The Dow Jones Industrial Average climbed to a new high on Friday around noon, buoyed by earnings reports from major banks. The Dow increased by over 300 points, or 0.79%, to reach 40,045 points in the afternoon. Similarly, the S&P 500 rose by 0.9%, surpassing 5,600 once again, while the Nasdaq gained 0.8%.
The recently released inflation data painted a mixed picture. The Producer Price Index (PPI) showed an uptick in June. According to the Bureau of Labor Statistics, the PPI for final demand in the U.S. rose by 2.6% year-over-year in June, exceeding the 2.3% forecast. This PPI data contrasts with Thursday’s lower-than-expected consumer price index, suggesting that the Federal Reserve might need additional time to consider reducing interest rates.
Meanwhile, the 10-year yield remained steady at 4.2% on Friday.
Bank earnings season kicked off again 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, hitting 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. The bank’s profit declined, and its earnings report indicated a weak annual outlook. By the afternoon, the stock had fallen by over 6%, trading at $56.
Goldman Sachs is scheduled to report on Monday, followed by Morgan Stanley and Bank of America on Tuesday.