U.S. stocks were rising as strong bank earnings lift Wall Street

Investing.com — U.S. stocks were rising after three big banks reported strong second-quarter profits.

At 9:41 ET (13:41 GMT), the rose 160 points or 0.4%, while the rose 0.2% and the rose 0.3%.

Banks post profit gains

JPMorgan Chase & Co (NYSE:) shares rose 2.4% after it said profit rose 67% on a boost from lending as interest rates rose. Wells Fargo & Company (NYSE:) also rose 2.6% after notching a 57% gain in profit. Citigroup Inc (NYSE:) reported better-than-expected profit after a strong showing in personal banking and wealth management. Shares were flat.

Among other earnings on Friday, UnitedHealth Group Incorporated (NYSE:) rose 5% after beating profit estimates and saying expenses were lower than forecast.

Nasdaq, S&P on track for strong week

Earnings for the stocks that make up the S&P 500 are expected to fall 6.4% in the second quarter, according to Refinitiv.

Strong earnings could help lift stocks after a rally that has the Nasdaq poised to mark its best week since the middle of March. Both the Nasdaq and S&P hit 52-week highs this week after inflation data signaled prices are cooling faster than anticipated.

Strong economic reports stoke rate hopes

This week’s reports on and in June are giving investors hope that the Federal Reserve could wind up its interest rate increases sooner rather than later, though the central bank is still expected to raise another quarter of a percentage point this month.

Later this morning, the University of Michigan’s reading for July is expected out, and analysts are expecting it to show an improvement in mood.

Fed officials have said in recent weeks they do see more this year, however. On Thursday, Fed Gov. Christopher Waller said he is not ready to call it an all-clear on inflation, suggesting two more quarter-point increases.

Microsoft raised to buy at UBS

Microsoft Corporation (NASDAQ:) shares rose 1.4% after the Federal Trade Commission appealed a federal court ruling that cleared the software maker’s $69 billion acquisition of gaming giant Activision Blizzard (NASDAQ:). UBS turned bullish on Microsoft, giving it a buy rating.

Oil was lower. were down 0.6% to $76.44 a barrel, while were down 0.5% to $80.89 a barrel. were down 0.2% to $1,960.