U.S. stocks rally in last trading day of Q3

U.S. stocks traded higher on Friday, the last trading day of the third quarter, as investors kept a close eye on newly-released data and Deutsche Bank shares.

By noon, the Dow Jones Industrial Average was up 186.55 points, or 1.03 percent, to 18,330.00. The S&P 500 gained 18.68 points, or 0.87 percent, to 2,169.81. The Nasdaq Composite Index rose 42.93 points, or 0.81 percent, to 5,312.08.

On the economic front, U.S. personal income increased 39.3 billion U.S. dollars, or 0.2 percent, in August, according to the Commerce Department Friday.

Disposable personal income (DPI) rose 31.9 billion dollars, or 0.2 percent, and personal consumption expenditures (PCE) increased 6.2 billion dollars, or less than 0.1 percent.

Meanwhile, the final reading of the consumer sentiment for September was 91.2, better than market estimates, said the Thomson Reuters/University of Michigan index of consumer sentiment on Friday.

In corporate news, Deutsche Bank's shares spiked over 13 percent around midday Friday, a day after a report that a group of hedge funds were reducing their exposure to the giant financial institution.

U.S.-listed shares of Deutsche Bank's hit an all-time low and sank 6.67 percent to 11.48 dollars apiece Thursday, which caused a broad-based sell-off in bank equities.

Analysts said Thursday' s selloff was an overreaction and the market is walking back Friday. Enditem