The Dow Jones Industrial Average reached a new peak on Friday around noon, driven by earnings reports from major banks. The Dow climbed over 300 points, or 0.79%, to reach 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 an annual increase of 2.6% in June, according to the Bureau of Labor Statistics, exceeding the 2.3% estimate. This PPI data contrasts with Thursday’s lower-than-expected consumer price index reading, suggesting the Federal Reserve may need more time to lower interest rates.
Meanwhile, the 10-year Treasury yield remained steady at 4.2% on Friday.
Bank earnings season kicked off Friday, with JPMorgan Chase, Citigroup, BNY Mellon, and Wells Fargo reporting their second-quarter results before the market opened. BNY Mellon was one of the top-performing stocks on the S&P 500, hitting a new 52-week high with a nearly 5% rise, trading at $64. Conversely, Wells Fargo was the worst-performing stock on the S&P 500, with a 6% drop in the afternoon, trading at $56, as its earnings report indicated a weak annual outlook.
Looking ahead, Goldman Sachs is set to report its earnings on Monday, followed by Morgan Stanley and Bank of America on Tuesday.