Dow closes more than 100 points higher on Friday, but notches third straight week of losses on rate fears: Live updates

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

U.S. stocks were mixed on Friday as stubbornly high inflation and a rebound in rates continued to weigh on investor sentiment.

The Dow Jones Industrial Average rose 129.84 points, or 0.39% to end at 33,826.69. The 30-stock index rallied from lows of the day boosted by shares of Amgen and United Health, which gained 2.69% and 2.41% respectively.

The S&P 500 shed 0.28% to end the day at 4,079.09, and the Nasdaq Composite fell 0.58% to close at 11,787.27. Energy was the biggest laggard. Devon Energy dropped 4.29%, dragging down the S&P 500.


Yields on the 10-year and 2-year U.S. Treasury bonds hit levels not seen since November, weighing on equities early in the session.

Stocks are mixed on the week. The Dow ended down 0.13% for the week, its third negative week in a row — a first since September. The S&P 500 has shed 0.28% for the week, its second negative week in a row. The Nasdaq rose 0.59% on the week.

Investors continue to worry about how the economy and equities will hold up as the Federal Reserve hikes rates to tame stubbornly high inflation. In a Friday speech, Federal Reserve Governor Michelle Bowman said there's a long way to go before the central bank reaches its target of 2% inflation.

"We have been in a very contentious tug of war between the equity markets and the Treasury markets," said Art Hogan, chief market strategist at B. Riley. While Treasurys are signaling that the Fed is going to hold rates higher for longer, equities are not listening and instead looking for a soft landing.

"Equity investors seem to be looking through a couple more rate hikes and looking forward to a pause," he added.

The moves came after major averages shed more than 1% on Thursday, after the Labor Department said the producer price index — an inflation metric that tracks wholesale prices — rose 0.7% last month. That was more than economists expected.

Next week, investors will continue to watch earnings season for signs of consumer strength or weakness. Home Depot, Walmart and Etsy are scheduled to report results next week.

Lea la cobertura del mercado de hoy en español aquí.

Stocks end Friday mixed

U.S. stocks were mixed on Friday as stubbornly high inflation and a rebound in rates continue to weigh on investor sentiment.

The Dow Jones Industrial Average rose 130 points, or 0.39%, rallying from lows of the day boosted by shares of Amgen and United Health, which each gained more than 2%.

The S&P 500 shed 0.27% to end the day at 4,079.23, and the Nasdaq Composite fell 0.58% to close at 11,787.27

Stocks are mixed on the week as well. The Dow ended down 0.13% for the week, its third negative week in a row — a first since September. The S&P 500 has shed 0.27% for the week, its second negative week in a row. The Nasdaq rose 0.59% on the week.

—Carmen Reinicke

Dow rallies in final hour of trading

Stocks were mixed Friday, but the Dow rallied heading into the final hour of trading for the week.

The Dow Jones Industrial Average rose 127 points, or 0.38%, rallying from lows of the day boosted by shares of Amgen and United Health.

The S&P 500 shed 0.57%, and the Nasdaq Composite fell 1%. Yields on the 10-year and 2-year U.S. Treasury bonds hit levels not seen since November, weighing on equities.

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—Carmen Reinicke

Market's lack of reaction to inflation data may suggest a shift

"Markets have settled following an impressive start to the year, though the lack of a reaction to inflation data or "good news is bad news" mentality suggests a dramatic shift in the complexion of markets relative to last year," said Mark Hackett, chief of investment research at Nationwide in a Friday note.

He added that Friday's trading will determine the week's overall direction - the S&P 500 is relatively flat on the week.

"Leadership has shifted to the risk-on asset classes, with technology and small caps leading, and the Dow underperforming the S&P 500 this year by the largest gap since 1934," he said. "Bond investors, however, remain reactive, with the 10-year Treasury yield up 0.16% this week to 3.90%, the highest level since November."

