by Stephen Culp
NEW YORK (Reuters) – The New York Stock Exchange ended higher on Friday after an erratic session on several indicators suggesting a slowdown in inflation and the economy a few days before the next decision of the US Federal Reserve on rates.
The Dow Jones gained 28.67 points or 0.08% to 33,978.08, the S&P 500 gained 10.13 points or 0.25% to 4,070.56 points and the Nasdaq Composite advanced 109.30 points or 0.95% to 11,621.71.
The S&P and the Dow post their third weekly increase in four weeks, and the Nasdaq its fourth consecutive weekly increase.
“It’s a nice end to a solid week in what’s shaping up to be a historically strong month,” commented Ryan Detrick, strategist at Carson Group, in Omaha. “It’s the realization that inflation continues to decelerate rapidly, which raises a lot of concerns about the economy.”
Year-to-date, the Nasdaq has climbed 11%, the S&P 500 6% and the Dow Jones 2.5%.
The so-called PCE consumer price index, closely followed by the Fed, rose 0.1% last month, as in November. Over one year, its rise slowed to 5.0% after 5.3% in November.
The Commerce Department also reported a 0.2% decline in consumer spending in December as the Fed meets for two days starting Tuesday.
Traders are now betting that the central bank will settle for just one more rate hike beyond the quarter-point hike expected next week.
The markets are banking on a maximum rate of 4.9% in June, lower than many central bankers’ expectations of a rate above 5%.
“There’s a lot of volatility in the markets today as investors digest corporate results but ultimately they’re looking to next week and the Fed meeting,” said Chris Zaccarelli, Independent Advisor Alliance. .
More than a quarter of S&P 500 companies have already released their quarterly results, and 67.8% of them beat analysts’ expectations, according to Refinitiv data.
Payments group American Express was among the big winners of the session with a jump of 10.5% on the back of a stronger than expected increase in its annual profit forecast. Visa also rose 3%.
Intel, on the other hand, tumbled 6.4% after warning that it could suffer an unexpected loss in the first quarter and expected quarterly sales to fall below analysts’ forecasts. Other major microchip makers like Advanced Micro Devices have been dragged down in its wake.
Chevron fell 4.4% after reporting record profit of $36.5 billion in 2022, but fell short of expectations due to asset write-downs and lower oil and gas prices.
(French version Jean-Stéphane Brosse)
Copyright © 2023 Thomson Reuters