The Dow Jones Industrial Average surged to a new high on Friday around noon amid earnings reports from major banks. The Dow added over 300 points, or 0.79%, to reach 40,045 points in the afternoon. The S&P 500 gained 0.9%, surpassing 5,600 once again, while the Nasdaq rose by 0.8%.
The inflation data released on Friday conveyed 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 data contradicts Thursday’s lower-than-expected consumer price pressure reading, suggesting that the Federal Reserve may need more time to reduce interest rates.
Meanwhile, the 10-year yield held steady at 4.2% on Friday.
Bank earnings season kicked off again on Friday, with JPMorgan Chase, Citigroup, BNY Mellon, and Wells Fargo reporting their second-quarter results before the bell. BNY Mellon was 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 showed a weak annual outlook. By the afternoon, the stock was down over 6%, trading at $56.
Goldman Sachs is set to report on Monday, followed by Morgan Stanley and Bank of America on Tuesday.