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US producer prices rise marginally in June

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JPMorgan ( JPM ) profit jumps; shares dip

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Wells Fargo ( WFC ) drops after profit falls on deposit costs

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Citi posts Q2 profit beat

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BNY up after Q2 profit rises

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Indexes up: Dow 0.21%, S&P 0.45%, Nasdaq 0.69%

(Updated at 10:06 a.m. ET)

By Medha Singh and Ankika Biswas

July 12 (Reuters) -

Wall Street's main indexes rose on Friday as slightly

hotter-than-expected producer price numbers did little to change

bets around a U.S. Federal Reserve interest-rate cut in

September, while investors also parsed a mixed bag of big bank

results.

JPMorgan Chase's ( JPM )

second-quarter profit

increased on a boost from rising investment banking fees

and an $8 billion accounting gain from a share exchange deal

with Visa. However, shares of the world's largest bank

fell 1.9%.

Wells Fargo ( WFC ) slid 6.9% as the lender missed

estimates for quarterly interest income, while Citigroup ( C/PN )

fell 2.8% even after it posted a surge in investment banking

revenue and gains in its services division.

The S&P 500 Financials Index shed 0.2%, while

the banks index lost 2.2%, on track for its biggest

single-day slump in nearly two months.

It was previously expected that some of the largest U.S.

banks would report

weaker second-quarter profits

due to lower interest payments and higher provisions for

deteriorating loans.

As the S&P 500 and the Nasdaq scale fresh peaks, investors

are hoping for strong profit growth from companies beyond tech

heavyweights such as Nvidia ( NVDA ), so that the U.S. stocks

rally can broaden out.

"Big bank earnings, big tech earnings and consumer company

earnings will be the most important to watch, as these companies

are highly levered to the strength of the economy," said Clark

Bellin, president and chief investment officer, Bellwether

Wealth.

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. Financial firms are likely

to post a profit growth of 7.3%.

After data released on Thursday showed a surprise fall

in U.S. consumer prices, producer prices increased moderately in

June, confirming the inflation downtrend.

"The Fed's really focused more on the CPI and PCE

because even if producer prices are increasing, there's no

guarantee that those price increases are going to be passed on

to consumers," said Brian Jacobsen, chief economist at Annex

Wealth Management.

Traders see a 96% chance of a September rate cut, up from

77.7% a week ago, according to CME Group's FedWatch.

In a mixed session for megacap stocks, Apple ( AAPL ) rose

1.5%, while Meta Platforms ( META ) shed 2%.

At 10:06 a.m. ET, the Dow Jones Industrial Average

was up 81.85 points, or 0.21%, at 39,835.60, the S&P 500

was up 25.29 points, or 0.45%, at 5,609.83, and the Nasdaq

Composite was up 125.94 points, or 0.69%, at 18,409.35.

The S&P 500 and the Nasdaq logged their worst sessions in

more than two months on Thursday, on a rotation out of

high-flying large-cap stocks in favor of small-cap shares, which

have lagged this year. This also set the blue-chip Dow on

track for its best week in four.

BNY climbed 4.1% after the U.S. bank posted a 10%

rise in second-quarter net profit.

Advancing issues outnumbered decliners by a 3.68-to-1 ratio

on the NYSE, and by a 3.30-to-1 ratio on the Nasdaq.

The S&P index recorded 33 new 52-week highs, while the

Nasdaq recorded 105 new highs and 11 new lows.