The shift is good news for bulls, who are looking at a narrative backed by a stronger economy than expected and a market that's less reactive to the economy, inflation data or rising rates.

—Carmen Reinicke

This week's top gainers include Paramount Global

Paramount Global is one of the best-performing stocks this week, gaining about 9% through Friday's open. The stock got a boost this week after the company said it would raise prices for its Paramount+ subscription service.

This week's advance brought Paramount shares up nearly 40% for 2023.

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Paramount this week.

Click here to see how other top performers fared this week.

— Fred Imbert

Stocks making the biggest midday moves

Here are some of the companies making the biggest moves in midday trading:

  • Deere — The stock gained 8.1% after Deere reported earnings-per-share of $6.55 for its fiscal first quarter, topping the $5.57 expected by analysts, per Refinitiv. Revenue came in at $11.4 billion, versus the $11.28 billion expected.
  • Airbnb — The vacation rental stock dropped 7.6%, a day after surging 13.35% on a stronger-than-expected fourth-quarter earnings report. Some analysts remained cautious on the stock, citing risks including competition and slower-than-expected consumer adoption of alternative accommodations.
  • Moderna — Shares of the biotech company fell 5.1% after its influenza vaccine candidate posted mixed results in clinical trials.

To see more stocks moving during midday trading, read the story here.

— Michelle Fox

UBS sees only one place for Nordstrom shares to go: Down

UBS analyst Jay Sole reiterated his sell rating on Nordstrom shares on Friday, saying the sentiment on the stock is "bearish, but has room to go lower."

Nordstrom shares have risen nearly 36% year to date in the wake of activist investor Ryan Cohen's entry into the stock. Sole expects the stock will give up those gains after the department store cuts its outlook for fiscal 2023 and investors begin to rethink their position.

Sole predicts the company has seen a slow start to its fiscal first quarter, which likely means its inventory levels still need to be "right sized." This makes it unlikely that Nordstrom can improve its profitability, as margins will remain under pressure. According to Sole, consumers likely see Nordstrom's prices as too high right now and are shopping at discounters that offer better values.

Nordstrom shares are trading down about 1% on Friday.

—Christina Cheddar Berk

JPMorgan downgrades C.H. Robinson

C.H. Robinson has a tough road ahead in 2023, according to JPMorgan. 

Analyst Brian Ossenbeck downgraded the stock to underweight from neutral. The analyst named rail congestion fees, truckload rate cycles and coal volumes as headwinds for the company in 2023 despite an improving industry outlook. 

CNBC Pro subscribers can read more about his downgrade here.

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C.H. Robinson stock

— Hakyung Kim

Stocks trading down but well off lows at midday

Stocks were still in negative territory but well off lows of the day at 12:00 p.m. ET on Friday.

The S&P 500 shed 0.75%, and the Nasdaq Composite fell 1.18%, weighed down by sliding shares of AirBnb, Rivian and Moderna.

The Dow Jones Industrial Average was down 44 points, or 0.13%, but well off lows of the day.

—Carmen Reinicke

Wells Fargo downgrades Generac shares

Generac may be a bit too optimistic about its prospects going forward, according to Wells Fargo.

Wells Fargo downgraded the stock to equal from overweight, noting the power generator maker could fall short of its aggressive 2023 guidance.

Generac is projecting that its revenue will grow more than 30% by the end of the year, which the firm says may be too steep of a hill to climb.

CNBC Pro subscribers can read more about the downgrade here.

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Generac Holdings stock

— Hakyung Kim

Lithium ETF poised for third straight down week

The Global X Lithium & Battery ETF (LIT) is down more than 4% Friday, on pace for back-to-back losses and its worst day since Dec. 5, 2022. LIT is down 3.6% week-to-date, on pace for its third weekly loss in a row, although it remains 12% higher on the year.

