Stocks close higher Friday, Nasdaq posts fourth week of gains

Pro Picks: Watch all of Friday's big stock calls on CNBC
Pro Picks: Watch all of Friday's big stock calls on CNBC

Stocks rose Friday and capped off a winning week fueled by better-than-expected economic growth and a pop in Tesla shares.

The Nasdaq Composite jumped 0.95% to settle at 11,621.71, while the S&P 500 gained 0.25% to close at 4,070.56. The Dow Jones Industrial Average added 28.67 points, or 0.08%, to finish at 33,978.08.

All the major averages posted a positive week and are on pace for a month of gains. The tech-heavy index rose 4.32% and closed out its fourth week of gains. It's on pace for its best monthly performance since July. The S&P and Dow added 2.47% and 1.81%, respectively, this week.

Earnings season pressed on, with strong guidance boosting American Express shares by 10.5% despite a top-and bottom-line miss. Some chip stocks rose even as Intel slumped more than 6% on a dismal earnings report that missed expectations.

Tesla rose 11% Friday, and more than 33% for the week after reporting record revenue. It marked the electric vehicle stock's best weekly performance since May 2013.

So far this year, markets have bucked 2022's selloff trend. The Dow is up 2.5%, while the S&P has gained 6%. The Nasdaq has surged 11%.

"We're putting the final touches on an extremely strong January on the heels of lower inflation, and an economy that's hanging in there," said Ryan Detrick, chief market strategist at Carson Group. "We're not out of the woods though. We've still got the Fed next week, and they might want to throw some water on this rally."

Investors weighed more economic data Friday ahead of next week's Federal Reserve policy meeting. The personal consumption expenditures price index, excluding energy and food, showed prices rose 4.4% from a year ago, the Commerce Department said, and in line with the Dow Jones estimate. So-called PCE is a preferred inflation gauge for the Fed.

A better-than-expected fourth-quarter gross domestic product report Thursday also helped stoke hopes that the Fed may manage a soft landing.

These are some of the last data points before the central bank's widely expected 25 basis point hike.

Lea la cobertura del mercado de hoy en español aquí.

Stock finish higher, post winning week

All the major averages capped off a winning week on Friday.

For the session, the Nasdaq Composite jumped 0.95% to settle at 11,621.71, while the S&P 500 gained 0.25% to close at 4,070.56. The Dow Jones Industrial Average added 28.67 points, or 0.08%, to finish at 33,978.08.

— Samantha Subin

Mizuho says revenue downside looks limited for Meta Platforms in 2023

Meta Platforms looks setup for success heading into earnings season, according to Mizuho.

"4Q consensus tracking inline to better," wrote analyst James Lee in a note to clients Thursday. "Our ad checks with leading agencies show that META's 4Q22 revenue appears on-track, especially based on seasonality analysis that shows a high correlation over the past few quarters."

Lee said the stock should see upside on its margins, given that Meta Platform's is notoriously known for guiding higher on its expenses.

Going forward, he also views consensus estimates for the first quarter as "reasonable," especially as foreign exchange headwinds ease. Lee also projects limited downside to 2023 estimates.

"We view the revenue growth downside for FY23 to be limited at 5% YoY, comping against three negative quarters in FY22," he wrote. "At the same time, we see positive leading indicators in operating metrics as ad volume has been accelerating for the past 5 quarters due to improved user engagement.

More ad agencies optimizing Meta Platform's Reels product in 2023 could also help with monetization, he said.

— Samantha Subin

Lucid surges more than 40%, halted multiple times

Tesla is not the electric vehicle stock surging on Friday, as shares of Lucid have jumped more than 40% in wild trading.

The stock has been halted for volatility multiple times for volatility during the trading session. The gain has pushed Lucid's market cap back above $20 billion.

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Shares of Lucid have been halted multiple times on Friday.

— Jesse Pound

S&P 500 reaction to a dollar rally could signal equity strength

How stocks handle a bounce in the U.S. dollar could be a sign of strength for markets and hint that the January rally may last.

The U.S. dollar surged in 2022, with the dollar index hitting a peak of 114.78 in September. At the same time, stocks have sold off due to the dollar strength, its impact on U.S. Treasury yields and what it may mean for companies with a global footprint.

But since September, the dollar index has slipped and is now nearing a range that could lend support to the S&P 500.

CNBC Pro subscribers can read more here.

—Carmen Reinicke

Stocks on track for decent gains on Friday

With one hour left in trading, the major market market averages are on pace to end the week on a positive note.

The Nasdaq Composite is leading the way with a gain of 1.3%. The S&P 500 and Dow are up 0.7% and 0.5%, respectfully.

