Wall St. hits new highs on bank earnings, economic optimism

Wall St. hits new highs on bank earnings, economic optimism

The S&P financial index rose 0.5 percent.

Amazon rose 1.3 percent and provided the biggest boost to the S&P and the Nasdaq.

The Dow, S&P 500 and Nasdaq added between 1.6% and 2% for the week, increasing their 2018 gains to 4.2%-5.2%.

Earnings for S&P 500 companies are expected to increase by 11.8 percent on an average, with the biggest contribution from the energy sector, according to Thomson Reuters I/B/E/S.

While Wells Fargo (WFC.N) earnings beat expectations, its shares slipped 0.7 percent after it set aside $3.25 billion in the fourth quarter to cover legal expenses related to probes into its mortgage and sales practices.

For the week, the S&P rose 1.6 percent, compared with the Dow's 2-percent rise and a 1.8-percent advance in the Nasdaq.

The broad-based S&P 500 gained 0.7 percent to 2,767.56, while the tech-rich Nasdaq Composite Index advanced 0.8 percent to 7,211.78.

JPMorgan Chase & Co rose 0.5 percent in choppy trading after the biggest USA bank by assets reported profit that beat estimates, benefiting from higher interest rates and loan growth.

Xerox shares jumped 4.22 percent after the Wall Street Journal reported the copier maker was in deal talks with Japanese camera maker Fujifilm Holdings that could include a change in control of Xerox.

Rising retailers pushed US stock indexes further into record territory on Friday, as the market's fabulous start to 2018 carried through its second week.