U.S. stocks rose in midday trading on Friday after opening lower earlier as investors weighed new economic data, including data on consumer spending, a closely watched measure by the Federal Reserve.
The S&P 500 (^GSPC) added 0.5%, while the Dow Jones Industrial Average (^DJI) gained 0.3%. The tech-heavy Nasdaq Composite ( ^IXIC ) rose roughly 1.4% in midday trading. Earlier in the session, all three indices were trading up around 0.4%.
The biggest mover on Friday was shares of Intel ( INTC ), which fell as much as 10% on Friday after the company’s bleak outlook was disappointing.
Intel reported a quarterly earnings miss after Thursday’s close, with adjusted earnings per share coming in at $0.10 versus the $0.19 the Street was expecting. Revenue came in at $14.04 billion, missing estimates of $14.5 billion.
In the first quarter, Intel expects revenue to be between $10.5 billion and $11.5 billion, with losses totaling $0.80 per share. In achieving these results, CEO Pat Gelsinger cited “economic and market headwinds,” adding that the company “will continue to address short-term challenges while striving to meet our long-term commitments.”
Elsewhere, shares of Tesla (TSLA) turned hot. Shares rose more than 10% in Friday trading, a session high. The company’s recent earnings have pushed the stock higher.
The yield on the benchmark 10-year U.S. Treasury note rose to 3.52 percent from 3.497 percent on Thursday. The dollar index added 0.28% to $102.12. WTI crude was up about 1.5% at $82.24 a barrel.
The U.S. core personal consumer spending (PCE) index, excluding energy and food, rose 0.3% on a monthly basis, while the annual rate fell to a one-year low of 4.4% in December from 4.7% the previous month. through in line with consensus forecasts.
Pending home sales rose 2.5 percent in December, ending a sixth month of declines, according to the National Association of Realtors.
The story continues
Meanwhile, consumers remain optimistic. The consumer sentiment index rose to 64.9, up slightly from 64.6 two weeks ago, according to preliminary results from the University of Michigan consumer survey. Economists polled had expected a reading of 64.6.
Stocks rose on Thursday as investors digested other data that showed the U.S. economy ended the year on solid ground despite higher interest rates and looming recession fears.
Gross domestic product (GDP)—the sum of all goods and services—increased at a 2.9% annual rate in the final quarter of 2022. For the full year, GDP grew by 2.1%.
Separately, orders for durable goods rose 5.6% in December, beating expectations for a 2.4% increase, the sharpest increase since July 2020. Meanwhile, the resilience of the US labor market was a big surprise. Initial jobless claims fell again to 187,000, the lowest level since April 2022.
“Markets have deciphered very mixed clues [on Thursday] and after some cause for concern, we’ve decided it’s easier to ignore all of this and take the stock to new highs from 2023,” Jim Reid and colleagues at Deutsche Bank wrote in an early morning note on Friday morning. “The winnings helped the mood too, to be honest.”
Shares of Visa ( V ) rose on Friday after the company reported results late Thursday. Revenue rose to $7.94 billion, compared with expectations for $7.69 billion. Adjusted earnings per share came in at $2.18 versus expectations of $2.00. The company announced that Ryan McInerney will take over as CEO starting February 1.
Hasbro ( HAS ) also joined the wave of layoffs at the company, announcing it will cut its workforce by 15 percent, or 1,000 employees, effective in the coming weeks. The move comes as the toymaker aims to save between $250 million and $300 million a year by the end of 2025.
Also in the stock movement, shares of Chevron ( CVX ) fell after reporting a fourth-quarter profit of $6.4 billion, down from $11.2 billion in the third quarter. Ahead of Friday’s report, Chevron announced it was increasing its dividend by 6% along with a massive $75 billion share buyback plan.
Shares of American Express ( AXP ) rose after the credit card company reported fourth-quarter net income of $1.57 billion. On a per share basis, there was a profit of $2.07. American Express expects full-year earnings to be $11 to $11.40 per share.
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Danny Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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