US stocks mostly higher; PMI data rises, Dec cut in doubt

U.S. stocks traded mostly higher Friday, ending a generally positive week as investors digested more corporate earnings and the latest business activity data.

At 09:45 ET (14:45 GMT), the Dow Jones Industrial Average gained 265 points, or 0.6%, and the S&P 500 index rose 12 points, or 0.2%, while the NASDAQ Composite dropped 10 points, or 0.1%.  December rate cut in question 

Business activity data, released earlier Friday, showed that the US economy remained relatively healthy, adding to strong jobless claims data released last week.

The S&P manufacturing PMI release rose to 48.8 in November, from 48.5 he prior month, while the more significant services PMI soared to 57.0, from 55.0 in October.  

There remains doubt over whether the Federal Reserve will cut interest rates in December, particularly after the strong inflation readings for October, while policymakers also flagged a more cautious approach to further easing.

Traders were seen scaling back some bets that the Fed will cut rates by 25 basis points in December, CME Fedwatch showed this week. Traders were pricing in a 61.7% chance for a December cut. 

The equivalent news out of Europe was disappointing earlier Friday, as eurozone business activity  took a surprisingly sharp turn for the worse as the bloc's dominant services industry contracted and manufacturing sank deeper into recession. Tech sector, Gap in focus 

The tech sector will remain in focus Friday, with Google owner Alphabet (NASDAQ:GOOGL ) stock dropping more than 1%, adding to losses of almost 5% on Thursday, following the Department of Justice demanding that Google sell its Chrome web browser to help curb the tech giant’s monopoly in online search.

The DOJ also recommended the firm share its data and search results with rivals and potentially sell its Android operating system.

The recommendations come after a landmark ruling earlier this year, that Google operated an illegal monopoly in online search.

Nvidia (NASDAQ:NVDA ) stock fell around 1%, handing back the previous sector's gains as strong artificial intelligence demand fueled an earnings beat, but the AI darling also forecast a slower pace of revenue growth in the current quarter. 

Elsewhere, Gap (NYSE:GAP ) stock soared 9% after the fashion retailer raised its annual sales forecast and said the holiday season was off to a "strong start".

On the flip side, Intuit (NASDAQ:INTU ) stock fell 4.5% after the financial software company issued disappointing guidance for the second quarter and fiscal year. Crude set for weekly gains 

Crude prices edged higher Friday, on course for hefty weekly gains amid increasing concerns the conflict between Russia and Ukraine will lead to supply disruptions.

By 09:45 ET, the US crude futures (WTI) climbed 0.4% to $70.38 a barrel, while the Brent contract rose 0.2% to $74.40 a barrel.

Both contracts were trading around 4% higher for the week, the strongest weekly performance since late September, with traders attaching a greater risk premium to crude after Kyiv began using Western-made long-range missiles. 

Russia responded by lowering its threshold for nuclear retaliation, and reportedly fired a hypersonic medium-range ballistic missile at a Ukrainian target, warning of a global conflict that could impact oil supply from one of the world's largest producers.

(Ambar Warrick contributed to this article.)

Source: Investing.com