The Dow Jones Industrial Average reached a new high on Friday around noon, boosted by earnings reports from major banks. The Dow gained over 300 points, or 0.79%, to hit 40,045 points in the afternoon. The S&P 500 increased by 0.9%, surpassing 5,600 once more, while the Nasdaq rose by 0.8%.
Inflation data released on Friday presented mixed signals. The Producer Price Index (PPI) showed a rise for June. According to the Bureau of Labor Statistics, the PPI for final demand in the US increased by 2.6% on a yearly basis in June, higher than the 2.3% estimate. This contradicts Thursday’s Consumer Price Index (CPI) data, which indicated lower-than-expected pressure. This disparity may suggest that the Federal Reserve will require more time to lower interest rates.
Meanwhile, the 10-year Treasury 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% increase, trading at $64.
Conversely, Wells Fargo was the poorest performer on the S&P 500. Its profits declined, and the earnings report revealed a weak annual outlook. By the afternoon, the stock had fallen more than 6%, trading at $56.
Goldman Sachs is scheduled to report on Monday, followed by Morgan Stanley and Bank of America on Tuesday.