The S&P 500 fell for a second day, resulting in a losing week, as the rising tensions between the U.S. and China kept investors on edge. Big Tech continued to underperform as investors rotated out of many high-fliers. Gold also topped $1,900 an ounce for the first time since 2011 amid a flight to safety.
Here are some of the big moves in the markets:
Losing week by the numbers
- S&P 500 closed down 0.62%
- S&P 500 closed down 0.28% for the week, its first negative week in four
- S&P 500 is down 0.47% year to date
- Ten out of 11 sectors were negative Friday led by tech down 1.19%
- Nasdaq closed down 0.94%
- Nasdaq closed down 1.33% for the week, its second straight negative week
- Nasdaq is up 15.5% year to date
- Gold futures settled up 0.4% at $1,897.5, hitting a high Friday of $1,904.6, its highest level since Sept. 6, 2011
- Dow closed down 0.68%
- Dow closed down 0.76% for the week, its first negative week in 4. — Gina Francolla
Market locks in losing week
The three major indexes all lost ground on Friday to finish the week in the red. The Dow fell a little more than 180 points, or 0.7%. The S&P 500 and Nasdaq lost 0.6% and 0.9%, respectively. — Jesse Pound
Final hour of trading: Stocks fall as tech's struggles continue
The major averages were broadly lower as the major tech stocks continued to struggle in the final session this week. The Dow traded 146 points lower, or 0.6%. The S&P 500 slid 0.5% and the Nasdaq Composite dropped 0.7%. All three indexes were also on pace to post weekly losses. —Fred Imbert
Fauci's vaccine timeline seems 'reasonable,' biotech analyst says
Dr. Anthony Fauci's prediction that a coronavirus vaccine would be "widely available" after the first few months of 2021 seems reasonable given the current timeline of the major candidates, Raymond James biotech analyst Steve Seedhouse told CNBC in an email.
Fauci, the White House coronavirus advisor, said at an event with the Washington Post that there was likely to be tens of millions of doses of vaccines ready by the start of the year, with wider access still a few months off.
"I think as we get into 2021, several months in, that you would have vaccines that would be widely available," Fauci said.
Seedhouse said Fauci may be being conservative, given plans like the U.S. government's deal with BioNTech and Pfizer, but that his overall timeline makes sense. Earlier in the week, Raymond James said in a note to clients that the Moderna vaccine candidate could complete its phase three trial by the end of October. Seedhouse called that a "best case scenario."
"Allowing a few months for review of data, (emergency use authorization) decision, and distribution of the vaccine that was manufactured at risk seems reasonable enough and consistent with what Fauci said," Seedhouse said. — Jesse Pound, Berkeley Lovelace
Gold futures settle at an all-time high
Gold futures settled at their highest price on record, $1,897.50 an ounce, topping the previous record settlement of $1,891.90 from August of 2011. Investors are rushing into the precious metal as a safe haven during the coronavirus pandemic. U.S.-China trade tensions are also fueling uncertainty, pushing gold's price higher. Spot gold touched $1,904.60 on Friday, its highest level since September 2011. The record intraday level stands at $1,923.70 an ounce. "While we think gold will continue to be supported by rising geopolitical tensions, in our view the primary drivers of the gold price are its negative correlation to real interest rates and the dollar. We think these three factors, in combination with limited supply growth as miners continue to restrain capex spending, will drive gold prices higher," UBS said in a note on Friday. UBS said gold prices could hit $2,000 between September and the end of 2020. —Maggie Fitzgerald
Ray Dalio's Bridgewater lays off employees
Bridgewater Associates has laid off employees in part because of the shift to more remote work, the hedge fund said in a statement. The news was first reported by the Wall Street Journal, which said the layoffs consisted of several dozen employees on its research, client services and recruiting teams.
"While this will produce more than normal attrition in terms of people leaving the firm this year it won't be greatly more than normal and we will continue to invest and hire in key areas," the hedge fund said in a statement.
