Stocks tumble on Friday, notching weekly losses, as traders' rate hike fears return: Live updates

Stocks finished lower on Friday and capped off the week with losses.

The S&P 500 edged 0.29% lower to end at 4,398.95, while the Nasdaq Composite dipped 0.13% to close at 13,660.72. The Dow Jones Industrial Average dropped 187.38 points, or 0.55%, to settle at 33,734.88.

All three major also finished the week lower. The S&P dropped 1.16%, while the Nasdaq declined 0.92%. The Dow shed 1.96% for its worst weekly performance since March.

— Samantha Subin

Investors are turning their attention to inflation data in the week ahead, following this week's hot jobs data, to further clarify the path of future monetary policy.

Market participants are hoping next week's release of the June consumer price index on Wednesday, as well as last month's producer price index on Thursday, will show a downward trajectory in inflation after this week's strong ADP data spurred investor fears of further rate hikes ahead.

"CPI is a big number," said James Ragan, director of wealth management research at D.A. Davidson. "You saw the market reaction, that big decline yesterday and then the market coming back a little bit today, just kind of indicates that there's still a lot of discussion about what the interest rate path is going to be, and what the Fed might do. And so, I think the CPI kind of feeds into that."

CNBC Pro subscribers can read the full story here.

— Sarah Min

Data compiled by S3 Partners showed total short interest in the U.S. topped $1 trillion in the first six months of 2023, up from $864 billion at the end of last year.

"This $138 billion increase was made up of $28 billion of increased short selling coupled with a $110 billion mark-to-market increase in the value of shares shorted," wrote Ihor Dusaniwsky, the firm's managing director of predictive analytics.

"While short sellers were actively shorting into a rising market, that does not necessarily mean that they were solely betting on a reversal in an overheated or overbought market," he added. "A significant portion of the short selling was due to an increase in hedge fund leverage as they increased both their long and short exposure."

— Fred Imbert

Markets are poised for a pullback after a strong start to the year, according to Mark Hackett, Nationwide's chief of investment research.

He said that "extended markets and overbought conditions set the stage for a natural and healthy period of consolidation as we approach earnings season."

Despite these expectations, Hackett said the strong first half off is a "good omen" for returns in the back half of 2023.

— Samantha Subin

As macroeconomic uncertainties linger and the Federal Reserve's path to a soft landing becomes more complicated, UBS says fixed income is the place to be.

"With risks to the economy still high, we favor fixed income over equities," said Solita Marcelli, chief investment officer at UBS Global Wealth Management. "We continue to favor high- quality fixed income, including government and investment grade bonds, which stand to gain in the event of a swifter-than-expected economic slowdown."

She added that the strength in the labor market "looks inconsistent" with the central bank's inflation target, and core inflation measures are coming down slower than expected.

— Samantha Subin

Health care and materials stocks are on track to log some of the biggest losses in the S&P 500 for the week.

As of late-afternoon trading, the health care sector is down more than 2.4% for the week. The biggest losers included Align Technology and Merck, last down more than 5%. Vertex Pharmaceuticals, Eli Lilly, Hologic and UnitedHealth were on pace to finish the week 3% lower.

Materials stocks also lagged, pulling the sector down 1.3% for the week, even as sector gained 1.6% on Friday.

The biggest laggards on the sector included Vulcan Materials, Sherwin-Williams and Air Products and Chemicals, last down more than 3%. Martin Marietta sank 4%.

— Samantha Subin

The energy sector outperformed during Friday's trading session as oil prices hit a 6-week high.

Brent crude futures and U.S. West Texas Intermediate Crude both gained about 2% after Saudi Arabia and Russia announced new output cuts this week. That led the S&P energy sector to rally 2.7% in midday trading.

Schlumberger popped nearly 8% and Halliburton jumped about 7%. Diamondback Energy, Phillips 66 and Marathon Petroleum all gained nearly 5%.

— Michelle Fox

Mizuho upped its price target on shares of Tesla to $300 from $230 late Thursday, citing improving auto demand in China and resilience in the U.S. even as macro headwinds linger.

The new target price reflects about 8% upside for shares from Thursday's close. The electric vehicle stock's gained more than 125% so far in 2023.

"We see TSLA continuing to be a leader in the EV market with improving battery technology and strong ADAS/AD roadmap and an emerging player in energy storage," wrote analyst Vijay Rakesh in a Thursday note.

The target increase comes just days after Tesla reported better-than-expected second-quarter deliveries

— Samantha Subin

Technology stocks gained on Friday, lifting the tech-heavy Nasdaq Composite 0.8% as of 1:10 p.m. ET.

