Dow slides more than 100 points Friday, major averages end 5-week winning run: Live updates

All three major indexes ended Friday in the red, breaking their five-week winning streak.

The S&P 500 slid 0.48% to end at 5,005.57. The Dow Jones Industrial Average lost 145.13 points, or 0.37%, settling at 38,627.99. The Nasdaq Composite slid 0.82% to finish at 15,775.65.

— Lisa Kailai Han

U.S. households may have built up large stores of cash during the pandemic, but Barclays believes that consumers are hesitant to redirect this reserve into investments — at least for the time being.

"Yields on cash remain historically attractive vs. equities and IG credit and should keep liquid allocations high, particularly with the first Fed cut getting pushed out," wrote strategist Venu Krishna.

Additionally, the strategist found that "households have become more conservative over time," making it more likely that these cash reserves will be saved for unexpected expenditures or emergency savings rather than redirected into investments.

— Lisa Kailai Han

Gains for the tech sector have been especially narrow this year, with BNP Paribas pointing out the clear differentiation within the "Magnificent 7" members.

"The worst two names in terms of index point contribution YTD are also in the 'Magnificent 7', AAPL and TSLA. This narrative is not random: the names higher on the year are the most geared to AI monetization, whilst the two laggards less so," strategist Greg Boutle wrote.

One way to hedge the risk as large-cap tech stocks diversify is by buying energy stocks, he added.

"Energy is the least-correlated GICS sector to Tech. It is a sector that we think could perform well in a stickier inflation environment," he wrote. Boutle noted that energy is also the most attractive sector in the U.S. from a capital return perspective, with dividends and buybacks combined to total an 8.5% yield.

— Lisa Kailai Han

Crude oil futures Friday posted a weekly gain as simmering tensions in the Middle East overshadowed stubborn inflation in the U.S. and a murky demand outlook for the year.

The West Texas Intermediate contract for March gained $1.16, or 1.49%, to settle at $79.19 a barrel. April Brent futures added 61 cents a barrel to settle at $83.47.

U.S. crude gained about 3% for the week, settling at its highest price since Nov. 6. The global benchmark rose 1.5% for the week, settling at the highest level since Jan. 26.

Tensions are rising on the border between Israel and Lebanon, once again raising fears that the war in Gaza could spread elsewhere in the Middle East.

Israel bombed southern Lebanon Wednesday in retaliation for rocket attacks in northern Israel. Hezbollah, the powerful militia allied with Iran, has vowed to strike back against Israel.

— Spencer Kimball

A slew of economic data releases have sent stocks seesawing back and forth this week.

On Tuesday, the Dow Jones Industrial Average posted its largest one-day decline since March 2023. But stocks retraced some of their losses on Wednesday and Thursday, with the S&P 500 cinching yet another record high yesterday afternoon.

Here's where the major averages now stand on the week:

• The S&P 500 is set for a 0.1% gain
• The Dow is on pace for a 0.2% gain
• The Nasdaq Composite is down 0.7%

— Lisa Kailai Han

The Nasdaq Composite and concentrated Nasdaq-100 are down 0.7% and 0.8%, respectively, for the week and on pace to snap five straight weeks on wins.

Adobe is the biggest laggard in the index, with a week-to-date loss of 11%. Micron Technology, Cadence Design Systems and MongoDB have slumped at least 6% each. Biogen is down about 9%, while Alphabet is headed for a 5% loss.

Some companies, however, have bucked the index's downtrend. Trade Desk has rallied nearly 27% since the start of the week, while Diamondback Energy is up 19%. Applied Materials and PDD Holdings have added more than 9% and 7%, respectively.

— Samantha Subin

53 stocks in the S&P 500 hit new 52-week highs during Friday's trading session.

