Stocks opened higher Friday and continued to climb into the close, putting the lid on another strong week for the U.S. equities market. Today's upside came even as data showed consumer sentiment fell as inflation expectations climbed.
Shortly after the open, the University of Michigan said its consumer sentiment index fell for a fourth straight month in November, slipping to 60.4 from October's reading of 63.8.
"While current and expected personal finances both improved modestly this month, the long-run economic outlook slid 12%, in part due to growing concerns about the negative effects of high interest rates," the report stated. Both year-ahead and long-term inflation expectations rose in November too.
Sign up for Kiplinger’s Free E-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.
Inflation was top of mind during Federal Reserve Chair Jerome Powell's speech on Thursday, where he said the central bank is "not confident" interest rates are high enough to bring inflation down to its 2% target. This sent stocks tumbling and had the S&P 500 and Nasdaq Composite snapping their longest daily win streaks in two years.
Stocks rebounded today, though. At the close, the S&P 500 was up 1.6% at 4,415, the Nasdaq was 2.1% higher at 13,798, and the Dow Jones Industrial Average had gained 1.2% to 34,283. All three indexes closed higher on the week, as well.
Plug Power spirals amid "unprecedented supply challenges"
The Nasdaq outperformed even as several tech stocks tumbled after earnings. Plug Power (PLUG), for one, plunged 40.5% after the fuel-cell maker reported a wider-than-expected third-quarter loss. Revenue of $199 million also fell short. In addition, Plug Power pulled its full-year guidance, citing "unprecedented supply challenges" in the North American hydrogen network.
"After 13 consecutive quarterly misses on adjusted earnings per share, we are struggling to find a positive catalyst, given the excessive cash burn rate and the importance of raising capital (in a challenging capital market environment) to fund its growth prospects," says CFRA Research analyst Matthew Miller, who downgraded PLUG to Sell from Hold.
Trade Desk (TTD) was another big post-earnings loser, slumping 16.7% after its results. While the digital ad company reported third-quarter earnings of 33 cents per share on $493 million in revenue – both figures higher than analysts were expecting – fourth-quarter guidance came in well below estimates.
The company told CNBC that the "transitory cautiousness from advertisers in certain verticals, such as U.S. auto and media/entertainment due to the strikes" was the reason for the weak outlook.
Cisco earnings, CPI, PPI on deck
Next week, Cisco Systems (CSCO, +1.1%) is the most notable tech name on the earnings calendar, with the networking equipment specialist set to report after Wednesday's close.
As for economic news, all eyes will be on next week's inflation data. The October Consumer Price Index (CPI) report will be released Tuesday morning, while the Producer Price Index (PPI) is due out Wednesday.
Related content
- Amazon Launches Virtual Healthcare Service for $9 a Month
- When Is the Next Fed Meeting?
- If You'd Put $1,000 Into Adobe Stock 20 Years Ago, Here's What You'd Have Today
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summerThe Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Stock Market Today: Stocks Climb More Walls of WorryVolatility is back in a normal range, and the trend for the main equity indexes remains positive despite specific and general headwinds.
-
Is It Time to Invest in Europe?Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Stock Market Today: Nasdaq Outperforms as Big Tech RalliesThe Dow Jones Industrial Average closed lower for a second day as Amgen and Merck fell.
-
Stock Market Today: UnitedHealth Drags on Dow After CEO SplitsUNH created headwinds for the price-weighted Dow on news that its embattled CEO, Andrew Witty, is stepping down.
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade DealThe two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Stock Market Today: Investors Weigh Weekend NegotiationsInvestors, traders and speculators will look to Switzerland for answers about the most compelling issue confronting global markets.
