Traders work on the floor of the New York Stock Exchange during morning trading on June 12, 2024.
The Nasdaq Composite ticked higher on Friday to close at a record for the fifth straight session.
The tech-heavy index inched higher by 0.12% to end at 17,688.88. The S&P 500 inched lower by 0.04%, closing at 5,431.60 and snapping a four-day win streak. The Dow Jones Industrial Average slipped 57.94 points, or 0.15%, to end at 38,589.16.
The University of Michigan's Survey of Consumers showed that consumer sentiment declined to 65.6 in June, down from 69.1 in May. This reading also came below the 71.5 Dow Jones estimate.
Eight of the 11 sectors in the S&P 500 slid during the session, with communication services, information technology and consumer staples emerging as the only winners. Within the broad market index, more than 360 stocks ended the day with declines.
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"The reality is that, even in these bull markets, there are going to be days where you take a pause and where people take some gains. We've had such a strong run, especially coming off of soft PPIs and soft CPI … I think it's a pretty, pretty natural place to take a pause after a pretty aggressive rally," said Ross Mayfield, an investment strategy analyst at Baird.
Hopes for a continued cooling of inflation have boosted the S&P 500 and Nasdaq this week. The S&P 500 and Nasdaq Composite ended the week higher by about 1.6% and 3.2%, respectively.
Wholesale inflation unexpectedly ticked down 0.2% last month, while economists polled by Dow Jones expected the gauge to increase 0.1%. That follows a consumer price index reading that was flat on a monthly basis in May.
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Elsewhere, software giant Adobe leapt 14.5% Friday after fiscal second-quarter results surpassed Wall Street estimates. Declines in Caterpillar and Boeing weighed on the Dow, while Carnival and Norwegian Cruise Line were the biggest laggards in the S&P 500.
Nasdaq rises to new closing high
The Nasdaq Composite ticked higher to a new record close Friday afternoon.
The tech-heavy index added 0.12% to settle at 17,688.88. Meanwhile, the S&P 500 slipped 0.04% to 5,431.60, while the Dow Jones Industrial Average lost 0.15%, settling at 38,589.16.
— Lisa Kailai Han
Defensive sectors traditionally outperform first after a rate cut, Strategas says
In the first six months after a rate cut, the defensive sector has traditionally led the market, according to a new Strategas report.
However, the firm cautioned that the new artificial intelligence boom might make a difference this time around.
"Utilities is the only sector to outperform in each of the four instances we have data for but what's important today is to keep in mind the major drivers of the 'AI' craze and cash hoarders are in Technology and Communications today," Strategas wrote.
The firm added that on average, stocks have performed their best during periods where inflation has remained stagnant.
— Lisa Kailai Han
Equal weight S&P ETF is ‘flirting with important support,’ Wolfe says
The performance of the Invesco Equal Weight S&P ETF (RSP) is worrying investors, according to Wolfe Research.
"To the frustration of many, the equal-weight S&P is flirting with important support," wrote Rob Ginsberg, Wolfe Research managing director, in a Friday note to clients. He added that "now would be an excellent time for momentum to present itself" following its peak in late March.
The equal weight ETF hit a fresh high of $169.80 on March 28, closing that day's trading session up 0.35% at $169.37 after starting the session at $169.16. Since then, the ETF has been down around 4%, moving 1% lower during Friday's session.
— Sean Conlon
Broadcom heads for best week on record following earnings
Broadcom's postearnings rally this week put the stock on track to notch its biggest weekly gain in its history.
Shares have surged more than 23% so far this week. Its best completed week on record came in late March, when the stock jumped around 20%.
Broadcom has climbed every day this week in the lead up and aftermath of its second-quarter earnings report, which came in ahead of Wall Street forecasts on both lines. The chipmaker also announced a 10-for-1 stock split.
— Alex Harring
Information technology stocks lead S&P 500 to winning week
The S&P 500 is tracking for a winning week, due in large part to outperformance by information technology names.
The index is pacing to end the week up more than 1%. Yet, only three of the 11 sectors are on pace to finish clearly in the green.
The information technology sector outperformed with a rally of more than 6%. Broadcom led the index higher with a rally of more than 23%, followed by Skyworks' climb of more than 15%.
Real estate and communication services were the other two sectors poised to complete the week notably up. Still, both are on track to end with less than 1% in gains, meaning they underperformed the index as a whole.
On the other end of the spectrum, the financial and energy sectors were the two worst performing of the 11 this week. Both are slated to close the week down more than 2%.
— Alex Harring
Merger-and-acquisition dollars rise in Americas, data shows
Mergers and acquisitions volumes are up significantly this year, according to data from LSEG.
Data released Thursday shows the total value tied to these deals in the Americas has totaled $846.7 billion so far in 2024. That is up 43% compared to the same period a year ago.
— Alex Harring
Here is where the major averages stand for the month
As the middle of June approaches, here is where the major averages stand on the month.
- The S&P 500 is up 2.71%.
- The Nasdaq Composite is up 5.48%.
- The Dow Jones Industrial Average is down 0.54%.
- The Russell 2000 is down 3.34%.
— Lisa Kailai Han
16 stocks in the S&P 500 hit new 52-week lows
Sixteen stocks in the S&P 500 hit new 52-week lows, while just six tickers were trading at their 52-week highs.
Stocks that reached new 52-week lows included:
On the other hand, the six stocks that hit new 52-weeks highs were:
— Lisa Kailai Han, Gina Francolla
U.S. crude oil on pace to snap three-week losing streak
U.S. crude oil was on pace Friday to break a three-week losing streak as analysts see a tighter market heading into the third quarter.
Oil prices are up more than 3% this week as summer fuel demand is expected to reduce inventories in the coming weeks, even though the season has gotten off to a tepid start.
