The Dow Jones Industrial Average soared to a new high on Friday around noon amid earnings reports from major banks. The Dow climbed over 300 points, or 0.79%, reaching 40,045 points in the afternoon. The S&P 500 saw a 0.9% increase, surpassing 5,600 again, while the Nasdaq rose by 0.8%.
Inflation data released on Friday presented mixed signals. The Producer Price Index (PPI) for June showed an increase, with the US Bureau of Labor Statistics reporting a 2.6% rise annually, surpassing the 2.3% estimate. This contrasts with Thursday’s lower-than-expected consumer price pressure reading, suggesting the Federal Reserve may need more time to lower interest rates.
Meanwhile, the 10-year yield remained steady at 4.2% on Friday.
The earnings season for major banks started once more on Friday, with JPMorgan Chase, Citigroup, BNY Mellon, and Wells Fargo revealing their second-quarter results before the opening bell.
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 performer on the S&P 500. Its profits declined, and the earnings report provided a weak annual outlook. By the afternoon, the stock had fallen over 6%, trading at $56.
Goldman Sachs is scheduled to report on Monday, with Morgan Stanley and Bank of America following on Tuesday.