Last updated 12:42 p.m. ET

Stocks opened on a positive note, boosted by a report that Spain and the European Commission are working on reforms that could lead to bailout of the country. Investors are also following the worldwide retail launch of Apple's (AAPL) iPhone 5.

The Dow Jones Industrial Average ($INDU) was up 31 points at 13,628. The S&P 500 ($INX) was up 4 points at 1,464. The Nasdaq Composite ($COMPX) was up 14 points at 3,190.

European Union authorities are reportedly working with the Spanish government on an economic reform plan that could pave the way for a new rescue program, the Financial Times reported Friday, citing unnamed sources. Implementation of such a plan could boost investor confidence.

With reports of a possible bailout for Europe's fourth-largest economy coming soon, European markets were higher Friday. The euro advanced against the dollar and the yen as a result, while the dollar weakened against both.

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Earlier, Asian markets finished Friday's trading session on an upbeat note. Positive sentiment from Apple's iPhone 5 retail launch, which spread over technology and telecom stocks, helped markets move higher.

Apple launches the iPhone 5
With no U.S. economic data due out Friday, the retail launch of the iPhone 5 around the world took center stage. It is the first major redesign of the iPhone in two years, and it already had a successful preorder period.

As usual, long lines began to form outside Apple stores in several cities around the world. The crowds reinforce estimates from analysts that the iPhone 5 will be the largest consumer-electronics​ debut in history, Bloomberg reported. Apple may sell as many as 10 million iPhones during the weekend sales rush, according to Gene Munster of Piper Jaffray.

While analysts have high sales expectations, the phone has been widely criticized, and many consumers are disappointed with some of the features, especially changes to the device's software. A successful launch is crucial for Apple, which now depends on the iPhone for the majority of both its revenue and profit.

The stock has surged more than 70% this year, in part on anticipation of the new iPhone as well as speculation about other products. Apple, whose shares broke $700 this week, is the most valuable company in the world by market capitalization.

Companies announcing dividend hike
McDonald's (MCD) said its board of directors approved a 10% increase in the restaurant chain's quarterly dividend on common stock, to 77 cents a share. The new dividend is payable Dec. 17 to stockholders of record as of Dec. 3.

Texas Instruments' (TXN) also plans to increase its dividend, to 21 cents a share, a 24% increase from the current quarterly payout of 17 cents.

Covidien (COV) declared a 16% increase in its quarterly dividend paid on the ordinary shares, to 26 cents a share.

Other stocks to watch
Research In Motion (RIMM) shares slumped after reports of a BlackBerry service outage in Europe.

Oracle (ORCL) edged up after the software maker posted fiscal-first-quarter​ earnings that met Wall Street expectations but said hardware sales are expected to drop further after tumbling 24% from a year ago.

Michael Kors (KORS) shares advanced after the fashion and accessory designer said it will likely earn more than it earlier expected in the second quarter from strong global sales.

General Motors (GM) is recalling 473,841 Chevrolet, Pontiac and Saturn sedans globally to fix a condition that could cause the cars to roll when the drivers think they are in park, Reuters reported.

Darden Restaurants (DRI) posted first-quarter earnings that topped analysts' estimates, and the company stood by its sales and profit forecast for the year.

Vivus (VVUS) shares slipped after the company said it expects a European committee to recommend against the approval of its obesity drug Qsiva, based on preliminary feedback from the committee. Rival Arena (ARNA) shares, meanwhile, gained.

KB Home (KBH) shares soared after the homebuilder reported quarterly earnings of 4 cents per share that were much better than the anticipated losses.