Small cap stocks are enjoying a successful day as well, with the Russell 2000 up 0.6%.

— Jesse Pound

Baird views messaging apps as 'another leg of growth' for Meta Platforms

Monetizing messaging apps could present "another leg of growth" for Meta Platforms going forward, according to Baird.

"Business messaging is one of the key investment priorities for Meta, not only facilitating more engagement in the apps, but also unlocking incremental monetization," wrote analyst Colin Sebastian in a note to clients Friday, noting that WhatsApp alone accounts for 2.4 billion daily active users.

WhatsApp alone, he said, could "serve as a significant spring-board to drive higher penetration of messaging ads and paid messages."

According to Baird's estimates, nearly $12 billion in revenues should stem from messaging ads and services in 2023. That figure is expected to more than double by 2027.

After the sharp rise in shares from its November lows, Baird views any pullback as an opportunity to buy shares, saying that the valuation still looks reasonable despite the upward move.

"While we shifted our tactical preference from Alphabet to Meta following the pullback post Q3 earnings, we believe it may take more than just a slight earnings beat to keep shares moving higher near-term," he wrote, adding that he is also "encouraged" by the ongoing rise in Reels use.

— Samantha Subin

S&P 500 earnings on track for 5% decline, FactSet says

The first major wave of earnings season is over, with 29% of the S&P 500 having already reported, according to FactSet.

John Butters, the firm's senior earnings analyst, sent out a note on Friday that shows how the results stack up so far.

  • 69% of S&P 500 companies have positive EPS surprises, and 60% have positive revenue surprises.
  • Earnings are on track to decline 5% year over year, which would be the worst season since the third quarter of 2020. This was calculated by blending the released reports and the projections for remaining companies.
  • Guidance is skewing negative, with 17 S&P 500 companies issuing negative surprises for first quarter EPS guidance compared with just two positive surprises.

— Jesse Pound

Rate cuts may not come until 2024, says Wells Fargo's Han

Don't surprised if rate cuts from the Federal Reserve don't come until early 2024, said Anna Han, equity strategist at Wells Fargo Securities.

"We think that these kind of cuts are going to be a much later in the year story, if not early next year," she said.

Economists in recent weeks have begun projecting a reduction in rates as soon as this year. But Han said that may even prove to be a little too soon given the state of the economy.

While Thursday's GDP data is "encouraging," boosting some some investors' hopes for a soft landing, the labor market paints a starkly different picture.

"There is a little bit of concern that if the economy is continuing to plod along, and labor markets stay strong, perhaps inflation as well may be stickier than expected, and maybe we won't get a pivot in the Fed," she said.

— Samantha Subin

'Even our Intel model going back to 1992 doesn't have a loss this bad,' Citi says

How poor were Intel's fourth-quarter earnings results?

"Even our Intel model going back to 1992 doesn't have a loss this bad," Citi said.

Still, Citi analyst Christopher Danely reiterated a neutral rating on Intel, while lowering estimates, saying that he expects the chip maker will bottom in the first quarter of 2023.

"Yesterday after the close, Intel missed and guided well below Consensus driven by the PC and data center downturn as previewed as sales from both the PC and data center markets (81% of revenue) are expected to decline roughly 20% QoQ," Danely wrote in a Friday note.

"While the company is committed to a cost reduction plan of $8.0-$10.0 billion by 2025, it doesn't help the core manufacturing problem and we believe Intel's ongoing investments on growth markets may not perform as expected," he added.

— Sarah Min

Chevron, Hasbro among stocks making the biggest moves midday

These are some of the stocks moving the most during midday trading:

Chevron —  Chevron shares fell nearly 5% after the company reported quarterly earnings of $4.09 per share ex-items, which was short of the analysts' estimate of $4.38 per share, according to Refinitiv. The company cited asset writedowns and rising costs for the miss.

Silvergate Capital — The crypto-focused bank slid more than 22% after it suspended dividend payments on its Series A preferred stock, in an effort to preserve capital as it navigates recent crypto market volatility. The stock has been falling since November, after crypto exchange FTX, for whom Silvergate held deposits, collapsed in scandal.

Hasbro — Shares tumbled 6.7% after the toymaker warned of weak holiday quarter results and said it would cut 1,000 jobs, which equates to about 15% of its workforce.

Read the full list of stocks moving midday here.

— Tanaya Macheel

Tesla on pace for best week since May 2013

Tesla shares have surged more than 33% this week, putting the electric vehicle stock on pace for its best weekly performance since the week ended May 10, 2013, when it surged 40.72%.

If Tesla closes at these levels it would mark the stock's second-best weekly performance ever. As of 12:40 p.m. EST shares traded about 33.8% higher on the week.

