The S&P 500 Index inched up 0.56 points, or 0.05 percent, at 1,107.31 at 3:18 pm. The Dow Jones Industrial Average is down 0.06 percent at 10,386.63 and the Nasdaq Composite is down 0.07 percent.

The Dow Jones Transportation Average gained 1.06 percent for the day as transportation stocks lift the broad market. Utilities are also performing well today as the Dow Jones U.S. Utilities Index trades up 1.28 percent.

FedEx (NYSE:FDX) is up 1.75 percent and railroad Union Pacific (NYSE:UNP) gained 1.42 percent.

Wall Street firms are trading mixed on Friday after the Fed raised the discount rate by 25 basis points Thursday afternoon.

While financial stocks initially fell, some now interpret the hike as a sign that the financial sector recovered enough to warrant a discount rate hike. A Consumer Price Index report released this morning showing that January prices rose less than expected also calmed concerns of inflation.

Retailers are performing well today as J.C. Penney (NYSE:JCP) beat expectations and published upbeat guidance. Its shares are up 6.70 percent while those of Macy's (NYSE:M) are trading up 1.87 percent.

Notable decliners on Friday are healthcare insurance companies. Aetna (NYSE:AET) is down 2.86 percent and UnitedHealth (NYSE:UNH) 2.20 percent.

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