The S&P 500 eked out a narrow gain in Friday's session but still had the worst week in nearly two months.
The broad index was up just 0.2% to end the session at 4,090.46. The Nasdaq Composite slipped 0.61% to close at 11,718.12. The Dow Jones Industrial Average advanced 169.39 points, or 0.5%, to end at 33,869.27.
Despite the Dow's Friday gain, it still ended the week down 0.17%. The S&P 500 and Nasdaq Composite lost 1.11% and 2.41%, respectively, in what was their worst week since December.
Investors digested the most recent interest rate hike, economic data and recent commentary from Federal Reserve speakers, said Shana Sissel, founder of Banríon Capital Management. That caused intraday moves, she said, as investors changed positions while predicting how the central bank will act on interest rates going forward.
"There's some mixed signals here, which I think is why volatility is up," Sissel said. "There's not really a consensus coming out with leading indicators that give you a lot of confidence of what's coming next. And the markets hate that."
Ride-hailing platform Lyft tanked more than 36% after a disappointing fiscal fourth-quarter report. Expedia also saw its shares fall by more than 8% after its earnings and revenue fell below analysts' expectations.
Those are the latest reports in what has been considered an underwhelming quarter by Wall Street. With nearly 70% S&P 500 companies reporting, around 70% of those companies beat analyst expectations for the quarter. That's a smaller share of companies surpassing expectations than the three-year historical average of 79%, according to The Earnings Scout.
All three indexes ended the week down despite two posting gains in Friday's session.
The Dow closed up 0.5%, but still end the week down 0.2%. The S&P 500 added 0.2% at close after vacillating around the flatline for much of Friday's session, but ended the week down 1.1%. The Nasdaq Composite dropped 0.6% in the session, pushing the technology-heavy index down 2.4% for the week.
It marked the worst weeks for the S&P 500 and Nasdaq since December.
— Alex Harring
WTI closed on Friday with its best week since October.
It rose 8.63% this week, marking its strongest week since Oct. 7, when WTI gained 16.54%. This was also its first positive week in three weeks.
WTI settled up 2.13% at $79.72 and hit a session high of $80.33. This was the highest level since Jan. 30, when it traded as high as $80.49.
— Gina Francolla, Hakyung Kim
Credit Suisse anticipates Yelp shares will see an upside of almost 46%, following the company's promising fourth-quarter earnings report.
Analyst Stephen Ju reiterated his outperform rating for the stock. He also raised his price target to $45 from $42, which is up 45.9% from the stock's Thursday closing price.
"Despite the softening macro, top-line results came in better than we anticipated driven by resiliency of Yelp's Services advertising business which grew 12% year-over-year – as total revenue improved by 15%," Ju wrote in a client note on Friday.
The analyst added that he sees "ongoing opportunities for further value unlock, particularly among its SMB customer base."
Yelp's reported revenue and earnings were largely in-line with analysts' expectations. The company had revenue of $309 million, compared to analysts' forecasts of $307 million, according to Refinitiv. Per-share earnings were 28 cents, arriving in line with estimates.
Shares were up almost 4% by Friday afternoon. The stack has rallied 17.5% since the start of 2023.
— Hakyung Kim
Looking ahead to next week, investors are already readying for the latest consumer price index reading to see if inflation once again cooled.
The January reading for the index, which follows the prices of a wide basket of goods as a gauge of inflation, is due Tuesday. Economists polled by Dow Jones forecast a 0.4% increase in headline CPI on a monthly basis and a 6.2% gain from the prior year.
"Next week is really all about one thing, and that one thing is CPI," said Scott Ladner, chief investment officer at Horizon Investments.
Market observers also expect the CPI reading to help dictate the Federal Reserve's next move on interest rates. The central bank last implement a 25 basis point interest rate hike, while Fed Chair Jerome Powell noted inflation was starting to come down but had a ways to go.
Emmanuel Cau, an analyst at Barclays, said inflation data will likely be a market catalyst going forward.
"More than the central banks' rhetoric, we think it is the inflation data that will dictate the direction of travel for markets from here," he said in a note to clients Friday.
CNBC Pro subscribers can read more about what to expect in the coming week here.