  • Leading LIT to the downside are Albemarle Corp (ALB), Livent Corp (LTHM) and Sociedad Quimica y Minera de Chile (SQM), all down at least 7% or more. Rivian (RIVN), Freyr Battery (FREY) are each down 2% or more.

 — Scott Schnipper, Nick Wells

DoorDash reverses course, slides after earnings

DoorDash's post-earnings pop proved to be a short one on Friday, as the stock's premarket gains quickly dissipated once regular trading began. The stock was last down about 4%.

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DoorDash's stock quickly gave up early gains

DoorDash's revenue was up nearly 40% year over year in the fourth quarter, and its results and guidance for adjusted EBITDA topped expectation, according to FactSet's StreetAccount.

However, the company's net loss more than tripled compared to the same period a year earlier. The company's stock-based compensation, which is not included in the adjusted EBITDA figure, also rose sharply in 2022.

— Jesse Pound

Natural gas falls to a 3-year low

Natural gas is down 8.7% this week, falling to a 3-year low on Friday morning. It is currently trading at $2.283, the lowest level since September 28, 2020 when it traded as low as $2.02. 

The Natural gas ETF has also fallen 4% today, on pace for its worst day since Jan. 3 when it lost 5.47%.

— Hakyung Kim

Fed's Bowman says 'a lot more progress' needed on inflation

Federal Reserve Governor Michelle Bowman said Friday there's still much work to be done before policymakers can feel they have inflation under control.

"I think there's a long way to go before we reach our 2% inflation objective and I think we'll have to continue to raise the federal funds rate until we see a lot more progress on that," Bowman said during an appearance in Tennessee, according to Reuters

The remarks come a day after regional presidents James Bullard of St. Louis and Loretta Mester of Cleveland said they advocated for a half-point rate hike at the last meeting, rather than the quarter-point move eventually approved.

Data this week has indicated that after abating in recent months, inflation is moving up again.

"We were seeing some progress in lowering inflation at the end of last year, but some of the data that we're seeing early this year is not tracking with consistently lowering inflation in a way that I would like to see," Bowman said.

—Jeff Cox

Leading indicators down 0.3%, still indicating recession ahead

Forward-looking economic data is still pointing to a recession ahead, though perhaps less so, The Conference Board reported Friday.

The board's Leading Economic Index registered a decline of 0.3%, in line with market expectations and at least on relative terms better than the 0.8% slide in December. On a six-month basis, that puts the LEI down 3.6%, compared to the 2.4% contraction over the previous period.

"While the LEI continues to signal recession in the near term, indicators related to the labor market —including employment and personal income — remain robust so far," said Ataman Ozyildirim, the Conference Board's senior director of economics.

"The Conference Board still expects high inflation, rising interest rates, and contracting consumer spending to tip the US economy into recession in 2023," he added.

—Jeff Cox

Investor optimism in latest weekly AAII survey falls back below average

Bullish opinion (that stocks will rise in the next six months) in the latest weekly survey by the American Association of Individual Investors pulled back below the historical average, after rising above that bar last week for the first time in over a year.

Bulls dropped 3.4 points to 34.1% (the historical average is 37.5%), neutral opinion fell 0.4 point to 37.1% and bears grew to 28.8, up 3.8 points.

Neutral sentiment (that stocks will stay essentially unchanged over the next six months) remains above its historical average of 31.5% for a seventh straight week, AAII said. That's the longest stretch of above-average neutral sentiment since December 2021 and January 2022, when stocks were at an all-time high.

Bearish sentiment is below its historical average of 31.0% for only the fifth week out of the past 65, and is below average in back-to-back weeks for the first time since October-November 2021, AAII said.

Similarly, the difference between bulls and bears is 5.3 points -- the first time optimism topped pessimism in two consecutive weeks since November 2021.

Sentiment surveys from the AAII and Investors Intelligence are contrarian indicators. Too much bullishness equals heightened risk that stocks will fall, and excessive pessimism equals diminished risk stocks will go lower and more likelihood prices will rebound.

