Dow Hits Record High, Small Caps Jump on Rate-Cut Bets; Bank Results Mixed

WALL STREET - NEW YORK. The Dow touched a record high on Friday as this year's lagging stocks gained favor on optimism that the U.S. Federal Reserve will begin easing monetary policy in September, while big lenders fell after reporting mixed results.

JPMorgan Chase's second-quarter profit increased on a boost from rising investment banking fees. However, shares of the world's largest bank dipped 0.1% after a 21.4% climb this year.