By msnbc.com news services
Stocks moved higher Friday, after data in China allayed concerns a slowdown in the economic giant could further hinder growth worldwide.
Futures trimmed some gains after JPMorgan Chase & Co reported $4.4 billion of credit trading losses in its London offices, but the bank posted an overall profit that was barely dented by the trades.
Data showed growth in China slowed for a sixth straight quarter to 7.6 percent, better than some in the market feared, but low enough to keep open the possibility that more action may be taken by policymakers.
"China pretty much came in line with expectations, and that could have been a very big miss which could have been catastrophic for the market. JPMorgan, even with their adjustments, came in above expectations -- that could have been a big negative," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
"Seeing that everything came in line or better than expectations takes some of the pressure that has been on this market for the past couple of days off."
The benchmark S&P index has dropped for six consecutive sessions and is down 2 percent for the week on concerns slowing global growth could dent corporate profits.
JPMorgan, the biggest U.S. bank by assets, said it would restate its previously filed interim financial statement for the first quarter.
Another bank, Wells Fargo & Co, the biggest U.S. mortgage lender, reported second-quarter earnings that topped estimates, although revenue fell just short of expectations.
Labor Department data showed U.S. producer prices unexpectedly rose in June to 0.1 percent against expectations calling for a decline of 0.5 percent.
European concerns were kept at bay as Italy passed a tough test -- its three-year borrowing costs fell well below 5 percent at an auction hours after Moody's cut the country's rating to two notches above junk status.
Reuters contributed to this report.
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