- U.S. stocks were mostly higher on Friday, with the Dow Jones Industrial Average recording its eighth straight day of wins.
- May’s strong rise came ahead of the main CPI report due to be released on Wednesday.
- Throughout the day, Fed speakers struck a somewhat hawkish tone.
U.S. stocks rose on Friday, securing an eight-day winning streak for the Dow Jones Industrial Average.
The rally came despite hawkish comments from two Federal Reserve officials on Friday. Fed Governor Michelle Bowman said she does not expect to cut rates this year, and Fed Governor Laurie Logan said it was too early to consider cutting rates based on the latest inflation data.
Still, the stock price rose anyway, buoyed by strong first-quarter results.
Of the 92% of S&P 500 companies that have reported earnings so far, 81% beat earnings estimates by a median of 8% and 60% beat revenue estimates by a median of 5%, according to Fundstrat data.
Investors will now turn their attention to April’s Consumer Price Index report, which will be released on Wednesday. The report is expected to provide insight into when the Fed may move forward with rate cuts.
Fundstrat’s Tom Lee expects stocks to rise for the remainder of May as the lower-than-expected inflation report sends a dovish signal to the Fed.
“The April CPI of this year will highlight the possibility that the disproportionate impact of auto insurance on the CPI is fading,” Lee said in a note on Friday.
Here are the US indexes as of Friday’s 4pm close:
Here’s what else happened today:
In Commodities, Fixed Income and Cryptocurrencies:
- West Texas Intermediate crude oil fell 1.10% to $78.39 per barrel. Brent crude oil, the international benchmark, fell 1.13% to $82.93 per barrel.
- Gold rose 1.25% to $2,369.60 an ounce.
- The yield on the 10-year U.S. Treasury rose 4 basis points to 4.50%.
- Bitcoin fell 3.83% to $60,662.
