S&P 500 closes little changed Thursday, struggles to reach record: Live updates

Stocks finished little changed to wrap up the second to last trading day of 2023.

The S&P 500 added 0.04% to finish at 4,783.35, edging closer to its highest closing level set in January 2022. The Dow Jones Industrial Average rose 53.58 points, or 0.14%, to end at 37,710.10 and notch a fresh record closing high. The Nasdaq Composite inched down 0.03% to close at 15,095.14.

— Samantha Subin

The market is in a good place as further interest rate cuts keep the economy in a 'goldilocks' scenario, but questions still remain on how far the market can really run, according to Jurrien Timmer, director of global macro at Fidelity Investments.

"A few rate cuts make sense because inflation has fallen. I think it's likely to be sticky at around 3%," Timmer said Thursday on "Squawk on the Street." "The market is like a spoiled child. It gets a few and it wants more, and that's a very typical situation that we're finding ourselves in right now.

Timmer said that he's bullish on the market as he believes it will continue to broaden out next year. If the yield on the 10-year Treasury note remains between the 4% and 5% level, the stock market "will be okay," he added.

Equity valuations are priced in, however, he said, forcing corporate earnings to do the heavy lifting in 2024.

"The open question I think is one where if we see a rotation from The Magnificent Seven to everything that's been left behind, and I do think that that is very likely, what kind of absolute trend does that produce?," Timmer said. "When 30% of the market gets rotated into all the cats and dogs that are on the 70% side, how strong can the index actually be?"

— Pia Singh

The S&P 500 will struggle to post meaningful gains in the first part of 2024 as the economy continues to slow before it hits a bottom, according to Wells Fargo's senior global market strategist.

Scott Wren told clients that the S&P 500 is currently well ahead of what Wells Fargo considers fair value as the market trades near the top of the bank's 2024 year-end target range. The index is up more than 24% this year.

Wren believes the market consensus of five to six interest rate cuts by the Federal Reserve starting in March is also too optimistic.

"We believe these two factors likely will produce volatility until the consensus accounts for these negative trends, which appear to be at the bottom of Santa's sleigh heading into year-end," Wren wrote.

— Spencer Kimball

Capital Wealth Planning CIO Kevin Simpson said on CNBC's "Halftime Report" that the valuation for Apple is too rich for his team to buy the stock right now.

"Based on the multiple metrics, we think the stock is trading at about 30% more from an expense level than it was back before the pandemic in 2019 and '20," Simpson said.

"You're not seeing earnings growth in the fourth quarter. You haven't seen it for four previous quarters. We want accelerating growth, so for us we're going to sit on the sidelines for a little bit with Apple," he added.

Simpson also pointed to the Chinese government's possible shift away from Apple products for employees as a potential hurdle for the American tech giant.

— Jesse Pound

Bitcoin is about to post a winning year, but stocks tied to that performance have fared even better.

The flagship cryptocurrency has climbed a good 155% this year, according to Coin Metrics, far outpacing any of the major stock averages.

That gain has boosted the performance of crypto exchange Coinbase, which is on pace to finish the year up 411%, and bitcoin proxy Microstrategy, which is higher on the year by 368%.

Bitcoin miners have done even better. Wall Street favorites CleanSpark and Iris Energy are tracking for gains of 521% and 573%, respectively. Of the two biggest mining stocks, Riot Platforms has advanced 416% while Marathon Digital has risen a whopping 720%.

— Tanaya Macheel

Oil prices on Thursday fell 3% as shipping companies said they would resume transit through the Red Sea, easing fears that militant attacks would disrupt global oil trade.

The West Texas Intermediate contract for February lost $2.34, or 3.16%, to settle at $71.77 a barrel. The Brent contract for March dropped $2.16, or 2.72%, to trade at $77.38.

Denmark's Maersk has indicated in advisories that many of its ships will transit through the Suez Canal again, while France's CMA CGM also plans to send more of its vessels through the key trade route.

Houthi militants based in Yemen have launched attacks on vessels transiting through the Red Sea in response to the war in Gaza. Oil prices rose earlier in the week amid fears that trade would be disrupted.

