Recap of stats for the week Stocks Gain Even as Survey Shows Inflation Expectations Rising
05:50 PM EST, 11/11/2022 (MT Newswires) -- US stocks closed higher Friday as markets largely dismissed a survey showing consumers' inflation expectations picking up.
The Nasdaq Composite rose 1.9% to 11,323.3, while the S&P 500 increased 0.9% to 3,992.9. The Dow Jones Industrial Average edged 0.1% higher to 33,747.9. Energy and communications services led the gainers among sectors, while health and utilities posted the steepest declines.
For the week, the Dow was up 4.2%, the S&P rallied 5.9%, and the Nasdaq surged 8.1%.
US consumer confidence deteriorated more than expected in November as inflation expectations moved higher, preliminary data from the University of Michigan's Surveys of Consumers showed. The sentiment index fell to 54.7 from 59.9 in October, missing the Econoday consensus of 59.6. The year-ahead inflation outlook rose to 5.1% from 5% in October.
On Thursday, Bureau of Labor Statistics data showed that annual consumer price growth eased more than expected in October as core inflation cooled, boosting expectations that the Federal Reserve could slow the pace of its aggressive rate hikes next month.
The probability for a 75-basis-point increase in December was at 17% on Friday, up from 15% a day ago but down from almost 39% last week, according to the CME FedWatch Tool. The probability of a smaller 50-point increase was 83% on Friday.
In company news, Deutsche Bank upgraded Walgreens Boots Alliance's (WBA) stock to buy from hold and lifted its price target to $50 from $41. Walgreens shares were up 7.2%, the best performer on the Dow. Technology companies DocuSign (DOCU) and Align Technology (ALGN) were the top performers on the Nasdaq, up about 16% and 11%, respectively.
Wynn Resorts (WYNN) shares jumped 8.3% after China eased COVID-19 restrictions, including shortening of quarantines to five days from seven days and removing a penalty on airlines that bring in infected passengers, Reuters reported. Shares of Las Vegas Sands (LVS) gained 5.5%.
West Texas Intermediate futures increased 2.8% to $88.92, buoyed by the weaker dollar and relaxation of the coronavirus curbs in China, the world's second-largest economy.
Gold was up 0.9% to $1,769.60 per troy ounce, while silver rose nearly 0.1% to $21.73 per ounce.
Price: 41.19, Change: -0.07, Percent Change: -0.17