NEW YORK — U.S. stocks reached their highest closing levels in 2 1/2 years Friday, driven by a rally in the financial sector following stronger-than-expected earnings from JPMorgan Chase.
The Dow Jones industrial average rose 55.48 points, or 0.5 percent, to 11,787.38, its highest close since June 28, 2008. The gain put the Dow industrials up 0.96 percent for the five-day period, extending the measure’s winning streak to a seventh week.
The Dow’s financial components led its climb after JPMorgan posted a 47 percent jump in fourth-quarter profit, beating analysts’ expectations as revenue increased and loan-loss reserves were sharply reduced.
JPMorgan’s shares rose 1 percent, while shares of rival Bank of America jumped 3.3 percent ahead of its earnings results due this week.
But Intel Corp. limited the Dow’s advance, falling 1 percent even as its fourth-quarter earnings rose 48 percent, topping analysts’ views. Investors said they were unsure how much longer Intel will be able to post such strong numbers. Also, the chipmaker’s shares had climbed earlier in the week ahead of the report, and it still ended the week 2 percent higher.
The Nasdaq composite was up 20.01 points, or 0.7 percent, at 2,755.30, its highest close since Nov. 6, 2007. The S&P 500 rose 9.48 points, or 0.7 percent, to 1,293.24, its highest close since August 2008.
The financial sector led to the upside, bolstered by JPMorgan’s report. Among the gainers, PNC Financial Services Group climbed 5.1 percent, Morgan Stanley added 2.4 percent and Wells Fargo rose 2.7 percent. But AIG shares fell 5.6 percent, the worst on the S&P 500, as the insurer drew closer to repaying the government.
The gains across financial stocks also were offset by declines across materials, on worries about the potential impact to demand from tightening in China. China’s central bank said it will raise banks’ reserve-requirement ratio by half a percentage point, following six such increases last year, in Beijing’s latest move to curb inflation.