The gains in Tesla shares follow the company's latest earnings report, which showed record revenue and an earnings beat. Shares surged more than 11% Friday.

The sharp uptick in Tesla's stock comes after shares plummeted 65% in 2022 and suffered their worst ever month, quarter and year.

Gains in Tesla also boosted the S&P 500's consumer discretionary sector by more than 2%.

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Tesla is on pace for its best week since May 2013

— Samantha Subin

Goldman Sachs downgrades Steel Dynamics, argues recent outperformance limits future upside

Goldman Sachs is moving to the sidelines on Steel Dynamics, arguing that the company's recent outperformance and strong earnings have made it less underappreciated.

Analyst Emily Chieng downgraded the stock to neutral from buy while also increasing the price target by $4 to $118. The new price target reflects a 2.8% downside from Thursday's close, but an upside of 6.9% from where it closed Wednesday.

The stock traded down more than 1% Friday, after rising 10% during Thursday's session on the back of Wednesday's earnings report. It hit briefly hit a 52-week high Friday.

Chieng said the stock has rallied more than 57% since she first upgraded the stock in October, outperforming steel peers at around 37% and the S&P 500 at nearly 8%.

She said the share price now better reflects the strength of its business model and its future outlook following the latest earnings report. Steel Dynamics beat revenue and per-share earnings estimates from analysts polled by FactSet, with per-share earnings coming in 16% higher than the average analyst anticipated.

"While we remain constructive on both the broader outlook for US steel demand and the business fundamentals, we now see limited upside," she said in a note to clients Friday.

— Alex Harring

Big rally for American Express as customer spending hits record levels

American Express shares surged more than 10% on Friday, as the credit card company's forecast is well ahead of Wall Street's expectations. Revenue is expected to grow 15% to 17% in 2023 from the prior year, while earnings climb to a range of $11-$11.40 per share.

On an earnings conference call, CEO Steve Squeri was extremely upbeat about the current trends that he's seeing. To Squeri, it doesn't feel as though we're on the brink of a recession.

"We can only run the business and forecast the business on what we're seeing, and what we're seeing is we're still seeing high consumer growth," Squeri said, according to a FactSet transcript.

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American Express shares are up about 32% from their 52-week low in October.

Loan loss provisions were higher than expected in the latest quarter, but American Express said that's a function of higher loan balances, not any fears about consumers falling behind on payments. Delinquency rates are still below pre-pandemic levels.

Rivals Visa and Mastercard also were upbeat about consumer spending levels. Visa shares were higher in trading, while Mastercard shares slipped less than 1%.

Visa's fourth quarter shows company is 'resilient and ready,' Morgan Stanley says

Visa's beat on the top and bottom lines for its fiscal first quarter is not just a matter of one last strong period before a slowdown, according to Morgan Stanley.

Analyst James Faucette said in a note to clients that the credit card company appears "resilient and ready," with spending volume still running well above pre-pandemic levels.

"Trends remain fairly stable with expense levers ready if environment were to worsen. We see new flows and value-added-services providing support, with cross-border driving potential upside," the note said.

Faucette also highlighted global payments service Visa Direct as another bright spot for the company.

Morgan Stanley hiked its forecasts for earnings and revenue for Visa, and bumped the price target on the stock to $288 per share from $284. Visa's stock was up 2% in midday trading, hovering above $229 per share.

— Jesse Pound

Lithium Battery ETF on pace for best week since March 2022

The Global X Lithium & Battery Tech ETF was last up more than 7% week to date and headed for its best weekly performance since March 18, 2022, when it jumped 8.01%.

This also marks the fourth straight weekly gain for the ETF, which got a lift from Tesla, up more than 24% and on pace for its best week since January 2021.

Rivian and Albemarle have risen more than 13% and 12% this week, adding to the ETF's gains.

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LIT is on pace for its best week since March 2022

— Samantha Subin

UBS upgrades General Mills to buy

UBS upgraded General Mills to a buy from neutral rating, saying that the stock's recent underperformance offers a good entry point for investors.

Although the Pillsbury and Cheerios maker's stock has fallen 12% since mid-December, compared a 5% loss for peers, UBS said it's optimistic about the company's outlook. The bank also believes investor concerns about the stock are overblown.  

UBS lifted its price target to $88 from $85, implying almost 15% upside from Thursday's closing price.

CNBC Pro subscribers can read more about the upgrade here.

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General Mills stock

— Hakyung Kim

62% of Friday's 52-week highs in the S&P 500 are also all-time highs

Almost two thirds of the 13 stocks in the S&P 500 that touched 52-week highs in early Friday trading were also trading at all-time highs. The list is broadening out from the energy/materials/resources focus of recent days. One of 13, Caterpillar, is also in the Dow Industrials.

