Nasdaq falls a fourth day in a row, notches longest weekly losing streak since December: Live updates

Current returns are borrowing from the future.

That's the message from Grantham Mayo Van Otterloo which, for the second time this summer, issued a seven-year investment return outlook that sees no major asset class surpassing the long-term average U.S. equity market return of 6.5% after inflation through 2030.

The firm founded by noted value manager Jeremy Grantham in 1977 now sees emerging market value stocks returning 6.0% per annum after inflation in local currency over the next seven years, trailed by emerging market stocks at 4.0%, international smallcap stocks at 3.6%, emerging market debt at 3.4%, U.S. cash at 1.8%, international large cap stocks at 1.6%, U.S. bonds at 1.1% and U.S. inflation-linked bonds at 0.9%.

GMO sees U.S. large cap stocks as the worst asset class with a likely real annual return of -3.0%, followed by U.S. small-cap stocks at -2.4% and hedged international bonds with a -0.1%.

— Scott Schnipper

The S&P 500 and the Dow Jones Industrial Average ended Friday little changed.

The Dow inched up 25.83 points, or 0.07%.

The S&P 500 ticked down just 0.01%, while the Nasdaq Composite fell 0.2%.

— Hakyung Kim

Edward Jones downgraded shares of CVS Health to a hold from a buy rating after Blue Shield of California dropped its pharmacy benefits partnership with the health care company to team up with Mark Cuban's Cost Plus Drugs and Amazon Pharmacy.

"While this is just one contract, we believe it creates uncertainty for the [pharmacy benefits manager] industry," wrote John Boylan in a Thursday note to clients.

Overtime, Boylan expects CVS to continue its growth toward a "one-stop shop" health care services company, but views the new PBM contract model as an "overhang" on shares and the industry near term.

"However, CVS has done an admirable job, in our view, diversifying its business to capture more of the health care dollar," he wrote. "This diversification should help CVS over the long term, but it is partially offset by PBM business uncertainties. Therefore, we now view the shares as appropriately valued."

— Samantha Subin

Investors are pivoting back to short-term bond funds as interest rates rise once again.

The iShares 0-3 Month Treasury Bond ETF (SGOV) has pulled in more than $500 million of net inflows over the past week, according to FactSet. The fund is roughly flat month to date.

The iShares 20+ Year Treasury Bond ETF (TLT), has fallen sharply this month, with investors pulling out about $1.8 billion in August.

— Jesse Pound

The onshoring trend could lead to big upsides for the U.S. infrastructure industry, according to Yung-Yu Ma, chief investment officer at BMO Wealth Management. 

 Infrastructure is somewhat of a subset of the industrial materials sector, Ma noted. He highlighted a rise of big manufacturing projects stemming from onshoring efforts. 

"In the U.S., we think all of that has a nice runway and a lot of dollars going into it not just in the short term, but for several years," Ma said. 

The investment strategist is bearish on commercial real estate, underscoring challenges in retail and multifamily housing. 

"There's been tremendous building in multifamily housing, and then existing properties that have to be refinanced at much, much higher rates in the next couple of years," Ma said. "So we think that's an ongoing headwind, something that's slow moving and manageable, but does add to some of the challenges that regional banks might face."

— Hakyung Kim

Shares of Hawaiian Electric soared nearly 14% in Friday afternoon trading after a regulatory filing from the company said it is seeking expert advice as "part of prudent scenario planning." Instead of restructuring, the company said it aims to "endure as a financially strong utility that Maui and this state need."

The power utility company has plunged more than 64% this month after lawsuits alleged that it was negligent in taking proper action to prevent the deadly wildfires in Maui.

— Pia Singh

Cybersecurity stock Tenable is a buying opportunity that can surge more than 30%, according to Stephens.

Analyst Brian Colley initiated coverage of Tenable Holdings with an overweight rating, saying the firm can gain further market share in preventative security. His $60 price target implies the cybersecurity stock can surge 35% from Thursday's closing price of $44.22.

"We believe this best-of-breed strategy has enabled TENB to differentiate itself in what is generally viewed as a commoditized market," Colley said in a Thursday note. "As a result, we expect TENB to see continued share gains ahead and we see meaningful additional growth opportunities in the form of increasing Tenable One adoption, asset coverage growth, OT security, cloud, and identity."

