Major U.S. stock averages rose late Thursday as shares of tech companies such as Facebook, Amazon, Netflix, Apple, Alphabet and Microsoft gained broadly. The S&P 500 and the Dow posted their fifth straight day of gains and the Nasdaq notched another record. Here's what happened.
Shares of Uber fell more than 4% in extended trading after the company reported a wider-than-expected loss for the second quarter as mobility demand was hit hard by the pandemic. The ridesharing company reported an adjusted loss of $1.02 per share on $2.24 billion of revenue. Analysts surveyed by Refinitiv were looking for a loss of 86 cents per share and $2.18 billion of revenue. Gross bookings for the company's mobility segment fell by 73%, and a 113% jump for the delivery business could not fully offset that decline. — Jesse Pound
Stocks finished the session higher, boosted by better-than-expected unemployment data, as well as strength in the technology sector. The Dow Jones Industrial Average gained 185 points, or 0.68%, while the S&P 500 advanced 0.64%. The Nasdaq Composite rose 1% to hit a new record high, and closed above 11,000 for the first time. - Pippa Stevens
The major averages traded near their session highs with one hour left of trading as Big Tech came alive towards the end of the day. The Dow rose 162 points, or 0.6%. The S&P 500 gained 0.6% as well while the Nasdaq climbed nearly 1% to an all-time high. —Fred Imbert
Retail investors were among the buyers of Quicken Loans-parent Rocket Companies, which went public on Thursday. The stock was the most actively traded name on Robinhood, according to data from Robintrack, which tracks user accounts but is not affiliated with the company. According to the data, the stock had been added to just over 42,000 accounts by 2pmET. Rocket Companies last traded about 19% higher. - Pippa Stevens
The Centers for Disease Control and Prevention on Thursday lifted the travel restrictions on about 20 countries where the risk of contracting the coronavirus is low. Previously, the agency advised Americans to avoid all nonessential international travel. The news sparked a small relief rally among travel-related stocks. Shares of American Airlines jumped 4%, while Delta and United were up about 2% each. Hilton and Marriott also both rallied nearly 4%. — Yun Li
Household debt declined in the second quarter, the first time that has happened since 2014, the New York Federal Reserve reported Thursday. The total decline was $34 billion, or just 0.2%, but it was the biggest drop since the second quarter of 2013. That left the national balance at $14.27 trillion. Amid the trend in debt, credit card balances tumbled by $76 billion, the biggest drop in the history of data that goes back to 1999. Also, there were 24,000 new foreclosure notations on credit reports, the lowest in history as many borrowers took advantage of forbearance programs put into place during the coronavirus pandemic. Student loan debt held about steady at $1.54 trillion, up just $2 billion for the April-to-June period. — Jeff Cox
Third Point manager Daniel Loeb told investors on Thursday that the fund took a stake in the Walt Disney Company in the second quarter based on bullish expectations for the media giant's entrance into the streaming business.
Loeb called streaming "Disney's biggest market opportunity ever with potentially $500 billion of revenue spread across over a growing market of 750 million current broadband homes globally ex-China."
In a separate conversation with CNBC's Scott Wapner, Loeb said there isn't a close No. 2 rival for Disney in terms of content and its vast intellectual property empire. Loeb detailed other new investments in his second-quarter letter.
CNBC Pro subscribers can read more about Third Point's new stakes here. — Thomas Franck
Shares of Rocket Companies, the parent of Quicken Loans, rallied nearly 20% to $21.50. The company went public earlier in the day at the New York Stock Exchange. Its IPO was priced at $18 per share, below an expected range of $20-$22 per share. —Fred Imbert
Amid record-breaking data, including the 32.9% plunge in U.S. GDP during the second quarter, the economic numbers are beginning to look like a "funhouse mirror," according to UBS private wealth advisor Charles Day. "People are having trouble digesting the magnitude of what's going on economically," he added.
Day, who has more than $600 million in assets under management, said that he's "never seen such a wide range of possible outcomes, and people who will fight to the death for such extreme positions" over issues including inflation.
He believes that the run-up in stocks, which has seen the S&P 500 come within 2% of its February all-time high, is being driven by three primary factors: the amount of liquidity injected into the market by the government, broad hopes for a Covid-19 vaccine, as well as the market-weighted nature of the benchmark amid tech's record rise.
UBS recently moved its position on U.S. large cap growth and large cap value stocks to underweight. The firm is overweight mid-cap and international, and equal-weight small-cap, international and emerging markets.
