Stock market live Friday: Biggest jump in 11 years, Still down big for week, Mnuchin says buy

A trader works on the trading floor at the New York Stock Exchange, March 5, 2020.
Andrew Kelly | Reuters

Major stock indexes experienced a massive rally into the close, enjoying their best day since 2008. Investors cheered President Donald Trump's vows to step up efforts to battle the coronavirus outbreak. Here's what happened.

4:27 pm: Trump's testing plans seen as credible, BNY Mellon strategist says

Alicia Levine, chief strategist at BNY Mellon Investment Management, said the FDA approval of the Roche test for the coronavirus and the CEOs being with President Trump during his speech makes his statements about expanding testing much more credible: "This feels more realistic — the fact that you had CEOs out there saying it's approved and it works … People will start getting tested and this is real," Levine said. — Pound

4:23 pm: Markets down big for the week

While stocks rallied on Friday, the major averages didn't make up much of the losses incurred this week. Week-to-date the Dow Jones Industrial Average is down 10.36% for its worst week since Feb. 28 when the Dow lost 12.36%. The S&P 500 fell 8.86% for its worst week since Feb. 28, when the stock average lost 11.49%. The Nasdaq dropped 8.16% this week, for its worst week since Feb 28 when it lost 10.54%. –Fitzgerald, Francolla

4:18 pm: Veteran investor Jim Paulsen on the huge rally into the close

Jim Paulsen, chief investment strategist at the Leuthold Group, said:

"I think it is simply institutional buyers who have been licking their chops wanting you buy but waiting for some stability to enter and when this market looked strong going toward they stepped up. Also, investors know a fiscal response is probably coming over the weekend. Some evidence panic subsiding, great values now to be had after the pummeling and policy support in the works." — Li

4:01 pm: Stocks close at session highs, Dow surges more than 1,900 points

The major averages ended a week of steep losses on a high note, with the Dow gaining 1,981 points, or 9.3%. The S&P 500 rose 9.2%, while the Nasdaq jumped 9.3%. The indexes rallied into the close as President Trump provided some clarity on the governmental response to the coronavirus outbreak. - Stevens 

3:51 pm: Stocks surge to session highs

The major averages rose to session highs with less than 10 minutes left in the trading session, as President Trump provided some clarity about the U.S.'s response to the coronavirus outbreak. The Dow rose more than 1,400 points, for a gain of 6.8%. - Stevens

3:42 pm: Dow jumps more than 1,000 points

The Dow jumped higher as President Trump spoke. The 30-stock index is now up 1,032 points. - Stevens

3:32 pm: Trump declares national emergency

During an address from the Rose Garden, President Trump said he was declaring a national emergency as the number of coronavirus cases in the U.S. rises. The declaration will free up as much as $50 billion in financial resources to assist Americans affected by the outbreak. - Stevens

3:22 pm: Stocks higher as President Trump is set to speak

Stocks are higher with less than an hour left of trading in what's been a historic week that saw the Dow and S&P 500 enter bear market territory, thereby ending a record period of expansion. President Trump will address the nation momentarily, where he's expected to declare a national state of emergency. The Dow is 826 points higher for a gain of 4%, while the S&P 500 and Nasdaq are up 3.9% and 3.7%, respectively. - Stevens

2:45 pm: Exxon is the 'most oversold it has ever been,' says trader

Shares of Exxon Mobil have lost more than half their value in the last year as low oil prices continue to pressure energy companies. But Miller Tabak's Matt Maley said that from a technical perspective, the stock "should be getting quite ripe for a bounce at some point very soon." He noted that the stock's RSI, or relative strength index, is below 10, and the "most oversold it has ever been" based on the firm's data back to 1980. RSI, or relative strength index, measures price changes in stocks or an index, and is used as a momentum indicator to help determine an overall trend. – Stevens

2:25 pm: Pelosi and Trump administration need to be unified, Farr says

Michael Farr, CEO of Farr, Miller and Washington, said on "Power Lunch" after House Speaker Nancy Pelosi's brief speech about a coronavirus relief bill that investors need to hear that she and the Trump administration are on the same page. "I think the message was very good and targeted, and there were reasons behind it. And the testing certainly seemed to have worked very well in South Korea and other places around the world," Farr said. "The thing that concerned me is that the Speaker came on an hour before the President. And I think it's going to be very, very important that we hear some kind of unified message." — Pound

2:12 pm: Icahn biggest bet is against commercial real estate

Billionaire investor Carl Icahn told CNBC on Friday that his biggest position is a short of commercial real estate market, which he expects will soon collapse much like the housing market did in 2008. "Nobody's even looking at it," Icahn said, adding that the bonds backing commercial real estate "now are in grave danger."—Sheetz