— Scott Schnipper

Stocks fall at Friday's open amid higher rates

U.S. stocks slipped on Friday as stubbornly high inflation and a rebound in rates continue to weigh on investor sentiment.

The Dow Jones Industrial Average fell by 119 points, or 0.35%. The S&P 500 and Nasdaq Composite dipped by 0.54% and 0.59%, respectively. Yields on the 10-year and 2-year U.S. Treasury bonds hit levels not seen since November, weighing on equities.

—Carmen Reinicke

Import prices fell slightly more than expected

Prices for imported goods fell again in January, dropping 0.2% on a slide in fuel prices. The decline was slightly more than the Dow Jones estimate for a 0.1% drop and continued a streak of negative readings that began in June 2022, the Labor Department reported Friday.

Imported fuel prices tumbled 4.4% while imports excluding fuel rose 0.3%. Prices for food, feeds and beverages increased 1.3%.

Despite the streak of declines, import prices are up 0.8% over the past year. Export prices rose 0.8% on the month and are up 2.3% on an annual basis.

—Jeff Cox

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell:

  • DraftKings — DraftKings shares surged more than 8% after the sports betting company posted fourth-quarter results that beat expectations. The company reported a loss of 53 cents per share on revenue of $855 million. Analysts polled by Refinitiv had anticipated a loss of 59 cents per share on revenue of $800 million.
  • AutoNation — Shares rose 4% after AutoNation surpassed profit and sales expectations in its fourth quarter. The car dealership company reported adjusted earnings of $6.37 per share on revenue of $6.7 billion. This was better than consensus estimates for $5.83 earnings per share on revenue of $6.52 billion, according to Refinitiv.
  • Roku — Shares of the streaming device company rose more than 2% after Bank of America double upgraded the stock to buy from underperform. The Wall Street firm said Roku is on a path to revenue and margin improvement and that the company has been performing better than the broader advertising market. Roku jumped 11% Thursday after the company reported a smaller-than-expected loss in its latest quarter.

Read here for more early morning movers.

— Sarah Min

Retail stocks may be overextended, Loop Capital says

The resilience of the U.S. consumer may not be as positive for retail stocks as their recent rally implies, Loop Capital analyst Anthony Chukumba said in a note. And that could create downside risk for the sector heading into the last leg of earnings season.

"We saw several signs in the latest macroeconomic data that increase the possibility the US economy at worst achieves a 'soft landing' in 2023—and perhaps avoids a recession altogether. While we continue to be incrementally more bullish on the retail sector's fundamental prospects, with many of our covered stocks already up significantly year to date we caution investors to tread lightly ahead of the bulk of F4Q 2022 earnings reports," the note said.

The SPDR S&P Retail ETF (XRT) up 17% year to date.

— Jesse Pound

Treasury yields climb to highest level in 3 months

Yields on the 10-year and 2-year U.S. Treasury bonds ticked higher Friday as investors sold the assets, worried about rising inflation and the potential for larger rate hikes from the Federal Reserve.

The 2-year yield hit a high of 4.718%, its highest level since Nov. 8. The 10-year also rose, hitting 3.929%, the highest level since Nov. 10.

—Carmen Reinicke

Tesla shares fall 1% in premarket trading

Shares of Tesla are continuing to slip after the electric vehicle maker had to issue a recall for more than 360,000 cars due to an issue with its driver-assistance software.

In premarket trading Friday, the stock slid more than 1%. The futures trading comes after Tesla fell nearly 6% during Thursday's session.

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—Carmen Reinicke

Bearish sentiment at highest since April 2022, Evercore ISI says

Survey data from Evercore ISI showed bearish market sentiment reached its highest level since April, with only 31% of respondents expecting the next 10% move in the market to be higher.

