The benchmark S&P 500 Index and tech-heavy NASDAQ Composite closed higher on Friday despite a rise in Treasury yields and economic data that showed consumer inflation slowing, but not at a rate fast enough for the Fed to pause its plans to keep raising interest rates.
Several reports from the Commerce Department and the University of Michigan showed that while inflation appears to be cooling, so is consumer spending, which accounts for about 70% of the U.S. economy.
With the Fed expected to raise rates throughout the new year and many economists predicting a recession in 2023, new home sales posted a surprise gain and consumer sentiment improved more than expected.
On Friday, the S&P 500 Index settled at 3844.82, up 22.43 or +0.59%. The NASDAQ Composite finished at 10497.86, up 21.74 or +0.21% and the Dow Jones Industrial Average closed at 33203.93, up 175.44 or +0.53%.
Navellier Sees Trouble with Macro Numbers
“The economic number announced today highlight the difficulty for investors today, where weak numbers bring recession fears and strong numbers bring Fed fear,” said Louis Navellier, founder and chief investment officer of growth investing firm Navellier & Associates.
“You just can’t win right now on macro numbers,” he added. “That is why it’s now much more of a stock-picking market, but with all the index and ETF traders even stocks that are executing their business plan well can get pushed around meaningfully by associated losers.”
In NASDAQ related news, Needham lowered earnings estimates for Meta while keeping its underperform rating for the stock.
The firm is keeping its fourth-quarter revenue and earnings per share estimates, which show year-over-year declines of 10% and 45%, respectively.
For the 2023 fiscal year, Needham lowered its per-share earnings estimate by 17% and its revenue estimate by 5%. Revenue should eke out a 4% year-over-year gain, while earnings per share drop even further to 15% below the prior year.
The stock has dropped 65% this year.
Other NASDAQ Composite Market Movers
Tech stock Alphabet gained more than 1% after the National Football League (NFL) said Thursday its “Sunday Ticket” subscription package will go to subsidiary YouTube, which is owned by Alphabet, starting next season.
In other news, shares of electric vehicle maker Tesla declined 2% after CEO Elon Musk said that he would hold off on selling any more Tesla stock for the next 18 to 24 months.
S&P 500 Index Stocks in the News: Charter Communications
With Charter Communications network evolution and capital expenditure now “well understood,” Wells Fargo has upgraded the stock to equal weight from underweight, CNBC reported.
3M stock shed 1.6% after a U.S. judge barred the company from shifting liability to a subsidiary for injuries suffered by military members from allegedly defective earplugs.
Read More: S&P 500, NASDAQ Composite Finish Higher Despite Rate Hike Expectations