The U.S. is leading a multinational coalition to protect trade through key body of water.

— Spencer Kimball

The market rally in 2023 has been led by several of the Big Tech names that trade on the Nasdaq, but one tech index under the banner of a rival exchange has held its own.

The SPDR NYSE Technology ETF (XNTK), which tracks a NYSE index of 35 stocks, is wrapping up a banner year.

The fund has a total return of 71% in 2023, according to FactSet, making it one of the top performing ETFs that is not either leveraged or tied to the crypto industry. That return is better than the Technology Sector SPDR Fund (XLK) and the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100.

The fund has been helped by its high exposure to semiconductor stocks, which account for about 27% of the index. The fund's top holdings include Broadcom, Intel and Micron. While the index is branded as NYSE product, many of the stocks included do trade on the Nasdaq.

— Jesse Pound

Seven of the 30 members of the Dow are on track to end December with advances of more than 10%.

The Dow is on pace to finish December's trading month, which concludes with Friday's closing bell, nearly 5% higher. A sizable chunk of those gains of come from a group of stocks in the blue-chip index that have climbed at least 10%.

Here's the seven stocks on track for double-digit gains in 2023's final trading month:

• Walgreens (up 33.1%)
• Caterpillar (up 18.6%)
• Goldman Sachs (up 13.4%)
• Intel (up 12.8%)
• Boeing (up 11.8%)
• Home Depot (up 10.8%)
• 3M (up 10.1%)

— Alex Harring

Chevron and Exxon have underperformed this year as blockbuster acquisitions and tumbling oil prices weigh on their shares.

Chevron's stock has fallen more than 15% this year while Exxon is down nearly 8%. The two oil majors are trailing the energy sector, which has slid about 3%. The S&P 500, meanwhile, has surged about 24%.

Chevron, Exxon and the broader energy sector have been dragged lower by tumbling oil prices. U.S. crude prices are down 7% for the year as record production outside OPEC and a weakening economy in China have raised concerns that the market is oversupplied.

While a bearish crude market has weighed on the industry generally, the two oil majors are digesting blockbuster deals as crude prices have fallen.

Chevron's stock has tumbled more than 5% since it agreed to buy Hess for $53 billion in late October. Exxon shares have fallen more than 4% since it entered a deal to purchase Pioneer Natural Resources for nearly $60 billion.

Chevron faces the added headwind of execution issues at the Tengiz oilfield in Kazakhstan and in the Permian Basin in the U.S.

Wall Street is still broadly optimistic about the oil majors with the acquisitions slated to close in 2024 and crude prices expected to rise next year.

Some 80% of analysts rate Chevron as buy or overweight with a stock price target of $178.55, implying more than 17% upside. More than 60% of analysts rate Exxon as buy or overweigh with a target of $126.53, suggesting more than 24% upside.

— Spencer Kimball

Shares of Meta Platforms have roughly tripled in 2023, putting the social media giant on pace for its best year ever in its more than 11-year history as a public company.

Meta's stock rebounded in 2023 as investors rotated back into beaten up technology names, betting on artificial intelligence tailwinds and embracing the company's focus on cost cutting, and what CEO Mark Zuckerberg dubbed the "Year of Efficiency."

The Facebook-parent shed more than 64% in 2022 and ranked among the worst performers in both the S&P 500 and Nasdaq-100.

— Samantha Subin

Altice USA shares gained more than 6% after the company announced that it sold Cheddar News to private equity-owned media company Archetype.

CNBC previously reported a possible deal to sell Cheddar to Archetype's owner Regent LP.

While terms of the deal were not officially disclosed, a person familiar with the matter told CNBC it is structured as a so-called "earn out" deal, meaning Altice USA will collect proceeds in the future should Cheddar meet certain performance goals.

— Drew Richardson, Alex Sherman and Samantha Subin

These are the stocks moving the most during midday trading:

• Iovance Biotherapeutics — The biotech stock jumped 15.2%, making up ground after shedding nearly 19% on Wednesday.
• Penn Entertainment — The casino operator rose more than 6% after Vora Capital Management filed a 13D in a push to designate directors to Penn's board.
• Grand Canyon Education — Shares of the educational services company slid nearly 7% after the Federal Trade Commission filed a lawsuit, accusing Grand Canyon of deceptive and illegal advertising and telemarketing practices.

