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JPMorgan ( JPM ), Wells Fargo ( WFC ) rally after Q3 results

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Tesla reverses after unveiling robotaxi

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Monthly PPI unchanged

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Indexes up: Dow 0.90%, S&P 500 0.61%, Nasdaq 0.37%

(Updated prices at 2:28 p.m ET/ 1828 GMT)

By Sinéad Carew and Lisa Pauline Mattackal

Oct 11 (Reuters) - The S&P 500 and the Dow hit record

highs on Friday, with the biggest boosts from financial stocks

after banks reported strong quarterly results while the latest

inflation data supported expectations for a U.S. Federal Reserve

rate cut in November.

Major financial companies kicked off the earnings season

with JPMorgan Chase ( JPM ) rising 5% after the lender reported

higher-than-expected third-quarter profit and raised its annual

interest income forecast.

Wells Fargo ( WFC ) rose 6%, after its profit also beat

analysts' expectations. BlackRock gained 3% after the

asset manager reported that its assets under management had hit

a record high for the third straight quarter.

Other stocks in the industry rose broadly, with the S&P 500

Financials index climbing 2% to a record high, the S&P

500 Banks index rising 4.6% to its highest level since

February 2022, and the KBW regional bank index up almost

3%.

"We'd some good earnings reports from some leading financial

companies. That's a good start to earnings season," said Evan

Brown, Portfolio Manager and Head of Multi-Asset Strategy, UBS

Asset Management, adding that it bodes well for the economy.

"When financials do well, this is what a soft landing

looks like. It's a positive overall sign for the economy and

sets a positive tone for earnings releases in other industries

in the next few weeks."

Also on Friday, data from the U.S. Department of Labor

showed the Producer Price Index for final demand was unchanged

on a monthly basis in September, compared to the 0.1% rise

expected by economists polled by Reuters.

"When you look at the components of PPI that go into the

core PCE print, including healthcare and financial services,

they looked benign on balance, suggesting that inflation is not

running away from us," said Brown.

The data follows Thursday's Consumer Price Index reading,

which was slightly higher than forecast, although weekly jobless

claims rose more than expected.

Meanwhile, a preliminary reading of the University of

Michigan's October consumer sentiment index stood at 68.9,

compared with analysts' estimate of 70.8.

With the week's data under their belts, traders kept

bets steady for a roughly 90% probability the Fed would cut

rates by 25 basis points at its November meeting, and a 10%

chance it will leave rates unchanged, according to CME's

FedWatch tool.

All three of Wall Street's major indexes were on track to

notch their fifth consecutive week of gains.

At 02:28 p.m. on Friday, the Dow Jones Industrial

Average rose 380.89 points, or 0.90%, to 42,834.83, the

S&P 500 gained 35.06 points, or 0.61%, to 5,815.11 and

the Nasdaq Composite gained 68.08 points, or 0.37%, to

18,350.13.

Among the S&P 500's 11 major industry indexes the only

decliner was consumer discretionary.

The consumer index was under pressure from a 8% slump in

Tesla, which also limited gains on the Nasdaq, after

the EV maker unveiled its long awaited robotaxi, but did not

provide details on how fast it could ramp up production or deal

with potential regulatory hurdles.