U.S. stocks edged up after retail sales data showed an uptick in consumer spending amid the economic reopening.
$S&P 500 index(.SPX.US)$ added 0.3%, pushing the broad index into positive territory for the week. $Nasdaq Composite Index(.IXIC.US)$ advanced 0.5%, pointing to gains in technology stocks. $Dow Jones Industrial Average(.DJI.US)$ added 0.1% to 35038.
Retail sales rose 0.6% in June, as the economy reopened more broadly and auto dealers navigated supply disruptions. Economists were expecting another decrease after May's 1.3% drop. A gauge of consumer sentiment by the University of Michigan is scheduled for 10 a.m. ET.
In premarket trading, $Intel Corp(INTC.US)$ rose 0.4% in after hours trading when The Wall Street Journal reported that the semiconductor giant was exploring a deal to acquire chip maker GlobalFoundries for around $30 billion. $Moderna Inc(MRNA.US)$ jumped 8% after S&P Global said it would add the pharmaceutical company to the S&P 500 index, effective as of July 21.
U.S.-listed Chinese ride-hailing firm $DiDi Global Inc.(DIDI.US)$ Global tumbled 4% after state security and police officials were sent to the company's offices Friday as part of a cybersecurity investigation.
Financial firm Charles Schwab is scheduled to post its quarterly results ahead of the opening bell, with earnings season in full swing.
Stocks traded choppily this week as investors digested a higher-than-expected inflation reading Tuesday. This was followed by Federal Reserve Chairman Jerome Powell seeking to reassure markets that the central bank sees the rise in prices as uncomfortable but transitory and isn't in a hurry to adjust its supportive policies.
"The Fed is still being pretty patient, Powell has made it clear that they will remain pretty accommodative for some time," said Salman Baig, a multiasset investment manager at Unigestion. "That's a relatively good environment for risk taking -- good growth, bond yields being relatively stable, investors will be OK with taking on more risk."
In bond markets, the yield on the benchmark 10-year Treasury note ticked up to 1.324% Friday from 1.297% Thursday, reversing course after declining for two consecutive days.
(END) Dow Jones Newswires
July 16, 2021 09:32 ET (13:32 GMT)
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