Read the full list of stocks moving here.

— Lisa Kailai Han

Boeing slipped 1% on Thursday after the plane maker urged airlines to inspect 737 Maxes for a possible loose bolt.

The company said the bolt would be in the rudder control system. It's the latest complication for the manufacturer's best-selling model.

Boeing said inspections will take about two hours per plane. All new 737 Maxes will be checked before given to customers, the company added.

— Alex Harring, Leslie Josephs

A slew of China ETFs rose during Thursday's session, lifted by shares of JD.com, China Tourism and Alibaba.

All three stocks gained 5% during Thursday's session, but are slated to end the year down 50% or more.

The iShares MSCI China ETF, iShares China Large-Cap ETF and KraneShares CSI China Internet ETF were last up 3% or more. All three ETFs have fallen at least 11% or more in 2023

— Samantha Subin, Gina Francolla

Eli Lilly shares are on track to finish the year around $215 more expensive, underscoring the impact of blockbuster weight loss drugs on the market this year.

The stock has gained 59% — equating to more than $215 — over the course of 2023. And Eli Lilly is poised to notch its highest share price ending a calendar year in its history.

Eli Lilly makes the closely watched Zepbound drug, which was approved for weight loss treatment and is now available at U.S. pharmacies. The potential for drugs to treat obesity has captured interest of both investors and broader U.S. culture this year.

With those gains, the stock is on pace to notch its seventh straight winning year.

— Alex Harring

Small-cap companies made a major comeback in December, with the Russell 2000 notably soaring to new heights while significantly outperforming the broader market.

The Russell index of small-caps is up 14.2% this month, putting the index on pace for its best monthly performance since Nov. 2020 when it gained 18.29%. It's also on track for its second straight positive month. The S&P Small Cap 600 has also jumped 14% this month. In comparison, the S&P 500 gained 4.9% over the same period.

The reason behind the Russell's rally? Investors are still riding the high of the Federal Reserve's dovish pivot in mid-December, when central bankers held interest rates steady and indicated three rate cuts could come in 2024. That lowered concerns about a recession, and, in turn, boosted small-caps, which are known to be reactive to major economic changes and get hurt most during a recession.

— Pia Singh

The ongoing market rally, which began in late October, has been largely boosted by the stunning performance of the Magnificent 7 stocks. The tech-heavy Nasdaq Composite is up 44.6% this year, compared to the S&P 500 and the Dow Jones Industrial Average, which have respectively gained about 25% and 14%.

Spurred by rising AI-related sales, Nvidia has notched the best year-to-date performance of the group with its 238% price increase. Shares of Meta, up 197% this year, aren't far behind. The stock is set to wrap up a record year, boosted by hefty cost cuts, market share gains and a rebound in digital advertising.

Having respectively gained nearly 115% and 83%, Tesla and Amazon are the next-highest gainers in the cohort. Tesla's comeback this year can be attributed to its popularity amongst retail traders and increased media coverage due to CEO Elon Musk. On the other hand, Amazon has been boosted by continued optimization of its logistics network, rising advertising opportunities and increased AI investments.

Up 59%, 56% and 50%, Alphabet, Microsoft and Apple are the three laggards of the Magnificent 7.

Alphabet's stock could rally next year as advertising spending continues to ramp up and it introduces new capabilities, with investors expecting the company to regain its dominance. Meanwhile, Mahoney Asset Management's Ken Mahoney told CNBC that shares of Microsoft and Apple could benefit next year from the wide portfolios of services offered by the companies.

— Lisa Kailai Han

Pending home sales held steady in November even as mortgage rates made a slow trek lower, the National Association of Realtors reported Thursday.

The NAR Pending Home Sales Index held at 71.6 for the month, against the Dow Jones estimate that the gauge would increase 1%. The measure, which uses 2001as a baseline 100 reading, was off 5.2% from a year ago.

