The major averages closed higher even as inflation data came in hotter than expected and second quarter earnings from the banks were disappointing. The Dow Jones Industrial average jumped 247 points or 0.62%. The S&P 500 rose  30 points or 0.55% while the Nasdaq jumped 115 points after getting clobbered yesterday.

As mentioned, the banks kicked off earnings results Friday. Wells Fargo was a dog down 6% after the big bank said net interest income, a key measure of lending profitability fell short of expectations in the second quarter. The bank also continues to see net interest income falling from 7% to 9% this year. JPMorgan was down 2% even as the bank posted second-quarter revenue that was higher than Wall Street expectations on a jump in investment banking fees. Citi was lower by 2% despite beating on the top and bottom line in the second quarter.

Treasury yields were modestly higher following the inflation data. The yield on the 10-year Treasury rose 2 basis points to 4.21%. The 2 year Treasury was up a basis point to 4.498%.

The producer price index data released Friday reflected a slightly hotter-than-expected 0.2% increase in wholesale prices in June. Today's report came after yesterday's June consumer price index unexpectedly reflected a 0.1% decline from the previous month, and came in at 3% in an annual basis, which was its lowest level in over three years.

Outside the banks and treasuries, the broader market looked good with the tech-heavy Nasdaq Composite rebounding from a drumming yesterday, its worst day since April 30 when Nvidia fell 5.6% and Meta fell 4%.

Meanwhile, the small cap and mid cap stocks have come to life. The iShares Russell 2000 rose 1.09% after jumping 3.75% yesterday and up nearly 6% on the week. The S&P 500 rose a percent on the week while even the Nasdaq is still closer higher on the week. The Dow rose 1.6% on the week.