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Stocks Surge Following Positive Earnings Reports

U.S. stocks jumped on Friday following positive earnings results from JPMorgan and Wells Fargo which lifted banking stocks.

The benchmark S&P 500 index gained 0.25%, while the tech-heavy Nasdaq Composite Index advanced by 0.3%. The Dow Jones Industrial Index was the biggest winner of the day, rising by 0.5%.

JPMorgan stocks jumped by 3% in early trading after the bank reported second-quarter earnings that surpassed expectations. Profits grew by 67% compared to the previous year.

Wells Fargo also rose by 3%, with its $20.53 billion in revenue beating estimates of $20.12 billion. Earnings per share of $1.25 beat estimates of $1.16, with the bank raising its full-year net interest income outlook as a result.

In contrast, AT&T shares tanked by 5% to hit a 20-year low after JPMorgan analysts downgraded the stock. According to the analysts, the telecommunications company is facing increasing pressure in its mobility and wireless segments.

Consumer confidence is also on the rise, with the UMich consumer sentiment index rising to 72.6 in July, up from 64.4 in May and 51.5 in July 2022.

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