"Although declining mortgage rates did not induce more homebuyers to submit formal contracts in November, it has sparked a surge in interest, as evidenced by a higher number of lockbox openings," said Lawrence Yun, NAR's chief economist.

—Jeff Cox

Microsoft is approaching an "iPhone moment" as it starts to roll out its plans to monetize AI programs like Co-Pilot, according to Wedbush analyst Dan Ives.

"We believe over the next 3 years over 60% of its MSFT installed base will ultimately be on this AI functionality for the enterprise/ commercial which changes the landscape for Nadella & Co going forward. While AI use cases will build markedly in FY24 its clear FY25 for Redmond remains the true inflection year of AI growth with pricing, beta customers, and use cases all being rolled out over the next 3-6 months," Ives said in a note to clients on Wednesday evening.

Wedbush pushed up its Microsoft price target to $450 per share from $425. The new target is about 20% above where the stock closed on Wednesday.

Shares of Microsoft rose slightly on Thursday.

— Jesse Pound

Stocks opened marginally higher to kick off the second to last trading session of 2023.

The Dow Jones Industrial Average added 35 points, or 0.1%. The S&P 500 edged up nearly 0.2% and the Nasdaq Composite gained 0.3%

— Samantha Subin

Initial filings for unemployment benefits moved higher last week and were just above Wall Street estimates, though about in line with the recent trend.

Jobless claims for the week ended Dec. 23 totaled 218,000, up 12,000 from the previous period and slightly above the Dow Jones estimate for 215,000, the Labor Department reported Thursday. The four-week moving average for claims edged lower to 212,000.

Continuing claims, which run a week behind, rose 14,000 to 1.875 million, above the FactSet estimate for 1.864 million.

—Jeff Cox

These are the stocks moving the most in premarket trading:

• JD.com — Shares of the Chinese e-commerce company jumped more than 3% in premarket trading in the U.S. after Bloomberg News reported on Wednesday night that the company is planning pay raises for its front-line staff.
• New York Times Company — Shares continued to gain on Thursday, adding 1.3% after the media company on Wednesday filed a lawsuit against Microsoft and ChatGPT-maker OpenAI.
• Iovance Biotherapeutics — Shares of the biotech company rebounded 3.3% in early morning trading on Thursday. The stock plunged nearly 19% on Wednesday after the FDA placed a hold on Iovance's LN-145 trial for non-small cell lung cancer.

Read the full list of stocks moving here.

— Lisa Kailai Han

The pan-European Stoxx 600 index hovered around the flatline after an hour of trading, with health care stocks adding 0.4% while oil and gas stocks dropped 0.6%.

The continental blue chip index was last trading around the 478.66 mark, not far below the index's record closing high of 483.44 notched in November 2021.

- Elliot Smith

The Russell 2000 is on track to notch its third biggest gain ever over two trading months.

The small-cap index is on pace to finish November and December's two-month period higher by 24.3%.

That would mark its third biggest two-month advance in its history, according to data analyzed by Bespoke Investment Group. Previously, the index gained 28.4% in November and December of 2020 and 25.3% in March and April of 2009.

A pullback in the final two trading days of December could push the two-month advance to the fourth spot. The index rallied 24.2% in October and November of 1982.

— Alex Harring

Friday marks the end of the trading week, month, quarter and year. By all measures, stocks are on track for gains.

With just two trading days left, here's where they stand:

• On the week: The Dow and Nasdaq Composite have each added 0.7%, while the S&P 500 has climbed 0.5%. All three are on pace for their ninth straight positive weeks.
• On the month: The Dow and S&P 500 have gained more than 4%, and the Nasdaq has jumped more than 6%. It would be the second winning month in a row for all three.
• On the quarter: The Dow and S&P 500 have advanced more than 12% and 11%, respectively. The Nasdaq has added more than 14%. All three posted losses in the prior quarter.
• On the year: The Dow and S&P 500 rose more than 13% and 24%, respectively. The Nasdaq has soared more than 44%, on track for its best year since 2003. It marks rebounds across the board, as all three ended 2022 with losses.

— Alex Harring

Futures tied to the Dow, S&P 500 and Nasdaq 100 were all near flat shortly after 6 p.m. ET.

— Alex Harring