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THE TRUMP AND POWELL SHOW: U.S. STOCKS RISE ABOVE RUMORS

U.S. stocks ended up posting modest gains at the conclusion of a rocky session on Wednesday, having run a gauntlet of earnings, economic data and market tension surrounding rumored and actual words and actions from President Donald Trump regarding Fed Chair Powell.

Markets were whipsawed mid-session as Trump said he has no plans to fire Fed Chair Jerome Powell within an hour after a report from Bloomberg said he intended to do just that.

European Union trade chief Maros Sefcovic headed to Washington for tariff negotiations with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, fueling hope that an agreement could be reached to avert the 30% duties on EU imports, which Trump threatened to impose as of August 1.

On the economics front, the Labor Department's PPI report came in below expectations on softening demand for services even as evidence that tariffs are beginning to drive up the price of goods. Separately, industrial production increased more than economists predicted, according to the Federal Reserve.

The Dow Jones Industrial Average .DJI rose 231.49 points, or 0.53%, to 44,254.73, the S&P 500 .SPX gained 19.94 points, or 0.33%, to 6,263.70 and the Nasdaq Composite .IXIC gained 52.69 points, or 0.26%, to 20,730.49.

Second quarter earnings season has hit full stride, with Johnson & Johnson JNJ.N raising its 2025 profit forecast and halving its expectations for tariff-related costs, which boosted the company's shares 6.2% and put the healthcare sector .SPXHC ahead of the pack.

Goldman Sachs GS.N posted upbeat results and record revenues in its equities division, Morgan Stanley's MS.N earnings beat expectations but shares dipped on shrinking investment banking revenue, and Bank of America BAC.N said its trading revenue jumped 15%, driven by market turmoil.

With just 7% of the companies in the S&P 500 having reported, analysts have upped their earnings growth estimates. Year-over-year EPS growth is now predicted at 6.5%, up from 5.8% as of July 1, according to LSEG data.

Netflix NFLX.O, Travelers Companies TRV.N, PepsiCo PEP.O and U.S. Bancorp USB.N are expected to step up to the plate on Thursday.

Thursday also promises a storm of economic data. Aside from weekly jobless claims, the Commerce Department's June retail sales and May business inventories, June import/export prices from the Labor Department and NAHB's homebuilder sentiment all share a crowded docket.

Here's your closing snapshot:

(Stephen Culp)

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EARLIER ON LIVE MARKETS:

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THE RULE OF THREES: PPI, INDUSTRIAL PRODUCTION, MORTGAGES CLICK HERE

U.S. STOCKS SEARCH FOR DIRECTION IN EARLY TRADE CLICK HERE

EQUAL-WEIGHT S&P 500 HITS 22-YEAR LOW VS CAP-WEIGHTED BENCHMARK CLICK HERE

TIME TO LOOK AT EUROPE'S BEATEN-DOWN EXPORTERS? CLICK HERE

$1.30 AND BEYOND FOR THE EURO, SAY MORGAN STANLEY CLICK HERE

THE GREAT EURO ZONE EMPLOYMENT SPLIT IS GOOD FOR THE ECB CLICK HERE

"NOT THE MARKET TO MISS": UBS FLAGS FRAGILE BANK RALLY CLICK HERE

SOME BIG POST-RESULTS STOCK FALLS CLICK HERE

EUROPE BEFORE THE BELL: EARNINGS GET GOING CLICK HERE

MORNING BID EUROPE: TARIFF IMPRINT SPIED IN US CPI CLICK HERE