U.S. stocks closed higher on Friday as investors digested a slew of economic data as well as corporate earnings reports.

The Dow Jones Industrial Average increased 332.36 points, or 1.39 percent, to 24,262.51. The S&P 500 increased 33.69 points, or 1.28 percent, to 2,663.42. The Nasdaq Composite Index was up 121.47 points, or 1.71 percent, to 7,209.62.

Total nonfarm payroll employment increased by 164,000 in April, lower than the 195,000 expected by economists, according to the Labor Department.

Average hourly earnings growth also missed estimates as it rose only 0.15 percent against expectations of a 0.2 percent gain.

Despite the disappointing number of jobs created, the unemployment rate edged down to 3.9 percent, following 6 months at 4.1 percent. The number of unemployed persons, at 6.3 million, also edged down over the month, said the department.

On the earnings front, first quarter earnings are expected to increase 25.7 percent while the blended revenue growth estimate is 8.4 percent, according to Thomson Reuters on Friday.

Of the 409 companies in the S&P 500 that have reported earnings to date for the first quarter this year, 79.2 percent have reported earnings above analyst expectations, said Thomson Reuters.