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The Dow Jones Industrial Average surged to a new high on Friday around noon amid earnings reports from banking giants. The Dow added over 300 points, or 0.79%, to 40,045 points in the afternoon. The S&P 500 gained 0.9% and surpassed 5,600 once again, while the Nasdaq gained 0.8%.
The inflation data released on Friday gave 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. The PPI data contradicts Thursday’s lower-than-expected consumer price pressure reading. This may indicate that the Fed will need more time to reduce interest rates.
Meanwhile, the 10-year yield held steady at 4.2% on Friday.
The big bank earnings season begins
Bank earnings season kicked off once again 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, reaching a new 52-week high with a nearly 5% jump and trading at $64.
On the other hand, Wells Fargo was the worst-performing stock on the S&P 500. Its profit slid, and its earnings report showed a weak annual outlook. In the afternoon, the stock was over 6% down, trading at $56.
Goldman Sachs is set to report on Monday, followed by Morgan Stanley and Bank of America on Tuesday.
—Rocio Fabbro contributed to this article.