the prices of Brent crude and West Texas intermediate crude advanced by about 1%, with the former trading at just over $80.50 a barrel and the latter trading at just over $76.50 a barrel.

The yield on the 10-year US Treasury note fell three basis points to 2.31%, while the yield on the 30-year note lost four basis points to 3.01% and the yield on the five-year Treasuries dropped two basis points to 1.62%.

S&P 500 - Risers
Ross Stores Inc. (ROST) $89.27 +7.28%
Autodesk Inc. (ADSK) $61.94 +6.04%
Allegheny Technologies Inc. (ATI) $35.39 +5.83%
Caterpillar Inc. (CAT) $106.45 +4.28%
St Jude Medical Inc. (STJ) $66.80 +3.94%
Tyco International Plc (TYC) $42.89 +3.82%
Freeport-McMoRan Inc (FCX) $29.59 +3.57%
Nabors Industries Ltd. (NBR) $16.91 +3.36%
Avon Products Inc. (AVP) $9.87 +3.35%
AbbVie Inc (ABBV) $67.36 +3.33%

S&P 500 - Fallers
GameStop Corp. (GME) $37.86 -13.70%
Gap Inc. (GPS) $38.46 -4.19%
Southwest Airlines Co. (LUV) $38.02 -2.19%
Netflix Inc. (NFLX) $360.28 -2.14%
Delta Airlines Inc. (DAL) $43.09 -1.98%
Expedia Inc. (EXPE) $84.69 -1.61%
Under Armour Inc. Class A (UA) $69.30 -1.58%
Keurig Green Mountain Inc (GMCR) $140.26 -1.57%
Hudson City Bancorp Inc. (HCBK) $9.63 -1.53%
L Brands Inc (LB) $78.87 -1.51%

Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $106.45 +4.28%
United Technologies Corp. (UTX) $110.30 +1.36%
Chevron Corp. (CVX) $118.58 +1.08%
Exxon Mobil Corp. (XOM) $96.81 +1.03%
Visa Inc. (V) $254.22 +1.01%
E.I. du Pont de Nemours and Co. (DD) $72.15 +1.01%
Boeing Co. (BA) $132.78 +0.82%
Home Depot Inc. (HD) $98.28 +0.73%
Coca-Cola Co. (KO) $44.50 +0.56%
JP Morgan Chase & Co. (JPM) $60.45 +0.55%

Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $47.97 -1.51%
Intel Corp. (INTC) $35.60 -0.97%
Johnson & Johnson (JNJ) $107.86 -0.30%
American Express Co. (AXP) $90.39 -0.25%
Unitedhealth Group Inc. (UNH) $96.71 -0.14%
Goldman Sachs Group Inc. (GS) $189.59 -0.08%

Nasdaq 100 - Risers
Ross Stores Inc. (ROST) $89.27 +7.28%
Autodesk Inc. (ADSK) $61.94 +6.04%
Micron Technology Inc. (MU) $34.29 +3.25%
Vimpelcom Ltd Ads (VIP) $5.97 +2.93%
Baidu Inc. (BIDU) $245.21 +2.86%
Cognizant Technology Solutions Corp. (CTSH) $53.06 +2.51%
Starbucks Corp. (SBUX) $79.76 +1.99%
Dish Network Corp. (DISH) $73.64 +1.96%
CA Inc. (CA) $30.64 +1.79%
Liberty Global plc Series A (LBTYA) $46.87 +1.71%

Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $242.78 -2.38%
Netflix Inc. (NFLX) $360.28 -2.14%
Expedia Inc. (EXPE) $84.69 -1.61%
Keurig Green Mountain Inc (GMCR) $140.26 -1.57%
Microsoft Corp. (MSFT) $47.97 -1.51%
Vertex Pharmaceuticals Inc. (VRTX) $111.37 -1.35%
Intel Corp. (INTC) $35.60 -0.97%
Seagate Technology Plc (STX) $64.94 -0.92%
Alexion Pharmaceuticals Inc. (ALXN) $190.83 -0.89%
Monster Beverage Corp (MNST) $109.40 -0.72%