The affected employees will receive severance and extended health benefits, the statement said. — Jesse Pound
Dow hits session low, now off by 200 points
The Dow extended its losses in afternoon trading, falling to its session low around 1 p.m. ET to trade more than 200 points lower. The S&P 500 and Nasdaq Composite were also down sharply, sliding more than 1% each. The declines were largely driven by declines in the major tech stocks, which have been struggling all week. —Fred Imbert
More than 70% of S&P 500 losing ground
The index losses were modest on Friday, but market internals showed declining stocks easily outnumbering the advancing ones. FactSet data showed 366 S&P 500 stocks were were trading in negative territory, compared with 138 showing gains. Intel has suffered the largest percentage drop, while rival Advanced Micro Devices has had the best day of any stock in the index. — Jesse Pound
Markets at midday
Major indexes were treading water at midday, with all three down between 0.5% and 1%. The Dow lost 150 points in morning trading. All three indexes were on track to finish the week in negative territory. The S&P 500 will end the week in the red if it cannot get back over 3,224.73. — Jesse Pound
Dollar falls for fifth straight week, its longest weekly slide in more than 2 years
The U.S. dollar index is down more than 1% this week, putting it on pace for its first five week losing streak since early 2018. Over the past five weeks, the U.S. currency has lost more than 3% of its value, allowing for dollar-priced commodities such as gold and silver to surge. This week alone, gold is up nearly 5% and silver has surged more than 16% in that time. "Dollar depreciation fits with our view that U.S. equities are in a volatile, rotational, narrowing bull market," said David Abramson, chief U.S. strategist at Alpine Macro. "The dollar breakdown increases the odds that gold, silver and related mining stocks are on the path to full-blown manias. Other winners include cheap, global-oriented cyclical equities and Latin American stocks. Also good news for our core overweight in energy stocks." —Fred Imbert
Intel drops 17%, wipes out 2020 gains
Shares of Intel dropped 17% on Friday on the back of weak guidance for the third quarter. Intel expects third-quarter earnings to come in at $1.10 per share. That's below a Refinitiv estimate of $1.14 earnings per share. Friday's decline put the stock on pace for its worst session since March and erased all of its 2020 gains. —Fred Imbert, Jordan Novet
Here are Friday's biggest analyst calls of the day: Amazon, Tesla, JPMorgan, Chevron & more
- Deutsche Bank added a catalyst buy to Under Armour.
- Goldman Sachs upgraded JPMorgan to buy from neutral.
- Bernstein downgraded Intel to underperform from market perform.
- Credit Suisse raised its price target on Amazon to $3,400 from $2,760.
- Evercore ISI upgraded Hershey to outperform from in line.
- SunTrust initiated Chevron as buy.
- JPMorgan downgraded Xerox to underweight from neutral.
- Deutsche Bank added a catalyst call buy to Avis Budget.
- Argus upgraded Tesla to buy from hold.
