Stocks Rally on Bank Earnings
U.S. stocks rose sharply on Friday, lifting the Dow industrials and S&P 500 into positive terrain for the week, as bank shares rallied after J.P. Morgan Chase & Co. (NYSE:JPM) reported quarterly results that beat expectations. After six down sessions, the Dow Jones Industrial Average rose 203.82 points, or 1.62%, to 12,777.09, up 0.04% for the week. The S&P 500 index added 22.02 points, or 1.65%, to 1,356.78, leaving it 0.2% above last Friday’s finish. The Nasdaq Composite climbed 42.28 points, or 1.48%, to 2,908.47, off 1% for the week.
J.P. Morgan Chase & Co.’s shares surged Friday in their biggest one-day rally since March, as the company posted stronger-than-expected second- quarter earnings. Earlier Friday, the bank reported a quarterly profit of $5 billion, despite a $4.4 billion loss on synthetic credit derivatives.
Confidence among U.S. consumers unexpectedly declined in July to the lowest level this year as Americans grew more pessimistic about their finances. The Thomson Reuters/University of Michigan index of consumer sentiment dropped to 72 this month from June’s 73.2 reading.
Crude-oil futures moved 1.2% higher Friday following news the Obama administration had expanded sanctions on Iran. Front-month light sweet crude oil on the New York Mercantile Exchange settled at $87.10 a barrel, up $1.02. Nymex oil futures were up 3.1% for the week. Front-month Brent futures Friday gained $1.33 a barrel to $102.40.