2:11 pm: Stocks pick up steam ahead of Trump's 3 p.m. speech; Dow up 900 

Equities re-accelerated in afternoon trading with the Dow returning to highs and drawing closer to its session high with a gain of 900 points. U.S. stocks hit session lows around 11:50 a.m. ET but have traded higher ever since, with investors hoping that House Speaker Nancy Pelosi and President Donald Trump's addresses would offer clarity on specific steps the federal government will introduce to combat the spread of the novel coronavirus. — Franck

2:04 pm: Fed QE should target mortgage-backed securities, Morgan Stanley economist says

The Federal Reserve is likely going to launch a round of quantitative easing in response to the coronavirus, and it should focus on buying up mortgage-backed securities, Morgan Stanley's chief U.S. economist said Friday. "We're seeing a lot of refinancing going on … but it could be even better if the Fed buys MBS and stops letting MBS roll off their balance sheet," Ellen Zentner said on CNBC's "The Exchange." If that happens, Zentner said the bank believes U.S. households that refinance could see around $300 in additional savings due to the lower mortgage rate. — Stankiewicz

1:51 pm: US crude heads for worst week since 2008

West Texas Intermediate futures got roiled this week after failed talks between OPEC and non-OPEC countries on a production cut led to a price war between Russia and Saudi Arabia. WTI is down more than 22% week to date and is on pace for its biggest one-week decline since December 2008. —Imbert

1:19 pm: Icahn: Sell-off could go on

Billionaire investor Carl Icahn said Friday he thinks the market sell-off that has roiled Wall Street in recent weeks could go on for longer. "I'm not quite as bearish as I was even though it has a longer way to go down," he said on CNBC's "Halftime Report." He added, however, he sees opportunities in some companies. "Now it's reached a point that there are some companies that are sort of just given away." —Imbert, Stevens

1:14 pm: Fed bond purchases attract big demand so far 

Early action in the Federal Reserve's stepped-up Treasury buying has seen strong demand so far. The Fed announced Thursday that it would be buying government debt across all maturities and it then scheduled the moves on Friday, which represented an accelerated timetable. An offering of about $4 billion in 20- to 30-year securities saw $5.4 billion in bids; a $5 billion offering in the 7- to 20-year space saw $9.2 billion offered and $8 billion of 4 ½ to 7-year securities attracted a whopping $26.8 billion, according to New York Fed data. Additional offerings are scheduled for Friday afternoon. –Cox

12:27 pm: Nike, Netflix roll over as market rally wavers 

Nike shares were down more than 1%, giving back a 5.3% rally as the market struggled to hold onto its initial gains. Netflix also traded 1.2% lower after jumping more than 5% earlier in the day. —Imbert

12:19 pm: Oil gives up early gains, on track for its worst week since the financial crisis

Oil rallied as much as 5% on Friday, but couldn't hold onto the gains and is now trading in negative territory. U.S. West Texas Intermediate crude is 24 cents, or 0.76%, lower, trading at $31.26 per barrel. International benchmark Brent crude is trading 11 cents lower at $33.12. Oil continues to be hit on both the demand and supply side. The coronavirus outbreak has led to softer demand for crude as people cut back on travel, for example, while a breakdown in OPEC talks means there could soon be a supply glut. On Monday both contracts dropped 24% for their worst day in nearly three decades. For the week WTI is down more than 24%, which puts it on track for its worst week since the financial crisis. —Stevens

12:18 pm: Energy stocks give up gains

The SPDR S&P Oil & Gas ETF (XOP) went negative on the day in midday trading, bringing its weekly loss to more than 36%, on pace for its worst week ever since its inception in 1998. The Energy Select Sector SPDR ETF (XLE) also tumbled nearly 32% this week amid the oil crash. The biggest losers this week in the XLE include Apache, Occidental Petroleum and ONEOK, which tanked more than 55% each. — Francolla, Li

12:16 pm: Oaktree Capital's Howard Marks says 'all great investments begin in discomfort'

As investors struggle to evaluate the ongoing economic impact from the coronavirus outbreak, some are saying it might be time to buy. "All great investments begin in discomfort," Oaktree Capital co-founder Howard Marks said in a letter to clients, according to CNBC's Scott Wapner. "One thing we know is that there is great discomfort today." - Stevens

11:58 am: Market rally fades in volatile trading

The major averages gave back a chunk of their earlier gains around midday. The Dow traded just 327 points higher, more than 1,000 points off its session high. The S&P 500 and Nasdaq were up more than 1% each. —Imbert

