Stocks gyrated between gains and losses Friday, but headed for a down week as worries over continued rate hikes endured.
The Dow Jones Industrial Average traded flat, but was on pace for its worst week since September. The S&P 500 and Nasdaq Composite last traded 0.2% and 0.4% higher, respectively.
The Dow is off by 1.8% this week, while the S&P 500 has fallen 2.5%. The Nasdaq has lost 2.9%.
Friday’s moves got here as November’s producer price index showed higher-than-expected wholesale prices, which rose 0.3% last month and seven.4% over the previous 12 months. That topped the 0.2% gain expected by economists polled by Dow Jones. Core PPI, which excludes food and energy, rose 0.4%, beating an estimate of 0.2%.
Investors are laser-focused on next week’s busy economic calendar, with one other key inflation number — the buyer price index — due out Tuesday, and expected to indicate whether prices are subsiding.
The Federal Reserve can be expected to deliver a 50 basis point hike on the conclusion of its December policy meeting. While the rise can be smaller than the previous 4 hikes, concerns have mounted over whether the central bank can architect a soft landing and forestall a recession.
“I feel we want to attend to get the CPI number next week, but I’ll say that this figure, the PPI this morning, is definitely a disappointment,” Brenda Vingiello, chief investment officer at Sand Hill Global Advisors told CNBC’s “Squawk Box,” adding that recent data is “stacking up in favor” of continued climbing from the Fed.
In other news, shares of Lululemon fell after the corporate gave a weaker-than-expected fourth-quarter outlook. Bath & Body Works’ stock gained as Dan Loeb revealed a lift in his stake.
