Early on, stocks fell on worry over the quality of corporate profits after General Electric Co missed quarterly estimates, discouraging investors after a four-day run-up in Wall Street. However, the Dow Jones industrial average was able to regain some strength.

The Dow Jones industrial average gains 32.12 points, or 0.37 percent, to 8,743.94. The Standard & Poor's 500 Index shed 0.36 points, or 0.04 percent, to 940.38. The Nasdaq Composite Index rose 1.58 points, or 0.08 percent, to 1,886.61.

European shares are higher in early afternoon trade with banks recovering after initial falls following Citigroup results, while new US housing starts jumped mored than expected.

The pan-European FTSEurofirst 300 index of top shares closed with a 0.4 percent gain at 870.56 points, having fallen earlier to 865.82 points.

Japan's Nikkei average rose 0.6 percent after strong results at JPMorgan boosted optimism about corporate earnings, but gains were capped by political uncertainty ahead of an election next month.

The benchmark has only gained 1.2 percent this week, compared with a 7 percent advance for the Standard & Poor's 500 Index .SPX, with market analysts pointing to a lack of strong leadership in either the LDP or the opposition Democrats.