Among earnings, Foot Locker posted earnings that matched Wall Street expectations, while revenue edged past estimates. Still, shares tumbled.
Pandora surged after the music-streaming service edged past earnings and revenue expectations and handed in current-quarter and full-year 2014 revenue guidance that were better than Wall Street estimates. In addition, the company said its board has formed a search committee to look for a new CEO. At least six brokerages boosted their price target on the company.
Skullcandy plunged more than 20 percent after the headphone maker posted earnings that missed expectations and warned that it expects to see a loss in the first quarter, disappointing analysts who had expected a gain.
Goldman Sachs and Morgan Stanley slumped after the Federal Reserve's latest stress test results revealed that both companies were near the bottom of the list of banks surveyed in terms of capital on hand. The only other bank that could see its capital fall below 6 percent under the stress scenario was Ally Financial.
Meanwhile, Citigroup rallied after the Fed said the company was one of the best banks poised to weather another financial crisis. In addition, Citi announced it had made a request to the Fed to repurchase up to $1.2 billion of its common equity, roughly the same amount it issues in employee stock each year. It did not request a raise to its $0.01 dividend.
(Read More: Stress Tests 'Just Not Very Stressful' for Banks)
Also on the economic front, wholesale inventories rose 1.2 percent in January, according to the Commerce Department. Economists polled by Reuters expected a gain of 0.3 percent. Meanwhile, sales at wholesalers declined 0.8 percent, against expectations for an increase of 0.1 percent.
In Asia, Japan's Nikkei jumped to a new four-and-half-year high in Friday's session, thanks to the yen's decline and revised growth figures showing the Japanese economy stabilized in the fourth quarter of 2012 after two quarters of a shallow recession.
China posted strong trade data which showed exports rising 22 percent in February from a year ago, though imports were weaker than forecast.
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