Looking ahead, Day said that volatility is one of the key market factors he's watching.
"People are not going to want to invest in markets that are moving 1% or more day after day, where as if they're grinding, that gives people confidence that you're not getting on a roller coaster," Day said. - Pippa Stevens
Correction: UBS is overweight mid-cap and international, and equal-weight small-cap, international and emerging markets. An earlier version misstated the markets.
Roku — Shares of Roku dropped nearly 7% after the streaming video company issued a bleak outlook. The company said the advertising industry outlook remains uncertain in the second half of the year, and that it believes total TV ad spend won't recover to pre-Covid-19 levels until "well into 2021."
ViacomCBS — Shares of ViacomCBS jumped nearly 5% after the media company reported quarterly earnings and revenue that surpassed Wall Street expectations. ViacomCBS Chief Executive Bob Bakish said on earnings call that the second quarter was the bottom for ad declines.
Wix — Shares of Wix plunged 10% after the website building platform reported an unexpected quarterly loss. Wix said it lost 26 cents per share in the second quarter, while Wall Street analysts were expecting a profit of 24 cents per share.
Check out more companies making headlines in midday trading here.— Yun Li
The major averages were mostly flat around midday as traders kept an eye on Washington amid ongoing negotiations on a new coronavirus stimulus package. The Dow was up just 4 points. The S&P 500 dipped 0.1% and the Nasdaq Composite was marginally lower. —Fred Imbert
Shares of Western Digital extended their loss on Thursday morning, losing more than 16%. The sharp fall comes after the company's guidance showed a major dip for earnings per share.
CEO David Goeckeler said on "Squawk Alley" that the company is seeing demand softness from its biggest customers, but some of that is attributable to demand being pulled forward early in the pandemic.
"We saw significant growth above typical growth of these markets, and I think we're going through a rationalization period at least for the next quarter," Goeckeler said.
Still, Goeckeler said that he expected the long-term growth for data storage services would be strong after rockiness in the short-term.
"The big trends are on our side," he said. — Jesse Pound
Stocks could sell off without an agreement in Washington on a coronavirus relief bill, CNBC's Jim Cramer warned.
"If we don't have a deal, we've got to have a sell-off," Cramer said on "Squawk on the Street."
Despite equities' strong start to August, Cramer said Wall Street remains somewhat dependent on Capitol Hill. "It's not like we can just avoid a deal and say it doesn't matter. And that's what I'm getting concerned about," he said.
House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Mitch McConnell, R-KY., expressed a belief on CNBC that an aid package will get done. However, appearing separately on "Squawk on the Street," the powerful lawmakers both indicated there were still issues between the two sides that have yet to be resolved in negotiations. —Kevin Stankiewicz
Shares of Penn National Gaming soared more than 14% after the gaming company posted quarterly revenue that topped analyst estimates. Penn National reported sales of $305.5 million in the second quarter, compared with Refinitiv estimates of $249.1 million. The company also said its launch of Barstool Sportsbook betting app remains on track for the third quarter. The stock has rallied more than 70% this year — Yun Li
Pro Subscribers read more here- Michael Bloom
Shares of Bausch Health popped 4% after the company said it would spin off its Bausch & Lomb eye care unit into a separate publicly traded company. Bausch said it was taking the action to unlock unrecognized value in the eye care business. The company did however, miss revenue estimates for its second quarter announced before the bell Thursday. — Maggie Fitzgerald
Shares of backup generator company Generac Holdings have more than doubled in the last year, but Bank of America still believes it's an attractive name for investors. On Thursday the firm upgraded the stock to a buy rating and raised its target to $200, which is roughly 17% above where shares currently trade. The stock gained more than 2% in morning trading on Thursday.
Major U.S. stock averages opened Thursday's session near the flat line as investors assessed lawmarkers' talks on the next coronavirus relief package with two sides seemingly no closer to reaching a deal. The Dow Jones Industrial Average dipped 50 points at the open, while the S&P 500 was 0.1% lower. The Nasdaq Composite was flat after reaching its 31st record close in the previous session. — Yun Li
Senate Majority Leader Mitch McConnell told CNBC Thursday that Democrats and the White House are still at odds over how much aid is needed as they work to craft a fifth coronavirus relief package. McConnell added the bill would require liability protections for companies impacted by the pandemic. However, he said he does expect a stimulus deal in the near future. — Yun Li
Shares of Yeti Holdings gained more than 4% during Thursday's premarket trading following the company's second quarter results. The company earned 41 cents per share excluding items, compared with the 16 cents analysts had been expecting, according to data from FactSet. Revenue came in at $246.9 million, which was ahead of the expected $188 million.