Here's a look at some of the names that hit the milestone:

• Netflix
• Ralph Lauren
• MasterCard
• Progressive
• Eli Lilly
• Boston Scientific
• Lam Research
• Applied Materials
• Waste Management
• Martin Marietta
• Simon Property

— Lisa Kailai Han

Here are some of the names making the biggest moves during midday trading:

• Coinbase Global — Shares jumped 14.5% after the cryptocurrency exchange reported its first profit in two years. Both fourth-quarter earnings and revenue beat Wall Street's expectations.
• Yelp — The stock tumbled 14.3% after Yelp gave disappointing full-year revenue guidance. The company's earnings before interest, taxes, depreciation, and amortization guidance for the first quarter and full year were also light.
• Toast — The restaurant management software company rallied nearly 16% after it beat expectations for fourth-quarter earnings and revenue. Toast also announced $250 million in share buybacks and plans to cut 500 jobs.

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

— Michelle Fox

It will take some time for inflation to go back to 2%, Atlanta Federal Reserve President Raphael Bostic said.

"I am expecting that through the course of 2024 It'll be a little bump," Bostic told CNBC's "Money Movers" on Friday. "I think the trend will continue, but the path all the way to 2%, I don't think we're gonna get to that number immediately."

"We just have to be patient and let's not get too far ahead. And assuming that the job is done, because there's still work to do," Bostic said.

— Fred Imbert

Shake Shack shares headed for their biggest weekly gain in more than two years after the restaurant chain exceeded Wall Street expectations for fourth-quarter earnings.

Shares are tracking for a weekly gain of more than 23% as of midday Friday. If that holds through the closing bell, it would mark the stock's best week since early November of 2021, when it climbed more than 31%. This week is also slated to be the stock's fifth best in its history.

Much of that rally came on Thursday, when the stock jumped 26% after reporting quarterly financials. The New York-based chain posted 2 cents in earnings per share, excluding items, on $286.2 million in revenue for the quarter. Those were better than the respective consensus forecasts of 1 cent and $280.2 million from analysts surveyed by FactSet.

Meanwhile, the company offered current-quarter and full-year revenue guidance that was largely in line with expectations.

— Alex Harring

Consumer confidence and inflation expectations changed little in the latest University of Michigan survey, as respondents weighed stock market volatility and varying signs on prices.

The February sentiment reading came in at 79.6, nudging up just 0.6 points from January and just missing the Dow Jones estimate for 80.

On inflation expectations, the one-year outlook inched higher to 3%, up one-tenth of a percentage point on a monthly basis, while the five-year outlook held at 2.9%. Both are above the Federal Reserve's 2% goal, though continuing to show signs of moderating. By comparison, the one-year outlook a year ago was 4.2%.

"The fact that sentiment lost no ground this month suggests that consumers continue to feel more assured about the economy, confirming the considerable improvements in December and January across various aspects of the economy," said Surveys of Consumers Director Joanne Hsu.

—Jeff Cox

Shares of major homebuilders were under pressure after Friday's hot inflation reading and a weak housing starts report.

Pulte Group fell more than 2%, while Lennar and D.R. Horton fell 1.5% and 1.4%, respectively.

The SPDR S&P Homebuilders ETF (XHB) was down 0.6%, which was slightly worse than the S&P 500 but outperforming the Nasdaq Composite. The fund, which also includes stocks like Williams-Sonoma and Lowe's, is still positive for the week.

— Jesse Pound

This week showed just how sensitive markets have become to incoming data. On Tuesday, the S&P 500 dropped more than 1% following hotter inflation data, but then retraced those gains as of Thursday's close to notch new record highs.

UBS expects the road to the Federal Reserve's 2% inflation target will continue to be a bumpy one. However, it anticipates the central bank will navigate a soft landing for the economy, citing the overall downward trend in inflation.

"A key focus for investors remains how soon and how swiftly the Federal Reserve will cut rates, leading to a heightened sensitivity to both positive and negative data surprises," Solita Marcelli wrote in a Friday note titled "Mixed data point to uneven path to soft landing." "But while investors should brace for further volatility, we continue to see an economic backdrop in line with our base case scenario of a soft landing."

The Dow Jones Industrial Average and S&P 500 are headed for their 15th positive week in 16. On the other hand, the Nasdaq Composite is poised to snap a five-week win streak.

