Live stock market news updates: Stocks rise, S&P 500 looks to break 7-week losing streak

U.S. stocks rose on Friday, putting major indexes on track to end a week-long losing streak after a string of more upbeat corporate results at least temporarily offset fears of a strong economic downfall.

The S&P 500 extended its gains to rise almost 2% intraday. The blue-chip index headed for a weekly gain of 4% at Thursday’s close, which, if sustained, would mark its biggest gain since mid-March. The S&P 500 had fallen for the previous seven consecutive weeks in its longest losing streak since 2000. The Dow Jones Industrial Average rose more than 1% and the Nasdaq Composite added more than 2%.

Investors digested a fresh set of economic data on Friday morning, including the latest print on core personal consumption expenditure (PCE) – the Federal Reserve’s preferred measure of core inflation. These showed that inflationary pressures eased only slightly in April compared to March, echoing the results of the still-high Consumer Price Index and Producer Price Index released earlier. this month. Overall PCE was up 6.3% in April from a year ago compared to March’s 6.6% increase, and core PCE was up 4.9% from 5, 2% the previous month. But separate data also showed personal spending, adjusted for inflation, accelerated in April compared to March.

In recent sessions, investors have favorably weighed the latest batch of quarterly earnings and guidance from retailers like Macy’s (M), Nordstrom (JWN), Dollar General (DG) and Dollar Tree (DLTR). These companies have significantly exceeded Wall Street estimates, helping to allay concerns that earnings pressures recently reported by Walmart (WMT), Target (TGT) and Kohl’s (KSS) were also affecting all companies in contact with consumers. And outside of retail, airlines such as JetBlue (JBLU) and Southwest (LUV) raised their sales forecasts for the current quarter, suggesting demand remained strong for discretionary travel.

“Overall, the American consumer remains in great shape. They went into these price hikes, this inflation, with a cushion on their balance sheet. For sure, employment is high, so the U.S. consumer as a whole remains in a very strong position,” Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, told Yahoo Finance Live.

“The big fear was that inflation would continue to soar and force the Fed to tighten the US economy into a recession,” he added. “I think we’re all slowly starting to realize the reality that spending on goods…has been pulled forward. Inventories have been rebuilt and spending on goods has caused the inflation you’re seeing. It’s going to happen. reversing as people shift to service sector spending.”

“And it may look like a recession in some parts of the economy, but other parts of the economy are going to be fine,” Schutte said. “Inflation will go down and the Fed will go a little further.”

However, other strategists have questioned the persistence of the gains seen in the market so far this week, especially as inflation has shown few significant signs of a substantial decline so far.

“It’s nothing more than a bearish bounce in our opinion. When you look at those bounces that we’ve had, they’ve been on very light volume, there’s not a lot of conviction,” Eddie Ghabour, co-founder and managing partner of Key Advisors Group, told Yahoo Finance Live. “The data we’re getting now that caused this selloff, remember, is Q1 data. Q2 data will be worse than Q1 data. And we won’t get that news until July. … So I think we’re going to have a very treacherous market in the next few months.

11:54 a.m. ET: Stocks extend gains to trade near session highs, Dow heads for sixth straight day of gains

Here are the top moves in the markets as of 11:54 a.m. ET:

  • S&P 500 (^GSPC): +72.05 (+1.78%) to 4,129.89

  • Dow (^ DJI): +344.28 (+1.05%) to 32,981.47

  • Nasdaq (^IXIC): +299.88 (+2.55%) at 12,040.53

  • Raw (CL=F): +$0.12 (+0.11%) at $114.21 per barrel

  • Gold (CG=F): +$4.50 (+0.24%) at $1,858.40 per ounce

  • 10-year cash flow (^TNX): -2.7 bps for a yield of 2.7290%

10:06 a.m. ET: Consumer sentiment weakened in late May to lowest since 2011

Consumer confidence deteriorated further at the end of May, mainly due to concerns about inflation and short-term economic conditions.

The University of Michigan’s final monthly sentiment index fell to 58.4, which was revised down from the 59.1 previously reported for the month. Sub-indices reflecting consumer views on current conditions and future expectations were also revised down slightly, and one-year inflation expectations were little changed at 5.3%.