Other notable highs outside the 500:

— Scott Schnipper, Christopher Hayes

Pending home sales rise in December for the first time in 6 months

Pending home sales increased in December, marking a turn from half-a-year of cooling and flying in the face of economists who expected another month of contraction.

Pending sales were up 2.5% in December from November, according to the National Association of Realtors' data. That marks the first time sales grew month-over-month since May.

Economists polled by Dow Jones, meanwhile, expected pending home sales to fall 1% in December from November.

Still, pending sales volume was down in all regions compared to the same month a year ago.

"This recent low point in home sales activity is likely over," said Lawrence Yun, the association's chief economist. "Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market."

— Alex Harring

Chip stocks shake off Intel's fourth-quarter whiff

Investors appear to be reading Intel's big fourth-quarter miss as a company-specific issue rather than a warning sign for chip stocks more broadly.

Even with Intel down more than 7% on the day, the VanEck Semiconductor ETF is down less than 1%. Shares of Nvidia and NXP Semiconductors are up more than 1%, while Micron and Marvell Technologies are also up for the day.

Shares of Intel are still positive for the year despite Friday's declines. The VanEck ETF is up 18% in 2023.

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This popular semiconductor ETF is holding on to its strong start to 2023 despite Intel's struggles.

—Jesse Pound

Michigan consumer sentiment index comes in higher than expected

Consumer sentiment data from the University of Michigan for January came in stronger than anticipated.

January's reading came in at 64.9, slightly above the consensus estimate of 64.6 from economists polled by Dow Jones. The index quantifies the view of current and future economic conditions.

— Alex Harring

Ralph Lauren shares dip after BMO downgrades stock

Ralph Lauren shares dropped 2% following a downgrade to underperform by BMO Capital Markets.

"Although we believe RL has among the group's strongest brand/management team who essentially architected the Sell Less, Charge More strategy, shares are almost back to pandemic-peaks despite lowered results," analyst Simeon Siegel wrote in a client note.

To be sure, BMO raised its price target "given the inflection in FX." Yet the new price target of $100 implies 19.49% downside from the previous closing price of $124.21.

CNBC Pro subscribers can read more about the downgrade here.

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Ralph Lauren stock

— Hakyung Kim

S&P 500 opens lower

The S&P 500 opened lower Friday, dipping 0.16%. The Nasdaq Composite fell 0.18% and the Dow Jones Industrial Average last traded flat.

— Samantha Subin

D.A. Davidson projects more Apple diversification outside China

D.A. Davidson is betting that Apple will make a bigger effort to diversify its supply chain outside China, after lockdowns in the country briefly shuttered its main supplier last year.

"We continue to see China-related risk as the most significant for the stock and expect the company to accelerate its effort to diversify its footprint," wrote analyst Tom Forte in a note to clients this week.

He said that he expects the March quarter to seize lost sales from the December period.

According to the firm, Apple could also take a que from Samsung, which builds 75% of its smartphones outside of China. Across the board, China accounts for 70% of all smartphone manufacturing, and 95% of Apple's products, the firm said.

"This gives us confidence that Apple can be much more diversified in the future," Forte wrote.

— Samantha Subin

Key Fed inflation measure up 4.4%, in line with estimate

The core personal consumption price expenditures index, which the Federal Reserve considers a key inflation gauge, rose by 4.4% from a year ago in December, the Commerce Department reported Friday. That was in line with the Dow Jones estimate.

On a monthly basis, core PCE, which strips out food and energy, increased 0.3%.

The headline number increased 5% on an annual basis and 0.1% monthly.

Also, the report showed that personal income rose 0.2% while personal spending was down 0.2%, compared to respective estimates for 0.2% and -0.1%.

—Jeff Cox

Stocks making the biggest moves premarket

These companies are making headlines before the bell:

  • Intel — The chipmaker suffered a 9% loss in its shares in early morning trading after its latest financial results missed analysts' estimates and showed significant declines in the company's sales, profit and gross margin. The company also forecasted a loss for the current quarter.
  • Chevron — Shares dipped more than 1% after Chevron reported its latest earnings results. The oil producer missed earnings expectations, but topped revenue forecasts, according to consensus estimates from Refinitiv. The shares had gained on Thursday after Chevron raised its dividend and announced a buyback plan.
  • American Express — Shares of the credit card company rose 5% despite weaker-than-expected results for the fourth quarter. However, the credit-card company's guidance for 2023 was better than anticipated for earnings and revenue. American Express also said it would be increasing its dividend by 15%.

