Stock market live Friday: S&P 500 and Russell 2000 hit records, Dow up 4% this week, Disney rises

• The S&P 500 closed up 1.36% at a new record close for the first time since Sep. 2
• This week, the S&P 500 closed up 2.16% for its second-straight positive week
• This year, the S&P 500 is up 10.97%
• The Dow closed up 1.37% for its first positive day in three
• This week the Dow closed up 4.08% for its second-straight positive week
• This year, the Dow is up 3.3%
• The Nasdaq Composite closed up 1.02%
• This week, the Nasdaq closed down 0.55% for its third negative week in four
• This year, the Nasdaq is up 31.84%
• Russell 2000 small caps closed up 2.08% at a new record close for the first time since Aug. 2018
• This week, small caps closed up 6.08% for their second-straight positive week
• This year, small caps are up 4.53%
• Eleven out of 11 sectors were positive Friday led by energy up 3.81%.

— Gina Francolla, Maggie Fitzgerald

U.S. equities ended Friday on a high note with the Dow Jones Industrial Average rallying nearly 400 points, or 1.4%. The S&P 500 gained 1.36% to close at a record and the Nasdaq Composite gained 1%.

Friday's rally brought the Dow's week-to-date gain to about 4.1% and the S&P 500's weekly tally to nearly 2.2%. The Nasdaq Composite finished in the red for the week as investors ditched technology names for cyclicals.

— Maggie Fitzgerald

The small-cap benchmark Russell 2000 hit a fresh all-time intraday high in Friday's session and is on pace for a fresh record close as investors rotate into cyclical stocks on hopes of a potential Covid-19 vaccine. The Russell 2000 is up 2.2%, on pace to break a two-day losing streak.  This week, the Russell 2000 is up 6.2%, on pace for its third positive week in four.

— Gina Francolla, Maggie Fitzgerald

The Dow was on pace to post a 4% weekly gain on Friday as traders add exposure to downbeat value names at the expense of high-flying growth stocks. On Friday alone, the Dow jumped 400 points, or 1.4%. The S&P 500 traded 1% higher on the day, and was headed for a 2% weekly advance. The Nasdaq Composite was up 0.8%, but was down week to date.

—Fred Imbert

President Donald Trump's election ballot challenges failed in three states on Friday. In Arizona, Trump's campaign dropped a legal challenge in Maricopa County, saying Biden's overall lead in the state is too big for the disputed ballots to make a difference. In Michigan, a judge declined a request by Trump backers to block the certification of election results in Detroit. Lastly, in Pennsylvania, Secretary of State Kathy Boockvar said she has decided not to order a recount of the election in 67 counties.

— Dan Mangan, Kevin Breuninger

St. Louis Fed President James Bullard said he's not worried if Congress decides to shut down the central bank's pandemic-era lending programs. Influential Sen. Patrick Toomey (R-Pa.), has indicated that Congress may not extend its collateral for the myriad facilities used to backstop the credit markets. Speaking to reporters Friday, Bullard said he doesn't think it will be that big of a deal if the funding isn't renewed for 2021. "Do they need to be extended? This is getting a lot of debate, but I'm going to make the case that whether we extend them or not may not be that material to financial markets," he said. "We can always start up the liquidity programs again in the future."

The facilities were put into place when financial markets froze in the early days of the coronavirus crisis. They've generally been lightly used compared to their capacity but are seen as an important assurance that if markets run into trouble again, the Fed will be there to help.

In a separate matter, Bullard also indicated that he thinks the current pace of $120 billion a month of asset purchases is sufficient, though some in the market think the Fed might accelerate the pace or extend the duration of its bond portfolio.

— Jeff Cox

The Senate race between Democrat Jon Ossof and Republican David Perdue will go to a runoff, NBC News projects, meaning that both seats for the state will be up for grabs in January. Democrats need to win both races in order to achieve 50 seats and take control of the Senate.

NBC News also called President-elect Joe Biden as the apparent winner in Georgia, while President Donald Trump is the apparent winner in North Carolina.

— Jesse Pound

Credit card data from Chase customers has shown a widespread decline in recent weeks as cases of Covid-19 rise across the United States, JPMorgan said in a note to clients Friday.

"Spending by our panel of 30 million Chase credit and debit cardholders has fallen notably in recent data through November 9. Spending declines have been somewhat larger in states where COVID-19 is spreading most rapidly, but almost all states have seen some decline," the note said.

The drop-off has been noticeable across retail categories and in online shopping, the bank said. After nearly matching 2019 levels in early October, JPMorgan's primary card spending tracker was down 7.4% year over year as of Nov. 9.