The cybersecurity stock is already higher this year by 16%. It rose about 0.4% Friday afternoon.

— Sarah Min

Dividend-paying stocks still offer attractive income for investors, even as Treasurys are paying higher yields, says Neuberger Berman's Sandy Pomeroy.

"Dividend stocks grow their dividends, where Treasurys you get one coupon. You have the coupon for the duration of the bond and that's it," said Pomeroy, senior portfolio manager on the Neuberger Berman Equity Income Fund (NBHAX). She spoke on CNBC's "Squawk on the Street" Friday morning.

She added that a stock that's yielding 3% and growing its dividend by 10% could lead to investors ending up ahead over five years, versus holding a bond that's yielding 4% over that period.

Pomeroy likes the industrials sector, which she says holds the greatest opportunity. Read the details on her preferred names within that corner of the market here.

-Darla Mercado, Michelle Fox

Despite a relatively solid beat rate this reporting period, Barclays strategist Venu Krishna noted this earnings season's quality has been "low & slow."

"Despite strong surprise against consensus estimates, 2Q23 earnings quality remains subpar," Krishna wrote. "After 2 straight quarters of subpar earnings quality, 2Q23 saw sequential improvements in trailing [three-month] revisions and EPS surprise, but YoY growth remains negative despite easier YoY compares relative to 1Q23, leaving our earnings quality indicator still materially weak."

"We think this underscores the risks that are still baked into forward consensus EPS estimates as margins continue rolling off the peak, inflation remains sticky and leading indicators point to more macro uncertainty ahead," he added.

— Fred Imbert, Michael Bloom

Bank of America says school bus manufacturer Blue Bird is a post-pandemic growth story that investors should keep an eye on.

The firm initiated coverage of Blue Bird stock with a buy rating on Friday, and highlighted the company's potential to emerge as a leader in bus electrification.

"Blue Bird's efforts to turn around the business amid significant cost inflation have revamped financial performance, showing through in EBITDA margin and (importantly) the cash flow statement," analyst Sherif El-Sabbahy said.

Shares have climbed more than 5% in midday trading.

Read the full story here.

— Brian Evans

Yields are continuing to rise as the market watches inflation continuing to persist, according to Jim Bianco, president of Bianco Research. He sees the 10-year yield and 30-year yield settling closer to 5% rather than to 4%.

The 10-year U.S. Treasury yield on Friday retreated under 4.3%, after reaching its highest level in about 15 years on Thursday. Yields move inversely to prices.

"Ironically, it might be because the Fed has backed off of tightening that the bond market is starting to get nervous," Bianco told CNBC on Friday. "If the Fed's not going to fight the inflation fight, then it's going to fight the inflation fight by selling off bonds…that's the big picture that's been driving up bonds for most of the last several months as they've been moving higher."

— Pia Singh

It hasn't been a good month to report earnings.

Slightly less than 1,200 companies have reported so far in August. The average post-report reaction to their stocks has been a 0.9% decline, according to data analyzed by Bespoke Investment Group.

To be sure, that doesn't mean it's been a bad earnings seasons, just that investors haven't necessarily cheered the results. Of the nearly 95% of S&P 500 companies that have reported earnings this quarter, about four out of every five have exceeded Wall Street expectations.

— Alex Harring

The energy sector outperformed the S&P 500 on Friday, inching up 0.8% compared to the broad market index's 0.2% decline. Devon Energy, Marathon Oil and Occidental Petroleum led the sector gains, rising 1.5% and more for the day.

Consumer staples, industrials, utilities and real estate also traded up between 0.1% and 0.2%. Meanwhile, materials stocks traded near the flatline.

Communication services was the most-declining sector, falling almost 1% , with tech giants Alphabet and Meta 2% declines pulling down the group.

To be sure, all the S&P 500 sectors are down for the week. The consumer discretionary sector has tumbled 4.2% week to date. Tesla shares led losses with a 10.6% decline, with Wynn Resorts and Carnival also falling 9%.

— Hakyung Kim

If Tesla remains down through Friday's close, it will mark the sixth straight session of losses for the electric vehicle maker's stock — a length not seen this year.