Check out the full list here.

— Sarah Min

Silvergate Capital drops 8% premarket

Shares of Silvergate Capital slid about 8% in premarket trading after the company suspended its Series A preferred stock dividend, in an effort to preserve capital as it navigates recent crypto market volatility. They fell as much as 10% earlier in the morning.

The bank to crypto business has suffered a nearly 19% decline in its shares this year, while equities and cryptocurrencies have enjoyed a January rally. The descent began in November, after crypto exchange FTX, for whom Silvergate held deposits, collapsed in scandal.

— Tanaya Macheel

American Express rises on strong guidance

American Express shares rose 5% before the bell after sharing guidance that surpassed Wall Street's expectations.

The credit-card company said it expects earnings to range between $11 and $11.40 a share this year. Analysts had called for EPS of $10.53 a share.

American Express also said revenues for the year should grow between 15% and 17% over 2022. FactSet estimates called for an 11.1% rise.

The move in shares came despite a miss on both the top and bottom lines.

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American Express shares gain on strong guidance

— Samantha Subin

Analysts pull no punches about Intel

Analysts were blunt in their assessment of Intel's weak results and disappointing guidance:

"That was indeed something," Cowen analyst Matthew Ramsay wrote in a client note. "Somehow… It was much worse than feared."

"No words can portray or explain the historic collapse of Intel, with management attempting to blame a worst-ever PC inventory digestion dynamic and macro/China/enterprise to an over 20% q/q decline in sales," wrote Rosenblatt's Hans Mosesmann, who rates the stock a sell.

You can read the full analyst recap on CNBC PRO here.

— John Melloy

Chevron reports earnings miss

Chevron's quarterly EPS came in at $4.09, short of the consensus $4.38 estimate collected by Refinitiv. Revenue was higher though at $56.47 billion, above the $54.63 billion estimate from Refinitiv. The shares traded slightly lower in the premarket.

Chevron shares jumped nearly 5% on Thursday after announcing a dividend hike and $75 billion buyback plan.

— John Melloy

(Correction: An earlier post misstated that Chevron's revenue missed.)

Hasbro off by 5% in the premarket

Hasbro was also among the worst pre-market performers in the S&P 500, down 5%. The toy maker warned that revenue in the crucial fourth quarter would be down 17% from a year ago. Hasbro also said it would cut 15% of its workforce to save money.

— John Melloy

Intel and chip names lead pre-market losses

Intel's poor results and outlook sent the shares down more than 9% to lead premarket losers in the S&P 500. Another chip name, KLA Corp., was down more than 5% after warning earnings and revenue this quarter could fall short of expectations.

Advanced Micro Devices and Nvidia fell in sympathy, with each down around 2%.

— John Melloy

Intel, Visa making after hour moves

Stocks moved in after hours trading Thursday following quarterly earnings releases.

Intel — Shares of Intel plunged 8.2% after the company reported earnings that missed on the top and bottom lines

Visa — Visa shares rose 1.5% after the company reported an earnings beat.

Read more here.

—Carmen Reinicke

Buy ConocoPhillips ahead of earnings, Adami says

ConocoPhillips is worth buying ahead of its earnings report next week, according to Guy Adami, director of advisor advocacy at Private Advisor Group.

Adami said investors can "learn" from energy companies that are outperforming in the current market on CNBC's "Fast Money." Energy was the only S&P 500 sector to end 2022 positive.

The oil stock is up 5.6% so far in 2023 after advancing 63.5% last year. ConocoPhillips' fourth-quarter earnings call is scheduled for Feb. 2, according to its investor relations page.

— Alex Harring

Bed Bath & Beyond continues sliding after hours

Meme stock Bed Bath & Beyond continued sliding after hours, shedding 1.6%.

Investors sold off in trading Thursday after the company said it didn't have enough cash to pay down its debts and had defaulted on its credit lie. It bolstered fears of a bankruptcy, coming weeks after the retailer warned one could be in the cards.

The stock ended Thursday's session down 22%.

Bed Bath & Beyond's latest move comes around two years after GameStop first surged, helping set off the "meme" stock phenomenon.

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Bed Bath & Beyond stock chart

— Alex Harring

Stock futures slip Thursday evening

Stock futures fell Thursday evening as investors parsed earnings reports and awaited more economic data due Friday.

Futures tied to the Dow Industrial Average fell 49 points, or 0.14%. S&P 500 futures and Nasdaq 100 futures were down 0.31% and 0.53%, respectively. Shares of Intel slumped more than 9% in after-hours trading following a dismal earnings report that missed on the top and bottom lines.

—Carmen Reinicke