U.S. equity markets were mixed Friday as investors grappled with the hottest annual reading of the Federal Reserve's preferred inflation measure in nearly 30 years.
The Dow Jones Industrial Average gained 157 points, or 0.46%, while the S&P 500 ticked up 0.12% and the Nasdaq Composite weaker by 0.14%. The mixed session comes after both the S&P 500 and the Nasdaq Composite on track to add to Thursday’s record highs with the former up 2.4% so far this week.
Core personal consumption expenditures, the Federal Reserve's preferred inflation measure, rose 3.4% annually in May, making for the biggest increase since 1992. Prices were up 0.5% on a monthly basis. Additionally, personal income declined 2% as the impact from stimulus checks continued to subside while consumption was unchanged.
In stocks, all 23 banks passed the Federal Reserve’s annual stress tests, paving the way for the financial institutions to hike their dividends and announce stock buyback plans starting in July.
Elsewhere, Nike Inc. reported record quarterly sales, benefitting from consumers seeking out relaxed options like sneakers and sweatpants. Revenue guidance for the current fiscal year topped analyst expectations.
FedEx Corp. swung to a profit as the surge in online shopping during the pandemic boosted the need for package delivery services. Adjusted earnings fell short of expectations.
Carmax Inc. announced record quarterly earnings and revenue as strong demand for used cars boosted sales by 138% year over year.
Meanwhile, Panasonic Corp. sold its stake in Tesla Inc. for $3.6 billion in the year ended March, a company spokesperson said. The Tokyo-based electronics maker in 2010 purchased 1.4 million shares at $21.15 apiece.
Virgin Galactic Holdings Inc. received Federal Aviation Administration approval to fly customers into space. A test flight is expected later this year.
In commodities, West Texas Intermediate crude oil rose 15 cents to $73.46 a barrel and gold climbed $12.70 to $1,789.40 an ounce.
Overseas markets were mixed.
In Europe, Britain’s FTSE 100 rose 0.28% while France’s CAC and Germany’s DAX slipped 0.34% and 0.18%, respectively.
Asian markets were higher across the board with Japan's Nikkei 225 edging up 0.66%, China's Shanghai Composite advancing 1.15% and Hong Kong's Hang Seng index surging 1.4%.