Dow hits record high, small caps jump on rate-cut bets; bank results mixed
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
JPMorgan, Citi, Wells Fargo drop after results
Small-, mid-cap stocks lead gains
U.S. producer prices rise marginally in June
Indexes up: Dow 0.90%, S&P 0.90%, Nasdaq 1.1%
Updated at 11:53 a.m.
By Medha Singh and Ankika Biswas
July 12 (Reuters) - The Dow touched a record high on Friday as this year's lagging stocks gained favor on optimism that the U.S. Federal Reserve will begin easing monetary policy in September, while big lenders fell after reporting mixed results.
JPMorgan Chase's JPM.N second-quarter profit increased on a boost from rising investment banking fees. However, sharesof the world's largest bank dipped0.1% after a 21.4% climb this year.
Wells Fargo WFC.N slid 6.8% as the lender missed estimates for quarterly interest income, while Citigroup C.N fell 1.7% even after it posteda surge in investment banking revenue.
The S&P 500 Financials index .SPSY shed 0.5%, while the banks index .SPXBK lost 1%.
"Bank earnings were a mixed bag to start off earnings season but buyers are still stepping in. That rotation into small- and mid-caps is still continuing and that'sa positive sign overall," said Ryan Detrick, chief market strategist at Carson Group.
As the S&P 500 and the Nasdaq hover near record highs, investors are hoping for strong profit growth from companies beyond tech heavyweights such as Nvidia NVDA.O, so that the U.S. stocks rally can broaden out.
Analysts expect second-quarter earnings for S&P 500 firms to grow by 9.6%, from a decline of 2.8% in the same period in 2023, according to LSEG IBES data.
The small-cap Russell 2000 .RUT rose 1.4% to hit a six-month high, while the S&P 400 Mid Cap index .IDX firmed 1.5%. The two indexes have lagged the S&P 500 this year.
"We think the rotation into the underloved, underappreciated, underperforming small- and mid-caps could take the baton in the second half of this year, as the Fed is clearly more dovish than they've been," Detrick said.
At 11:53 a.m. ET, the Dow Jones Industrial Average .DJI was up 338.69 points, or 0.85%, at 40,092.44, the S&P 500 .SPX was up 51.08 points, or 0.91%, at 5,635.62, and the Nasdaq Composite .IXIC was up 199.34 points, or 1.09%, at 18,482.75.
Data showedproducer prices were slightly hotter-than-expected in June but that did little to change bets on the first rate cut in September. The report follows data showing asurprise fall in U.S. consumer prices on Thursday.
Traders are now betting ona 94.4%chance of a rate cut by September, up from 77.7% a week ago, according to CME Group's FedWatch.
All three major indexes were headed for weekly gains, with the Dow looking at its best week in nine.
In a mixed session for megacap stocks, Apple AAPL.O rose 1.9%, while Meta Platforms META.O shed 1.3%.
Tesla TSLA.O jumped 3.5% aftera more than8% slide on Thursday, following a report of its robotaxi launch delay.
Advancing issues outnumbered decliners by a 4.24-to-1 ratio on the NYSE, andby a 2.84-to-1 ratio on the Nasdaq.
The S&P index recorded 54 new 52-week highs, while the Nasdaq recorded 149 new highs and 24 new lows.
Reporting by Medha Singh and Ankika Biswas in Bengaluru; Editing by Saumyadeb Chakrabarty and Pooja Desai
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.