Dow ekes out narrow gain Friday for 10th straight positive day, longest rally since 2017: Live updates

The Dow Jones Industrial Average closed slightly higher on Friday, notching ten-straight sessions of gains.

The 30-stock Dow added 2.51 points, or 0.01%, to close at 35,227.69. The S&P 500 added 0.03% to 4,536.34, while the Nasdaq Composite fell 0.22% to finish the session at 14,032.81.

— Brian Evans

Rare diseases treatment developer Travere Therapeutics has the potential for meaningful long-term value, according to JPMorgan. 

Analyst Anupam Rama initiated coverage on Travere with an overweight rating on Friday. Rama said the company's recently-approved drug, Filspari, could position the company within "a large multi-billion long-term market."

Shares jumped 3% Friday.

To read more about the call, click here.

— Hakyung Kim

Artificial intelligence catapulted Microsoft shares to a new record close this week.

With shares up 44% this year and its valuation at one of the steepest levels in more than a year, investors weigh in how to play the stock heading into earnings next week.

Read what's next for shares here.

— Samantha Subin

A number of market signals are suggesting the broad market rally could hit a snag later this year, Credit Suisse' global equity strategist Andrew Garthwaite said.

"Beyond a 3 month view we would be much more cautious because: 1. Markets always make new lows into a recession (on average 11 months after it starts). The yield curve, Senior Loans Officer Survey, Money supply are consistent with a recession," Andrew Garthwaite, the firm's global equity strategist, said to clients in a Friday note.

"We also fear wage growth will be stickier (implying core service inflation in US will rise and hence the degree of rate cuts discounted by the market in 2024 will not materialise unless there is a recession," Garthwaite said.

— Sarah Min

JPMorgan upgraded Blackstone shares at the start of 2023 on the belief that investors were over-penalizing Blackstone for its outflows in its Real Estate Income Trust division. However, with the fears having reduced in recent months and a rise in share price, the firm now thinks many of the stock's positives as being priced in. 

Analyst Kenneth Worthington downgraded Blackstone to neutral from overweight in a Friday note.

"For the multiple to expand further, we'd want to see organic growth supported again by perpetual fund growth, which is currently weighed down by a depressed sentiment for real estate investing," said Worthington

CNBC Pro subscribers can read more about his downgrade here.

— Hakyung Kim

The early returns for this earnings season are slightly below average, according to FactSet's John Butters.

Here are some of the key stats from Butters' note recapping the first full week of the second-quarter earnings season:

• Earnings per share surprise: 75% of S&P 500 companies have reported a positive surprise, which is below the 5-year average of 77%.
• Earnings verse estimates: S&P 500 companies are beating EPS estimates by 6.4% in aggregate, which is below the 5-year average of 8.4%
• Looking forward: The earnings decline for 2023 for the S&P 500 is -9.0%, using FactSet's "blended" method that combines realized and projected results. That would mark the largest earnings decline reported by the index since the pandemic-affected Q2 2020 (-31.6%).

— Jesse Pound

A "Hollywood ending" for equipment rental company Herc has been postponed, according to Bank America.

Analyst Sherif El-Sabbahy double-downgraded shares to underperform from buy, citing the near-term impact from the ongoing writers and actors strike in Hollywood. 

"To be clear, the impact from entertainment will be relatively minor (~3-5% of sales), however it muddies a story that has become more about execution," El-Sabbahy wrote in a Friday note.

The full story on the downgrade can be found here.

— Hakyung Kim

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

American Express — Shares slipped about 4% after the company reported second-quarter revenue of $15.05 billion, falling short of the $15.48 billion expected from analysts polled by Refinitiv. However, American Express' earnings per share beat expectations.

Herc — Herc dropped more than 5% after Bank of America double-downgraded shares to underperform from buy. Analyst Sherif El-Sabbahy cited the impact from the ongoing writers and actors strike in Hollywood will hurt the equipment rental stock.

AutoNation — AutoNation tumbled 7% during midday trading. The car dealer company reported second-quarter results that exceeded expectations on the top and bottom lines. AutoNation posted adjusted earnings of $6.29 per share on revenue of $6.89 billion. Analysts expected per-share earnings of $5.91 on revenue of $6.78 billion.

Read the full story here.

— Brian Evans

C'mon Barbie, let's go Mattel?

