Nasdaq, S&P 500, Dow Jones gain in choppy trading

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The stock market is higher Friday but the major averages are bouncing around and volume could be thin as many traders look to get a jump on the weekend.

The Nasdaq (COMP.IND) +0.9% leads the S&P 500 (SP500) +0.6% and Dow (DJI) +0.3%.

Ten of 11 S&P sectors are higher with growth leading. Info Tech is the best performer. Energy is the sole decliner.

The University of Michigan’s preliminary measure of August consumer sentiment rose more than expected to 55.1. One-year inflation expectations dipped to 5% from 5.2%, but five-year expectations rose to 3% from 2.9%.

The 10-year Treasury yield (US10Y) is down 3 basis points at 2.86%. The 2-year yield is up 3 basis points to 3.26%.

“Maybe the (recent) longer end yield rises actually reflect a view that the Fed will be less likely to need to choke the recovery off now inflation is cooling,” Deutsche Bank’s Jim Reid said.

The market seems a little less confident in a 50-basis-point Fed cut next month (the odds are now 60-40 in favor). Late Thursday San Francisco Fed President Mary Daly reiterated her preference for half-point cut but said she is open to a bigger move if the data supported it.

Among active stocks, Broadridge Financial is the top S&P gainer on solid guidance.

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