The Dow Jones Industrial Average surged to a new high on Friday around noon amid earnings reports from major banks. The Dow rose over 300 points, or 0.79%, reaching 40,045 points in the afternoon. The S&P 500 increased by 0.9% and surpassed 5,600 once again, while the Nasdaq climbed by 0.8%.
The inflation data released on Friday presented mixed signals. The Producer Price Index (PPI) showed an increase in June. According to the Bureau of Labor Statistics, the PPI for final demand in the US rose 2.6% on a yearly basis in June, exceeding the 2.3% estimate. This PPI data contradicts Thursday’s lower-than-expected consumer price index reading, suggesting that the Federal Reserve might need more time before reducing interest rates.
Meanwhile, the 10-year yield remained steady at 4.2% on Friday.
The big bank earnings season began with JPMorgan Chase, Citigroup, BNY Mellon, and Wells Fargo reporting their second-quarter results before the market opened.
BNY Mellon emerged as one of the top-performing stocks 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. Its profit declined, and its earnings report projected a weak annual outlook. By the 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.