Wall Street wrapped up Friday with a weekly win as the U.S. government was set to open and consumer discretionary stocks rallied, led by Starbucks.
The Dow Jones Industrial Average rose 0.75%, the S&P 500 gained 0.85%, while the Nasdaq Composite rallied 1.29%.
The U.S. partial government shutdown was brought to end, albeit temporarily, after President Donald Trump reached a resolution deal with Congress to fund the government until Feb. 15.
The bill that will open large swaths of the federal government is expected to pass both houses of Congress on Friday, Senate Minority Leader Chuck Schumer said.
It'll then make its way to the president's desk to be signed, marking an end to the longest shutdown in U.S. history. The shutdown had threatened to wipe as much as 0.1% every week from economic growth, CNBC reported last week, citing a Trump administration official.
Beyond the shutdown debacle, corporate earnings dominated direction, underscored by a rally in Starbucks after the Coffee giants' results and guidance topped forecasts.
Starbucks (NASDAQ:SBUX) reported late Thursday fiscal first-quarter revenue and earnings that topped analysts' expectations.
The coffee chain also said it expects fiscal 2019 adjusted earnings per share to come in the range of $2.68 to $2.73, above market forecasts of $2.65. Its share price gained 3.6%, underpinning gains in the consumer discretionary sector.
Technology shrugged off downbeat earnings from chipmaker Intel to close higher for the day.
Intel (NASDAQ:INTC) fell 5.5% after it reported lower-than-expected revenue for the fiscal fourth quarter and soft guidance.
Intel's revenue of $18.66 billion missed estimates of $19.02 billion. Guidance for first-quarter profit and revenue of 87 cents $16 billion in revenue, respectively, fell short of estimates for earnings of $1.01 a share on $17.35 billion in revenue.
The rally on Wall Street was also propped up by expectations for a more dovish tone from the Federal Reserve, when it meets next week, following a report from The Wall Street Journal that the Fed is closer than expected to ending its balance sheet unwind.
On the U.S.-China trade front, Treasury Secretary Steven Mnuchin touted optimism on trade, saying both sides were "making a lot of progress" in the talks, Reuters reported.
Still, investor confidence that a comprehensive deal would be announce sooner rather than later remains murky as best following mixed message from the White House this week.
In an interview with CNBC, Commerce Secretary Wilbur Ross shook investor sentiment on trade Thursday, saying that the U.S. was still "miles and miles" from a trade deal with China. That came a day after Top White House economic adviser Larry Kudlow denied that the U.S. had canceled a trade meeting with Chinese officials that was slated for this week.
China's Vice Premier Liu He will return to the U.S. next week to resume the next round of trade talks.
Top S&P 500 Gainers and Losers Today:
Western Digital (NASDAQ:WDC), Seagate Technology (NASDAQ:STX) and Micron Technology (NASDAQ:MU) were among the top S&P 500 gainers for the session.
ResMed (NYSE:RMD), AbbVie (NYSE:ABBV) and Intel (NASDAQ:INTC) were among the worst S&P 500 performers of the session.