The latest dip in sentiment “was largely driven by lingering negative views on current home and durable goods buying conditions, as well as consumers’ future outlook for the economy, driven primarily by concerns about the inflation,” Joanne Hsu, director of consumer surveys, wrote in a statement. “At the same time, consumers expressed less pessimism about future prospects for their personal finances than about future business conditions.”

“Over the long term, a majority of consumers expect their financial situation to improve over the next five years; that share is essentially unchanged in 2022,” Hsu added. “A stable outlook for personal finances may currently support consumer spending. Yet lingering negative views on the economy could end up dominating personal factors in influencing consumer behavior going forward.”

9:32 a.m. ET: Stocks open higher

Here are the top moves in the markets as of 9:32 a.m. ET:

  • S&P 500 (^GSPC): +32.86 (+0.81%) at 4,090.70

  • Dow (^ DJI): +56.27 (+0.17%) to 32,693.46

  • Nasdaq (^IXIC): +165.04 (+1.41%) to 11,905.69

  • Raw (CL=F): -$0.12 (-0.11%) at $113.97 per barrel

  • Gold (CG=F): +$10.30 (+0.56%) at $1,864.20 per ounce

  • 10-year cash flow (^TNX): -3.1 bps for a yield of 2.7250%

8:58 am ET: Merchandise trade deficit narrows more than expected in April after record reading in March

The U.S. goods trade deficit narrowed more than expected in April after hitting a record high of nearly $126 billion in March.

The anticipated merchandise trade balance showed a deficit of $105.9 for the United States in April, the Commerce Department said Friday. This follows a gap of $125.9 billion in March, which was revised up from $125.3 billion last month.

The print suggests that trade was slightly less of a drag on the US economy early in the second quarter compared to the first. In the first quarter, net exports reduced US gross domestic product (GDP) by 3.23 percentage points. GDP fell at an annualized rate of 1.5% in the first three months of the year.

8:42 a.m. ET: Real personal spending accelerates in April, as savings rate slips to lowest since 2008

US consumers continued to spend last month even as inflation remained elevated, one of the main contributors to US economic activity holding up in the spring. However, the personal savings rate fell to its lowest level in more than a decade, raising concerns about how long spending could sustain the economy.

Real personal spending rose 0.7% month-over-month in April, the Bureau of the Economy said Friday, accelerating from March’s 0.2% rise. Unadjusted for inflation, personal spending rose 0.9%, beating economists’ consensus expectations for a 0.8% increase, according to Bloomberg data. This measure had increased by 1.1% in March.

Personal income, however, slowed slightly last month, rising 0.4% after rising 0.5% in March. And the personal savings rate, or the proportion of personal disposable income spent on savings, fell to 4.4% from 5.0% in March, hitting the lowest level since 2008. After climbing skyrocketing during the pandemic, the savings rate is now well below average. of 2019 before the epidemic, when the savings rate averaged above 7%.

8:38 am ET: Inflation eases slightly in April as PCE rises 6.3% year-over-year

Inflation, as measured by the Bureau of Economic Analysis’ Personal Consumption Expenditure (PCE) index, fell only slightly in April from March, with rapidly rising prices showing little sign of slowing in the entire US economy.

The broadest measure of PCE rose 0.2% in April month-on-month, in line with economists’ consensus expectations, according to data from Bloomberg. This compares to a monthly increase of 0.9% in March. Year-over-year, however, PCE climbed another 6.3%, coming in slightly warmer than expected and moderating only slightly from March’s 6.6% year-on-year rise.

Core PCE, which excludes volatile food and energy prices, also remained warm and rose 4.9% in April from a year ago. This was in line with estimates and followed a 5.2% rise in March. February’s reading of 5.3% was the highest since 1983.

7:23 a.m. ET: Stock futures rise as indices look to post weekly gains

Here is where the markets were trading Friday morning:

  • S&P 500 Futures Contracts (ES=F): +11 points (+0.27%) to 4,066.75

  • Dow futures (JM=F): +26 points (+0.08%) to 32,626.00

  • Nasdaq futures contracts (NQ=F): +54.25 points (+0.44%) to 12,333.50

  • Raw (CL=F): -0.46$ (-0.40%) to 113.63$

  • Gold (CG=F): +$8.80 (+0.47%) at $1,862.70 per ounce

  • 10-year cash flow (^TNX): -3.3 bps for a yield of 2.725%

NEW YORK, NEW YORK – MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of heavy losses, markets were up on Monday morning. (Photo by Spencer Platt/Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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