Stocks rose Friday, bolstered by news of Johnson & Johnson’s consumer healthcare spin-off, but are on track for a losing week as U.S. consumer price inflation accelerated to the fastest pace in three decades last month.
The Dow Jones Industrial Average moved 175 points, the S&P 500 and the Nasdaq
Johnson & Johnson unveiled plans to split the healthcare and pharmaceutical giant into two separate companies.
The company will spin-off its consumer health division, which includes brands such as Band-Aid, Baby Powder and Tylenol and is likely to generate $15 billion in revenues this year, from its pharmaceutical and medical devices division.
On Wednesday, data from the Bureau of Labor Statistics found that headline CPI for the month of October was estimated to have risen 6.2% from last year, up from the 5.4% pace in September and the fastest rate since 1990.
“Service costs accounted for approximately 60% of the PPI increase in October, so much of the rise in wholesale prices is going to be hard to reverse,” Louis Navellier, chief investment officer at Navellier & Associates, said. “Vehicle part prices surged 8.9%, so some price increases are becoming more permanent.”
Meanwhile, the University of Michigan Consumer Sentiment Index fell to 66.8 for November, representing the lowest level in 10 years “due to an escalating inflation rate and the growing belief among consumers that no effective policies have yet been developed to reduce the damage from surging inflation.”
In company news, shares of electric vehicle charging station maker Blink Charging jumped Friday after the company reported record revenue in the third quarter.
Biogen shares rose after the drugmaker released a new batch of positive data linked to its recently-approved Alzheimer’s treatment.
XPeng traded higher Friday after the Chinese electric-vehicle maker indicated it is set to reveal a new sport utility vehicle next week. Xpeng said it will unveil its new “smart EV” model at the 19th Guangzhou International Automobile Exhibition on Nov. 19.
Tesla was down after CEO Elon Musk disclosed the sale of an additional 639,737 shares of the electric-car maker, worth approximately $640 million, just days after offloading about $5 billion worth of stock following a poll of his followers on Twitter.
This article was originally published by TheStreet.