Financial stocks soared on Friday, pushing the S&P 500 and Dow Jones to new all-time highs.
Strong earnings from major U.S. banks overshadowed mixed economic data, leading investors to buy into the market.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust (SPY), crossed 5,800 points, up 0.7% for the day and almost 23% higher this year.
Meanwhile, the Dow Jones, monitored by the SPDR Dow Jones Industrial ETF (DIA), gained 0.8% to reach 42,780 points, breaking records from late September.
Financial Sector Fuels Market Growth
The financial sector led Friday’s gains, with the Financial Select Sector SPDR Fund (XLF) climbing 1.9% to a new high.
JPMorgan Chase reported Q3 earnings of $4.37 per share, surpassing the $4.00 forecast, causing shares to jump over 4% in early trading.
Wells Fargo shares increased 6.2% after reporting an EPS of $1.42, and Bank of New York Mellon also exceeded expectations, with shares up 1.8%.
Other large banks such as Bank of America, Citigroup, and Goldman Sachs also saw increases between 2% and 4.8%.
The rally extended to regional banks, lifting the SPDR S&P Regional Banking ETF (KRE) by 3.5% and helping the Russell 2000 index gain 1.3%.
Economic Data Mixed but Overlooked
Economic reports showed higher-than-expected Producer Prices and a dip in consumer sentiment for October.
The PPI rose to 1.8% year-over-year in September, while consumer sentiment fell to 68.9 in October, below predictions of 70.8.
Despite these mixed signals, strong bank earnings kept investors optimistic about the upcoming earnings season.
Top Performers on the S&P 500
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| Uber Technologies (UBER) | Industrials | $84.21 | 8.07% |
| Fastenal (FAST) | Industrials | $75.13 | 7.34% |
| Wells Fargo | Financials | $60.99 | 5.61% |
| WW. Grainger (GWW) | Industrials | $1,079.38 | 5.29% |
| Bank of America | Financials | $41.97 | 4.99% |
Top Performers on the Dow
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| JPMorgan Chase | Financials | $221.99 | 4.30% |
| The Boeing Company (BA) | Industrials | $150.55 | 2.68% |
| Goldman Sachs | Financials | $513.51 | 1.94% |
| Intel (INTC) | Information Technology | $23.63 | 1.78% |
| American Express (AXP) | Financials | $274.73 | 1.58% |
Read Next: JPMorgan’s Q3 Earnings: Investment Banking Revenue Soars 29%
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