Tesla last saw a losing streak of that length in December, when the stock tumbled for seven days straight.

The 2023 losing streak began Aug. 11, when shares ended 1.1% lower. Each day has brought a substantial leg down, with shares losing no less than 1% each session since.

Shares have fallen more than 19% so far in August. But it has still been a strong year even accounting for the recent pullback, with shares up more than 75% year to date.

— Alex Harring

Rosenblatt's Hans Mosesmann is standing by his Street-high price target on Nvidia.

"This is the real deal," he told CNBC's "Squawk on the Street" on Friday. "This is an everything cycle. It's never been seen before, you can't compare it to a 3G infrastructure, or a handset cycle."

The comments from Mosesmann come after the analyst hiked the firm's price target to $800 ahead of next week's earnings print, calling the chipmaker a "high-conviction story thriving amid uncertainty" in a note to clients.

Mosesmann added that Nvidia's created a model that "nobody in technology can even touch," and one able to propel it above a $2 trillion or $3 trillion market capitalization in the years to come.

— Samantha Subin

Cathy Wood's ARK Innovation ETF (ARKK) is poised to see its third straight week lower — a streak not seen since last year.

With just hours left in the trading week, the fund is down about 5%. If that holds, it would mark the third week of losses for the ETF. The fund hasn't ended three weeks down in a row since December.

Those losses have amounted to a difficult August for the fund, with the price down about 19.5% month to date. If the index finishes August at that level, it would be the first losing month since April 2023 and the worst monthly performance since April 2022, when the ETF tumbled 28.9%.

— Alex Harring

Amazon remains a buying opportunity after the online retail giant added a new fee for third-party sellers who ship their own products instead of using Amazon's fulfillment services, according to Bank of America.

Analyst Justin Post reiterated a buy rating on Amazon, saying the news will help Amazon improve its margins.

"'Thousands' of 3P merchants currently using SFP will start paying the 2% fee in October, and if we assume 5-10% 3P units are shipped via SFP and no loss of sellers or shift to AMZL, we estimate a $450-900mn annual benefit to 3P revenues from the new fees, which could help recoup annual Prime subscription losses," Post wrote Thursday.

"However, the biggest driver of the fee could be to shift sellers to AMZL, as fees are higher and logistics capacity utilization appears to be still well below 2018 levels on several metrics, including units per square foot, which we estimate at 60 in 2022 (vs. 77 in 2018)."

— Sarah Min

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

Xpeng — The electric car maker stock declined 5% after the company reported a larger-than-expected loss in the second quarter. XPeng reported a loss of 2.8 billion yuan, while analysts polled by Refinitiv had forecasted 2.13 billion yuan. The company did, however, meet expectations for revenue with 5.06 billion yuan.

Ross Stores — The discount retailer popped 6% following its earnings beat after the bell Thursday. Ross Stores reported second-quarter earnings per share of $1.32, beating the $1.16 expected from analysts polled by Refintiv. Revenue came in at $4.93 billion, versus the consensus estimate of $4.75 billion.

Blue Bird — Stock in the school bus manufacturer added 4% after Bank of America initiated coverage of the company with a buy rating. The firm highlighted Blue Bird's potential to emerge as a leader in bus electrification.

Read the full list here.

— Brian Evans

A possible surge in economic growth during the third quarter is one of the things that has the market on edge, but one forecaster has doubts.

The Atlanta Fed's GDPNow data tracker is putting the growth pace at 5.8% for the third quarter, an estimate that Andrew Hunter, deputy chief economist at Capital Economics, calls "barely believable."

"Leaving aside the immediate post-pandemic rebound, GDP growth has only been that strong in three quarters this century. It is also vastly stronger than our own current estimate that growth will be only 1.5%," Hunter said in a client note.

Some of the discrepancies he sees include an overestimate on inventories, while ISM manufacturing readings are pointing to growth more consistent with 1%. Markets worry that stronger growth could push the Fed raise interest rates further.

—Jeff Cox

The Russell 2000 momentarily dropped below its 200-day moving average, a potential warning signal about where the small cap benchmark is heading next.

The index dropped below this threshold at the open on Friday, before climbing back above it. This was the first time the Russell 2000 went below the 200-day moving average since June 6. If it wound up closing below that threshold, it would be a first since June 5.