— Alex Harring
The three major indexes were mixed as investors entered the final hour of the trading day and week.
The Dow had the best performance heading into the final hour at 0.4% up. The S&P 500 traded slightly above the flatline, while the Nasdaq Composite was down 0.8%.
Still, the indexes are on pace to end the week down. Leading the way down was the Nasdaq, on track for a 2.5% drop. The S&P 500 headed toward a 1.2% loss, while the Dow was poised for a relatively modest 0.2% dip.
— Alex Harring
Bitcoin is poised to record its worst weekly performance since November.
It is down 6.6% this week, putting it on pace for its largest weekly losses since Nov. 11, when bitcoin lost 20.85%.
Bitcoin Coin Metrics fell to $21,640.62 in Friday trading. That marks the lowest levels for the cryptocurrency's value since Jan. 20, when it traded as low as $20,875.2.
Coinbase also plunged 21.7% this week, putting it on track for its first negative weeks in 5 weeks. If Coinbase continues to fall below 21.8%, it will be the company's worst week since May 13, 2022, when it lost 34.58%.
— Gina Francolla, Hakyung Kim
The S&P 500 is down 1.4% so far this week, on pace to post its worst weekly performance since December. Energy is the only of its 11 sectors set to end the week up.
The sector is on track to advance 4.5% this week. A notable chunk of that is from a 3.4% advance seen so far in Friday's session, during which it was also the best performer.
Phillips 66 led the sector this week, adding more than 7%. Marathon, Diamondback and EOG followed, trading just under 6.8% in the green compared with the start of the week.
On the opposite end, consumer services is on pace to perform the worst of the 11 sectors this week, currently down 6.5%. Lumen is the biggest laggard in the sector, plummeting just under 25% so far this week.
— Alex Harring
Check out the companies making headlines in midday trading.
— Samantha Subin, Yun LI
Stifel upgraded VF Corp. shares to buy from hold, saying the stock looks compelling after investors sold it in the wake of a dividend cut. The company behind Vans and The North Face has grown its dividend for 49 years, which means it's often held by exchange traded funds as a dividend aristocrat.
"The dividend cut and resulting dislocation in shares present an attractive entry point and we recommend capitalizing on elevated volume to build positions. We view the new look 4.6% dividend yield as safe (mid-50% payout) and foresee a flush of cash flow (forward 5 quarter projection $2-2.5bn, >20% yield to the equity) accruing to the equity value," analyst Jim Duffy wrote.
CNBC Pro subscribers can read the full story here.
— Sarah Min
Wall Street analysts say Lyft has no excuses for its poor guidance.
Lyft shares fell more than 30% Friday as traders weighed a weaker-than-expected forecast from the ridesharing company in its most recent earnings report. The firm otherwise reported a revenue beat.
The ridesharing company said it expects to make about $975 million in revenue in the fiscal first quarter of 2023, or lower than the $1.09 billion consensus estimate from analysts, according to StreetAccount. Lyft also forecasted an adjusted EBITDA between $5 million and $15 million in the first quarter.
Given this, market observers pointed out that Uber might be better positioned to take advantage of a broader recovery in ridesharing, as Lyft appears to be falling behind.
"The mea culpa by management seems to be that the business was over-earning on inflated prices amidst supply-constraints (surge pricing), an issue they had downplayed to then apparently be taken by surprise," wrote Loop Capital's Rob Sanderson, one of several analysts who downgraded the stock.
CNBC Pro subscribers can read the full story here.
The stock declined more than 9% in Friday's session.
— Sarah Min
Many Wall Street strategists have been skeptical of the rally to start 2023, but some technical indicators suggest it might have serious staying power.
"Despite what might seem a logical expectation of lower prices, the market action has been quite impressive to the upside," Frank Gretz, technical analyst at Wellington Shields, said in a note to clients.
Gretz pointed out that the majority of NYSE stocks are trading above their 200-day moving average, and that new 12-month highs are lapping new 12-month new lows on both the NYSE and the Nasdaq.
