Don't miss CNBC and Institutional Investor's Delivering Alpha conference on September 30, featuring Treasury Secretary Steven Mnuchin, Senator Elizabeth Warren, Alibaba's Joseph Tsai, Vista Equity Partners' Robert Smith, J.P. Morgan's Mary Callahan Erdoes, Inclusive Capital's Jeff Ubben and more.
Friday's rally by the numbers
- S&P 500 closed up 1.6% for its best day since Sept. 9 when the S&P gained 2.01%
- S&P closed down 0.63% this week for its fourth straight negative week for the first time since Aug. 23, 2019
- S&P is up 2.09% year to date
- S&P is 8.07% below its intraday all-time high of 3,588.11 from Sept. 2
- Dow closed up 1.34% for its best day since Sept. 9 when the Dow gained 1.6%
- Dow closed down 1.75% this week for its fourth straight weekly loss for the first time since Aug. 23, 2019 and its worst week since Sept. 4 when the Dow lost 1.82%
- Dow is down 4.78% year to date
- Dow is 8.1% below its intraday all-time high of 29,568.57 from Feb. 1
- Nasdaq Composite closed up 2.26% for its best day since Sept. 9 when the Nasdaq gained 2.71%
- Nasdaq closed up 1.11% this week for its first positive week in four
- Nasdaq is up 21.63% year to date
- Nasdaq is 9.6% below its intraday all-time high of 12,074.07 from Sept. 2
- Ten out of 11 sectors were positive Friday, led by tech, which popped 2.4%.— Gina Francolla, Yun Li
Dow closes 350 points higher
Major stock averages closed higher in another volatile session, boosted by a strong rebound in several tech giants. The Dow Jones Industrial Average ended Friday 359 points higher, while the S&P 500 and the Nasdaq Composite rose 1.6% and 2.3%, respectively. Apple led the tech advance, jumping 3.7%, while Amazon, Microsoft, Netflix and Facebook all popped at least 2% Friday. However, the Dow and the S&P 500 suffered their first four-week losing streaks since August 2019. The tech-heavy Nasdaq eked out a 1.1% gain for the week, but is still down more than 7% for the month. — Yun Li
Boeing climbs as hopes for 737 Max approval rise
Shares of aerospace giant Boeing rose to session highs following news that Federal Aviation Administration administrator Steve Dixon will do a test flight of the 737 Max next week. The plane has been grounded for more than a year, and a flight by Dixon, who is a licensed pilot, is seen as possibly one of the last steps before the Max is recertified. Boeing's stock last traded up 5.7% for the session. — Jesse Pound
Final hour of trading: Wall Street set to end tough week on a high note
The major averages were sharply higher on Friday, led by tech shares, as traders wrapped up a wild week on a high note. The Dow climbed more than 260 points, or about 1%. The S&P 500 gained 1.2% and the Nasdaq Composite jumped 1.9%. —Fred Imbert
S&P 500 advancers outnumber decliners 4-to-1
The market indexes have climbed upward in afternoon trading, and the push higher has been broad-based. According to FactSet, roughly 400 stocks in the S&P 500 have risen on Friday. The index itself has gained 1.2% but is still negative for the week. — Jesse Pound
Main Street employment, business conditions worsen in September, report says
Data from scheduling firm Homebase, which tracks small and medium businesses, shows that business conditions worsened in September. The firm said in its monthly report that the number of hours worked, employees working and businesses open were all lower in September than a comparable period in August.
This marks the first time Homebase has shown a decline in employment metrics since the pandemic recovery began. The decline could be due in part to the Labor Day holiday and seasonal factors, the report said. — Jesse Pound
Stocks making moves in midday trading
Here are some of the stocks on the move in midday trading:
Bristol-Myers Squibb — The pharmaceutical company announced positive interim results from a phase three trial of an immunotherapy drug for bladder cancer patients.
Read more here. - Pippa Stevens
Technical analyst says it will 'take time' for gold rebound
Gold is suffering its worst week in at least six, with both spot and future prices hovering around $1,865 as the dollar strengthens. Technical analyst Frank Gretz from Wellington Shields said in a note that this slide means that it will take time for gold to climb back toward its recent highs.
"Gold has enjoyed a great run this year, including record highs in August. Since then Gold had been in a narrow 30 day trading range, forming what used to be called a triangle pattern," Gretz said. "Historically, there has been a high probability of an upside resolution in comparable patterns for Gold. After this week, this apparently isn't one of them. While the overall uptrend remains intact, it will now take time to rebuild the pattern." — Jesse Pound, Reuters
Markets at midday: Stocks rise, but 4-week losing streak still looms
The major averages traded higher on Friday as tech shares climbed. The Dow advanced 42 points, or 0.2%. The S&P 500 gained 0.4% and the Nasdaq Composite rose 1%. However, those gains weren't enough to erase Wall Street's weekly losses as the major averages were still on pace to post their fourth straight one-week decline. —Fred Imbert
Cloud stocks outperform
The software stocks are pulling away as the broader technology sector contributes to the September slump. Cloud computing ETFs WisdomTree Cloud Computing and Global X Cloud Computing are both up about 3% this week, on pace for their best week since August 28 when they gained more than 6.5% a piece. At the same time, the technology-heavy Nasdaq Composite is on pace to close the week in the red.
