DJIA up 299.72 points (Il Sole 24 Ore Radiocor) - New York, 12 Jul - US shares were trading higher at midday, rebounding from yesterday's losses, as investors digested a first round of big bank earnings and wholesale inflation that came in a tad higher than expected.

The producer price index for June rose 0.2% from the previous month and was up 2.6% from a year ago, both above analyst expectations of 0.1% and 2.3%. Core PPI, stripping out food, energy and transport, was unchanged on the month and up 3.1% on the year, roughly in line with forecasts.

Yesterday's consumer price reading came in cooler than expected, confirming a downward trend and raising expectations that interest rate cuts may now come as early as September.

According to the CME FedWatch Tool, the market is now pricing in a 91% chance the Fed cuts rates in September compared to a 75% chance just two days ago.

On the stocks front, shares in JPMorgan fell 0.6% after it reported a record profit but missed on net interest income.

Citi shares were down 3.1% despite a good performance in equity trading while Wells Fargo slid 6.7% after it reported second quarter interest income below expectations.

At 1618 GMT, the Dow Jones was up 299.72 points, or 0.76%, at 40,057.51 points.

The S&P 500 was 47.95 points, or 0.86%, higher at 5,632.49 points.

The Nasdaq was gaining 193.09 points, or 1.06%, at 18,475.49 points.

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(RADIOCOR) 12-07-24 17:26:38 (0459) 5 NNNN