"We delivered a strong overall second quarter performance in the face of the significant market disruption," CEO Matt Reintjes said in a statement. "The results are a testament to the resilience of demand for our brand and the power of our diverse omni-channel strategy, led by the strength of our direct-to-consumer business which saw 61% growth in the quarter." - Pippa Stevens
Shares of Rocket Companies, the parent company of Quicken Loans, are set to start trading on Thursday as the mortgage lending company finishes its initial public offering. The stock priced at $18 per share on Wednesday night, below the range of $20 to $22. The company also cut its offering to 100 million shares from 150 million.
Chairman Dan Gilbert said on "Squawk Box" management decided to take the long-time private company public to more easily give equity to employees and help with acquisitions.
"We want to use our stock as currency and potentially acquire more fintech organizations and put them in the mold," Gilbert said.
The stock will trade on the New York Stock Exchange under the ticker RKT. — Jesse Pound
Filings for new unemployment insurance claims totaled 1.186 million over the past week, lower than the estimates of 1.423 million according to a survey by Dow Jones. Continuing claims, or those who have collected benefits for two straight weeks, dropped by 844,000 to 16.1 million. Stock futures cut losses after the data release. — Yun Li
Gold futures hit another intraday all-time high of $2,072.4 per ounce on Thursday. The precious metal has risen 4.3% this week, on pace for its ninth straight weekly gain for the first time since May 2006.
Silver futures also jumped almost 5% Thursday to a session high of $28.285 per ounce, its highest level since April 1, 2013 when silver traded as high as $28.36. Week to date, silver is up 16.5%, on pace for its best week since March 27 when silver gained 17.35%. — Yun Li, Gina Francolla
Congress and the Trump administration are struggling to strike an agreement on the next coronavirus relief bill after the enhanced unemployment benefits expired on Friday. The White House has threatened Wednesday to act on its own to provide pandemic relief after another day of talks with Democrats yielded no agreement. White House chief of staff Mark Meadows said that President Donald Trump will address unemployment insurance and an eviction moratorium by executive action, though it is unclear if he has the authority to do so. — Jacob Pramuk, Yun Li
Shares of Western Digital were down sharply in premarket trading after the company reported weaker than expected revenues for its fiscal fourth quarter and gave guidance that disappointed analysts. The company said its adjusted earnings per share, including costs related to Covid-19, would be about half of what was earned in the quarter that just ended. Citi said in a note to clients that "Western Digital's September quarter outlook was filled with a tidal wave of negatives leading to an EPS outlook that is -60% below consensus." The stock fell about 11%. — Jesse Pound
Filings for new unemployment insurance claims are expected to have changed little over the past week. Economists surveyed by Dow Jones estimate the total to come in around 1.423 million, just a bit lower than the 1.434 million from the previous week. After falling for three months, claims have increased the past two weeks. The report comes a day before the government's nonfarm payrolls count, which is projected to show growth of 1.48 million in July. — Jeff Cox
Roku shares slid more than 4% during premarket trading on Thursday after the company said during its second quarter results that advertising uncertainty will continue into the third and fourth quarters. For the quarter the streaming video device maker lost 35 cents per share, which was smaller than the 50-cent loss analysts polled by Refinitiv were expecting. Revenue also topped expectations.
"The ad industry outlook remains uncertain for Q3 and Q4, and we believe that total TV ad spend will not recover to pre-COVID-19 levels until well into 2021," the company said in a statement. "However, we remain confident in our ability to grow our ad business, albeit not as much as we would have expected prior to the pandemic, as marketers re-allocate spend and follow consumers in the shift to streaming." - Pippa Stevens
Stock futures moved slightly lower early Thursday as investors awaited weekly jobless claims data ahead of the much-anticipated July jobs report. Futures on the Dow Jones Industrial Average fell about 40 points, implying an 80-point loss to start to the trading day. S&P 500 and Nasdaq 100 futures were also down by 0.2% and 0.1%, respectively. The S&P 500 and the Dow were coming off four straight days of gains, while the Nasdaq Composite just notched another record close in the previous session, its 31st year to date.— Yun Li