Stocks finished higher Friday, bolstered by news of Johnson & Johnson's (JNJ) - Get Johnson & Johnson (JNJ) Report consumer healthcare spin-off, but broke a five-week winning streak over concerns about rising inflation.
The Dow Jones Industrial Average ended up 179 points, or 0.50%, to 36,100, while the S&P 500 advanced 0.72%, and the tech-heavy Nasdaq gained 1%.
For the week the Dow slipped about 0.6%, the S&P 500 was 0.4% lower and the Nasdaq Composite fell around 0.8%.
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.
"If the past few months have shown anything, it’s that one way to occasionally cool off a hot stock market may be to douse it with hot inflation data," said Mike Loewengart, managing director of investment strategy at E*Trade Financial.
Even though the Fed continues to caution that inflation is transitory, Loewengart said "concerns seem to be weighing on investors, as they position in sectors they believe are still poised to produce growth in the face of rising prices."
"As we look ahead to next week, a slew of retail earnings could offer some guidance on the outlook for supply chain disruptions which tends to play into inflation," he said.
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 addition, a record 4.4 million Americans quit their jobs in September, the Bureau of Labor Statistics said Friday. Job openings remained unchanged at 10.4 million.
Biogen (BIIB) - Get Biogen Inc. Report shares rose 1.45% after the drugmaker released a new batch of positive data linked to its recently-approved Alzheimer’s treatment.
XPeng (XPEV) - Get Xpeng Report ended up 2.1% 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 (TSLA) - Get Tesla Inc Report was down 2.8% 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.