Stocks closed higher on Friday, led by banks after the Federal Reserve's second round of stress test results late Thursday, but investors remain focused on the scheduled meeting on trade issues between President Donald Trump and Chinese President Xi Jinping at the G-20 meeting in Japan on Friday. Evening New York time.
Friday also marks a rebalancing of the FTSE Russell index, mostly small capital banks, which will take place at trading time.
J.P. Morgan Chase
JPM, + 2.72%
MS, + 0.74%
C, + 2.76%
and Wells Fargo
WFC, + 2.23%
all steps. All 18 banks passed the Federal Reserve stress tests, including Deutsche Bank AG
DB, + 1.19%
who had previously failed, and many of the largest US lenders announced increased payments to shareholders in the wake of the results.
Total dividends and buy-backs to bank shareholders will hit $ 173 billion, a record high for the Group. Goldman
GS, + 2.65%
increased yield by nearly 50%.
But Wall Street's gains were maintained as investors waited for the Trump-Xi trade meeting scheduled for Saturday Japan's time. The Chinese Department of Commerce has urged Washington to cancel its import tariffs and sanctions to Huawei and other Chinese companies, while Trump has voiced a threat to impose tariffs on the remaining $ 300 billion of Chinese imports whose calls fail.
"There is a lot of uncertainty as to what the meeting, which will be on Saturday at 2.30 GMT, will produce, but the minimal outcome expected by traders is that the two sides will resume the negotiated trade negotiations and delay the imposition of additional charges. , Raffi Boyadjian, senior investment analyst at broker XM, wrote in a daily survey note.
How did the major benchmarks go?
Dow Jones Industrial Average
DJIA, + 0.28%
completed 73.38 points, or 0.3%, at 26.599.96, S & P 500 index
SPX, + 0.58%
received 16.84 points, or 0.6%, ultimately at 2,941.76, while Nasdaq Composite Index
COMP, + 0.48%
completed the session up 38.49 points, or 0.5%, at 8.006.24.
On the last trading day of the month and quarter, Dow recorded a 7.2% gain for the month, representing the best June increase since 1938, and 14% for the first half, while the S & P 500 index rose 6.9% on the Month, the best June return since 1955, and 17.4% for the year. Nasdaq posted 7.4% a month, up 21% in the first half of 2019.
June's gains came after the Fed opened the door for simpler monetary policy later this year. The Fed said earlier this month it will "act as appropriate" to maintain the current economic expansion. This lifted market expectations for a July price decline.
In the United States economic data on Friday, the Trade Department reported that US spending spending rose 0.4% in May, while personal income rose 0.5% over the same period. Economists polled by MarketWatch had expected gains of 0.3% and 0.5%, respectively.
The Federal Reserve's second-watched measure of inflation, the PCE index, showed annual inflation from 1.6% in April to 1.5% in May, possibly supporting the Fed's argument to lower interest rates in the coming months as it tries to bring inflation to its 2% annual target.
The University of Michigan released its final consumer confidence reading for June, with the index coming in at 98.2, over 98 expected by economists asked by MarketWatch, though by the 100 level seen in May, which was the highest reading for eight months.
Read: Dow is now at pace for his best 80-year junior return
Read : G20 preview: Trump and Xi are likely to consent to a cease-fire of commercial war
Check out: Trump is pushing Allies on trade, saying he doesn't speak to Putin at G-20 & nbsp;
What stocks are in focus?
Apple Inc. . s stock
stopped stable after design legend Jony Ive said he left the iPhone manufacturer to start his own venture.
Boeing Co. shares