The biggest winners included major technology stocks, with Nvidia and Amazon last up about 2% each. Tesla added 1%, while Apple, Netflix and Alphabet moved marginally higher.

Other major Nasdaq gainers included Lucid Group, JD.com and Atlassian. Shares rallied more than 8%, 6% and 4%, respectively. Energy and solar companies including Diamondback, Enphase Energy and Baker Hughes also lifted the index.

— Samantha Subin

Check out some of the companies making headlines in midday trading.

Rivian Automotive — The electric vehicle maker popped more than 16% after Wedbush raised its price target on shares to $30 from $25, citing an improved outlook. The new target price implies shares rallying almost 39% from Thursday's close.

Levi Strauss — Shares of the jeans maker slumped 6.7% after the company cut its full-year profit forecast on Thursday. Levi Strauss now expects an adjusted $1.10 to $1.20 per share compared to a previous range of $1.30 to $1.40.

First Solar — The solar company climbed 4.6% after receiving a five-year revolving line of credit as well as a guarantee for a $1 billion facility. JPMorgan will serve as the lead arranger for First Solar.

Read the full list here.

— Brian Evans

Travel stocks rose on Friday, boosting the S&P 500's consumer discretionary and industrial sectors about 0.8% each.

Airline stocks led the charge with JetBlue Airways last up 3.6%. American Airlines rallied 2.9%, while United Airlines, Delta Air Lines and Southwest Airlines added more than 1% each.

Earnings season kicks off for the sector next week with Delta Airlines. Many airline stocks have trended upward in recent days even as slew of disruptions over the holiday weekend.

Other travel stocks rose. Airbnb gained 2%, while Expedia jumped 2.5%. Cruise stocks Norwegian, Royal Caribbean and Carnival rose at least 1%.

— Samantha Subin

Semiconductor manufacturing equipment maker KLA's shares traded slightly higher even after KeyBanc lowered its outlook on the company.

KeyBanc downgraded KLA to sector weight from overweight on account of the company's shares recently exceeding its previous price target of $468. Shares closed near $461 on Thursday, just 1.4% below the that level. Earlier this month, they traded at more than $480.

"From a fundamental standpoint, we think the cycle is in the process of bottoming," analyst Steve Barger wrote in a Thursday note. "That said, it's not clear to us that a positive inflection is imminent, and we expect to hear more about industry conditions at next week's SEMICON West conference."

CNBC Pro subscribers can read more about the downgrade here.

— Hakyung Kim

While the total jobs number for June came in below expectations, the health care and social assistance and government categories are still showing strong growth.

Read more about the job growth by category here.

— Jesse Pound

The VanEck Oil Services ETF (OIH) is up 3% Friday, on pace for its best day since June 2, when it gained 5.12%.

Week to date, the ETF is up 3.2%, on track for its second straight positive week after gaining 7.55% the prior week.

WTI Crude hit a high of 72.76, the highest level since June 8, when the commodity traded as high as 73.28. It is up 2.7% week to date, on pace for the its best week since April 7, when WTI Crude gained 6.65%. This week is its third positive week out of the last four weeks.

— Hakyung Kim, Gina Francolla

Here are some of the stocks hitting news highs during Friday's session:

• BorgWarner trading at levels not seen since June 2021
• Fleetcor Technologies trading at levels not seen since May 2022
• AutoNation trading at all-time highs back to its spin from Republic Industries in 1998
• Primerica trading at all-time highs back to its IPO in April 2010
• Unum Group trading at levels not seen since April 2018
• Curtiss-Wright trading at all-time highs back to its listing on the NYSE in 1929
• Dropbox trading at levels not seen since November 2021
• NewMarket trading at levels not seen since January 2021
• Reliance Steel & Aluminum trading at all-time highs back through our history to October 1994
• Penske Automotive Group trading at all-time highs back to its IPO in August 1996

These are some of the names notching news lows on Friday:

• Nasdaq Inc trading at lows not seen since June 2022
• Humana trading at lows not seen since June 2022
• Pfizer trading at lows not seen since March 2021
• Leggett & Platt trading at lows not seen since May 2020
• Prosperity Bancshares trading at lows not seen since October 2020
• Avangrid trading at lows not seen since March 2020
• UGI trading at lows not seen since April 2020

— Chris Hayes, Samantha Subin

Friday's Labor Department report showed 209,000 jobs added in June and marked the smallest increase since December 2020, when nonfarm payrolls lost 268,000 roles.

Elsewhere, labor force participation among those between 25 and 54 increased to 83.5%, the highest level since May 2002. The labor force participation rate among women of prime age rose to 77.8% for the highest level on record dating back to 1948.

— Gian Francolla, Samantha Subin

The utilities sector fell about 0.7% on Friday to lead the S&P 500's early morning declines.

