Data, earnings keep S&P 500, Nasdaq at record levels
The University of Michigan's Consumer Sentiment Index rose to 61.8 this month from a final reading of 60.7 in June.
Economists polled by Reuters had forecast the index rising to 61.5.
In early trading on Friday, the Dow Jones Industrial Average fell 39.49 points, or 0.09 per cent, to 44,445.00, the S&P 500 gained 13.97 points, or 0.22 per cent, to 6,311.33 and the Nasdaq Composite gained 52.84 points, or 0.25 per cent, to 20,938.49.
On Thursday, the two indexes ended at record levels, thanks to upbeat retail sales and jobless claims, signaling a healthy US economy and giving the Federal Reserve room to pause and watch for tariff-driven inflation.
Ten of 11 S&P sectors were on the rise, led by utilities , which jumped 1.7 per cent to an all-time high. Meanwhile, Tesla shares jumped 3.4 per cent to boost the main index.
Netflix dropped 4.5 per cent despite the success of "Squid Game" helping it surpass earnings forecasts. The streaming giants also lifted its annual revenue outlook.
Similarly, American Express outpaced second-quarter profit estimates, buoyed by strong spending from its affluent cardholders. However, its shares were down 2.6 per cent.
Brokerage firm Charles Schwab gained 3.4 per cent after its profit rose nearly 60 per cent in the second quarter.
The S&P 500 and the Nasdaq were on track to end the week on a positive note, while the Dow looked largely flat for the week so far.
With the August 1 tariff deadline looming, uncertainty over President Donald Trump's trade policy also lingered in the background.
Adding to the jitters, reports of a possible ouster of Fed Chair Jerome Powell briefly rattled markets, though Trump was quick to shoot down those reports.
Amid growing criticism by Trump of Powell over the reluctance to cut interest rates, Fed Governor Chris Waller said he would accept the job as Fed chair if asked by the president.
"It's a bit of everything. Mixed economic data, tariffs, Trump criticising Powell creating a bit of confusion and therefore a lack of direction in markets," said Daniela Hathorn, senior market analyst at Capital.com.
Against this backdrop, traders now see a 56 per cent chance of a Federal Reserve rate cut in September, while a July move is all but off the table, according to CME's FedWatch tool.
As the second-quarter earnings season gets underway, early results from 59 S&P 500 companies that reported showed more than 81.4 per cent have topped Wall Street's earnings expectations, according to LSEG I/B/E/S data.
Cryptocurrency stocks rose after the US House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies.
Robinhood Markets and Coinbase Global gained 4.7 per cent and 6.4 per cent, respectively.
Chevron closed its $US55 billion ($A84 billion) acquisition of Hess after winning a landmark legal battle against larger rival Exxon Mobil. Hess jumped 7.6 per cent in early trading.
Advancing issues outnumbered decliners by a 2.52-to-1 ratio on the NYSE, and by a 1.9-to-1 ratio on the Nasdaq.
The S&P 500 posted 36 new 52-week highs and three new lows, while the Nasdaq Composite recorded 74 new highs and 17 new lows.
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