Stocks opened lower Friday but climbed into positive territory by lunchtime. Investors cheered this week's encouraging economic data that showed inflation continued to cool and consumer spending remains resilient. Next up is the Jackson Hole Economic Symposium, where Fed Chair Powell will deliver a highly anticipated speech on Friday.
As for today's economic news, the University of Michigan said its Consumer Sentiment Index rose 2.1% in August vs the month prior, its first increase in five months. And while consumers' long-term expectations also rose, their views on current conditions fell to 60.9, the lowest level since December 2022.
Elsewhere, data from the Census Bureau showed housing starts fell by 6.8% in July to a lower-than-expected 1.238 million. Building permits, which tend to be a better indicator of future construction, were down 4% to 1.42 million.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
While "consumer sentiment progressed for the first month in five … construction activity plunged to depths last seen near the peak of COVID-19 in the spring of 2020," says José Torres, senior economist at Interactive Brokers. "The cross-currents have traders sitting on their hands as they await next week's central banking developments, hoping that policymakers will offer clues on the path forward."
Powell to speak at Jackson Hole
The most notable event next week will be Powell's Friday morning speech in Jackson Hole, Wyoming. "An evolution of the July FOMC language would suggest the committee is 'very close' or 'close' to the point where easing is likely to occur," says Michael Gapen, head of U.S. economics at BofA Global Research.
However, Powell could take a more dovish tone, especially following the weak July jobs report, and say that "the committee wants to avoid 'unexpected weakness' in the labor market, rather than simply responding to it after it occurs," Gapen adds.
Alphabet logs longest weekly losing streak on record
In single-stock news, Alphabet (GOOGL) shares climbed 1% Friday but still ended the week down 0.4% as concern swirled that a recent antitrust ruling against Google will result in a forced breakup.
This was the Magnificent 7 stock's sixth straight weekly decline, its longest on record.
Applied Materials, H&R Block move after earnings
Applied Materials (AMAT) fell 1.9% even after the semiconductor equipment firm disclosed higher-than-expected earnings and revenue for its fiscal Q4.
"Demand from China has been robust and acted to offset slower recovery in demand from North America, Europe, and the rest of Asia," says Argus Research analyst Jim Kelleher (Buy). "This regional shift should drive higher sales of leading-edge nodes, which we expect to result in margin expansion across the remainder of calendar 2024."
H&R Block (HRB) was another post-earnings mover, only its shares surged 12.1% after the tax provider's fiscal Q4 results beat expectations. HRB also hiked its quarterly dividend by 17% and disclosed a new $1.5 billion stock buyback plan.
As for the main indexes, the Dow Jones Industrial Average was up 0.2% at 40,659, while the Nasdaq Composite (+0.2% at 17,631) and the S&P 500 (+0.2% to 5,554) both notched a seventh consecutive day of gains.
Related content
- Warren Buffett Stocks: Analyzing the Berkshire Hathaway Portfolio
- Earnings Calendar and Analysis for This Week
- If You'd Put $1,000 Into Walmart Stock 20 Years Ago, Here's What You'd Have Today
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market TodayTech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
The Shutdown Standoff Is Heading for Its Next Big TestA key mid-October deadline could intensify the shutdown fight in Washington, and the fallout could soon hit workers and your wallet.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market Today
Tech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts SayRate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out OnMost large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's GuideStock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
Rally Fades on Mixed AI Revolution News: Stock Market TodayAll three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible HeirA spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.
-
Adapting to AI's Evolving Landscape: A Survival Guide for BusinessesLike it or not, AI is here to stay, and opting out could be disastrous for your organization. Instead, focus on what you can control and be flexible, as AI is still evolving.
-
S&P, Nasdaq Hit New Highs: Stock Market TodayA late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
