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Wall Street surges as consumer and bank stocks gain


By Sruthi Shankar

(Reuters) - Wall Street's main indexes surged on Friday as strong for JPMorgan lifted financial and robust data drove gains in consumer

The biggest U.S. lender by assets said the new would help future profits by not only reducing the amount it pays the but also by stimulating more business.

Shares of rose 1.1 percent, helping lift the financial index up 0.6 percent, after its fourth-quarter profit beat estimates.

"Their effective tax rate will be declining from 30 percent to 19 percent, that's very meaningful. It should generate more than a billion dollars flowing into the bottom line," said Ron Weiner and founder of financial in Westport Connecticut.

fell 0.8 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.

Earnings for 500 companies are expected to increase on an average by 12.1 percent in the quarter with profit for financial services companies likely to increase 13.2 percent, according to I/B/E/S.

At 11:08 a.m. ET (1608 GMT), the was up 194.76 points, or 0.76 percent, at 25,769.49 and the 500 was up 13.89 points, or 0.50 percent, at 2,781.45.

The was up 39.36 points, or 0.55 percent, at 7,251.14.

The consumer discretionary index jumped 0.81 percent after an increase in showed households bought more goods and figures for the prior month were revised higher, suggesting the economy exited 2017 with strong momentum.

rose 1.8 percent and provided the biggest boost to the and the Nasdaq. rose 1.6 percent and rose 1 percent.

"A lot of these companies like and are getting on with the of e-commerce," said Josh Jalinski, of

Sales at soared 1.2 percent.

Another data showed U.S. consumer prices recorded their biggest rise in 11 months in December on gains in the cost of rental accommodations and healthcare, bolstering expectations that inflation will accelerate this year.

Among other stocks, fell 4 percent after the company started changing the way it filters posts and videos on Feed.

fell 2.66 percent after the chipmaker said its microprocessors are prone to both variants of the Spectre security flaw, days after saying its risk for one of them was "near zero".

Advancing issues outnumbered decliners on the NYSE by 1,557 to 1,220. On the Nasdaq, 1,864 issues rose and 920 fell.

(Reporting by in Bengaluru; Editing by Arun Koyyur)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 22:41 IST