Earlier this week, the index closed below the 50-day moving average for the first time since May 31, another bearish signal of things to come.

August has proven difficult for the indexes all around, and the Russell 2000 is facing a 7.2% decline for the month.

— Darla Mercado, Nick Wells

The Nasdaq-100 hit selloff mode once again this week, with the index down more than 2.6% and on pace for a third consecutive weekly loss for the first time since the end of December.

Tesla ranks as the worst performer for the week, with shares down more than 11.5%. China-based technology stocks JD.com and PDD Holdings have slumped 9.6% and 4.4%, respectively.

Other underperformers include Meta Platforms and Walgreens Boots Alliance, each down at least 7.7%. Lucid Group is on track for a 7.3% weekly loss.

— Samantha Subin

With just hours left in the trading week, the Dow is on pace to end down more than 2%. Just two of the thirty stocks have been able to avoid the slide.

Cisco, the best performer in the index this week, has added about 2.5%. On Wednesday, the networking company reported earnings that beat expectations for the fiscal fourth quarter on both lines, while also issuing mostly solid guidance for the current quarter and full fiscal year.

Pharmaceutical stock Merck & Co. was the only other stock able to buck the leg down. The stock is poised to finish the week around 1% higher.

Walgreens and Intel led the index down this week, with losses of more than 8% and 6%, respectively.

— Alex Harring

Barclays is moving to the sidelines on Keysight Technologies following its earnings report.

Analyst Tim Long said he does not expect a growth catalyst until the second half of 2024 in his downgrade to equal weight from overweight. Long also cut his price target by $60 to $144 per share, with the new estimate implying shares could fall 4% from Thursday's close.

Keysight beat expectations of analysts polled by FactSet for earnings per share in the fiscal third quarter on Thursday, while revenue came in line with the consensus estimate.

But the company issued weak current-quarter guidance that prompted a sell-off. The stock has tumbled more than 12% in Friday's session.

— Alex Harring

Vietnamese electric vehicle maker VinFast Auto's shares declined 22.5% Friday.

The stock rose more than 250% Tuesday after VinFast merged with a special purpose acquisition company. However, shares have retreated more than 47% starting Wednesday.

— Hakyung Kim

B. Riley is getting more bullish on shares of the chipmaker on track to ride a new "wave of AI-led growth."

The "coming AI and Cloud-led wave sets up potent multiyear financial gains and strong 12-month share outperformance ahead," wrote analyst Craig Ellis in a Friday note to clients.

Read more on the firm's call here.

— Samantha Subin

Datadog is a strong stock that can rally after a post-earnings slide, according to TD Cowen.

"We think DDOG is a rare breed given its platform breadth, R&D engine, GTM approach, and mgmt team," analyst Andrew Sherman said in a note to clients Thursday, using acronyms for research and development and go-to-market. "Our checks were highly bullish and we think DDOG is in the best position to consolidate spend from other tools."

CNBC Pro subscribers can read the full story here.

— Alex Harring

The major averages began Friday's trading session in the negative.

The Dow Jones Industrial Average declined 120 points, or 0.3%.

The S&P 500 and the Nasdaq Composite fell 0.5% and 0.8%, respectively.

— Hakyung Kim

Wall Street analysts made noteworthy calls on some well-known stocks Thursday evening and Friday morning. Here are a few:

• Edward Jones downgraded CVS to hold from buy.
• Bank of America reiterated Peloton as buy.
• B. Riley Securities upgraded Marvell Technology to buy from neutral.

CNBC Pro subscribers can see the full list here.

