07/28/2023
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 204 points, or 0.58%. The S&P 500 added 0.95%. The Nasdaq Composite gained 1.71%.
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.
“If I paint with a broad brush, it was a good report,” said Liz Young, head of investment strategy at SoFi. “It’s moving in the direction that we would want things to.”
Earnings season continued with Dow member Procter & Gamble shares gaining more than 3%. The consumer goods company behind Tide and other brands beat analysts’ earnings and revenue expectations in its most recent quarter.
