Dow rises 260 points, S&P 500 posts 3rd weekly gain led by Disney, JP Morgan

Stocks rose on Friday after a slew of positive corporate news that included strong bank earnings and Disney unveiling a new streaming service.

The Dow Jones Industrial Average surged 269.25 points. Gains in the financials and materials sectors pushed the S&P 500 0.66% higher. The benchmark broke above the key 2,900 level for the first time in six months and stood at less than 1% from a record high. Its also the third consecutive weekly gain for the S&P 500. The Nasdaq Composite advanced 0.46%.

J.P. Morgan Chase kicked off the corporate earnings season on Friday by reporting better-than-expected results. The company said impact of higher rates boosted its results, along with its fixed-income trading revenues. Wall Street cheered J.P. Morgans report, sending the stock up 4.7%.

A solid 1Q19 beat should be good news for the shares of both JPM and its universal bank peers, said Jeffery Harte, an analyst at Sandler ONeill & Partners, in a note. We specifically see a positive read through for universal bank peers from JPMs FICC and debt underwriting revenue beats.

Wells Fargo also reportedbetter-than-expected results on the back of its consumer lending business, but the stock erased earlier gains as the banks CFO issued a tepid outlook for net interest income.

Investors came into the season expecting it to be a tough one for companies. FactSet expected first-quarter earnings to have fallen 4.2% in the first quarter.

Weve got a twin wind here, said Jeff Kravetz, regional investment director at U.S. Bank Wealth Management. Weve got better-than-expect Chinese trade data and weve got a strong kick-off to earnings season. Thats pushing markets higher and instilling confidence with investors.

On top of Fridays deluge of corporate news, investors digested the release of the Federal Reserves minutes from its March meeting as well as further progress on U.S.-China trade talks.

—CNBCs Yun Li and Sam Meredith contributed to this report.