By Liz Moyer
Investing.com -- U.S. stocks were rising, pushing the major indexes toward a positive week after economic data showed inflation slightly accelerated in December from the prior month.
The Federal Reserve's preferred measure of inflation accelerated slightly as expected in December from the prior month but eased over one year, according to the Commerce Department.
The core personal consumption expenditure price index, which excludes food and energy, inched higher by 0.3% last month from November, meeting expectations and slightly ahead of November's 0.2% gain. The December annualized reading of 4.4% was slightly below November's 4.7% reading, also meeting expectations.
Futures market traders are betting that the Fed will raise rates just one more time after next week’s meeting, pushing the terminal rate to 4.9%, which would be below the 5% or more Fed officials have targeted. The betting for next week’s meeting is a rate hike of one-quarter of a percentage point.
The major averages were on their way to a positive week after a slew of earnings and data showing a better-than-expected rise in gross domestic output for the last three months of 2022.
With earnings, results have been choppy. Intel Corporation (NASDAQ:INTC) shares slumped 7% after missing on the top and bottom lines and forecasting a weaker-than-expected first quarter. The chip maker cited a slump in demand and an uncertain economic outlook.
Hasbro Inc (NASDAQ:HAS) shares fell 4.9% after the toy maker announced plans to cut 15% of its workforce, or 1,000 jobs this year in a bid to cut costs. The company also released preliminary fourth-quarter results that fell short of expectations.
American Express Company (NYSE:AXP) shares jumped 9.7% after raising its earnings outlook for 2023.
Tech stocks have lifted the markets. The Nasdaq is up more than 3% so far this week, which would be its best performance since last summer. The S&P is up more than 2% this week.