Dow sheds nearly 300 points Friday, S&P 500 and Nasdaq suffer second straight week of losses: Live updates

Adobe falls after earnings as macroeconomic and acquisition headwinds loom. How to play the stock
Adobe falls after earnings as macroeconomic and acquisition headwinds loom.

Stocks fell Friday as investors wrapped up a volatile week ahead of the Federal Reserve's policy meeting.

The Dow Jones Industrial Average slid 288.87 points, or by 0.83%, to 34,618.24. At its lows, the index completely wiped out Thursday's 332-point rally. The S&P 500 was lower by 1.22% to 4,450.32. The Nasdaq Composite dropped 1.56% to 13,708.33.

The Dow closed out a positive week, up by 0.12%. However, the S&P 500 and Nasdaq both suffered a second straight week of losses, lower by 0.16% and 0.39%, respectively.


Information technology was the worst-performing sector in the S&P 500, down nearly 2%. Adobe shares fell more than 4% a day after the software firm posted better-than-expected quarterly results. Shares of Arm Holdings were lower by 4.2% one day after its successful public debut.

Auto stocks General Motors and Stellantis N.V. rose Friday, while Ford inched lower. Thousands of members of the United Auto Workers went on strike after failing to reach a deal with the automakers Thursday night.

Elsewhere, Lennar shares slid 2.5%. The home construction firm posted third-quarter results that beat on the top and bottom lines late Thursday.

On the economic front, the University of Michigan's consumer sentiment survey showed one-year inflation expectations dropped to 3.1% in September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7%, matching its lowest since December 2020.

Wall Street is parsing through a mixed batch of economic data ahead of the Fed's policy decision, set to be announced Sept. 20. The central bank is widely expected to hold rates steady next week, but traders will seek insight into how policy makers are thinking about inflation from here.

On Thursday, August's producer price index showed core PPI was held in check last month, though the headline number rose more than expected. Meanwhile, August's consumer price index on Wednesday showed core CPI was slightly hotter than expected on a monthly basis.

"There was initial investor enthusiasm around inflation data coming in not too far out of expectations. On one hand, the inflation data was hotter than expected, but investors shrugged that off earlier this week thinking that the Fed would not be inclined to raise rates again next week, based on the August inflation data," said AXS Investments' Greg Bassuk.

"But I think having digested the additional economic data that's come out, as well as ongoing geopolitical pressures and other developments, we're seeing today investors pulling back and taking a breather," Bassuk added.

— CNBC's Jeff Cox contributed to this report.

Stocks close lower Friday

Stocks closed lower Friday.

The Dow Jones Industrial Average slid 288.87 points, or by 0.83%, to 34,618.24. At its lows it completely wiped out Thursday's 332-point rally. The S&P 500 was lower by 1.22% to 4,450.32. The Nasdaq Composite dropped 1.56% to 13,708.33.

The Dow closed out a positive week, up by 0.12%. However, the S&P 500 and Nasdaq both suffered a second straight week of losses, lower by 0.16% and 0.39%, respectively.

— Sarah Min

Buy UFC-WWE stock, UBS says

UBS is bullish on TKO Group.

Analyst Ryan Gravett initiated coverage of the stock, which represents the merged WWE and UFC, on Friday. His target price for shares implies the stock could rise about 22.1% from where it finished Thursday's session.

He called the stock a "rare pure-play in live sports with rights renewals & synergies on the horizon" in a note to clients announcing the call.

— Alex Harring

Utilities sector on pace for biggest weekly gain in the S&P 500

Utilities stocks have outperformed this week, putting the S&P 500 sector on pace for a more than 3% gain.

Duke Energy and Southern Company are the biggest winners in the sector, up more than 5% week to date. Shares of Eversource Energy, DTE Energy and PPL Corporation have jumped more than 4% each.

NRG Energy is the only stock in the sector on track for a loss, down 0.8% week to date.

— Samantha Subin

Netflix, chip equipment stocks among biggest weekly Nasdaq losers

The Nasdaq Composite erased earlier weekly gains on Friday, putting the tech-heavy index on pace for a 0.5% loss for the week. The concentrated Nasdaq-100 is slated for a 0.6% loss.

Some of the biggest laggards include chip equipment stocks KLA Corporation, Lam Research and Applied Materials, down at least 7% each. Adobe's shed more than 6%, while On Semiconductor's slumped 5.4%. Netflix is the biggest loser in the Nasdaq-100, headed for a 10.6% weekly loss.

Despite the downtrend, some stocks are poised for weekly gains. That includes Charter Communications, PayPal and Qualcomm, up more than 6% each. Tesla is the biggest winner, on pace for a 9.2% gain, followed by Moderna.

— Samantha Subin

Rising interest rates require investors to be more selective, says Ivy Zelman

Investors must be more selective about homebuilding stocks in a rising interest rate environment, according to housing market analyst Ivy Zelman.

"I think you really have to be stock picker in this market, and you have to recognize there are builders that are gaining share, executing and generating strong returns, and have balance sheets that are rock-solid," Zelman told CNBC's "Squawk on the Street" on Friday.

— Lisa Kailai Han

Diabetes device stocks fall on Friday

Stocks tied to companies that make medical devices for diabetes fell on Friday. Dexcom fell 4.4%, making it one of the worst performers in the S&P 500, while Insulet fell more than 3%.

The moves come after Bloomberg News reported on Thursday afternoon that Apple has selected a new leader for its team working to develop a noninvasive blood sugar monitoring device.

Raymond James analyst Jayson Bedford also cut price targets for both stocks, according to FactSet.

