Stocks climbed higher in Friday's choppy session as investors assessed strong economic data. A jump in Apple shares lifted the 30-stock Dow, which ended the week on a high note, while the S&P 500 closed at a record high.
Stocks rallied into the close, ending the week on a high note. The S&P 500 gained 0.35% to close at a new record high of 3,397.23. Meanwhile the Dow and Nasdaq Composite gained 0.69% and 0.42%, respectively, aided by a 5.15% jump for shares of Apple. - Pippa Stevens
The S&P 500 was up 0.3% with roughly one hour left in the trading session and was on pace to post a fresh record closing high. The Nasdaq Composite also traded at a record level, climbing 0.4%. The Dow Jones Industrial Average jumped 182 points, or 0.7%, as Apple shares advanced more than 4%. — Fred Imbert
Oil prices slid on Friday amid ongoing worries over depressed demand. West Texas Intermediate, the U.S. oil benchmark, settled 48 cents, or 1.12%, lower at $42.34 per barrel. International benchmark Brent crude fell 55 cents, or 1.22%, to $44.35 per barrel.
"Covid-19 does not seem to slow down and we see some return of restrictions in Europe and beyond," said Bjornar Tonhaugen, head of oil markets at Rystad Energy. "Demand, in our view, is only likely to near pre-pandemic levels in 2021 and the rest of 2020 will be a muted struggle while facing the effects of the second wave."
WTI did, however, manage to finish the week higher, for its fifth positive week in the last six. - Pippa Stevens
The lack of breadth in the market over the past week could be a sign that the market is due for a pullback, Wellington Shields technical analyst Frank Gretz said in a note to clients. The market has seen declining stocks outpace advancing stocks in five of the past six days, Gretz said, and on Thursday the Nasdaq Composite hit a new high despite negative breadth for the third time in 15 sessions.
Gretz stressed that the market did not resemble the tech bubble of the late 1990s and early 2000s because other sectors such as staples and industrials have risen sharply since the March lows, but said the market could be in for a correction in the near term.
"This may not be 2000 but it doesn't mean stocks can't correct. And if by correct you mean stall, most already have done that," Gretz said. "Most days most stocks go up has been the mantra of this uptrend. If that is changing it won't be long before the trend does as well." — Jesse Pound
Deere — The farm-machinery manufacturer is up 5.6% in midday trading after it boosts its full-year profit outlook. Deere also beat analysts' fiscal third-quarter profit and sales expectations when it reported results before the bell Friday morning.
Buckle — Buckle shares soared more than 20% after the fashion retailer reported quarterly earnings that crushed Wall Street expectations. The company posted per-share income of 71 cents in the second quarter, versus analysts' average estimate of 29 cents, according to FactSet.
Tesla — Tesla equity — up 398% in 2020 alone — added another 4.25% on Friday as enthusiasm about its leading position in the electric vehicle space continues to foster demand for shares. The stock hit a new all-time high on Friday at $2,092.12 and was positioned to notch yet another record close to round out yet another meteoric week.
Click here for more details on which stocks are making the biggest moves. — Thomas Franck
The major averages were higher in midday trading after the release of strong U.S. economic data for August and July. The Dow was up 55 points, or 0.2%, and the Nasdaq gained 0.1%. The S&P 500 hovered around the flatline. —Fred Imbert
Shares of Apple rose 3.6% to another record high on Friday morning as the tech giant continued its recent surge ahead of its stock split. The stock was on pace for its best session in August and has gained more than 6% so far this week. Apple became the first U.S. company to have a market cap of $2 trillion earlier this week. — Jesse Pound
Secretary of State Mike Pompeo told CNBC on Friday that the Trump administration is open to talks with China but would continue to stand firm regarding security concerns with Chinese tech firms such as ByteDance's TikTok.
"This is a serious effort, this is a serious risk and President Trump is serious about protecting our information, our networks and the American people," Pompeo told CNBC's "Squawk Box." — Jesse Pound, Amanda Macias
Existing home sales in July were up 24.7% compared with June and 8.7% compared with the same month last year, according to the National Association of Realtors. That marked the biggest month jump on record, dating back to 1968. The average selling price rose to $304,100, the highest price on record even when accounting for inflation. — Jesse Pound, Diana Olick
U.S. manufacturer growth rebounded this month to post its fastest improvement since January 2019, the latest sign that the economy is recovering from the coronavirus damage. The U.S. manufacturing PMI (purchasing managers' index) jumped to 53.6 in August — a 19-month high — from 50.9 in July, according to IHS Markit. Any reading above 50 signals an expansion. Meanwhile, IHS services business activity rose to 54.8 from 50.0 from July, marking a 17-month high.
"August data pointed to a further improvement in business conditions across the private sector as client demand picked up among both manufacturers and service providers," Sian Jones, economist at IHS Markit, said in a statement. "Notably, the renewed increase in sales among service sector firms was welcome news following five months of declines."
The Dow rose roughly 100 points after the positive economic data was released. — Yun Li
The S&P 500 has rallied to an all-time high since bottoming out in March and JPMorgan's Jason Hunter thinks the gains can keep going as the number of new coronavirus cases keeps trending lower. "We believe those encouraging epidemiological trends can provide a tailwind for risky markets through late-summer," said Hunter, a technical strategist at the firm. "Even if the market sees a short-term setback, we do not see any sign of a distribution pattern that typically develops at a lasting market top." —Fred Imbert, Michael Bloom
Amazon's CEO of Worldwide Consumer, Jeff Wilke, is leaving the company, Amazon said Friday. According to a statement from the company, he will depart in the first quarter of 2021.
Wilke joined Amazon in 1999, and rose through the ranks to ultimately oversee the company's core e-commerce and physical retail business.
