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Investing.com--US stocks rose Friday, as investors digested healthy earnings from tech giant Apple as well as a closely-watched inflation report.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average gained 115 points, or 0.3%, the S&P 500 index climbed 25 points, or 0.4%, and the NASDAQ Composite rose 180 points, or 0.9%.
PCE inflation accelerates in December
The PCE price index, the Federal Reserve's favorite gauge of inflation, increased by 0.3% on a monthly basis last month, up from 0.1% in November, while on an annual basis the number came in at 2.6%, compared with 2.4% in the prior month.
The core reading, stripping out more volatile food and energy components, was 0.2% month-on-month and 2.8% annually.
Meanwhile, personal spending -- a key component of economic activity -- rose by 0.7% month-on-month, faster than an upwardly-revised level of 0.6% in November, as US consumers were buoyed by a solid labor market and ongoing wage growth. Forecasts had called for an uptick of 0.5%.
The Fed, which slashed interest rates by a full percentage point last year, closely tracks the PCE price measures as it gauges monetary policy. Earlier this week, officials chose to leave rates unchanged and signaled that they would adopt a wait-and-see approach to further borrowing cost reductions.
Policymakers have recently flagged uncertainty around the outlook for the wider economy, particularly the impact of President Donald Trump's plans for tariffs, taxes and immigration. Some economists have said his moves could refuel inflationary pressures in the world's largest economy.
Apple rises on strong Q1
The major quarterly corporate earnings season continues as the week comes to an end.
Apple (NASDAQ:AAPL) stock rose 4% after executives at the iPhone maker stated the group now expects sales to grow in the low- to mid-single digits in its fiscal second quarter.
The rosier outlook helped to assuage some worries around sales for Apple's flagship handset, which dropped marginally and missed estimates in its key holiday shopping quarter, due in part to the firm's new AI features not being available in some markets. Still, CEO Tim Cook said the enhancements, known as Apple Intelligence, are boosting sales.
Elsewhere, Exxon Mobil (NYSE:XOM) stock rose slightly after the oil giant beat estimates for fourth-quarter profit as higher oil and gas production offset lower oil prices and weaker refining margins.
Colgate-Palmolive (NYSE:CL) stock fell 5% after the consumer products giant reported fourth-quarter results that fell short of analyst expectations on revenue.
AbbVie (NYSE:ABBV) stock soared 8% after the drugmaker forecast 2025 profit above estimates, as strong sales of its newer immunology drugs Skyrizi and Rinvoq make up for a steep decline in those of Humira, its flagship rheumatoid arthritis drug that now faces stiff competition.
Deckers Outdoor (NYSE:DECK) shares plunged 11% as full-year revenue guidance came in below expectations.
Crude on course for weekly loss
Oil prices slipped lower Friday, and were set for weekly losses as traders fretted over the prospect of trade tariffs under President Trump.
By 09:35 ET, the US crude futures (WTI) dropped 0.1% to $72.68 a barrel, while the Brent contract fell 0.1% to $75.82 a barrel.
For the week, Brent is set to fall 1.6% while WTI has declined 1.8%. However, for the month of January, Brent is set to gain around 3%, its best month since June, and WTI is poised to climb 2.1%.
(Ayushman Ojha contributed to this article.)
