Stocks were higher Friday as the Dow Jones Industrial average was on pace to snap an eight-week losing streak.
The Dow Jones Industrial Average climbed 52 points, or 0.2%. The S&P 500 gained 0.8% and and the Nasdaq Composite rose 1.4%.
A report showing inflation slowing a bit helped give stocks a boost on Friday. The core personal consumption expenditures price index rose 4.9% in April, after 5.2% pace in the previous month. This particular report is watched closely by the Federal Reserve when setting policy.
Investors on Friday also continued to parse through retail earnings. Ulta Beauty shares were up about 9.8% after the company reported better-than-expected quarterly results, while Gap sunk 8% after slashing its profit guidance.
The moves came as investors were assessing the sustainability of this week’s rally and if whether it’s a relief bounce or the bottom of this year’s long sell-off is in.
The Dow, S&P 500 and Nasdaq Composite are on track to close the week higher. The Dow is up 4.9% and on track to snap its longest losing streak since 1923. The S&P 500 is 5.2% higher and the Nasdaq is up 5.2% on the week. Both are riding seven-week losing streaks. A chunk of the week’s gains came Thursday, when all three of the averages rallied as strong retail earnings lifted sentiment.
Still, the averages are well off their highs, with the Nasdaq Composite solidly in bear market territory and the S&P 500 having briefly dipped more than 20% below its record last week.
The Nasdaq ended Thursday down 27.6% from its record, while the S&P 500 and Dow are off by 15.8% and 11.7%, respectively.
“We think there’s a good chance for some more strength here. This is sort of a classic bear market rally or bounce off the bottom,” Troy Gayeski, chief market strategist for FS Investments, told CNBC’s “Closing Bell: Overtime” on Monday. “Inflation expectations have rolled over recently.”
