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.
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%.