"We just don't see these numbers fitting in with the ongoing bear market thesis. Without meaning to be too convoluted semantically, a big new leg down here would almost seem a new bear market, rather than a continuation of the old one," the note said.
— Jesse Pound
Shares of Fleetcor Technologies rose more than 1% after Baird upgraded the business bill payment platform to outperform.
"We like Fleetcor, as we believe the businesses have good barriers and solid secular trends. Guidance for 9-10% organic constant-fx in 2023 indicates a good/resilient business during a period of macro uncertainty," analyst David Koning said in a note.
Koning also said the stock could see a relief rally in the coming months as Fleetcor's Russia exposure, along with other macro pressures, start to wane.
— Fred Imbert, Michael Bloom
Credit and debit card data from January suggests the U.S. consumer is not about to roll over, according to a note from David Tinsley, senior economist at Bank of America Institute.
"We have seen signs of a strengthening in consumer spending at the start of this year – Bank of America credit and debit card spending per household rose 5.1% year-over-year (YoY) in January, compared to 2.2% YoY in December. Total payments across all channels (Automated Clearing House (ACH), Bill Pay, Credit and Debit Card, Wires, Person-to-Person, Cash and Check) grew 7.5% YoY," the note said.
Those year-over-year improvements could be due in part to a Covid wave that hit parts of the country in January 2021, but the larger picture still points to a resilient consumer, according to Tinsley.
"More broadly, the data suggests that while lower income consumers are pressured, they still have solid cash buffers and borrowing capacity. Even for the lowest income cohorts this should provide support for some time yet," the note said.
— Jesse Pound
It's been a tough week for Google-parent Alphabet, as the company's recent moves in AI fail to impress investors. The stock is down about 9% week to date, on pace for its biggest weekly drop since November.
In the last two days, the company lost roughly $165 billion in market cap.
"While the near-term move may be overdone and Alphabet will have a very strong foothold in the A.I. race (stock ticking up in the pre' market), it is harder to imagine this overhang goes away anytime soon as Chatbots & A.I. do open up some hard to answer questions," Goldman Sachs traders said in a note Friday.
— Fred Imbert, Michael Bloom
ValueAct has taken a stake in music streamer Spotify, CNBC's David Faber reported Friday. Shares jumped nearly 4% following the news.
"We welcome ValueAct as an investor in Spotify," a Spotify spokesperson said.
— Yun Li
Bank of America downgraded shares Deutsche Bank to underperform from neutral, as the European bank deals with challenges around profitability.
"We see Deutsche Bank struggling to improve profitability as growth is heavily volume reliant, consuming cost and capital resources. This likely limits RoTE to 6-7% with weak profitability and regulatory headwinds constraining capital distribution," analyst Rohith Chandra-Rajan wrote in a Friday note.
CNBC Pro subscribers can read the full story here.
— Sarah Min
Consumer sentiment has risen in February but so have short-term inflation expectations, according to a closely watched gauge.
The University of Michigan Index of Consumer Sentiment's preliminary reading was 66.4 for the month, up from 64.9 in January and ahead of the Dow Jones expectation for 65.1. The current conditions index jumped to 72.6 from 68.4 in January, while the future expectations index edged lower to 62.3, down from 62.7.
On the inflation side, the one-year inflation expectations gauge increased to 4.2%, up from 3.9% in January. However, the five-year outlook was unchanged at 2.9%.
—Jeff Cox
Two of the three major indexes opened Friday's session down amid what has so far been a losing week for stocks.
The Nasdaq Composite and S&P 500 were down 0.4% and 0.1% directly following the market's open. The Dow traded near flat, oscillating above and below the flatline.
Despite the mixed open, all three are on pace to end the week down.
— Alex Harring
Aluminum hit a low not seen in around a month.
LME Aluminum reached $2,447.50 per metric ton. That's the lowest the metal has been valued at since Jan. 11, when it fell to $2447.
It's down 4% this week, putting it on pace for its second straight losing week. If this performance continues, it would be the worst week for aluminum since Dec. 16, when the metal lost 4.3%.
— Gina Francolla, Alex Harring
Here are the some of the stocks making the biggest moves in the premarket:
To see more premarket movers, read the full story here.
— Michelle Fox