The major averages surged to end the week, capping off a turbulent five days on a plus note after investors weighed the fresh U.S. inflation data out this morning. The Dow Jones Industrial Average rose 654 points, or 1.6%, led to the upside in 3M. The S&P 500 rose 59 points or 1.1% while the Nasdaq Composite rose 176 points or 1%.

The yield on the 10-year Treasury is down 5 basis points to 4.207%. The 2-year Treasury yield is down 5 basis points as well at 4.39%. The June personal consumption expenditures price index released Friday by the Commerce Department showed a rise of 0.1% on the month and a 2.5% gain from the year-ago period, in line with what economists surveyed by Dow Jones were estimating. The report today seems to give further credit for a September rate cut ahead of the Fed's meeting next week.

On the earnings front, 3M led the charge up 22%, its best day since 1972, after beating earnings by a wide margin and then raising guidance as the new CEO vowed to reinvigorate the iconic manufacturer's innovation engine. Back in May, 3M spun off their huge health-care products division unit amid massive legal liabilities.

Not to be out done, Mohawk Industries rose 19% on earnings. Norfolk Southern, Baker Hughes and Deckers Outdoors were all higher as well on earnings. To the downside, we have L3Harris, Juniper Networks and DexCom on earnings.

DexCom was the dog of the day down 40% following earnings and a sales miss. The big problem was lower guidance for the third quarter and full year. DexCom manufactures and distributes glucose monitoring systems used in treating diabetes. Management said they are lowering guidance as fewer new patients are demanding their product as the new GLP-1 weight-loss drugs are impacting demand, helping patients control their diabetes. DexCom received at least two downgrades today.  

To end the week, the S&P 500 fell 0.8%. The Nasdaq lost 2.1%. The Dow was the outlier, up 0.8% only to be outdone by the small mid- cap Russell 2000 index up over 3% on the week.