Stocks Surge on Strong Bank Earnings, Dow Rises for 7th Consecutive Day

Stocks gained as better-than-expected bank earnings boosted investor sentiment. The Dow Jones Industrial Average rose 1.1%, putting it on track for a new 52-week high. Bank of America, Morgan Stanley, Charles Schwab, and Bank of New York Mellon beat analyst estimates, while PNC Financial missed revenue estimates but beat on profit. Novartis and Lockheed Martin also beat expectations. Retail sales in June were below economists' expectations, suggesting flat real spending. Microsoft's shares rose over 5% after unveiling new AI features. Novartis raised its guidance, announced a stock buyback, and plans to spin off its Sandoz unit. Charles Schwab's shares rose despite a drop in net income, as deposit outflows slowed.