A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, January 26, 2023.
Andrew Kelly | Reuters
Stocks rose Friday, and all the major averages headed for a winning week fueled by better-than-expected economic growth and a pop in market-darling Tesla.
The S&P 500 gained 0.4%, while the Nasdaq Composite added 0.56%. The Dow Jones Industrial Average was last up 135 points, or 0.4%.
Earnings season continued, with Intel slumping more than 8% following a dismal earnings report that missed on the top and bottom lines. Strong guidance boosted American Express 9% despite a top-and bottom-line miss.
All the major averages are positive for the week and month. The Dow and the S&P 500 have gained 1.7% and 2% this week, respectively. The Nasdaq is up 3.2% on the week and is set to notch its best monthly performance since July. The Nasdaq has gained the last four weeks. Tesla rose 3% Friday, building on a 24% weekly gain on the back of an earnings beat.
So far this year, markets have bucked 2022’s selloff trend. The Dow is up 2.8%, while the S&P has gained 6.1%. The Nasdaq has surged more 10.6%
“This year’s stock market rally is impressive and shouldn’t be ignored,” Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance said in a Thursday note. “Unfortunately, the Fed is likely to start talking down the market again, as early as next week, so prepare for volatility again this year; we may be in the eye of the hurricane and not completely out of the woods yet.”
Investors digested more economic data ahead on next week’s Federal Reserve policy meeting. The personal consumption expenditures price index, a preferred inflation measurement for the Fed, showed prices rise 4.4% from a year ago, the Commerce Department said. That was in line with the Dow Jones estimate.
It’s some of the last data ahead of the central bank’s next interest-rate decision. Investors are currently expecting a 25 basis point hike.
Stocks are coming off a positive session. Investors cheered a better-than-expected fourth quarter gross domestic product report that stoked hopes that the U.S. economy can experience a soft landing as the central bank hikes rates to tame inflation.