Stock rally gains speed as JPMorgan tops profit bar

The U.S. stock market cruised to new 2016 highs Wednesday as an earnings beat from JPMorgan propelled bank stocks higher and the Dow to a second straight triple-digit gain.

The Dow Jones industrial average jumped 187 points, or 1.1%, to 17,908, managing that on top of a jump of nearly 165 points Tuesday on hopes of a crude oil freeze accord. It was the Dow's highest close of the year, boosted its 2016 gain to 2.8% and left it just 2.2% below its record close last May.

The broader Standard & poor's 500 stock index also set a new 2016 high, rising 1.0% for a 1.9% year-to-date gain and closing 2.3% below its record close in May. While the Nasdaq also closed at a new 2016 high with its 1.6% gain, it still is down 1.2% for the year and 5.2% below its record close in July.

Despite a drop in earnings from a year ago, JPMorgan (JPM) was able to top both profit and revenue expectations. The better-than-expected results for CEO Jamie Dimon's bank set a positive tone for markets ahead of earnings reports due out tomorrow from Bank of America (BAC) and Wells Fargo (WFC) and Citigroup (C) on Friday.

JPMorgan's Q1 income falls 6.7% but beats estimates; stock jumps

JPMorgan shares gained 4.2%  to $61.79. The broader PowerShares KBW Bank ETF was 3.9% higher.

The rise in bank shares comes despite a move by regulators to reject so-called "living will" plans for five systemically important banks, including JPMorgan, Wells Fargo and Bank of America. The goal of this type of stress test is to ensure banks have an adequate strategy in place in the event of a backruptcy.

It is often said that financials must be strong to confirm that any rally on Wall Street has sustainability, so today's bank rally was viewed positively on Wall Street.

Wall Street shrugged off a weaker-than-expected reading on March retail sales, which fell 0.3%, vs. an estimate of up 0.1%. Inflation at the producer level also came in weaker-than-expected.

Retail sales fall in March as consumers pull back; Americans buy fewer cars

Global stocks were also in rally mode. The Stoxx Europe 600 was 2.5% higher. Stocks closed 2.8% higher in Japan, were up 3.2% in Hong Kong and rallied 1.4% in mainland China.