U.S. stocks gain as J.P. Morgan lifts banks

U.S. stocks reached their highest closing levels in two and a half years Friday, driven by a rally in the financial sector following stronger-than-expected earnings from J.P. Morgan Chase & Co.

The Dow Jones Industrial Average (DOW:DJIA) rose 55.48 points, or 0.47%, to 11,787.28, its highest close since June 28, 2008. The gain put the Dow industrials up 0.96% for the five-day period, extending the measure’s winning streak to a seventh week.

The Dow’s financial components led its climb after J.P. Morgan (NYSE:JPM) posted a 47% jump in fourth-quarter profit, beating analysts’ expectations as revenue increased and loan-loss reserves were sharply reduced. Read more on J.P. Morgan’s earnings.

Shares of J.P. Morgan’s rose 1%, while shares of rival Bank of America Corp. (NYSE:BAC) jumped 3.3% ahead of its earnings results due next week.

However, Intel Corp. (NASDAQ:INTC) limited the advance, falling 1% even as its fourth-quarter earnings rose 48%, topping analysts’ views. Investors said they were unsure how much longer Intel will be able to post such strong numbers. Also, the chip maker’s shares had climbed earlier in the week ahead of the report, and it still ended the week 2% higher. Read more on Intel earnings.

The Nasdaq Composite Index (NASDAQ:COMP) was up 20.01 points, or 0.7%, at 2,755.30, its highest close since Nov. 6, 2007. The S&P 500 Index (CME:INDEX:SPX) rose 9.48 points, or 0.7%, to 1,293.24, its highest close since August 2008. (more)