11:25 am Trump to hold news conference on coronavirus outbreak

President Donald Trump said he will hold a news conference Friday at 3 p.m. to address the coronavirus pandemic. The news conference will follow Treasury Secretary Steven Mnuchin saying White House and Congress are nearing a deal that would provide stimulus to the U.S. economy. —Mangan


11:21 am: Fed steps up bond buying in response to coronavirus disruptions

The Federal Reserve has accelerated its schedule for bond-buying, launching operations Friday across the duration spectrum as the market continues to struggle with coronavirus effects. In a morning announcement, the New York Fed said its trading desk will start with the long end of the market with 20- and 30-year securities in the morning and proceed through the day down the curve. The operations are part of the $60 billion in month the central bank already had been buying but targeted at short-term Treasury bills. Government bond yields rose following the news. –Cox

10:20 am: Here are Friday's biggest analyst calls of the day

CNBC PRO subscribers can read more here. —Bloom

10:11 am: Emerging markets head for best day since 2011 

Emerging market stocks rose with the rest of the world and were headed for their biggest one-day gain in more than eight years. The iShares MSCI Emerging markets ETF (EEM) rallied 5.5%. That put it on pace for its best day since Nov. 30, 2011, when it jumped 6.2%. The iShares MSCI Brazil ETF (EWZ) outpaced the broader EEM, jumping more than 11%. The ETF that tracks Indian stocks also rose more than 10%. —Imbert, Francolla

10 am: 7 stocks rise at NYSE for every decliner

For every stock that fell in early trading Friday at the New York Stock Exchange, seven traded higher as the market rallied out of the gates after its worst day since the market crash in 1987. —Imbert

9:52 am: Trump again calls for Fed to cut rates

President Trump said in a tweet on Friday morning that the Federal Reserve should cut interest rates to "something comparable to their competitor Central Banks." Trump has not tweeted about the actions the Fed announced on Thursday to improve market liquidity. — Pound


9:49 am: Stocks pull back from highs

The Dow jumped more than 1,300 points right out of the gate on Friday as a relief rally took hold. But shortly after the 30-stock index retreated somewhat. It's now up 762 points. - Stevens

9:36 am: Treasury yields jump with 10-year rate nearly at 1%

Treasury yields rebounded on Friday as investors returned to risk assets following the biggest Wall Street sell-off since "Black Monday" in 1987. The yield on the benchmark 10-year Treasury note jumped eight basis points to 0.98%, its highest level since March 5. The yield on the 30-year Treasury bond soared 12 basis points to 1.53%. - Li

9:31 am: Stocks jump at the open, bouncing back from worst day since Black Monday

Stocks surged at the open, one day after posting their worst day since the Oct. 1987 crash. The Dow Jones Industrial Average jumped 1,238 points, for a gain of 5.8%. The S&P 500 rose 5.2%, while the Nasdaq Composite jumped 5.7%. - Stevens

9:27 am: Mnuchin says this is 'not like the financial crisis'

The S&P 500 and Dow Jones Industrial Average are trading in bear market territory spooking investors and drawing comparisons to prior times of financial turmoil. But Treasury Secretary Steven Mnuchin said the comparisons are unwarranted. "This is not like the financial crisis, where people don't know when this will end: We will get through this," he said Friday on CNBC's "Squawk on the Street." "By the end of the year, I think you can expect we're going to have a big rebound in economic activity," he added. - Stevens, Franck

9:23 am: Mnuchin says coronavirus sell-off will be great opportunity for long-term investors

Treasury Secretary Steven Mnuchin said Friday that the current market sell-off will be short-lived and, as such, looks like a compelling investment opportunity for investors looking to buy equities at a discount. "This is a short-term issue. It may be a couple of months but we're going to get through this and the economy will be stronger than ever," the secretary said on CNBC's "Squawk on the Street."

"I look back at people who bought stocks after the crash in 1987, people who bought stocks after the financial crisis. For long-term investors, this will be a great investment opportunity," he said. - Franck, Stevens

9:16 am: Domino's is the only restaurant stock up year-to-date

Domino's Pizza is the only restaurant stock that's higher year-to-date as investors bet that more consumers will stay home and order pizza delivery during the coronavirus outbreak. The pizza chain's stock, which has a market value of $12.3 billion, is up nearly 8% so far in 2020. But shares could start to feel the pinch as sporting events are canceled. On Friday, shares were trading down about 4% in premarket trading. - Lucas

9:14 am: Treasury Secretary Mnuchin says White House and Congress close to getting coronavirus bill done

Treasury Secretary Steven Mnuchin said the White House and Congress are getting close on a stimulus deal and that the administration is committed to doing whatever it takes to spark the economy. "I think we're very close to getting this done," he said on CNBC's "Squawk on the Street". "The president is absolutely committed that this will be an entire government effort, that we will be working with the House and Senate." He did not provide any specifics, though he mentioned previous statements from President Donald Trump, who has advocated for a payroll tax holiday that could last through the end of the year. - Cox, Stevens