— Sarah Min

The dollar index is on track to post another winning week.

The index, which compares the U.S. greenback against a basket of foreign currencies, is up about 0.5% so far in the week. If it can hold gains through Friday, it will mark the fifth positive week in a row.

— Alex Harring, Gina Francolla

The combination of investor demand and a rally in crypto keeps pushing up the total holdings of the new bitcoin ETFs.

The iShares Bitcoin Trust (IBIT) now holds over $6 billion of bitcoin, according to the fund's website. There are three other new funds that have passed the $1 billion mark, including the Fidelity Wise Origin Bitcoin Fund (FBTC) at about $4 billion, according to FactSet.

Those funds are growing unusually fast by the standards of ETFs, having been on the market for just over a month.

To be sure, some of that cash could be coming from the Grayscale Bitcoin Trust (GBTC), which has seen about $6 billion in outflows. It is still the biggest bitcoin fund on the market, at over $20 billion, according to FactSet.

— Jesse Pound

The S&P 500 retreated on Friday morning, after notching yet another record close in Thursday's trading session.

The broad stock index slid 0.1%, while the Dow Jones Industrial Average lost 65 points, or 0.2%. The Nasdaq Composite teetered around the flatline.

— Lisa Kailai Han

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

Toast — Shares soared nearly 8% in premarket trading after fourth-quarter results surpassed Wall Street estimates on the top and bottom line. The company also announced plans for a $250 million share repurchase, and said it planned to lay off 550 employees.

Applied Materials — Shares gained about 12% after the semiconductor production equipment company's fiscal first-quarter results were above consensus estimates, and also issued higher-than-expected revenue guidance for the second-quarter. Applied Materials estimates second-quarter revenue of roughly $6.5 billion compared with estimates from analysts polled by FactSet, which called for $6.34 billion.

Trade Desk — Shares skyrocketed more than 18% after the company beat revenue estimates in the fourth-quarter and issued higher-than-expected first-quarter guidance. The firm estimates sales will be least $478 million, outpacing LSEG estimates of $452 million.

Read the full list here.

— Brian Evans

The producer price index rose 0.3% in January, beating a Dow Jones estimate for a gain of 0.1%. Excluding food and energy prices, producer prices jumped 0.5%, also beating expectations.

The report comes days after the consumer price index, another widely followed measure of inflation, also rose more than anticipated. This raises concerns that the Federal Reserve may not be able to cut interest rates until later than expected this year.

— Fred Imbert

It's hard to accurately estimate the impact of Biden's latest student debt forgiveness plan, according to TD Cowen.

The Biden administration announced a revised student loan plan that would forgive debts for any borrowers with an 80% risk of defaulting within the next two years.

"We question if this will provide as much relief as the headlines suggest as there must be an 80% probability of a default within two years to qualify for help. We realize that will be difficult to calculate, but it certainly seems like a high hurdle except for those who were never likely to repay their student loans," wrote analyst Jaret Seiberg. "Republicans may complain about this program, but we believe it will be tough to block as it is framed as forgiving debt that would be too costly to recoup."

— Lisa Kailai Han

The fundamental macro backdrop "remains supportive" for the stock market, according to UBS.

The S&P 500 ended Thursday's trading session by notching a new record close. Strategist Vincent Heaney believes that the broad index could end the year around its current levels.

"Markets are likely to be choppy amid shifting expectations for central bank policy easing. But we think lower interest rates, positive economic growth, and growing corporate earnings should create a supportive backdrop for equities in 2024," he wrote.

However, Heaney added that uncertainty about the pace and timing of the Fed's rate cutting cycle could introduce some near-term volatility.

"We recommend seeking exposure to quality stocks, including the U.S. IT sector, which should offer resilient earnings growth," the strategist added.

— Lisa Kailai Han

Coinbase shares surged more than 12% in the premarket Friday after the crypt trading platform reported much better-than-expected results for the fourth quarter.

The company earned an adjusted $1.04 per share on revenue of $954 million. Analysts polled by LSEG expected a loss of 1 cent per share on revenue of $822 million.

