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 (NYSE: SPY): +0.09% or +3.73 points to 4,133.52
Dow Jones Industrial Average (NYSE: DIA): +0.07% or +22.41 points to 33,809.03
Nasdaq Composite Index (NASDAQ: QQQ): +0.11% or +12.90 points to 12,072.46
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 (NYSE: PG) reported better-than-expected fiscal third-quarter earnings Friday morning and raised its sales forecast to 6%, up from prior guidance of 4% to 5%. However, the company's volume, which excludes price and currency changes, fell 3% as more consumers opted for cheaper alternatives, marking the fourth consecutive quarter for the Dow member.
Materials stocks fell on Friday off disappointing earnings from Freeport-McMoRan (NYSE:FCX). While the mining company posted earnings and revenue that topped estimates, it reported a decline in profits year-over-year. Freeport-McMoRan also said it experienced production declines during the quarter due to extreme weather events.
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 (NYSE: UBS) Chief Investment Officer Mark Haefele wrote in a note to clients on Friday that more uncertainty lays ahead despite the S&P 500's recently strong performance in the wake of last month's banking crisis.
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.