US Stocks extended gains on Friday after financial stocks surged up on JP Morgan’s announcement of a bold mortgage modification plan. Decline in interbank borrowing costs also buoyed sentiments.

The Dow Jones Industrial Average climbed 144.32 points, (+1.57%), to finish at 9,325.01. The S&P 500 advanced 14.66 points (+1.54%) to 968.75. The Nasdaq Composite rose 22.43 points (+1.32%) to 1,720.95.

Though indexes closed with impressive weekly gains, the month of October turned out to be one of the worst months in recent history. Dow finished with a weekly gain of 11.3% and monthly loss of 14.1%. S&P500 gained 10.5% in the week while it was down 16.9% in October. Nasdaq Composite posted a weekly gain of 10.9% and monthly decline of 17.7%.

JPMorgan (NYSE: JPM) rose $3.63 or 9.7% to $41.25 after it announced to halt new foreclosures for next 90 days. JPMorgan unveiled $70 Billion Mortgage-Modification Program on Friday through which it expects to help 400,000 families. Morgan Stanley (NYSE: MS) rallied $1.38 or 8.58% to $17.47. Shares of Bank of America Corp. (BAC) added $1.39 or 6.10% to finish at $24.17. Citigroup (NYSE:C) climbed 4.12%.

Shares of credit card company, American Express Co. (NYSE:AXP) soared $1.44 or 5.53%. On Thursday the company announced that it plans to reduce headcount by 7,000, or about 10% of its worldwide work force, in an effort to cut costs by $1.8 billion in 2009.

San Ramon, California based Chevron Corp's (NYSE: CVX) announced on Friday that its third-quarter profit jumped 114% to $7.9 billion, or $3.85 per share, compared with $3.7 billion, or $1.75 per share, in the same quarter in 2007. Exploration and production profits climbed to $6.18 billion from $3.4 billion. Analysts had expected the second-largest U.S. oil company to report a net profit of $6.55 billion, or $3.20 per share, on revenue of $89.4 billion. Shares of Chevron finished at $74.60, up 42 cents or 0.57 on Friday.

Burger King (NYSE: BKC) reported that its quarterly net earnings rose 2% to $50 million, or 36 cents a share, compared to $49 million, or 35 cents a share, in the year-ago period. Sales rose 12% $674 million from $602 million. Analysts were expecting the company to earn 39 cents a share on revenue of $668 million. Shares of the company were down 37 cents or 1.83% at $$19.88 on Friday.

Shares of computer security company McAfee (NYSE: MFE) jumped $4.80 or 17.3% to finish at $32.55. Late on Thursday, the company said that excluding special items, earnings of third-quarter rose to 53 cents. Analysts on average had forecast McAfee would post earnings excluding special items of 49 cents a share. Net income declined to $48.8 million or 31 cents a share, from $63.4 million, or 39 cents a share, in the same quarter a year ago. Revenue rose 27% to $409.7 million.

Shares of Santa Clara, California based Sun Microsystems Inc. (NASDAQ: JAVA) fell 69 cents or 13.04% to $4.60.