US stocks close higher amid rate cut hopes, data

New York, July 13 (IANS) US stocks ended higher on Friday, ending the week on a strong note, amid broad optimism on potential rate cuts and decent US producer prices.

The Dow Jones Industrial Average rose 243.95 points, or 0.90 per cent, to 27,332.03. The S&P 500 was up 13.86 points, or 0.46 per cent, to 3,013.77. The Nasdaq Composite Index rose 48.10 points, or 0.59 per cent, to 8,244.14, the Xinhua news agency reported.

Shares of Illumina plunged over 16.1 per cent, after the US biotechnology giant scaled down its full-year revenue guidance to a growth rate of 6 per cent. The company also said its second-quarter revenue will come shy of market expectations.

Shares of Deutsche Bank rose over 2.5 per cent, after Swiss investment bank UBS upgraded the German bank from "sell" to "neutral," saying the latter's restructuring plan would be backed by home regulator, which led to a more "balanced risk/reward" scenario.

Eight of the 11 primary S&P 500 sectors traded higher around market close, with the industrials sector up nearly 1.7 per cent, leading the gainers.

During his second day of testimony on Thursday, Fed Chair Jerome Powell reiterated that the central bank will always do "what's right for the US economy" and called for the Congress to raise debt limit in a timely manner.

On the economic front, US producer price index rose 0.1 per cent in June, the same increase as in May, said the Bureau of Labor Statistics on Friday.

The index rose 1.7 per cent for the 12 months ended in June, the lowest rate of increase since it advanced 1.7 per cent in January 2017, dragged down by the 3.1-per cent drop in the index for energy for the month.