8:57 am: A look at bull & bear markets throughout history

8:52 am: President Trump once again pitches payroll tax cut

While stocks have been pressured to the downside by the coronavirus outbreak, President Donald Trump has proposed a payroll tax. "If you want to get money into the hands of people quickly & efficiently, let them have the full money that they earned, approve a payroll tax cut until the end of the year, December 31," the President said Friday on Twitter. Earlier in the week CNBC reported that the President was in favor of a 0% payroll tax rate for the rest of the year, but Republican senators were reportedly skeptical of the cut. - Stevens


8:40 am: Airline stocks rebound         

Airlines bounced back on Friday in premarket trading, a group of stocks that has been beaten down due to the impact the coronavirus has had on the travel industry. Shares of American Airlines and United Airlines both rose more than 10%. Delta Air Lines rose nearly 14%, Southwest jumped 9% and Alaska Air Group rose more than 10%. – Fitzgerald

8:27 am: Warren Buffett says Berkshire's annual meeting will be held without shareholders in attendance

Warren Buffett announced Friday that Berkshire Hathaway's annual shareholder's meeting will not be held with shareholders present as the coronavirus continues to spread.

"I very much regret this action; for many decades the annual meeting has been a high point of the year for me and my partner, Charlie Munger," Buffett said in a letter to shareholders. "It is now clear, however, that large gatherings can pose a health threat to the participants and the greater community."

"Therefore, we will limit attendance to me, possibly Charlie, and several Berkshire employees who will deliver proxy votes," Buffett noted. Berkshire's annual meeting has become a staple in the global business community. In 2018, more than 40,000 people from around the world attended the event known by some as "Woodstock for Capitalists." - Imbert

8:23 am: Fed aid 'not stimulus' but 'band aids,' says Boockvar

On Thursday the Fed announced plans to pump up to $1.5 trillion into the financial system in an effort to combat potential freezes brought on by the coronavirus, but the Street didn't think it was enough and stocks posted their worst day since the Oct. 1987 crash. One part of the announcement saw the Fed widen the scale for its $60 billion a month worth of money the Treasury purchases, which to now had been confined to short-term T-bills. Under the new regime, the Fed will extend its purchases "across a range of maturities" to include bills, notes, Treasury Inflation-Protected Securities and other instruments. The central bank will begin purchasing coupon-bearing securities, something market participants have been clamoring for since late 2019. But many are saying it's not enough. "These steps are not stimulus, they are band aids as the Treasury market has clearly been malfunctioning over the past few days," Bleakley Advisory Group chief investment officer Peter Boockvar said. - Cox, Stevens

8:01 am: Apple jumps 6% after Wells Fargo upgrades stock to overweight

Shares of Apple jumped 6% during Friday's premarket trading after Wells Fargo upgraded the stock to an overweight rating and said that amid a sea of uncertainty one thing is for sure: now is the time for investors to buy Apple. "While it is still admittedly difficult (impossible) to gauge the fundamental impact Apple may realize from the COVID-19 outbreak, at current levels we think shares offer a compelling risk / reward for long-term patient investors," analyst Aaron Rakers said. Shares of the tech giant are down 24% from the all-time high level. - Stevens, Bloom

7:35 am: U.S. stock futures point to surge at the open, Dow set to jump nearly 1,000 points

U.S. stock futures are pointing to massive gains at the open, with the Dow set to rally nearly 1,000 points. The S&P and Nasdaq-100 are also set to open solidly in the green. A little more than two hours before the opening bell the "limit up" levels were reached after S&P futures jumped 5%. This is when trading is suspended at certain extreme price levels, and it acts as a protective measure during times of extreme volatility. The S&P 500 SPDR was up 5.1% in premarket trading.

Overnight trading initially indicated that the U.S. averages would open lower, but they reversed losses after House Speaker Nancy Pelosi said U.S. lawmakers and the White House were close to a deal on economic relief amid the coronavirus outbreak. "We've resolved most of our differences," Pelosi told reporters Thursday evening, noting it's about "testing testing testing."

Friday's surge follows the worst day for stocks since the Oct. 1987 crash known as Black Monday. The Dow fell 9.99% and posted its largest single-day point decline on record. The S&P 500 also posted its worst day since Black Monday, and is now in bear market territory. - Stevens

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With reporting from Jesse Pound, Fred Imbert, Jeff Cox, Michael BloomAmelia LucasDan Mangan, Michael Sheetz and Kevin Stankiewicz.