From NASDAQ:

U.S. stocks closed almost unchanged on Friday, as mixed bank earnings offset cooler-than-expected inflation news. U.S. producer prices unexpectedly fell in December, with costs of goods like food and diesel fuel declining, while services stayed unchanged for a third consecutive month.

The data pushed up expectations for a rate cut of at least 25 basis points by the Fed in March to 79.5%, from 73.2%. The PPI data indicates the Fed has the free and clear to decide to cut interest rates, with the equity market showing little reaction as long as rates don’t push significantly higher.

The Dow gained 0.34%, the S&P 500 rose 1.84%, and the Nasdaq climbed 3.09%. However, Bank of America reported a 1.06% fall in fourth-quarter profit, while Wells Fargo warned of a 7% to 9% drop in net interest income.

Though Citigroup reported a $1.8 billion fourth-quarter loss, its shares rose by 1.04%. JPMorgan Chase edged 0.73% lower after reporting its best ever annual profit.

Delta Air Lines tumbled 8.97% after scaling down its annual profit outlook, while Tesla lost 3.67% after trimming prices of some new China models.

The S&P index recorded 37 new 52-week highs, and no new lows, while the Nasdaq recorded 134 new highs and 86 new lows. Volume on U.S. exchanges was 10.57 billion shares, compared with the 12.06 billion average for the full session over the last 20 trading days.



Read more: Stocks end little changed as earnings offset inflation data