A rally in financial stocks helped lift the Dow and S&P 500 to record highs. JPMorgan Chase's strong earnings spurred financial stocks. Fred Katayama reports.
A rally in financial stocks drove the Dow and S&P 500 to new record highs. Spurring on the financials: strong earnings from JPMorgan Chase, the U.S.' largest bank. Also, the Bank of England decided to unexpectedly keep interest rates steady. That sent British stocks down; other European stocks shed some gains, but U.S. stocks rose. Kristina Hooper of Allianz Global Investors: SOUNDBITE: KRISTINA HOOPER, U.S. INVESTMENT STRATEGIST, ALLIANZ GLOBAL INVESTORS, (ENGLISH) SAYING: "What we saw was a positive reaction because really at the end of the day, it said that the Brexit decision wasn't really that bad for the economy. If it had been, the BoE would've been much quicker to act." Firm economic data also supported stocks. The number of Americans filing jobless claims unexpectedly held steady last week. And rising energy costs pushed producer prices up in June to their biggest gain in a year. Strong fixed income trading boosted quarterly revenue at JPMorgan Chase. Profit slipped but beat estimates. Japanese messaging app operator Line surged on its stock market debut. The stock climbed as high as 36 percent, valuing the company at roughly $9 billion. Bayer sweetened its offer for Monsanto. The German drug company raising its bid for the Roundup herbicide producer by $3 to $125 a share.