The Dow Jones Industrial Average soared to a new peak around noon on Friday amid earnings reports from major banking institutions. The Dow climbed over 300 points, or 0.79%, reaching 40,045 points in the afternoon. The S&P 500 rose 0.9% and surpassed 5,600, while the Nasdaq increased by 0.8%.
Inflation data released on Friday conveyed mixed signals. The Producer Price Index (PPI) indicated an increase in June, with the Bureau of Labor Statistics reporting a 2.6% rise on a yearly basis, surpassing the estimated 2.3%. This PPI data contradicts Thursday’s lower-than-expected consumer price pressure reading, suggesting that the Federal Reserve may need more time to lower interest rates.
Meanwhile, the 10-year yield remained steady at 4.2% on Friday.
The 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 emerged as one of the top performers on the S&P 500 on Friday afternoon, achieving a new 52-week high with a nearly 5% jump, trading at $64.
Conversely, Wells Fargo was the worst-performing stock on the S&P 500. Its profit declined, and its earnings report revealed a weak annual outlook. In the afternoon, the stock plummeted over 6%, trading at $56.
Goldman Sachs is slated to report on Monday, followed by Morgan Stanley and Bank of America on Tuesday.