Edison International, Alliant Energy, Evergy and WEC Energy led the declines, last down more than 1% each.

Consumer staples stocks marked the second-biggest losers, with the sector last down about 0.7%. Some laggards included PepsiCo, Kimberly-Clark, Hershey, Costco and Tyson Foods, last down more than 1% each.

— Samantha Subin

Morgan Stanley analyst Adam Jonas reiterated his overweight rating and top pick choice on Ferrari. He also raised his price target to $340 from $310 on account of foreign exchange fluctuations, earnings revision and a slight increase in his estimated EBITDA multiple.

"Ferrari trades at a justified premium to luxury brands, but at a discount to luxury leader, Hermes, albeit with more opportunity to grow organically via: new customers, new segments and geographically in China & Asia-Pac, as well as exhibiting a unique moat with a world renowned brand and a 12+ month customer orderbook," Jonas wrote in a Thursday note. 

To read more about the call, click here.

— Hakyung Kim

Stocks opened lower on Friday even after a lighter-than-expected nonfarm payrolls report for June.

The Dow Jones Industrial Average fell 110 points, or 0.3%. The S&P 500 lost 0.2% and the Nasdaq Composite hovered near the flatline.

— Samantha Subin

The June jobs report is helping solidify the case for more rate hikes from the Federal Reserve, according to LPL Financial's Quincy Krosby.

"This report indicates a still resilient labor market with the unemployment rate lower at 3.6% still keeps the Fed in play for additional rate hikes," she said.

Krosby is looking ahead to next week's consumer price index. She views the report as even more crucial to markets in deciphering whether inflation is easing at a quick enough pace, and whether one hike in July is enough to do so.

— Samantha Subin

Here are some of the names making the biggest moves before the bell:

• Levi Strauss — Shares dropped 8.3% after the apparel retailer slashed its profit outlook for the year postmarket Thursday. Levi now expects adjusted earnings per share of $1.10 to $1.20 for the year, down from $1.30 to $1.40 previously and missing analysts' expectations.
• Biogen — Trading resumed before the market opened Friday, after being halted Thursday on announcement that the Food and Drug Administration approved Biogen and Esai's Alzheimer's treatment drug Lequembi. Shares were up 0.35%.
• Alibaba — U.S. listed shares of the Chinese ecommerce retailer added 3.5%. Reuters reported Friday the company's affiliate Ant Group faces a $1.1 billion fine by Chinese authorities, which could clear the way for Ant to get necessary licenses and perhaps eventually go public. Also Friday, Alibaba launched its A.I. tool, Tongyi Wanxiang.

To see more stocks moving in the premarket, read the full story here.

— Michelle Fox

The U.S. economy added 209,000 jobs in June, the Labor Department said Friday. Economists polled by Dow Jones expected the report to show a gain of 240,000 jobs. The unemployment rate came in at 3.6%, in line with expectations.

— Fred Imbert, Jeff Cox

Bloom Energy is positioned for "robust growth" as demand for fuel cells remains strong, according to RBC Capital Markets. 

Analyst Chris Dendrinos initiated coverage of the electric and hydrogen power company with an outperform rating. His price target of $24 implies shares soaring 54.3% from Thursday's close. Shares were up more than 2% Friday before the bell. 

"Our outlook is underpinned by our belief that emissions regulation and social pressures to decarbonize will remain a tailwind for adoption, and that customers will continue to favor BE's value proposition," Denidros wrote in a Thursday note. 

Shares were up 2% Friday before the bell.

To read more about the upgrade, click here.

— Hakyung Kim

Rivian shares jumped almost 4% Friday during premarket trading as Wedbush hiked its price target, citing an improved outlook.

"We believe after a number of 'one step forward, two steps back' excuses for Rivian and supply chain headaches, the company is finally making a major turn towards executing on its longer term business model," analyst Dan Ives wrote in a Friday note. 

The firm maintained its outperform rating on shares while raising its price target to $30 from $25. The new target price implies shares rallying 38.7% from where they closed Thursday. 

To read more about the upgrade, click here.

— Hakyung Kim

Despite worries that the U.S. may fall into a recession, there's no evidence supporting that one has arrived, according to Ned Davis Research's Veneta Dimitrova.

"he number of indicators with negative signals in our Recession Watch Report never exceeded half and has now even fallen to three out of ten," the firm's senior U.S. economist wrote. "Overcoming more than a year of Fed policy tightening and the banking turmoil earlier this year, the resiliency of the economy has been rooted in consumer strength amid still-tight labor markets, pent-up demand from the pandemic (particularly for services), and excess savings."

"Driven by employee compensation, real disposable personal income is growing at an above-average pace, which is supporting spending growth," Dimitrova added.

