August PCE figures in line with expectations
Indexes: Dow up 0.8%, S&P 500 up 0.6%, Nasdaq down 0.4%
Sept 26 (Reuters) – U.S. stocks were higher on Friday afternoon, after mostly in-line U.S. inflation data, but indexes were on track to post losses for the week. The Personal Consumption Expenditures (PCE) Price Index increased 0.3% in August after gaining 0.2% in July, matching the estimate of economists polled by Reuters. In the 12 months through August, PCE inflation increased 2.7% after climbing 2.6% in July. Investors have been concerned about economic data this week, weighing signs of a stronger economy against expectations for more interest rate cuts from the Federal Reserve. The Fed last week cut rates for the first time since December. Investors are questioning what the Fed’s path is going to be from here, and are preparing for quarter end, said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts.
“To me, it’s typical of quarter-end window dressing… You’re going to have some volatility during this period and in the subsequent weeks because you have earnings coming,” he said. Also, shares of truck maker Paccar, which makes most of its trucks for the U.S. market domestically, gained 5%, a day after President Donald Trump unveiled fresh import tariffs, including on heavy-duty trucks, branded pharmaceutical products, kitchen cabinets and bathroom vanities along with upholstered furniture. Drugmaker Eli Lilly rose 1.5%.
The Dow Jones Industrial Average rose 381.10 points, or 0.83%, to 46,328.42, the S&P 500 gained 41.08 points, or 0.62%, to 6,645.80 and the Nasdaq Composite gained 99.03 points, or 0.44%, to 22,483.74. Richmond Fed Bank President Thomas Barkin, in an interview with Bloomberg Television, said he had very low confidence in inflation forecasts, as tariffs continue to impact the economy. Investors also are bracing for a potential government shutdown, which could disrupt data releases and add uncertainty to the markets.
Costco Wholesale fell after the company reported quarterly results.
Advancing issues outnumbered decliners by a 2.37-to-1 ratio on the NYSE. There were 168 new highs and 45 new lows on the NYSE.
On the Nasdaq, 2,711 stocks rose and 1,800 fell as advancing issues outnumbered decliners by a 1.51-to-1 ratio. (Additional reporting by Niket Nishant, Sukriti Gupta and Purvi Agarwal in Bengaluru and Sinead Carew in New York; Editing by Shilpi Majumdar and David Gregorio)
