I thought it might be interesting to look at a variety of different Calculus textbooks to see how they handle the terminology. Here is an unscientific survey of the half-dozen different Calc textbooks I have on my bookshelf right now:
Stewart, Single Variable Calculus, 4e (both Early Transcendentals and Late Transcendentals versions) and 5e:
Stewart defines the phrase continuous at a number a in the usual way; the text also defines continuous from the right at a and continuous from the left at a. Armed with these definitions, the text defines continuous on an interval, with one-sided limits used at the endpoints of the interval if appropriate in context.
With respect to the specific question of the OP, Stewart's Theorem 5 states that "Any rational function is continuous wherever it is defined; that is, it is continuous on its domain."
The phrase "a continuous function" (without qualifiers like "at a point" or "on an interval") is used in the exposition, but never in the definitions, theorems, proofs, or exercises. The phrase is used solely as a kind of informal shorthand that makes it possible to refer to several different types of continuity at once, for example in statements like "a sum or product of continuous functions is continuous". A question like "Is the reciprocal function continuous?" would not be found in this text; however, "Is the reciprocal function continuous on its domain?" and "At what points is the reciprocal function discontinuous?" would be legitimate.
Gillett, Introduction to Calculus and Analytic Geometry, 4e
Like Stewart, Gillett defines "continuous at $x_0$". This text also defines "continuous in S" (where S is a subset of the domain). (Interestingly the definition does not impose any restrictions on what types of subsets may be considered, but every example seems to be a countable union of intervals.) The phrase "continuous in its domain" comes next, and Gillett has as Example 6 that "The reciprocal function is continuous in its domain."
Regarding the terminology "a continuous function", Gillett has the following remark immediately following Example 6:
When a function is continuous in its domain, many writers simply call it continuous, using the global term (unqualified)… This is not unreasonable… but it can be misleading. To say that f(x) = 1/x is continuous (without any qualification) is to risk overlooking the infinite jump at x = 0. It also sounds paradoxical to say "f(x) is continuous" in one breath and "f(x) is discontinuous at x=0" in the next. That is why we prefer the language "continuous in its domain." It leaves the door open for further remarks.
So Gillett explicitly rejects the phrase "a continuous function" without specifying a point or a subset of its domain, and justifies this using the reciprocal function as its example of why that usage would be poor.
Moise, Calculus: Part I.
This text (from 1966), like the more modern examples, starts by defining "continuous at $x_0$". Unlike Stewart and Gillett, Moise continues by defining "If $f$ is continuous at every point $x_0$ of its domain, then we say that $f$ is continuous." So it uses precisely the terminology that Gillett critiques.
As an example of how continuous functions can be combined to produce more continuous functions, Moise considers the example of $f(x) = x^2 + 1$ and $h(x) = x^2 - 1$. The text states that $f+h$ and $fh$ are both "continuous" (note the absence of any qualifier) and then says that $f/h$ is continuous except at $1$ and $-1$. The example continues, "Of course, at $x=1$ and $x = -1$ it is not just continuity that breaks down: the quotient function is not even defined at these points, because the denominator of $f/h$ becomes $0$." Oddly enough, Moise stops short of saying that $f/h$ is a "continuous function", despite the fact that it would be completely in keeping with his own usage conventions to do so. Presumably that is because, as Gillett noted in his remark quoted above, it would seem weird to say that "$f/h$ is continuous" and then also say that "$f/h$ is discontinuous at $1$ and $-1$".
Zill (1993), Calculus (3e)
Like all the others, Zill begins by defining "continuity at a point". Zill states that that rational functions are discontinuous at points where they are not defined. The text
defines continuity on an interval (with "continuous from the right/left" used at end points as appropriate).
With respect to the usage "continuous function", Zill says:
Functions that are continuous on $(-\infty, \infty)$ are said to be
"continuous everywhere" or simply "continuous".
So Zill reserves the phrase "continuous function" for use only with functions whose domain is all of $\mathbb{R}$.
On the other hand (and somewhat in contradiction to this explicit definition), "continuous function" is used throughout the exposition (but never in the theorems!) as a shorthand, much in the same way that Stewart does.
So, to summarize, I'm going to go out on a limb here and, based on the single example of the 1966 textbook, suggest that the use of the phrase "continuous function" to mean "function that is continuous at each point of its domain" might be an artifact of an earlier generation of textbook authors. More recent texts either avoid giving the phrase any technical meaning at all, using it instead as an informal shorthand, or (in the case of Zill) define it to mean "continuous on all of $\mathbb{R}$".