U.S. stocks closed higher Friday as markets rallied on overseas central banks' stimulus efforts and an encouraging domestic outlook. In U.S. economic news, the Philadelphia, Pennsylvania, Federal Reserve Index came in at 40.8 for November, more than double the expected 18.3 and the highest since December 1993. In addition, existing home sales hit 5.26 million and leading indicators gained 0.9 percent, both beating expectations for October. In international economic news, the People's Bank of China cut its benchmark interest rates for the first time in more than two years to lower borrowing costs and lift a cooling economy back on track. The one-year benchmark lending rate has been trimmed by 40 basis points to 5.6 percent. Meanwhile, European Central Bank (ECB) President Mario Draghi reiterated dovish statements in a speech at a European banking conference in Frankfurt. The ECB also announced that it has begun buying asset-backed securities. In corporate news, Athletic retailer Foot Locker posted better-than-expected quarterly results ahead of the open. The retailer reported fiscal third-quarter earnings of 83 cents a share on sales of $1.73 billion, as same-store sales jumped 6.9 percent. Sotheby chief executive William Ruprecht will step down "by mutual agreement" with the auction house's board, although he will remain in the job until a successor is found. The move comes a few months after activist investor Dan Loeb and others joined the Sotheby's board. The dollar lost its gains against major world currencies to trade flat. Light sweet crude oil for January delivery gained 66 cents to $76.51 a barrel on the New York Mercantile Exchange. Gold futures climbed $6.80 to $1,197.70 an ounce. The Dow Jones industrial average added 91.06, or 0.51 percent, to 17,810.06. The broader Standard & Poor's 500 index gained 10.75, or 0.52 percent, to 2,063.50. The technology-heavy Nasdaq composite index rose 11.10, or 0.24 percent, to 4,712.97.
