Stocks are rallying after McDonald's and other large corporations reported solid third-quarter earnings.

The S&P 500 index closed higher Friday for the third straight week, as hope builds that a weekend meeting will bring European leaders closer to easing the region's debt troubles.

Fast-food giant McDonald's Corp. rose 3 percent after reporting a 9 percent increase in income. The government also said unemployment fell last month in half of all U.S. states

The Dow Jones industrial average jumped 267 points, or 2.3 percent, to 11,809.

The S&P 500 added 23, or 1.9 percent, to 1,238. The Nasdaq composite index gained 39, or 1.5 percent, to 2,638.

More than six stocks rose for every one that fell on the New York Stock Exchange. Trading volume was average at 4.3 billion.