S&P 500 rises slightly on Friday, heads for winning week

The S&P 500 rose slightly Friday, but all the major averages headed for a winning week fueled by better-than-expected economic growth and a pop in market-darling Tesla.

The benchmark index traded 0.2% higher, while the Nasdaq Composite added 0.7%. The Dow Jones Industrial Average traded 44 points, or 0.1% higher.

Earnings season pressed on, with strong guidance boosting American Express 11% despite a top-and bottom-line miss. Some chips stocks rose even as Intel slumped 8% on a dismal earnings report that missed on the top and bottom lines.

All the major averages are positive for the week and month. The Dow and the S&P 500 have gained 1.4% and 2% this week, respectively. The Nasdaq is up 3.3% on the week and is set to notch its best monthly performance since July. The Nasdaq has gained the last four weeks. Tesla rose 6% Friday, building on a more than 27% weekly gain after reporting record revenue

So far this year, markets have bucked 2022’s selloff trend. The Dow is up 2.2%, while the S&P has gained 5.6%. The Nasdaq has surged more than 10%.

“We’re putting the final touches on an extremely strong January on the heels of lower inflation, and an economy that’s hanging in there,” said Ryan Detrick, chief market strategist at Carson Group. “We’re not out of the woods though. We’ve still got the Fed next week, and they might want to throw some water on this rally.”

Investors al weighed more economic data ahead of next week’s Federal Reserve policy meeting. The personal consumption expenditures price index, a preferred inflation measurement for the Fed, showed prices rise 4.4% from a year ago, the Commerce Department said, and in line with the Dow Jones estimate.

It’s some of the last data ahead of the central bank’s next interest-rate decision. Investors are currently expecting a 25 basis point hike.

Stocks are coming off a positive session after investors cheered a better-than-expected fourth quarter gross domestic product report. That stoked hopes that the U.S. economy can experience a soft landing as the central bank hikes rates to tame inflation.