"Equity market worries shifted back to the Fed from profit growth and economic growth as the economy recently appears stronger. Concern over inflation and rates also rose," Evercore said in a note. "Recent stronger economic data are shifting perceived risks back to the Fed, inflation, and interest rates with valuation and geopolitical risk also ticking up."

— Fred Imbert, Michael Bloom

Bullard's comments aren't a big shift in his view, Vital Knowledge says

Adam Crisafulli of Vital Knowledge thinks investors need to keep things in perspective after St. Louis Fed President James Bullard's latest comments.

On Thursday, Bullard said he'd advocated for a 50 basis-point interest rate hike at the last meeting, adding that he could see a rate increase of that magnitude next month.

However, Crisafulli noted Friday morning that "Bullard's 3pmET tape bomb hardly represented a sharp shift in his view, and the main Fed adjustment remains the length of the cycle ceiling, not its height."

"What was most notable about Bullard was that the Fed's biggest hawk did NOT advocate for a ceiling far above what the existing dot plot stipulates despite the string of hot/strong Jan eco data in the last couple of weeks," Crisafulli noted.

— Fred Imbert, Michael Bloom

JPMorgan strategist says market is seeing the 'overheat before the retreat'

A lot of the market selloff might be in, but optimism is still running too high, according to JPMorgan Asset Management global market strategist Meera Pandit told CNBC on Thursday.

"This is probably the overheat before the retreat in the economy," Pandit said on CNBC's "Closing Bell" on Thursday.

Pandit said the market right now is rallying off of strong economic data, overshoot on jobs, the latest consumer price index report and producer price index data, retail sales and industrial production. The strategist warned that consumer spending might weaken in the next several months, noting that stimulus checks and saving rates are waning.

"We're either going to see slower growth and a slowdown and disinflation, or, if growth is resilient, that means that inflation might have a little bit more room to run and therefore the Fed has to hike," Pandit said. "Either way, that's a little bit pessimistic for risk assets."

Pandit said the firm is seeing an environment of downward revisions in the U.S., noting that valuations of U.S. stocks are comparatively expensive to international stocks, which she said are trading at a 30% discount.

– Pia Singh

Dow heads for a losing week, but Nasdaq remains in positive territory

Stocks are mixed on a weekly basis following Thursday's action.

The Dow Jones Industrial Average is the laggard of the three, posting a 0.51% loss for the week. The 30-stock index is on track for its third consecutive week of losses, a first since its three-week losing streak ended in September.

The Nasdaq Composite is the outperformer, with a 1.18% gain. The tech-heavy index is on track for its sixth positive week in seven.

Finally, the S&P 500 is flat for the week.

-Darla Mercado, Chris Hayes

Stocks making the biggest moves in extended trading

Here are three stocks making headlines after the bell.

DoorDash — The online food delivery platform's shares jumped 7% after it reported a revenue beat and upbeat guidance. The company's fourth-quarter revenue came in at $1.82 billion, topping the $1.77 billion estimated by analysts polled by Refinitiv. Reported losses, however, were greater than analysts' projections, coming in at a per-share loss of $1.65 versus analysts' estimates of 68 cents.

Texas Roadhouse — The restaurant chain's shares dropped about 5%, coming down from a 52-week high during Thursday's trading session. Texas Roadhouse's fourth-quarter earnings and revenue fell below expectations. The restaurant posted 89 cents earnings per share versus the $1.03 estimated by analysts polled by Refinitiv. Revenue came in at $1.01 billion, missing analysts' estimates of $1.02 billion. The company blamed commodity inflation and higher wages for the shortfall.

Moderna — Shares for the biotech company fell 6.7% after its influenza vaccine candidate posted mixed results in clinical trials.

Check out more after hours movers here.

— Hakyung Kim

Stock futures open lower

U.S. stock futures fell on Thursday night.

Dow Jones Industrial Average futures fell by 50 points, or 0.1%. S&P 500 and Nasdaq 100 futures dipped by 0.3% and 0.4%, respectively.

— Hakyung Kim