NEW YORK (TheStreet) -- Stocks were mixed on Friday as the U.S. dollar spiked on stronger-than-expected consumer price data, putting pressure on crude oil and the energy sector.
The S&P 500 was down 0.05% and the Dow Jones Industrial Average fell 0.13%.
The U.S. dollar spiked against a basket of international currencies, a response to signs the Federal Reserve will tighten interest rates as other major global economies introduce or show signs of furthering monetary stimulus. The rise in the dollar caused West Texas Intermediate to fall from its May record, slipping 1.2% to $60.02 a barrel.
The Nasdaq added 0.19%, lifted by a rally in enterprise software stock Intuit (INTU) - Get Report. Shares were higher after the company beat third-quarter estimates and increased its expectations for subscribers to its QuickBooks Online program by the fourth quarter.
A surprisingly strong core consumer price reading also made the case for an interest rate this year, according to a strategist. U.S. core consumer prices rose at a faster pace than expected in April. Headline CPI rose 0.1%, as expected, while core prices excluding energy and food spiked 0.3%, the fastest pace since January 2013. Core prices climbed on rising shelter and medical care costs. Economists had expected core CPI to increase 0.1%.
"The stability seen in core prices has to be encouraging for those on the Fed's board who see support for a rate hike later this year," said Dan Greenhaus, chief strategist at BTIG. "While much attention is paid to Fed President Evans' dovishness, core members including Janet Yellen and Bill Dudley appear to favor raising interest rates in 2015, however modestly that rate adjustment may be. Today's data plays into thought process."
Yellen will share her views on the economic outlook in Providence, R.I., at 1 p.m. EDT. The speech comes only days after the Fed released minutes from its April meeting where most Fed officials considered it unlikely the central bank would lift interest rates in June. Click here for more.
Aeropostale (ARO) was lower after posting a first-quarter loss of 56 cents a share and revenue down 20% to $318.6 million. Both missed estimates. Comparable-store sales fell 11% compared to an expected 9.5% decline.
The Fresh Market (TFM) earned 50 cents a share in its first quarter, a penny better than expected, though revenue of $462 million missed expectations by $11.8 million.
Gap (GPS) - Get Report was lower after missing quarterly estimates on its top- and bottom-lines. The retailer earned 54 cents a share in its first quarter, 2 cents short of forecasts, while sales fell 3% to $3.66 billion and missed expectations by $90 million. Profitability was hit by a stronger dollar, supply delays in the U.S. and soft demand for its headline brand.
Deere (DE) - Get Report was up more than 3% after reporting earnings of $2.03 a share, 48 cents higher than forecast. The heavy machinery manufacturer also raised its profit forecast, anticipating a stronger year in sales despite a pullback in the farm sector.
BlackBerry (BBRY) shares were moving higher after the company launched a buyback program to repurchase 2.6% of the float and 2.2% of outstanding shares. At current levels, that equates to 12 million shares which would cost $126 million.
Time Warner Cable (TWC) shares jumped nearly 3% on talk of a bidding war over the company. Controlling shareholder of Altice, Patrick Drahi, met with Time Warner Cable's CEO Rob Marcus earlier this week to discuss a cash-and-stock takeover, according to TheWall Street Journal. Charter (CHTR) - Get Report is reportedly also talking to Time Warner Cable about an offer of greater than $170 a share. Click here for more.