"Declines have also been widespread in a variety of retail categories and in card-not-present (largely online) spending. These facts suggest a broader pullback in spending not limited to sectors directly affected by the recent resurgence in new virus cases," the note said.

— Jesse Pound, Patti Domm

The Dow traded more than 250 points higher, or nearly 1%, as it heads for strong weekly gains amid a sharp rotation out of growth stocks and into value names. The S&P 500 and Nasdaq also rose 0.9% and 0.6%, respectively.

—Fred Imbert

Shares of Draft Kings jumped more than 5% on Friday morning after the company reported better-than-expected results for the third quarter and said it had more than 1 million unique payers.

However, the sports gaming company's sales and marketing expenses came in at $203 million, which was $70 million above total revenue. Jason Ader, the CEO of SpringOwl Asset Management, said that was not a sustainable path.

"I think the numbers today were good enough that the stock will be up and investors will like what they see," Ader said. "But there's reason to share some skepticism and caution, which is that DraftKings is spending more in marketing than they're making in revenue, a high percentage of DraftKings revenue is free play, and what's really missing is the big 'P' — profit."

Jason Robins, CEO, said on "Squawk on the Street" said that the industry is still in the customer acquisition phase, and this quarter's high spend was due in part to new state markets opening up and the abnormally busy sports calendar.

"We're very data driven as a company. What we do is we set targets for our team at levels that we believe provide plenty of cushion between the net present value, the [long-term value] and the cost of acquiring them," Robins said. "Our team has been able to very successfully deploy capital deep into marketing channels."

SpringOwl does not hold a position in DraftKings, but it does own stock in Flutter, parent company of gaming rival FanDuel. Ader predicted that there would be more merger and acquisition activity in this space in the next 18 months due in part to the elevated valuation for DraftKings' relative to revenue.

— Jesse Pound

Goldman Sachs sees a strong year ahead for the U.S. economy, but is warning that rising coronavirus cases will make for a "bumpy" road getting there. "The pace of recovery is likely to get worse before it gets better," the firm's economists warn in their 2021 forecast. GDP is projected to grow at a strong 5.3% pace, the best since 1984, though the major gains likely won't happen until after a vaccine comes online. That will "fuel a mid-year consumption boom" that will help take unemployment from 6.9% currently down to 5.3% by the end of the year, Goldman forecasts. – Jeff Cox

The preliminary reading for the University of Michigan's consumer sentiment index in November was 77.0, down from 81.8 in October. Economists surveyed by Dow Jones were expecting 81.5.

"Consumer sentiment fell in early November as consumers judged future economic prospects less favorably, while their assessments of current economic conditions remained largely unchanged," Richard Curtin, chief economist for the Survey of Consumers, said in a release.

"The outcome of the presidential election as well as the resurgence in covid infections and deaths were responsible for the early November decline," he added.

— Jesse Pound

The preliminary reading for the University of Michigan's consumer sentiment index in November was 77.0, down from 81.8 in October. Economists surveyed by Dow Jones were expecting 81.5.

"Consumer sentiment fell in early November as consumers judged future economic prospects less favorably, while their assessments of current economic conditions remained largely unchanged," Richard Curtin, chief economist for the Survey of Consumers, said in a release.

"The outcome of the presidential election as well as the resurgence in covid infections and deaths were responsible for the early November decline," he added.

— Jesse Pound

Stocks popped at the start of regular trading in New York on Friday, set to end a volatile week on a high note as cyclical names resumed their rally from earlier in the week.

The Dow Jones Industrial Average added 230 points at the open, led by Boeing, UnitedHealth and Disney after its strong earnings results. The S&P 500 rose 0.74% and the Nasdaq Composite climbed 0.66%.

With Friday's opening moves, the Dow and S&P 500 were on track for week-to-date gains of 3.4% and 1.5%, while the Nasdaq was still down 0.95%.

—Thomas Franck

• Baird upgraded Teladoc to outperform from neutral.
• Morgan Stanley downgraded Palantir to equal weight from overweight.
• Piper Sandler upgraded Utz to overweight from neutral.
• RBC upgraded Disney to outperform from sector perform.
• Bernstein downgraded Dow to market perform from outperform.
• Piper Sandler initiated Chewy as overweight.
• New Street upgraded Cisco to buy from hold.

Pro subscribers can read more here.

—Michael Bloom

Shares of Cisco Systems popped more than 7% in premarket trading on Friday after beating on the top and bottom lines of its quarterly results. The equipment maker reported earnings of 76 cents per share on revenue of $11.9 billion. Wall Street forecast earnings of 70 cents per share on revenue of $11.85 billion, according to Refinitiv.