Analysts have been following shares of the toymaker closely in the runup to this weekend's highly anticipated premiere of the movie based on the iconic doll. It's an important moment for Mattel, as the company tries to prove it has the ability to turn its intellectual property into blockbusters. And analysts also watching to see if other companies, including movie theatres and retailers, can ride the rising, hot-pink tide.

CNBC Pro subscribers can see some of the stocks Wall Street is watching for trends related to the film here.

— Alex Harring

Oppenheimer is favoring stocks tied to artificial intelligence as earnings for the semiconductor sector begins next week, viewing the trend as a likely catalyst for upward adjustments to estimates.

"We favor structural growth names leveraged to cloud/AI, 5G, and auto verticals," wrote analyst Rick Schafer in a Friday note to clients, favoring names such as Nvidia, Broadcom and Marvell Technology. "We see 2H recovery led by AI adoption and post correction PC/handset."

Schafer is bracing for an in-line results as the industry's correction eases, but a favorable setup into the second half.

"After several Qs of demand digestion, inventory levels have generally right-sized, paving the way for 2H growth," he said. "Seasonal 3Q strength helps, though macro and China in particular create uncertainty around shape of 2H recovery."

— Samantha Subin

There's little left to worry about in the market in terms of impacts from an economic shift, according to Citi analyst Dirk Willer. But investors should now be wondering if stocks as a whole have been overbought.

Equities are "somewhat overstretched" as the market enters a period of negative seasonality, he warned in a note to clients. He said investors should be prepared to be patient, but also watch for any moves down as they still could make for good times to buy in. That's especially true considering excitement artificial intelligence continues to build within the market, he added.

"Equities have climbed the proverbial 'Wall of Worry' and are now somewhat overbought," Willer said. "But with the AI story continuing, we would be buyer on dips."

Willer said he still favors technology, energy and industrial stocks over utilities, financials and real estate. But he said the firm dropped its overweight positioning on consumer staples, wile also changing its underweight rating on the materials sector.

— Alex Harring

Stocks opened higher Friday as the Dow Jones Industrial Average headed for its tenth-straight session of gains for the first time in nearly six years.

The 30-stock Dow added 70 points, or 0.2%. The S&P 500 gained 0.3% while the Nasdaq Composite climbed 0.6%.

— Brian Evans

Sunnova Energy has managed to outperform its peers despite tough macro conditions, but BMO thinks it's time for investors to trim their exposure to the stock.

While the residential solar panel company has outperformed both the Invesco Solar ETF and the S&P 500 in 2023, BMO believes that a challenging macro environment will present an overhang on further share growth. The firm reduced its rating on shares to market perform from outperform.

The stock declined 2.1% Friday during premarket trading following the downgrade.

To read more about the call, click here.

— Hakyung Kim

Futures are indicating the Dow will open higher Friday. If the index manages to stay positive, it will achieve a milestone we haven't seen since Aug. 7, 2017: A 10-day winning streak.

It's worth noting that in 2017, the Dow Jones Industrial Average ended the year up 25.08%.

—Christina Cheddar Berk, Gina Francolla

Check out the companies making headlines before the bell:

• American Express — American Express slid 3% after posting smaller-than-expected revenue for the previous quarter, even as earnings per share beat expectations. The company reported second-quarter earnings of $2.89 per share on revenue of $15.05 billion. Analysts polled by Refinitiv had expected per-share earnings of $2.81 on revenue of $15.48 billion.
• AutoNation — Shares slid 3% even after AutoNation reported second-quarter results that beat expectations. The company beat on the top and bottom lines, reporting adjusted earnings of $6.29 per share on revenue of $6.89 billion. Analysts expected per-share earnings of $5.91 on revenues of $6.78 billion.
• Sunnova Energy  — The solar company shed 2% after being downgraded by BMO to market perform from outperform. BMO cited the challenging macro backdrop for residential solar and said Sunnova's debt issuances could weigh on the stock.

Read the full list here.

— Sarah Min

Regional Banks were higher in premarket trading on Friday, with the SPDR S&P Regional Banking ETF (KRE) up more than 9% since Monday.

That puts the KRE on pace for its best week in more than two years, when the ETF gained 9.78% for the week ending Jan. 8, 2021.

Western Alliance, PacWest and Citizens Financial have soared so far this week with gains of roughly 25%, 24% and 13%, respectively. The KRE will need to end the week more than 9.06% higher to notch the Jan. 8 figure.

— Brian Evans, Gina Francolla

Carvana's shares rose more than 20% this week after it announced better-than-expected second quarter results and an agreement to restructure approximately $5.2 billion in debt on Wednesday.