— Jesse Pound

See the stocks making the biggest moves midday

These are some of the stocks making the biggest moves midday:

  • Ford, General Motors, Stellantis — Shares of Ford rose slightly, while General Motors gained 1% and Stellantis was up 2% as a targeted strike by the United Auto Workers began.
  • Planet Fitness — Shares tumbled 13% after the gym chain's board pushed out CEO Chris Rondeau.
  • Nucor — The steelmaker fell 5% after offering weaker-than-expected guidance for third-quarter earnings.

See the full list here.

— Alex Harring

Stocks hit session lows in early afternoon trading

Stocks hit session lows in early afternoon trading.

The Dow Jones Industrial Average slid 256 points, or by 0.73%. The S&P 500 was lower by 1.04%, and the Nasdaq Composite dropped 1.41%.

— Sarah Min

Dollar index on pace for longest weekly win streak since 2014

The Dollar Index is headed toward its 9th straight weekly gain for the first time since Oct. 3, 2014. The Dollar Index marked a 12-week win streak then, which is the longest winning streak on record.

Week to date, the Dollar Index is up 0.16%.

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Dollar Index

— Hakyung Kim, Gina Francolla

Earnings growth rebound likely in 2024, says Edward Jones strategist Mona Mahajan

The market has already gone through an earnings recession, according to Edward Jones senior investment strategist Mona Mahajan. However, the picture is likely changing in the coming quarters, according to the strategist.

"Q3 we're starting to reemerge, and in Q4 we could start to see a rebound in earnings growth, especially after easier year-on-year comparisons," Mahajan told CNBC's "Squawk on the Street" Friday.

The earnings growth rebound could even reach double-digits in 2024, Mahajan added.

"Were looking at a more normalized earnings growth picture, combined with valuations, especially outside of the Magnificent Seven, that may have some room to expand," said Mahajan. "That gives you a better backdrop we think overall for for at least some expansion in your portfolio's broadening of market positioning."

— Hakyung Kim

Investors still see stocks rising even with late summer slump, Vanguard says

The August slump in the stock market was not a sign that investors were growing more pessimistic, according to Vanguard.

The asset management firm said in a Vanguard Investor Expectations Survey report on Wednesday that investors in August expected stocks to return 5.5% over the next 12 months. That was the same projection as in June, when the rally was in full swing.

"Although this year's market rally paused in August, investor expectations remain elevated as summer comes to a close," Xiao Xu, an analyst in Vanguard Investment Strategy Group, said in the report.

— Jesse Pound

Arm shares are slightly higher Friday after blockbuster IPO-driven rally

Shares of Arm Holdings added 0.8% during midday trading Friday, crawling back slightly from its previous rally. The stock popped nearly 25% during Thursday's trading session, when the company made its blockbuster Nasdaq debut through an initial public offering that priced shares at $51 each and valued the company at about $54.5 billion.

Some analysts are concerned about Arm's valuation.

Needham earlier initiated coverage of British semiconductor stock with a hold rating, but said the company's valuation may look "full" in a post-smartphone era. Quilter Cheviot earlier told CNBC that "the pricing is expensive."

Investors are focusing on some of the risk around the company, including its exposure to China and rising competition from a rival semiconductor architecture, called RISC-V, that is backed by some of Arm's biggest customers. Arm's chip architecture is in 99% of the world's smartphones.

— Pia Singh

Planet Fitness shares sink 15% after board ousts CEO in shocking move

In a move that stunned investors and employees alike, Planet Fitness ousted company veteran Chris Rondeau from his post as CEO, the workout chain said Friday in a press release.

The stock dropped 15% in the wake of the announcement, hitting a 52-week low.

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Planet Fitness shares

— Drew Richardson, Gabrielle Fonrouge

Redburn Atlantic upgrades Estée Lauder stock to neutral, cites strong fundamentals

Estée Lauder's company fundamentals remain intact despite necessary investments to grow the stock, according to Redburn Atlantic.

The firm upgraded the cosmetic stock to neutral from sell in a Friday note, but lowered its price target to $150 per share, which equates to roughly 3% downside from Thursday's $154.24 close. The stock is higher by more than 2% in midday trading.

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Estée Lauder stock.

"The portfolio has been underperforming the prestige beauty market for over ten years, and this diverged further in the most recent quarter. We assume that the current high growth rates for the category normalize – an increasingly common phrase across the US consumer industry," analyst Chris Pitcher said. "Over the coming quarters this, combined with an improvement in Estée Lauder's own performance, should help close the gap, although not fully."

— Brian Evans

Schwab shares drop as client assets decline in August

Shares of Charles Schwab fell nearly 4% Friday after the company reported a decline in client assets last month.

The financial institution said average interest-earning assets in August were down 23% from the year-ago period to $449.5 billion and were down 4% from July. Total client assets came to $8.09 trillion as of the end of August, up 14% from a year ago but down 2% from the previous month.

— Yun Li

Chip equipment stocks fall as Taiwan Semiconductor reportedly asks suppliers to delay deliveries

Some chipmaker stocks slumped on Friday following a Reuters report that Taiwan Semiconductor Manufacturing is asking suppliers to delay deliveries, citing customer demand fears.

Taiwan Semiconductor shares fell nearly 2% on the news. Shares of ASML Holding, KLA Corporation, Lam Research and Applied Materials dropped more than 3% each.

Other semiconductor names and customers of Taiwan Semiconductor were also lower during morning trading. Advanced Micro Devices and Nvidia lost 4% and 2.3%, respectively.

— Samantha Subin

Auto stocks targeted by UAW strikes trade higher Friday morning

Automotive stocks tied to companies now facing employee strikes traded higher in early trading Friday.

Thousands of United Auto Workers went on strike at three key assembly plants of General Motors, Ford