Third Inflation Report Indicates Cooling Trend, S&P 500 and Nasdaq Extend Weekly and Yearly Gains

Barry Adams
14 Jul, 2023
New York City

Stocks on Wall Street advanced after banks reported better-than-expected earnings but market indexes lost early momentum. 

Market averages extended halted a 4-day rally as earnings season kicked off and investors focused on cooling inflation trend. 

JPMorgan Chase, Wells Fargo and Citigroup met or exceeded quarterly earnings estimates, fueling market advance in Friday's trading. 

Market averages opened higher for the fifth day in a row after inflation worries eased following three reports this week. 

Consumer price inflation dropped to 3% in June , wholesale inflation dropped to 0.1% and import prices dropped 6.1% after prices of petroleum products continued to decline.  

Wholesale price inflation declined for the eleventh month in a row and consumer price inflation dropped to the lowest level last seen since March 2021. 

Import price inflation also declined 6.1% from a year ago in June, supporting that price pressures are ebbing. 

Market averages sold off in the final hour of trading as investors focused on a sharp rise in credit loss reserves in the latest quarterly results of JPMorgan Chase. 

 

U.S. Indexes & Yields 

The S&P 500 index futures traded higher 0.3% to 4,521.33 and the Nasdaq Composite edged higher 0.4% to 14,191.93.

The yield on 2-year Treasury notes decreased to 4.70%, 10-year Treasury notes inched lower to 3.80% and 30-year Treasury bonds edged down to 3.91%. 

Crude oil decreased $0.81 to $76.10 a barrel and natural gas prices decreased 1 cent to $2.54 a thermal unit. 

 

Stock Movers 

Citigroup declined 2.1% to $46.68 despite the company reporting better-than-expected quarterly earnings.  

JPMorgan Chase gained 0.5% to $149.70  and the New York-based bank reported higher earnings on bond trading income.

Black Rock Inc declined 2.1% to $724.51 after the asset management company reported earnings ahead of market expectation and robust fund inflows. 

UnitedHealth Group soared 6.8% to $478.29 after the insurance company reported  better-than-expected earnings on lower-than-expected costs and rising premiums. 

The insurance company also lifted its annual outlook.