While you were sleeping: Dow hits new high, Yellen doubts Trump target

Wall Street moved higher as investors positioned themselves for a fresh round of quarterly corporate earnings.

On Friday, JP Morgan Chase, Wells Fargo and Citigroup are among US companies set to report their latest quarterly results.

Second-quarter earnings are expected to rise 7.8% from a year ago, after first-quarter earnings posted their best performance since 2011, according to Reuters.

Meanwhile, US Federal Reserve chairwoman Janet Yellen, testifying before the Senate Banking Committee on Thursday, warned that achieving a 3% annual growth rate for the US economy over the next few years – a goal set by President Donald Trump – would be "quite challenging."

"It's something that would be wonderful if you can accomplish it – I'd love to see it," she said in response to a question, according to Bloomberg. "It would be quite challenging."

Producer prices rise
In the latest economic data, a Labor Department report showed producer prices posted a surprise gain in June, rising 0.1% from the previous month.

A separate Labor Department report showed that initial claims for state unemployment benefits fell 3000 to a seasonally adjusted 247,000 for the week ended July 8.

"It remains hard for companies to hire skilled workers. Inflation isn't slip-sliding away from the Fed's goal," Chris Rupkey, chief economist at MUFG in New York, told Reuters.

"We expect they are on track to announce the start of the balance sheet unwind in September and go for the last of three rate hikes planned for this year in December."

At the close of trading in New York, the Dow Jones Industrial Average rose 20.95 points, or 0.1%, to 21,553.09, a new high and the 24th for the year.

The Nasdaq Composite Index gained 0.2% to 6274.44 and the Standard & Poor's 500 Index also increased 0.2% to 2447.83, its second-highest ever .

Bond yields rise
US Treasuries declined, pushing yields on the 10-year note three basis points higher to 2.35%.

The Dow rose as gains in shares of Wal-Mart Stores and those of Apple, up 1.5% and 1.4% respectively, outweighed declines in shares of McDonald's and DuPont, down 0.9% and 0.8% respectively.

Shares of Target climbed 4.4% after the retailer upgraded its second-quarter sales outlook.

"As a result of improved traffic and sales trends through the first two months of the quarter, Target is now expecting to report a modest increase in its second quarter comparable sales," the company said in a statement.

In Europe, the Stoxx 600 Index finished the session with a 0.3 percent advance from the previous close. Germany's DAX Index rose 0.1 percent, and France's CAC40 Index climbed 0.3 percent.

The UK's FTSE 100 Index slipped 0.1 percent, with shares of AstraZeneca posting the largest percentage decline at 3.5 percent.

(BusinessDesk)