Investing.com– The Dow and S&P 500 notched record closing highs Friday, with the latter closing above the 5,800 mark for the first time as JPMorgan led a string of mostly better than expected earnings,
At 4:00 p.m. ET (2000 GMT), the index climbed 0.4% to 5,814.75, the gained 0.3%, the rose 409 points, or 1%, to close at a record of 42,863.86.
All three major indexes notched their fifth consecutive week of gains, with the dow clinching its the best winning streak in eight months.
JPMorgan Chase and Wells Fargo rise after earnings
The main focus Friday will be on the third quarter earnings season, with major financial companies getting the ball rolling. These results offer an important view into the economy, including the strength of demand for loans.
JPMorgan Chase (NYSE:) stock rose 4% after the largest US lender by assets topped quarterly estimates for profit and revenue on higher-than-expected net interest income.
Wells Fargo (NYSE:) stock also rose more than 5% after the bank reported third-quarter earnings that beat expectations, boosted by lower expenses and credit costs.
Goldman Sachs (NYSE:), Bank of America (NYSE:) and Citigroup (NYSE:) will report earnings next week.
Tesla falls as Cybercab robotaxi unveiling fails to impress; Uber rallies; Stellantis slips
Elsewhere, Tesla (NASDAQ:) stock fell more than 8% after the group unveiled its long-awaited “Cybercab” robotaxi, although analysts flagged that CEO Elon Musk provided few answers to crucial questions surrounding the technology.
By contrast, Uber (NYSE:) stock rose 10% after Tesla’s much-anticipated Robotaxi event failed to impress investors, with Jefferies saying, Tesla’s “toothless taxi is a best-case outcome for Uber.”
Stellantis NV (NYSE:) fell 2% after announcing that Chief Financial Officer Natalie Knight is set to lever, and will be succeeded by Doug Ostermann. The company confirmed that it has got its search underway for candidate to replace Chief Executive Carlos Tavares, who’s retiring in early 2026.
PPI data supports smaller rate cut
The for September was unchanged last month versus August, easing from a prior reading of 0.2% and below expectations for an uptick of 0.1%.
Year-on-year, the index increased by 1.8%, slower than an upwardly revised mark of 1.9% in August, potentially pointing to a cooling inflation picture as lessening the impact of the inflation data, released earlier in the week, which read stronger-than-expected.
Traders are now pricing in a major chance for a 25 basis point cut in November, instead of the 50-basis-point cut the Fed introduced in September.
Comments from Fed officials added to this notion, with Atlanta Fed President stating that the possibility of a hold in November could also be considered.
A slower pace of interest rate cuts potentially presents pressure on Wall Street, given that U.S. stock valuations scaled record highs on expectations of a sharp reduction in rates.
(Peter Nurse, Ambar Warrick contributed to this article.)