— Fred Imbert

U.S. Treasury yields fell on Friday as investors looked to June's jobs report for fresh insights into the labor market and clues about the Federal Reserve's next interest rate moves, after ADP's employment report came in far higher than expected on Thursday.

At 3:58 a.m. ET, the yield on the 10-year Treasury was down by less than one basis point to 4.0376%. The 2-year Treasury was last trading at 4.9818% after falling by over two basis points. On Thursday it had briefly reached a 16-year high of 5.120%.

Yields and prices have an inverted relationship and one basis point equals 0.01%.

— Sophie Kiderlin

European equity markets staged a muted open Friday, following the sharp drops in the previous session.

The pan-European Stoxx 600 index was little changed as trading started, with sectors and major indexes spread across marginally positive and negative territory. Utility stocks logged the biggest losses, with a 1% drop, while mining and oil and gas stocks were up 0.4%.

— Hannah Ward-Glenton

Major indexes in the Asia-Pacific tracked Wall Street's losses and fell for a second consecutive day as rate hike fears drove investor sentiment.

Japan's Nikkei 225 marked its fourth straight of declines and traded 0.46% lower, having lost 2.7% for the week.

Australia's S&P/ASX 200 saw a third day of declines and fell 1.48% on Friday afternoon. The index shed nearly 2% this week.

South Korea's Kospi fell 2.14% this week so far and last traded 1.32% lower.

Hong Kong's Hang Seng index lost 3.32% in the past five days of trade and fell 1% on Friday.

Singapore's Straits Times Index also shed more than 2% in the week so far.

— Jihye Lee

Shares of Samsung Electronics fell 1.7% in its first hour of trade after the company's estimates showed a likely steep drop in its operating profit amid an ongoing chip glut.

Samsung estimated that its operating profit fell to about 600 billion won ($458.4 million) in the second quarter.

That marks a 95.7% plunge compared with the company's 14.1 trillion won in operating profit a year ago.

The company's estimates also showed its second-quarter revenue likely fell 22% year-on-year to 60 trillion won.

The company in April said it would make "meaningful" cuts to chip production in the face of a global slowdown in demand for semiconductors that has pushed prices down further.

— Jihye Lee

Tokyo-listed shares of Eisai fell sharply in Friday's morning as investors assessed the U.S. Food and Drug Administration's approval of a drug for Alzheimer's treatment, Leqembi.

The drug is produced by Japanese pharmaceutical company Eisai and its U.S. partner Biogen.

Leqembi is the first Alzheimer's antibody treatment to receive full FDA approval. It is also the first such drug that to receive broad coverage through Medicare.

— Jihye Lee, Spencer Kimball

Shares of Levi Strauss tumbled more than 6% in extended trading Thursday night after the denim giant cut its profit outlook for the year.

The maker of blue jeans posted adjusted earnings of 4 cents per share on revenue of $1.34 billion for its fiscal second quarter. Analysts polled by Refinitiv anticipated earnings of 3 cents per share and $1.34 billion in revenue.

Levi now forecasts adjusted earnings of $1.10 to $1.20 per share for its full year, down from an earlier range of $1.30 to $1.40. Analysts called for adjusted earnings of $1.29 per share, Refinitiv found. The company attributed its guidance cut to a slowdown on U.S. wholesale revenues.

Read more about Levi's latest results here.

-Darla Mercado, Gabrielle Fonrouge

June's payrolls report – the big event on investors' radar in this holiday-shortened week – will be released Friday at 8:30 a.m. ET.

Economists polled by Dow Jones anticipate payrolls climbed by 240,000 last month, which would suggest a cooling from May's gain of 339,000 positions. They are also estimating that the unemployment rate ticked down to 3.6%, compared to May's rate of 3.7%.

Investors hope Friday's report will show signs of wage growth moderating. Economists predict that average hourly earnings climbed by 0.3% in June and rose 4.2% from 12 months prior.

The report takes on a special importance for investors, who have been waiting for signs that the Federal Reserve's last 10 rate hikes have been cooling the economy. The central bank skipped an increase in June, but market participants anticipate a quarter-point boost at the July meeting, according to CME Group's FedWatch Tool.

Read more about what's ahead for June's jobs report here.

-Darla Mercado, Jeff Cox

Stock futures were lower Thursday ahead of non-farm payroll data due out on Friday morning.

Futures tied to the Dow Jones Industrial Average were flat. S&P 500 and Nasdaq 100 futures were both 1% lower.

Investors will turn their attention from private jobs data from ADP on Thursday to the Labor Departments non-farm payrolls on Friday. Economists polled by Dow Jones are forecasting an increase of 240,000 positions.

— Brian Evans