Dow Rises on Bank Earnings
The Dow Jones Industrial Average rose on Wednesday, as investors weighed earnings releases from big banks and digested the latest wholesale inflation report.
The 30-stock index restocked 95.61 points to open Wednesday at 44,118.90.
The S&P 500 index edged up 2.86 points to 6,246.71.
The NASDAQ Composite dropped 13.21 points to 20,664.59
Big bank earnings releases continued for a second day. Bank of America, Goldman Sachs and Morgan Stanley all posted better-than-expected earnings. Goldman shares ticked slightly higher. Morgan Stanley, however, shed 2%. Bank of America traded slightly lower as net interest income missed expectations.
These results come a day after JPMorgan Chase, Wells Fargo and Citigroup each posted quarterly figures that topped analysts’ expectations for earnings and revenue.
Stocks initially got a boost on Wednesday from new inflation data. June’s producer price index, considered a leading indicator for pipeline inflation pressures, reflected no change in wholesale prices for the month.
Economists polled by Dow Jones expected a 0.2% increase for PPI.
Wednesday’s report follows data which reflected an increase in consumer prices in June from the previous month. Inflation data this week has fueled concerns about the impact President Donald Trump’s tariffs are having on the economy.
Some investors remain hopeful, however, that the Federal Reserve will be able to ease monetary policy later this year.
Prices for the 10-year treasury gained ground, pushing down yields to 4.45% from Tuesday’s 4.49%. Treasury prices and yields move in opposite directions.
Oil prices sank 81 cents to $65.71 U.S. a barrel.
Gold prices waned $4.80 to $3,331.90 U.S. an ounce.