Demand for Cisco's products continues to get a boost from the increase in the number of people working remotely.

—Maggie Fitzgerald

The U.S. coronavirus outbreak showed no signs of slowing down on Thursday, when the country reported more than 150,000 new cases for the first time since the pandemic took hold.

The seven-day average of daily new infections — a measure that investors use to reduce statistical "noise" during any single day — now stands at 131,445, or 32% higher than this time last week, per CNBC analysis of Johns Hopkins data.

The cumulative U.S. infection count is now 10.55 million and deaths stand at at least 242,435.

State and local government leaders have began to reintroduce measures to help contain the spread of the disease. New York Gov. Andrew Cuomo, for example, said earlier in the week that the Empire State's bars, restaurants and gyms will be required to close at 10 p.m. each night beginning Friday.

Less than two weeks before many American families celebrate Thanksgiving, New York will also limit indoor gatherings at private residences to no more than 10 people beginning Friday.

—Thomas Franck

Shares of DraftKings popped more than 10% in premarket trading after the sports gaming company reported a better-than-expected third quarter and said it had more than 1 million active users.

DraftKings reported a loss of 57 cents per share on $133 million in revenue for the quarter. Analysts surveyed by Refinitiv had expected a loss of 61 cents per share and $132 million in revenue. The company also hiked its full-year guidance.

The company's active users were up 64% year over year. CEO Jason Robins said in a press release that the return of the NFL and other major sports during the third quarter helped to drive engagement.

— Jesse Pound, Jessica Bursztynsky

Shares of the Walt Disney Company popped 4% in premarket trading after the media conglomerate reported strong growth in Disney+, its relatively new streaming service.

Disney, which booked a far-smaller-than-expected earnings loss for the fourth quarter, said it now has more than 73 million paid subscribers for its streaming platform. The figure is a notable accomplishment for Disney, which initially set a goal for the platform to reach 60 million to 90 million subscriptions by 2024.

Though the company's equity had risen as much as 6% in extended trading Thursday evening after its fourth-quarter results, comments from CFO Christine McCarthy kept a lid on the exuberance by announcing that Disney would forego its semi-annual dividend in January.

She said that Disney would continue with its dividend in the long term.

—Thomas Franck

JPMorgan's top-rated strategist Marko Kolanovic said in a note Friday that the positive news on the Pfizer-BioNTech vaccine candidate would allow investors to look though rising Covid-19 cases this winter and lead to outperformance for value assets. Kolanovic said the S&P 500 could rise 13% by early 2021.

CNBC Pro subscribers can read more about Kolanovic's outlook here.

— Jesse Pound

With Friday's expected gains, U.S. stocks were set to end an otherwise volatile week on a high note.

Stocks ripped higher on Monday after Pfizer and BioNTech announced trial results that suggested their vaccine candidate could be 90% effective against Covid-19.

The announcement was seen on Wall Street as a sign that the pharmaceutical industry may soon have a viable way to control a disease that has derailed the U.S. economy for much of 2020 and has killed more than 230,000 Americans.

Cyclical stocks popped on the news and led the Dow to its biggest one-day rally in five months with a gain of 834 points. Boeing and JPMorgan Chase — two stocks that tend to rise and fall with economic forecasts — are up 12% and10.1%, respectively, week to date.

The Dow is up a robust 2.67% for the week through Thursday's close.

The outperformance of the blue-chip names has for much of the week spelled underperformance for stay-at-home trades like Amazon and Netflix, which saw marked gains earlier in the year when shutdowns began.

Thanks to the enormous market caps of some of these so-called growth stocks, the S&P 500 and Nasdaq Composite have lagged the Dow's performance with multiple days in the red. Still, the S&P 500, which fell 1% on Thursday, is on track for a gain of at least 0.8% this week.

The Nasdaq Composite is down 1.5% over the same period.

—Thomas Franck

U.S. stock futures pointed to gains across the board to finish the trading week as the cyclical rally that began the week after Pfizer's vaccine announcement appeared to resume on Friday.

Dow futures rose about 215 point as of 7:25 a.m. ET, pointing to a gain of about 220 points when regular trading resumes in about two hours. S&P 500 futures added 0.7% and Nasdaq 100 futures climbed a similar 0.8%.

Stocks that rise and fall with the overall health of the U.S. economy are known as cyclical stocks and typically include industrials, materials and banks. Those stocks had paused their rally on Thursday but had begun to outperform again in the premarket session Friday.

Industrials giant Boeing rose 1.3% in premarket trading while American Airlines added 1.2% and cruise-operator Carnival climbed 2.5%.

—Thomas Franck