Illustration of "Dow Jones Hits Record High Amid Major Banks' Earnings Reports"

“Dow Jones Hits Record High Amid Major Banks’ Earnings Reports”

The Dow Jones Industrial Average reached a new high on Friday around noon amid earnings reports from major banks. The Dow gained over 300 points, or 0.79%, to 40,045 points in the afternoon. The S&P 500 rose 0.9% to surpass 5,600 again, while the Nasdaq increased by 0.8%.

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Inflation data released on Friday presented mixed signals. The Producer Price Index (PPI) indicated a rise in June. According to the Bureau of Labor Statistics, the PPI for final demand in the US increased by 2.6% year-over-year in June, surpassing the 2.3% estimate. This PPI data contrasts with Thursday’s lower-than-expected consumer price pressure reading and may suggest that the Federal Reserve will require more time to lower interest rates.

Meanwhile, the 10-year yield remained steady at 4.2% on Friday.

Big bank earnings season commenced on Friday, with JPMorgan Chase, Citigroup, BNY Mellon, and Wells Fargo releasing their second-quarter results before the market opened.

BNY Mellon was one of the top performers on the S&P 500 on Friday afternoon, hitting a new 52-week high with a nearly 5% increase, trading at $64.

Conversely, Wells Fargo was the worst performer on the S&P 500, as its profit dipped and its earnings report revealed a weak annual outlook. In the afternoon, the stock dropped by over 6%, trading at $56.

Goldman Sachs is scheduled to report on Monday, followed by Morgan Stanley and Bank of America on Tuesday.

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