"In Q4, and we've shared this for many quarters, a lot of the results of our fee rate is just the mix shift on our platform — who traded what product in the quarter," CFO Alesia Haas told CNBC after the results came out. "So in Q4, when we saw higher volatility, we grew Simple trading, but Advanced grew more."

— Fred Imbert

Beijing needs to show "more clear signals" for aggressive policy easing to backstop the growth downturn, China markets expert Yan Wang said Friday.

"Other than that, I doubt the market can rally on a sustainable basis," Wang, chief emerging markets and China strategist at global investment research and strategy firm Alpine Macro, said on CNBC's "Street Signs Asia."

Investment banks expect China's economy to expand at a more sluggish pace in 2024 compared with 2023 — even last year the Chinese economy had a slower-than-expected recovery after exiting Covid-19 restrictions.

"The government has refused to issue very strong stimulus to to help the economy and structurally, the policy flip flop Beijing has done over the past few years has damaged confidence," Wang said.

China markets are closed this week for the Chinese New Year holidays.

– Sheila Chiang

Japan's finance minister said Friday that he was monitoring yen's moves "with a strong sense of urgency," according to a Reuters report, adding that a weak yen has its merits as well as demerits.

"Currency rates are set by markets reflecting fundamentals. Rapid moves are undesirable and stable moves are desirable," Suzuki reportedly told a lower house session of parliament.

The yen weakened on Friday and was trading at the psychologically key 150 per dollar level, a day after the country entered a technical recession.

— Lee Ying Shan, Reuters

Japan's finance minister Shunichi Suzuki said Friday that it was up to the Bank of Japan to decide when it would end its negative interest rate policy, according to a Reuters report.

Japan's economy has lost its spot as the world's third largest to Germany, slipping into a technical recession, and sparking hopes that the central bank might stick with its ultra-loose monetary policy for longer.

"I am aware there are various opinions in the market," Suzuki reportedly said when asked whether the weak gross domestic product data might impact the timing of the central bank's policy changes.

– Lee Ying Shan, Reuters

Investors should still expect to get solid returns from the equity market this year, according to BlackRock's chief investment officer of global fixed income Rick Rieder.

"I think equities will do their job. I think equities will get you know 10%, 12%, maybe 15% return this year. That's a pretty good portfolio, and I don't think you need long bonds to hedge," Rieder, who oversees $2.8 trillion in fixed income assets for the firm, told CNBC on Thursday afternoon. "I think today you can build a portfolio that's reasonably stable, and work your way through."

Sticky service-level inflation will begin to balance out over the next couple of months, Rieder added. He expects inflation is moderating and will allow for a "normal" economy with a roughly 4% nominal GDP growth. Consumer spending should also continue holding up, he said.

— Pia Singh

Check out the companies making headlines in after-hours trading.

• Coinbase – Shares of the cryptocurrency exchange gained 13% in extended trading after the company posted fourth-quarter earnings of $1.04 per share on revenue of $954 million. Analysts had expected a 1 cent per share loss on revenue of $822 million, according to LSEG.
• Applied Materials – Shares of the semiconductor equipment maker popped 11% in after-hours trading as earnings topped estimates and the company gave a rosy outlook for the fiscal second quarter. First-quarter earnings per share of $2.13, excluding items, bested estimates of $1.90 per share, from LSEG. Revenue for the period came out at $6.71 billion, topping the $6.48 billion estimate.
• Toast – The maker of restaurant point of sale systems saw shares rise 3% after hours following its fourth-quarter results. The company posted a loss of 7 cents per share, which was narrower than the 11 cent per share loss analysts expected, according to LSEG. Revenue of $1.04 billion came in about in line with expectations of $1.02 billion.

For the full list, read here.

— Pia Singh

U.S. stock futures opened little changed on Thursday.

Dow Jones Industrial Average futures edged lower by 10 points, or 0.03%. Futures tied to the S&P 500 traded just above the flatline, while Nasdaq 100 futures gained 0.2%.

— Pia Singh