J.P. Morgan sat atop the Dow’s leaderboard after the bank reported that second-quarter earnings fell from a year ago, but results exceeded expectations. Many investors were cautious on JP Morgan (JPM) as they awaited news on the size of the London Whale loss, ultimately revealed to be $4.4 billion in the second quarter.

Financial-sector stocks led all 10 of the S&P 500′s sectors higher, with strong earnings by Wells Fargo lending support for the rally. Wells climbed after the bank posted a 17% rise in second-quarter profit, as income in the bank’s mortgage-banking business rose.  Following their lead, Citigroup (C), Goldman Sachs (GS), and Morgan Stanley (MS) also gained on the day.

European markets were mostly higher, with the Stoxx Europe 600 adding 1.3%, amid China’s economic reading and solid demand at an Italian bond auction. Europe’s stock benchmark has risen for each of the last six weeks.

Asian markets were mostly higher following China’s economic report. China’s Shanghai Composite inched up less than 0.1%, while Japan’s Nikkei Stock Average added 0.05% to break a six-session slide. Hong Kong’s Hang Seng Index gained 0.4%.

In U.S. corporate news, Bridgepoint Education fell after the company, which operates Ashford University and University of the Rockies, said Ashford is being monitored by a higher education commission to confirm that the university meets criteria for accreditation.

Cytec Industries rose after the chemical and material technology firm predicted earnings well above analyst expectations for the second quarter. 

Thomas Doherty is marjoring in economics and Finance at Villanova University. Thomas@KeeneOnTheMarket.com