Stocks continue to rally on debt deal hopes

Stocks ended higher in afternoon trading Friday, adding to the previous day's gains as Wall Street was hopeful that debt-ceiling negotiations in Washington were progressing.

The Dow Jones industrial average closed up 0.7% and the Standard & Poor's 500 index gained 0.6%. The Nasdaq composite index added 0.8%.

Thursday, the Dow soared more than 300 points, breaking a three-week funk in stocks.The gains came after Republican leaders said they would vote to extend the government's borrowing authority for six weeks. A spokesman for President Obama said he would "likely" sign a bill to increase the nation's ability to borrow money.

Investors were anxiously watching for news on budget talks. Obama planned a White House meeting Friday with Republican senators, who said they would present options of their own for ending the shutdown.

In energy trading, benchmark crude for November delivery was down $1.29 at $101.72 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.40 to close at $103.01 on Thursday.

The yield on the 10-year Treasury note fell to 2.67%, from 2.68% a day earlier.

JPMorgan Chase shares were up slightly after the financial giant said adjusted earnings beat expectations but reported an overall loss on a $9.2 billion reserve for litigation expenses.

Shares of Wells Fargo fell after reporting lower third-quarter revenue as mortgage activity slowed.

Asian markets were higher Friday. Japan's Nikkei 225 stock average was up 1.5% at 14,404.74 and Hong Kong's Hang Seng added 1.2% to 23,218.32.

In Europe, the FTSE 100 index of leading British shares was up 0.9% and Germany's DAX rose 0.4%. The CAC-40 in France was flat.

Contributing: Associated Press