Dow Jones & S&P 500 secure third consecutive week of gains

Stocks rose Friday with the Dow Jones Industrial Average and S&P 500 closing out their third winning weeks in a row as a measure of inflation closely watched by the Federal Reserve came in at its lowest in nearly two years.

The Dow jumped 176.57 points, or 0.50per cent, to 35,459.29. The S&P 500 added 0.99per cent to 4,582.23. The Nasdaq Composite gained 1.90per cent to 14,316.66.

All three major averages notched weekly gains with the 30-stock average up by about 0.66per cent. On Thursday, the Dow ended a 13-day win streak, a length not seen since 1987. The S&P advanced 1.01per cent, and the tech-heavy index is up 2.02per cent.

To end the week, investors cheered data showing cooling inflation and stronger-than-expected earnings reports that supported the case the U.S. could avoid a recession.

On Friday, June data for the personal consumption expenditures price index continued to show easing inflation. The gauge showed core PCE gained 0.2per cent month-over-month, in line with the 0.2per cent increase expected by economists polled by Dow Jones. Core PCE rose 4.1per cent from the year-ago period, lower than the anticipated 4.2per cent.

The data is of particular interest after the central bank raised interest rates earlier last week in a widely expected move. The Fed targets inflation at 2per cent annually.

Earnings season continued with Dow member Procter & Gamble shares gaining nearly 3per cent after better than expected results.

Intel jumped 6.6per cent as investors applauded a return to profitability, while Roku climbed 31per cent a day after beating Wall Street expectations on both the top and bottom lines.

On the other hand, Ford Motor shares fell 3.4per cent even though the automaker beat estimates and raised guidance. The company said its electric vehicle adoption was taking longer than expected due to higher costs.

Overall, all US Sectors closed higher except for Utilities, which was the worst performer, and Real Estate. Communication Services was the best performer.

Futures

The SPI futures are pointing to a 0.3 per cent gain.

Currency

One Australian dollar at 7:20 AM was buying 66.56 US cents.

Commodities

Gold gained 0.74 per cent. Silver added 0.53 per cent. Copper gained 1.32 per cent. Oil closed 0.61 per cent higher.

Figures around the globe

European markets closed higher. London’s FTSE added 0.02 per cent, Frankfurt gained 0.39 per cent, and Paris closed 0.15 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei fell 0.40 per cent, Hong Kong’s Hang Seng gained 1.41 per cent while China’s Shanghai Composite closed 1.84 per cent higher.

The Australian sharemarket closed 0.70 per cent lower at 7404.

Ex-dividends

Metrics Income (ASX:MOT) is paying 1.6 cents unfranked
Metrics Master (ASX:MXT) is paing 1.57 cents unfranked

Dividends payable

Rural Funds Group (ASX:RFF)
Kelly Partners Group Holdings (ASX:KPG)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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