— Alex Harring

These are some of the companies making headlines before the bell on Friday:

• Palo Alto Networks — Shares of the cybersecurity company edged 1.8% lower in premarket trading Friday. Palo Alto Networks' fiscal fourth-quarter earnings are expected to come out Friday afternoon. Analysts surveyed by FactSet's StreetAccount called for $1.96 billion in revenue and earnings per share of $1.29.
• Estee Lauder— Shares of the cosmetics giant took a 4% hit after Estee Lauder reported earnings for its fiscal fourth quarter that beat on earnings and revenue, but lowered its full-year guidance. The company reported adjusted earning per share of 7 cents, while analysts surveyed by Refinitiv had forecast a loss of 4 cents per share. Revenue of $3.61 billion surpassed expectations of $3.48 billion. Estee Lauder issued weak guidance for the first quarter, however, saying it expects to lose between 31 cents per share and 21 cents per share, while analysts had expected earnings per share of 98 cents, according to FactSet. 
• Bloomin' Brands — Shares of the Outback Steakhouse parent company rose 6% in premarket trading after The Wall Street Journal reported that an activist investor has been buying the stock. Jeffrey Smith's Starboard Value now owns more than 5% of Bloomin' Brands, according to the report.

Read here to see the full list.

— Pia Singh

Strategic Education climbed more than 2% in Friday premarket trading after Bank of America upgraded shares to buy from neutral.

"We see upside to sales and margins driven by its post-COVID recovery, improved marketing effectiveness, and tight cost control," analyst Heather Balsky said in a note to clients Friday.

CNBC Pro subscribers can click here to read more.

— Alex Harring

As expected, Federal Reserve Chairman Jerome Powell will be delivering an address at the central bank's symposium in Jackson Hole, Wyo., next week.

The Fed announced that Powell will speak Friday, Aug. 25 at 10:05 a.m. ET. He will deliver a speech, but there will be no question-and-answer session afterwards.

Running from Thursday to Saturday, the topic of this year's conference will be "Structural Shifts in the Global Economy." In the past, Fed chairs have used the event to lay out policy agendas. In 2022, Powell affirmed the Fed's commitment to fighting inflation, warning that there would be "some pain" ahead.

—Jeff Cox

Shares of the online fashion company plunged 40% in the premarket on the back of new quarterly figures.

Farfetch reported revenue of $572 million for the second quarter, well below a Refinitiv estimate of $649 million. It also issued weaker-than-expected revenue guidance for the full year and cut its gross merchandise value outlook.

JPMorgan analyst Doug Anmuth downgraded the stock to neutral from overweight following the report.

"We're encouraged that FTCH is working to deliver positive EBITDA and FCF despite the smaller GMV base, but FTCH's Year of Execution is proving quite challenging given US & China weakness, early Reebok partnership hiccups, & NGG brand and wholesale pressures," he wrote.

— Fred Imbert

Deere reported fiscal third-quarter results that beat analyst expectations, sending the stock up 1.6%. The tractor builder earned $10.20 per share on revenue of $15.8 billion. Analysts polled by Refinitiv expected a profit of $8.20 per share on revenue of $14.25 billion.

— Fred Imbert

Shares of Outback Steakhouse-parent Bloomin' Brands jumped 7% in the premarket after The Wall Street Journal reported activist investor Starboard Value has amassed a more than 5% stake in the company.

— Fred Imbert

The pan-European Stoxx 600 index was down 0.8% in early trade, with retail stocks falling 1.5% to lead losses as all sectors and major bourses slid into the red.

China's property giant Evergrande group filed for Chapter 15 bankruptcy protection in a U.S. court late Thursday.

The real estate developer referenced restructuring proceedings in Hong Kong, the Cayman Islands and the British Virgin Islands, in a filing to the Manhattan court.

In July, Evergrande posted a combined loss of $81 billion over the past two years, after struggling to complete projects and pay back its suppliers and lenders.

The news comes amid contagion fears that problems in China's struggling real estate sector could spill over to other parts of the economy, even as growth stalls.

Read the full story here.

— Sumathi Bala

Japan's core inflation for July fell to 3.1% from June's figure of 3.3%, in line with expectations from economists polled by Reuters.

Japan's core inflation strips out prices of fresh food.

The headline inflation rate for July came in at 3.3%, unchanged from June's figure.

The so called "core-core" inflation metric, which strips out prices of fresh food and energy and used by the Bank of Japan in its monetary policy considerations, came in at 4.2%, down from 4.3% in June.

— Lim Hui Jie

Bitcoin slid as much as 9% Thursday evening to above $26,400.

The move comes after a Wall Street Journal review of finances in Elon Musk's SpaceX said the rocket company wrote down the value of its bitcoin holdings by a total of $373 million in 2022 and 2021, and has sold the cryptocurrency.