However, Piper Sandler's long-term outlook on the company's share in the used vehicle market remains unchanged.

"Chasing the stock higher would necessitate an upward revision to CVNA's long-term used vehicle market share expectations, which we do not believe recent results substantiate," analyst Alexander Potter wrote in a Thursday note.

Shares fell 1.3% Friday before the bell.

The full story on his downgrade can be found here.

— Hakyung Kim

U.S. Treasury yields fell slightly on Friday as investors weighed what could be on the horizon for monetary policy and especially interest rates ahead of the Federal Reserve's meeting next week.

At 4:32 a.m. ET, the yield on the 10-year Treasury was down by over one basis point to 3.8428%. The 2-year Treasury yield was trading less than one basis point lower at 4.8372%.

— Sophie Kiderlin

Taiwan Semiconductor Manufacturing Company, the world's largest chipmaker, fell 3.11% in morning trade on Friday after posting its first quarterly net income decline in 4 years.

On Thursday, TSMC posted a 10% decline in second quarter revenue from a year ago to NT$480.84 billion, while net income fell 23.3% from a year ago to NT$181.8 billion.

Despite exceeding market expectations, the company's shares still fell.

The firm said that business was affected by macroeconomic conditions which decreased demand for electronics. TSMC produces chips for some of the largest names in smartphones and laptops.

— Sheila Chiang

South Korea's producer price index fell 0.2% year on year in June, lower than the 0.5% rise in May and the first month since November 2020 that the index has sunk into contraction territory.

The producer price index measures the average change in price of goods and services sold by manufacturers and producers in the wholesale market.

On a month on month basis, the PPI saw a 0.2% fall in June, shallower than the 0.4% fall in May,  the Bank of Korea said.

In June, prices of coal and petroleum products were 3.7% lower than the previous month and agricultural products were 1.3% lower, but utility prices rose 1.8% compared to May

— Lim Hui Jie

Japan's core consumer price index climbed by 3.3% year on year in June, in line with expectations of economists polled by Reuters and slightly higher than the 3.2% recorded in May.

The core inflation rate strips out prices of fresh food from the overall consumer price index. The country's headline inflation rate also came in at 3.3% in June, rising slightly from 3.2% seen in May.

This is the 15th straight month that the inflation rate is above the Bank of Japan's 2% target, but BOJ governor Kazuo Ueda signaled in a recent Reuters report the BOJ's ultra-loose monetary policy could be maintained for now, saying "there was still some distance to sustainably and stably achieving the central bank's 2% inflation target."

— Lim Hui Jie

Big Tech stocks are on the sidelines this week, and that's giving the Dow Jones Industrial Average its moment in the spotlight.

Not only did the 30-stock index wrap its ninth consecutive day of wins on Thursday – for its longest rally since September 2017 – but it also hit its highest closing level since March 2022. During the session, the index touched its highest intraday level since April of last year.

Johnson & Johnson, a Dow constituent, popped 6%, lifted by second-quarter earnings beats and a boost to its full-year guidance. Shares of Goldman Sachs, which jumped 3%, also buoyed the Dow.

On a weekly basis, the Dow is up more than 2% and on pace for its second positive week in a row.

-Darla Mercado, Chris Hayes

The three major indexes have diverged on performance this week. With just Friday's session left in the trading week, here's where each stands on the week:

• The Dow is up 2.1%.
• The S&P 500 is up 0.7%.
• The Nasdaq Composite is down 0.4%.

If these performances hold, it would be the second straight positive week for both the Dow and S&P 500.

— Alex Harring

These are some of the stocks making the biggest moves after hours:

• CSX — The transportation company dropped 5% after missing Wall Street expectations for revenue in the second quarter, coming in at $3.7 billion against a $3.74 billion estimate from analysts polled by Refinitiv. Earnings per share for the quarter were in line with expectations at 49 cents.
• Intuitive Surgical — The health-care stock dropped 4.7% after posting systems unit revenue that came in lighter than anticipated while beating earnings expectations. 
• Scholastic — The publisher advanced 8% after beating expectations for earnings per share and announcing it would increase its share repurchase amount by $100 million.

See the full list here.

— Alex Harring

U.S. stock futures were largely unchanged shortly after 6 p.m. ET, with futures tied the the Dow, S&P 500 and Nasdaq 100 all trading near flat.

— Alex Harring