The Dow Jones Industrial Average reached a new high around noon on Friday, led by earnings reports from major banks. The Dow climbed over 300 points, or 0.79%, to 40,045 points in the afternoon. The S&P 500 rose 0.9% to surpass 5,600 once again, and the Nasdaq gained 0.8%.
The Producer Price Index (PPI) data released Friday showed mixed signals regarding inflation. According to the Bureau of Labor Statistics, the PPI for final demand in the US increased 2.6% year-over-year in June, above the 2.3% estimate. This contrasts with Thursday’s lower-than-expected consumer price pressure reading, suggesting that the Federal Reserve may take more time to reduce interest rates.
Meanwhile, the 10-year yield remained steady at 4.2% on Friday.
The big bank earnings season began Friday, with JPMorgan Chase, Citigroup, BNY Mellon, and Wells Fargo releasing their second-quarter results before the bell.
BNY Mellon emerged as one of the top performers on the S&P 500, hitting a new 52-week high with a nearly 5% jump, trading at $64.
Conversely, Wells Fargo was the worst performer on the S&P 500. Its profit declined, and its earnings report indicated a weak annual outlook. By afternoon, the stock was down over 6%, trading at $56.
Goldman Sachs is scheduled to report on Monday, followed by Morgan Stanley and Bank of America on Tuesday.