Musk has spoken about his support for bitcoin in the past, saying in 2021 that he plans to hold the cryptocurrency long term.

"If the price of bitcoin goes down I lose money. I might pump but I don't dump," Musk said at that time. "I definitely do not believe in getting the price high and selling or anything like that. I would like to see bitcoin succeed."

— Sarah Min, Darla Mercado

China's economic picture is "grim," has gradually worsened since the start of the year "and now looks quite bleak," Capital Economics' economists Jonas Golterman and Thomas Mathews wrote Thursday.

"Growth has slowed to a crawl," the real estate market is in "poor shape," and "the outlook is clearly much worse than we — and others — had previously thought," the economists wrote.

As a result, "with the headwinds growing for China's economy, we think its equity markets will struggle, its 10-year yield will continue to fall and its currency won't rebound as quickly as we'd thought," London-based Capital Economics said.

— Scott Schnipper

"Some air has come out of the cyclical trade as rates have ripped – this has been on our mind as a risk, and now it demands more attention," Strategas Research technical analyst Chris Verrone told clients in a note early Thursday. "Industrials remain OK for both large-cap and small," the analyst said, noting that "small-cap industrials made fresh relative highs [Wednesday], with large-cap industrials not far behind."

That said, the S&P 500 Industrial Index underperformed on Thursday, falling 0.84% to the S&P 500's 0.77% decline. Industrials' underperformance is suddenly worse week-to-date, -2.62% against the S&P 500 -2.10%.

Month-to-date, however, industrials are still outperforming the broad market, down 4.08% vs the S&P 500's 4.76% slump. Industrials are also doing better quarter-to-date: down 1.34% vs the S&P 500's 1.80% slide.

— Scott Schnipper, Michael Bloom

Tesla was the big laggard in the Nasdaq 100 futures Thursday evening, as was Intuit and Illumina.

The electric vehicle stock was down roughly 1% in extended trading. While that's not a particularly big move, Tesla is sizable enough to move the market; the company has a roughly $695 billion market cap, according to FactSet data. Nasdaq 100 futures were lower Thursday evening by 0.24%.

Meanwhile, Intuit and Illumina were down by about 1.3% and 0.9%, respectively.

— Sarah Min

Check out the companies making headlines after hours.

• Applied Materials — Applied Materials rose nearly 2% in extended trading after beating analysts' expectations on the top and bottom lines in its fiscal third-quarter results. The semiconductor equipment maker posted adjusted earnings of $1.90 per share, greater than the $1.74 per share expected by analysts polled by Refinitiv. Revenue came in at $6.43 billion, more than the anticipated $6.16 billion.
• Ross Stores — The retail stock popped 5.7% in extended trading after Ross Stores topped forecasts for its second quarter. The discount store company reported earnings of $1.32 per share, better than the $1.16 consensus estimate, per Refinitiv. It posted revenue of $4.93 billion, above the expected $4.75 billion.
• Keysight Technologies — Shares of the electronic design company dropped 7% after Keysight provided a bleak outlook for its fiscal fourth quarter. Keysight anticipates adjusted earnings of $1.83 to $1.89 per share on revenue of $1.29 billion to $1.31 billion. Analysts polled by FactSet called for earnings of $2 per share and revenue of $1.39 billion.

Read the full list here.

— Sarah Min

The Dow Jones Industrial Average and the Dow Jones Transportation Average ended Thursday on a negative note – and both indexes closed under key levels Thursday.

The Dow Industrials closed lower by 0.84%, while the Transports finished the session with a 1.04% loss. Both ended the day below their respective 50-day moving averages. It was a first for the Dow Industrials since June 1, and for the Dow Transports dating back to June 5.

The 50-day moving average is a technical indicator studied closely by chart analysts. When an index or a stock closes below that threshold, it may portend a downtrend.

It has been an especially ugly week in an already difficult month for the Dow. Both the Industrials and the Transports are on pace for their worst weeks since March.

-Darla Mercado, Nick Wells, Chris Hayes

S&P 500 futures opened little changed Thursday night.

Dow Jones Industrial Average futures rose by 6 points, or 0.02%. S&P 500 and Nasdaq 100 futures dipped 0.07% and 0.14%, respectively.

— Sarah Min