U.S. stocks finished higher on Friday, with all three major indexes rising over 1 percent, as the largest U.S. bank reported stronger-than-expected second-quarter earnings despite a trading loss of $5.8 billion so far this year. J.P. Morgan said its second-quarter net income was $4.96 billion compared with $5.43 billion one year earlier. The company also said that traders involved in the loss could lose as much as two years of income. Shares of the company surged almost 6 percent. In world economic news, European stocks ended higher, led by the DAX in Germany rising 2.2 percent. Asian markets ended slightly higher, led by the Hang Seng in Hong Kong rising 0.4 percent. In U.S. economic news, the Labor Department reported that produce prices in June rose by 0.1 percent, despite expectations that they would fall by more than half a percent. Meanwhile, the University of Michigan's Consumer Sentiment Index for July fell to 72, from 72.2 the previous month. The reading was below expectations. The U.S. dollar fell against the euro and fell against the yen. Light sweet crude oil for August delivery rose $1.02 to $87.10 a barrel on the New York Mercantile Exchange. Gold futures rose $26.70 to $1,592.00 an ounce. The Dow Jones industrial average rose 203.82, or 1.6 percent, to 12,777.09. The broader Standard & Poor's 500 index rose 22.02, or 1.7 percent, to 1,356.78. The technology-heavy Nasdaq composite index rose 42.28, or 1.5 percent, to 2,908.47.
