Stocks ticked higher on Friday as investors digested the final slate of corporate earnings for the week. All three major averages are on pace to close out the week with losses. The Dow Jones Industrial Average rose about 20 points, while the S&P 500 and Nasdaq Composite added about 0.1% each.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Despite the small gains, the Dow and S&P 500 Index posted their worst weekly performance since March, losing a rescective 0.2% and 0.03% each, while the tech-heavy Nasdaq underperformed the broader market, losing 0.3% for the week.
Consumer staples giant Procter & Gamble
Materials stocks fell on Friday off disappointing earnings from Freeport-McMoRan
In economic news, the S&P Global U.S. flash services index came in at a hotter-than-expected 53.7, reaching a 12-month high. Meanwhile, the manufacturing index rose to a six-month high of 50.4. Readings above the neutral level of 50 indicate expansion in purchase managers indexes.
"Output rose at the sharpest pace for almost a year, as stronger demand conditions, improving supply and a steeper uptick in new orders supported the expansion," S&P Global wrote in the release. "Solid growth in activity was seen across both the manufacturing and service sectors."
UBS
So far, the S&P 500 has risen about 7% from its March low and is trading at a valuation closely correlated with mid-teens earnings growth, Haefele wrote, adding that the index is likely pricing in the "high probability of a near-perfect landing for the U.S. economy."
"But we doubt everything will work out so perfectly, and instead see an uncertain outlook for the growth, earnings, and inflation picture," Haefele wrote, quoted by CNBC.
"A resurgence in inflation would be bad for both asset classes, though this outcome would be worse for the growth equities that have performed most strongly this year amid disinflationary hope," Haefele added.