S&P 500 posts eight-week rally for the first time since 2017

4:08pm: Dow loses steam Friday afternoon

The Dow closed Friday down 18 points, less than 0.1%, at 37,386, while the Nasdaq Composite gained 29 points, 0.2%, to 14,993 and the S&P 500 improved 8 points, 0.2%, to 4,755. The small-cap Russell 2000 index added 17 points, 0.9%, to 2,034.

Bogging down the Dow was Nike, shares of which fell more than 12% after the retailer said it expects soft second-half revenue.

Even som the Dow and S&P 500 each clinched their eighth-consectuvie winning week of gains for the first time since 2019 and 2017, respectively. Meanwhile, the Russell 2000 has rallied for six weeks in a row. 

“[The Russell 2000's success] underscores the breadth and depth of this holiday rally, which we think is going to bode well for investors moving into 2024,” AXS Investments CEO Greg Bassuk said.

12:05pm: S&P 500 on track for eight-week winning streak  

US stocks were higher in noon trading as the November core personal consumption expenditures (PCE) price index, the Federal Reserve’s favorite inflation gauge, rose just 0.1% last month.  

At midday, the Dow rose 46 points to 37,450 while the S&P 500 added 14 points at 4,761 and the tech-heavy Nasdaq gained 48 points to 15,012.    

"We believe that today’s PCE data, which the Fed weighs heavily in its review of inflation status, further cemented the downward trajectory of inflation," AXS Investments CEO Greg Bassuk said.    

Notable movers included shares of Nike Inc (NYSE:NKE), which slid 11% after the footwear and apparel retailer said it expects weak second-half revenue.  

9:35am: Consumer prices fall in November

US stocks were mixed at Friday’s opening bell after the Federal Reserve’s preferred inflation gauge fell in November, yet another sign the central bank’s steep interest rate hikes have put downward pressure on prices.

The Nasdaq had added 45 points or 0.3% at 15,012 points and the S&P 500 gained 10 points or 0.2% at 4,757 points.

The Dow Jones, on the other hand, slipped 42 points or 0.1% to 37,362 points.

Consumer prices, per the Personal Consumption Expenditures (PCE) price index, decreased by 0.1% month-over-month in November.

For the 12 months ended in November, consumer prices rose 2.6%, down from 2.9% in October.

Excluding the more volatile food and energy components, inflation rose 0.1% month-over-month and 3.2% from November 2022.

7:00am: Stocks seen lower after Nike, inflation report to come

Stocks are expected to open lower after a downbeat outlook from Nike and ahead of key inflation figures. 

In pre-market trading, futures for the Dow Jones Industrial Average were down 0.3%, while those for the S&P 500 were 0.1% lower and contracts for the Nasdaq 100 futures declined 0.2%.    

Joshua Mahony at Scope Markets said markets will be firmly focused on the latest core PCE price index data with mixed messages from the Federal Reserve bringing the need for greater clarity over the direction of US inflation.  

“The incessant push for Federal Reserve members to rein in expectations over the pace of 2023 rate cuts does pose a risk for markets given the lofty expectations of 150 basis points worth of downside to the Fed funds rate,” he suggested.  

The Fed's favoured inflation gauge is expected to tick lower from the October 3.5% reading, he said, but “bulls will hope to see price pressures abate at a faster clip to the benefit of risk assets.” 

“Nonetheless, it is abundantly clear that we will not see this gauge fall back to target by the time markets expect to see the Fed cut rates, highlighting the strong chance that current market pricing is somewhat unrealistic.” 

On a busy day of economic news, figures for durable goods orders, consumer sentiment and housing will also be released. 

Stocks to watch include Nike, down 11% in pre-market trading, after it warned of a softer revenue outlook in its second half and that it planned to cut $2 billion in costs over the next three years.