"This continued work from home trend, people think will be prolonged into the fall and winter as people go back inside and there worries about virus flare ups again," Bleakley Advisory Group's chief investment office Peter Boockvar told CNBC.
Shares of Zoom Video are up 11% this week, on pace for its sixth straight weekly gain. The video conferencing company is up 50% this month, on pace for its best month ever. Coupa Software is up more than 7% and DocuSign is up more than 6.5% this week. Zscaler and Okta have risen nearly 6% a piece since Monday and shares of Slack have gained more than 5% this week. — Maggie Fitzgerald
Pro subscribers can read more here.
Energy ETFs head for worst weeks since June
Two energy exchange-traded funds have fallen about 11% week to date, on pace for their worst weeks since June. Energy Select Sector SPDR Fund (XLE) is on pace for its worst week since June 12, while SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is headed for its worst week since June 26. Apache, Murphy Oil, Marathon Petroleum and Phillips 66 led the declines as they all shed at least 10% this week alone. — Gina Francolla, Yun Li
Stocks open mixed to finish off volatile week
Stocks opened mixed on Friday to cap off a volatile week that's seen the major averages post heavy declines. The Dow opened 135 points lower for a loss of 0.45%, while the S&P 500 declined 0.22%. The Nasdaq Composite, however, managed to register a slight gain, rising 0.15%. - Pippa Stevens
Here are Friday’s biggest analyst calls of the day: Amazon, Carnival, General Mills & more
- Deutsche Bank upgraded Cardinal Health to buy from hold.
- Baird assumed coverage of Splunk as outperform.
- Piper Sandler assumed coverage of Amazon as overweight.
- Credit Suisse upgraded General Mills to outperform from neutral.
- Susquehanna upgraded Churchill Downs to positive from neutral.
- Argus initiated DraftKings as buy.
- Barclays upgraded Carnival, Norwegian and Royal Caribbean to overweight from equal weight.
Pro Subscribers can read more here. - Michael Bloom
Barclays upgrades cruise stocks to overweight ahead of CDC no-sail decision
"While we may be early, we believe the risk/reward is the most attractive in our coverage universe," Barclays analyst Felicia Hendrix told clients. "Investors who have previously written off cruise stocks should begin to revisit their models."
Next week, the Centers for Disease Control and Prevention will address the no-sail date for the industry. While Barclays said there is a high probability the CDC will extend the no-sail date in the fourth quarter, the Wall Street firm believes "the comments from the agency will be positive and could signal a near-term return to cruise, which could be a catalyst for the shares," said Hendrix.
Barclays also raised all three of the cruise stocks' 12-month price target. — Maggie Fitzgerald
Pro subscribers can read more here.
Morgan Stanley says Apple's 20% retreat creates a good entry point
Apple shares tumbled more than 20% from their September peak, and Morgan Stanley said the pullback has created an attractive entry point ahead of the upcoming iPhone launch.
"We view the recent pullback and more cautious hedge fund positioning as providing a constructive set-up heading into the iPhone 12 launch especially given fundamental data points remain strong," Morgan Stanley analyst Katy Huberty said in a note on Friday.
Shares of Apple gained about 0.8% in premarket trading Friday.
Traders watch Big Tech
Shares of the largest technology companies led the market's rebound from the March low, but they've struggled recently as investors take profits. Amazon, Apple and Netflix were slightly higher during premarket trading, while Alphabet was modestly lower. Microsoft and Facebook were flat. Each name is down more than double digits this month, apart from Microsoft, which has declined 9.9%. - Pippa Stevens
Brutal September for stocks
Major U.S. equity averages are poised to add another week of losses to what has been a tough September. Here are some key market stats:
- S&P 500 is down 2.2% this week, on pace for its fourth straight negative week for the first time since Aug. 23, 2019
- S&P 500 is down 7.25% this month, on pace for its first negative month since March
- Dow is down 3.04% this week, on pace for its fourth straight weekly loss for the first time since Aug. 23, 2019 and its worst week since June 26 when the Dow lost 3.31%
- Dow is down 5.68% this month, on pace for its first negative month since March
- Nasdaq Composite is down 1.12% this week, on pace for its fourth straight negative week for the first time since Aug. 23, 2019
- Nasdaq is down 9.37% this month, on pace for its first negative month since March. — Yun Li, Gina Francolla
Costco slips despite reporting stronger-than-expected earnings
Shares of Costco were under pressure on Friday, falling 2.6% in the premarket even after the big-box retailer reported quarterly earnings that beat analyst expectations. Costco reported earnings per share of $3.04 on revenue of $53.38 billion. Analysts expected a profit of $2.84 per share on revenue of $52.08 billion, according to Refinitiv. Same-store sales — a key metric for retailers — jumped 11.4% and topped a Refinitiv forecast of 7.8%. Costco shares have been on fire this year, jumping 18.1% for 2020. —Fred Imbert
Futures point to down day
Futures contracts tied to the major U.S. stock averages slid on Friday, implying there might be more selling to round off a rough week on Wall Street. Dow Jones Industrial Average futures slid 0.8% suggesting a 180-point loss at the open. S&P 500 futures fell 0.6%, while Nasdaq 100 futures declined by 0.36%.
The major averages are on track for their fourth straight week of losses for the first time since Aug. 2019. An uptick in coronavirus cases has pressured stocks this week, as has investor rotation away from some of the high-flying technology names and lack of second stimulus progress from Congress. - Pippa Stevens