He will be succeeded by Dave Clark, who is senior vice president of worldwide operations. According to a statement, Clark also joined the company in 1999 and has held "numerous key roles across Amazon." - Pippa Stevens, Annie Palmer
Former FDA Commissioner Dr. Scott Gottlieb said on CNBC's "Squawk Box" that the United States was set to see a more widespread rise in coronavirus cases in the fall that impacts rural and urban areas.
"I think most peoples' perception is we had one epidemic in New York, in the New York region, we came down the epidemic curve, we had another epidemic in the Sun Belt, so that really looks like and feels like a second wave," Gottlieb said. "I do think that we're going to have a third act of this virus in the fall and the winter and it's likely to be more pervasive spread in a broader part of the country."
Follow along with CNBC's live blog covering the pandemic here. — Jesse Pound, Will Feuer
Pro subscribers can read more here. — Michael Bloom
U.S. markets began Friday's trading session little changed as investors continued to weigh new data about the economic recovery. The Dow fell 0.1%, while the Nasdaq Composite and S&P 500 hugged the flatline.
Foot Locker shares rose 5% in the premarket after the apparel retailer posted better-than-expected results for the previous quarter. The company posted a profit of 71 cents per share, topping a Refinitiv estimate of 57 cents. Revenue for the company came in at $2.08 billion. Analysts expected total sales of $2 billion, according to Refinitiv. CEO Richard Johnson attributed the strong quarter to Foot Locker's strong digital business. He also added: "As our global fleet of stores reopened, our customers responded with enthusiasm and energy to our assortments and visited our stores with a high intent to purchase." —Fred Imbert
Iron ore prices soared to multiyear highs this week as Chinese government stimulus spurs a litany of infrastructure construction. Spot iron ore prices rose to around $130 a dry metric ton on Tuesday, according to commodity price reporting agency Argus, the highest level since 2014.
In July, China imported a record 112.65 million metric tons of iron ore, a rise of 24% from a year ago and up 10.8% from June, according to customs data. The spike in the steel component comes after prices for iron slumped to around $80 in March, when markets reacted to fears surrounding Covid-19 and its impact on the global economy. — Thomas Franck
Over $50 billion of cryptocurrency moved from China-based digital wallets to other parts of the world in the last year, hinting at capital flight from Chinese investors, according to a report by Chainalysis, a blockchain forensics firm. The report claims investors are transferring more money than allowed out of the country, since Chinese citizens are only allowed to buy up to $50,000 of foreign currency a year at a financial institution. In the past, wealthy citizens have gotten around limit through foreign investments in real estate and other assets; however, the Chinese government has cracked down on these methods. — Arjun Kharpal, Maggie Fitzgerald
Joe Biden accepted the Democratic Party's nomination for president on Thursday with a pledge to serve "all Americans" as both a unifying and healing force in the White House. Biden, who served as vice president under President Barack Obama, said for the largely virtual 2020 Democratic National Convention that he'd be "a Democratic candidate" but "an American president."
"I'll work hard for those who didn't support me," Biden said. "That's the job of a president, to represent all of us, not just our base or our party. This is not a partisan moment. This must be an American moment." — Thomas Franck
Lyft announced that it will continue to operate in California after an appeals court extended the amount of time that rideshare companies have to comply with an order to classify their drivers as employees. Lyft had said it would suspend service on Thursday night if it did not receive an extension. Shares of Lyft and Uber flipped from losses to gains on Thursday after the appeals court made its order, and both stocks were little changed on light trading Friday morning. — Jesse Pound, Lauren Feiner
Tesla shares jumped 2% during premarket trading on Friday, putting the stock on track to open at a new all-time high. The move follows a 6.56% gain on Thursday, which pushed shares above $2,000 for the first time.
The stock's seemingly unstoppable run to new highs has confused investors and analysts alike, especially since the recent leg higher kicked off after the company said it was enacting a five-for-one stock split. Since that announcement on Aug. 11 after the market closed, shares are up about 45%, despite the fact that stock splits are purely cosmetic.
UBS analyst Patrick Hummel said that while he believes the surge higher "may be overdone," it does show three things: the market believes EVs are the future and that Tesla will be a leader, autonomous driving will be another area of growth for the company, and that Tesla "could tap the market at almost zero cost of equity if needed."
Morgan Stanley's Adam Jonas also pointed to Tesla's advantages in attracting capital, as well as its growth potential outside of just vehicles. "Tesla's valuation is discounting far more than cars (vehicle price x volume), in our view ... Our discussions reveal an increased willingness to discount Tesla's success in tech domains (nonauto) where the company can compound growth and valuation."
He has an equal-weight rating on the stock and a $1,360 price target. His bull and bear targets are $2,636 and $1,360, respectively. - Pippa Stevens
Shares of tractor-maker Deere rose more than 2% in the premarket after the company posted better-than-expected results for the previous quarter. Deere reported a profit of $2.57 per share on revenue of $7.86 billion. Analysts polled by Refinitiv expected earnings per share of $1.26 on revenue of $6.7 billion. CEO John May said in a statement: "Although unsettled market conditions and related customer uncertainty are expected to have a moderating effect on key markets in the near term, we believe Deere is well-positioned to help make our customers more profitable and sustainable."
U.S. stock futures were little changed on Friday to end a banner week on Wall Street. Dow Jones Industrial Average futures were down just 31 points, or 0.1%. S&P 500 futures dipped 0.2% and Nasdaq 100 futures slipped 0.1%. Earlier this week, the S&P 500 broke above its late-February record and reached a fresh all-time high. Still, the broader market index was only up 0.4% week to date entering Friday's session after the release of mixed economic data and a warning on the economy from the Federal Reserve. —Fred Imbert