Stocks rose on Friday, putting the Dow Jones Industrial Average one step closer to the psychologically important 20,000 level.
The S&P 500 was up 0.09%, the Dow gained 0.28%, and the Nasdaq rose 0.1%.
Benchmark indexes have rebounded over the past two days as markets digested a faster-than-expected pace of projected interest rate hikes from the Federal Reserve. On Wednesday, the Fed raised its forecast to show three likely rate hikes in 2017, up from two previously predicted. The Fed kept its forecast for three hikes in both 2018 and 2019. The central bank also opted to hike interest rates in a unanimous decision. The accelerated expected pace of hikes was a shock to markets.
The U.S. dollar neared parity with the euro after jumping to a 14-year high on the back of the Fed's decision to hike rates. The dollar has also been on a tear lately after the U.S. election in which President-elect Donald Trump scored an Electoral College win. Trump is expected to bring forth spending policies designed to boost economic growth.
The amount of new construction on U.S. homes sank 18.7% to an annual pace of 1.09 million in November, the Census Bureau reported on Friday. The rate came in weaker than an expected 1.23 million. Housing permits also fell, dropping 4.7% to an annual pace of 1.2 million. Single-family starts came in strong, though, at 828,000, the third-highest level since the economic recovery.
Crude oil prices moved higher on Friday as markets continued to digest a production cut agreement among major oil-producing nations. The Organization of Petroleum Exporting Countries agreed to reduce output at a late November meeting, while non-OPEC members have accepted a separate cut to production. OPEC restrictions go into effect in January. However, there are concerns that some countries may find it difficult to adhere to restrictions with production currently at record highs.
West Texas Intermediate crude rose 1.3% to $51.39 a barrel on Friday.
Adobe (ADBE) - Get Report fell 0.8% after reporting a sunny fourth quarter. The software company an adjusted 90 cents a share, 4 cents above estimates. Revenue surged nearly 23% to $1.61 billion, exceeding forecasts by $20 million.
Oracle (ORCL) - Get Report fell 3.8% after surpassing profit estimates in its second quarter. The company also reported that cloud-based revenue had exceeded $1 billion for the first time. Adjusted earnings of 61 cents a share beat analysts' estimates by a penny.
Chipotle (CMG) - Get Report added 2% after adding four new members to its board, including Robin Hickenlooper, senior vice president of corporate development at Liberty Global, and Matthew Paull, former chief financial officer at McDonald's. The new board members assumed their positions on Dec. 14.
Honeywell (HON) - Get Report rose slightly after offering a weak outlook for 2017. The company gave its earnings forecast at $6.85 to $7.10 a share, on the weak side compared to consensus of $7.08. Honeywell also reiterated a fourth-quarter earnings target of $1.74 a share, a penny below average estimates.
Priceline (PCLN) announced Thursday evening that it had named Glenn Fogel as its new CEO, beginning in the new year. Fogel currently holds the position of head of strategy and executive vice president of corporate development. Priceline's interim CEO, Jeff Boyd, will assume the position of executive chairman.
Automatic Data Processing (ADP) - Get Report was upgraded to buy from neutral at Goldman Sachs. The company was also placed on Goldman's Conviction List. The industry has multiple growth tailwinds, Goldman said.
Actelion (ALIOF) shares surged amid speculation that France's Sanofi (SNY) - Get Report could be prepping a formal bid for the Swiss biotech. Actelion rose 8.5% following a Bloomberg report that the company was in "advanced talks" with Sanofi that could lead to a $30 billion takeover. Johnson & Johnson (JNJ) - Get Report previously abandoned its potential $27 billion takeover bid.
Trading could be slightly more erratic on Friday during the quadruple-witching session, one of four days of the year in which futures and options contracts expire at once.