Stocks rose Friday with the Dow Jones Industrial average and S&P 500 set to close out their third winning week in a row as a measure of inflation closely watched by the Federal Reserve came in at its lowest in nearly two years.
The Dow Jones Industrial Average rose 177 points, or 0.5%. The S&P 500 added 0.7%. The Nasdaq Composite gained 1.07%.
June data for the personal consumption expenditures price index continued to show easing inflation. The gauge showed PCE gained 0.2% month-over-month, in line with the 0.2% increase expected by economists polled by Dow Jones. Core PCE rose 4.1% from the year-ago period, lower than the anticipated 4.2%.
The data is of particular interest after the central bank raised interest rates earlier this week in a widely expected move. The Fed targets inflation at 2% annually.
Earnings season continued with Dow member Procter & Gamble shares gaining more than 1.1% in premarket trading Friday. The consumer goods company behind Tide and other brands beat analysts’ earnings and revenue expectations in its most recent quarter.
Intel jumped more than 7% as investors applauded a return to profitability, while Roku climbed 8% after beating Wall Street expectations on both the top and bottom lines.
On the other hand, Ford Motor shares fell about 1.4% even though the automaker beat estimates and raised guidance. The company said its electric vehicle adoption was taking longer than expected due to higher costs.
Wall Street is coming off a losing session. The Dow‘s nearly 0.7% tumble marked the end of a 13-day win streak, a length not seen since 1987. The S&P 500 and Nasdaq Composite each finished around 0.6% lower.
The Dow and the Nasdaq are on pace for narrow weekly gains. The 30-stock average is up 0.16%, while the tech-heavy index has a 0.12% gain through Thursday’s close. The S&P 500 is flat on the week, up only 0.02%.