Pro subscribers read more here: — Michael Bloom
Tesla headed for worst day since May 1
Tesla shares dropped more than 7% on Friday as traders sold out of the best-performing stocks this year. The decline put Tesla on pace for its biggest one-day loss since May 1, when it dropped 10%. Tesla was also on pace for its first back-to-back weekly losses since early May. —Fred Imbert
Intel hit with flurry of downgrades, shares plunging
Shares of Intel have dropped more than 16% in the opening minutes, after at least six Wall Street shops downgraded the stock following news of delays for the company's 7-nanometer CPU product. Barclays said in a note that it sees "no viable roadmap to remain competitive" for Intel. Bernstein said the earnings call was "was the worst we have seen in our career covering the company." — Jesse Pound
Dow falls 100 points at the open, Big Tech weighs
The market opened Friday's session in the red as major technology shares extended their losses. The Dow Jones Industrial Average fell more than 100 points, while the S&P 500 dipped 0.6%. The Nasdaq Composite underperformed, losing 1.5% at the open, as Amazon, Apple, Facebook and Netflix all dropped at least 1% each. — Yun Li
Gold trades above $1,900 for the first time since 2011
Spot gold traded above $1,900 for the first time since 2011 on Friday, hitting a high of $1,904.1, as investors rush to the safe haven during uncertainty around the coronavirus pandemic and U.S.-China trade tensions. Friday's level was gold highest level since September of 2011, when it traded as high as $1,923.7 per ounce. — Maggie Fitzgerald
Goldman, Malaysia reach $3.9 billion settlement over 1MDB scandal
Goldman Sachs and the Malaysian government announced Friday that both parties reached a $3.9 billion deal to settle the multibillion-dollar scandal. The deal includes a cash payout of $2.5 billion by goldman and a guarantee the bank will return at least $1.4 billion in 1MDB-linked assets. "We're buyers of GS now that its legal tail risk is almost gone after four years of dealing with the 1MDB situation," said Wells Fargo analyst Mike Mayo. "Conceptually, GS may be paying an extra 'time premium' to get this matter resolved which, to us, is still worth it and would be below the worst investor estimates of $10bn." Goldman Sachs shares rose 0.8% in the premarket. —Fred Imbert
Intel plunges 13% as it delays next-generation chips
Shares of Intel tanked more than 13% after the company signaled further delays in its new-generation chips. "The company's 7nm-based CPU product timing is shifting approximately six months relative to prior expectations," the company said in a statement. "The primary driver is the yield of Intel's 7nm process, which based on recent data, is now trending approximately 12 months behind the company's internal target." Intel did, however, report better-than-expected earnings and revenue for the second quarter. — Yun Li
Senate GOP to unveil coronavirus relief plan next week
Senate Majority Leader Mitch McConnell said Thursday evening that Republicans will unveil a coronavirus relief plan early next week. The timing all but assures Congress will miss a deadline to extend the $600 per week enhanced unemployment benefit. McConnell said the Republican legislation will include $105 billion for starting up schools in the fall, with financial incentives tied to reopening. He added it would include a second round of direct payments, but did not specify who would get checks and for how much money. The plan would allocate money for a second round of Paycheck Protection Program loans for hard-hit small businesses, and shield businesses, doctors and universities from lawsuits except for cases of gross negligence or intentional misconduct, he said.— Jacob Pramuk, Yun Li
Big Tech under pressure
Shares of Big Tech names moved lower during premarket trading on Friday, building on Thursday's weakness. Facebook, Amazon, Apple, Netflix and Microsoft all fell more than 1% as investors continued to move away from the group, which has been the leader as the market bounced back from its March rout. On Thursday Microsoft and Apple each lost more than 4%. Facebook and Amazon each shed more than 3% and Netflix lost 2.5%. - Pippa Stevens
China orders U.S. to close consulate as tensions continue to rise
China's Foreign Ministry said Friday that it is pulling the license for the U.S. consulate general in Chengdu, a city in the southwestern part of the country, and ordering it to cease operations. This latest hike in tensions comes after the U.S. ordered China to close its consulate in Houston.
"The responsibility lies entirely with the U.S. side," the foreign ministry said in an online Chinese-language statement, according to a CNBC translation.. "We again urge the U.S. side to immediately revoke its relevant wrong decisions, to create necessary conditions for the two countries' relationship to return to normal." — Evelyn Cheng, Jesse Pound
Futures lower as Big Tech extends losses
Stock futures fell on Friday as the sell-off in major technology stocks continued in premarket trading. Dow Jones Industrial Average futures dipped 80 points, indicating a loss of about 70 points at the open. The S&P 500 and Nasdaq 100 futures fell 0.3% and 0.8%, respectively. Big Tech are set for more losses at the open, with Amazon, Apple and Microsoft down more than 1% each in premarket trading. — Yun Li