Matt Smith, lead oil analyst at Kpler, said the risk is to the upside for oil prices, though gains will be fairly limited.
"We could get up to $90, but we'll come back down again," Smith said. "We're not going to $95, by no means are we going to $100 per barrel here."
— Spencer Kimball
RH heads for worst day since 2020
RH shares tracked for their biggest one-day loss in more than four years on Friday following the luxury retailer's latest earnings report.
Shares slipped around 18% in afternoon trading. If that holds through session close, it will mark its worst session since March 16, 2020, when the stock dove more than 23%.
Friday's drop came after the furniture maker posted a loss of 40 cents per share for the first quarter, much wider than the forecast of 12 cents lost on each share from analysts polled by LSEG. However, the company recorded $727 million in revenue during the three-month period, modestly higher than the $725 million consensus estimate.
— Alex Harring
These are the stocks making the biggest moves midday
Here are some of the stocks making the biggest moves during midday trading:
- Adobe — The software stock surged 14% on stronger-than-expected quarterly results.
- RH — The luxury retailer plummeted 18.6% after reporting a much wider loss per share in the first quarter than Wall Street anticipated.
- Hasbro — The toymaker's shares jumped 4.8% on the back of an upgrade from Bank of America to buy from neutral.
Read the full list of stocks on the move here.
— Samantha Subin
GameStop annual meeting rescheduled to Monday after technical problems
GameStop's annual shareholder meeting was rescheduled to Monday at 11 a.m. ET after the event was disrupted by computer problems and postponed on Thursday.
On Thursday, the meeting began about 50 minutes behind schedule and was immediately adjourned without any business being conducted "due to technical difficulties with the third-party hosting site," GameStop later said in a statement.
— Yun Li
France ETF on pace for worst week in more than two years
The iShares MSCI France ETF (EWQ) is facing its worst trading week in more than two years.
Shares of the EWQ have fallen more than 9% on the week, which puts the fund on pace for its worst week since March 4, 2022, when it plummeted 12.9%. The exchange-traded fund fell around 3.4% during morning trading on Friday.
France's CAC 40 Index is also facing its worst week since March 4, 2022, when it fell 10.23%. The index has plunged around 6.4% this week.
This comes as political uncertainty plagues France, with President Emmanuel Macron recently dissolving parliament and calling for snap elections on Sunday. He has since said that he will not step down if his party suffers in the elections.
— Sean Conlon, Gina Francolla
Friday's lower-than-expected consumer sentiment indicates softening confidence in the labor market, investor says
June's lower-than-expected consumer sentiment should spur the Fed to be more dovish, according to Baird investment strategy analyst Ross Mayfield.
Data released by the University of Michigan's Survey of Consumers showed that consumer sentiment declined unexpectedly in June.
While the indicator is not one that investors give as much airtime, Mayfield believes it is good for gauging how consumers are feeling, particularly with regards to the labor market. Up until now, consumers have still had confidence in the job market despite elevated inflation levels.
"To the extent that there's a read through on consumer sentiment to a softening of the labor market, to me, it would all come together to say the Fed should be a little bit more dovish than they indicated they might be," he told CNBC. "Because once you start to lose the labor market a little bit, it can really spiral before you have a chance to patch things up."
— Lisa Kailai Han
Nvidia closing market cap gap to Apple, Microsoft
Nvidia is outperforming Apple and Microsoft on Friday morning, bringing the market cap of the megacap tech stocks even closer together.
Shares of Nvidia were up more than 2%, while Apple and Microsoft were each close to flat.
Friday's performance could have a big effect on a $70 billion tech exchange-traded fund — the Technology Select Sector SPDR Fund (XLK) — because June 14 is the reference date for an index rebalance. Nvidia's rally, combined with diversification rules for the fund, could create demand for more than $10 billion worth of the chipmakers' shares just from this one fund.
— Jesse Pound
Consumer sentiment dimmed in June, University of Michigan survey shows
Consumer sentiment unexpectedly declined in June as the near-term outlook for inflation held at its highest level since November 2023.
The University of Michigan's Survey of Consumers showed a preliminary reading of 65.6 on sentiment, down from 69.1 in May and below the 71.5 estimate from the Dow Jones consensus. The current conditions index also moved lower, down to 62.5 from 69.6.
On inflation, the one-year outlook held at 3.3% while the five-year view nudged up to 3.1%, also its highest level since November.
— Jeff Cox
Cleveland Fed's Mester sees policy in 'good position' as she leaves office
Outgoing Cleveland Federal Reserve President Loretta Mester said Friday that she thinks monetary policy is well-positioned to handle risks to the U.S. economy and does not think it is time yet to lower interest rates.
"We're in a very good position with monetary policy right now," the soon-to-be ex-Fed official said on CNBC's "Squawk Box." "I would want to see a few more months of good inflation data, inflation coming down, the short-run inflation expectations starting to move down."
"Then you need to start thinking about OK, this may be the right panoply of data," she added. "If you wait too long [to cut rates], if inflation is moving down, by maintaining the current level, you're actually becoming more restrictive."
Reflecting on her 39 years of service to the Fed, Mester said service to the public has always been the top goal.
"I can tell you in 39 years, politics has not come into that room," said Mester, who has reached the Fed's mandatory retirement age of 65 for a regional president.
— Jeff Cox
The stock market opens lower
Stocks opened lower Friday morning, a day after the S&P 500 and Nasdaq Composite closed at new record highs.
The broader market index fell 0.4%, while the tech-heavy Nasdaq lost 0.3%. The Dow Jones Industrial Average also slipped 229 points, or 0.5%.
— Lisa Kailai Han
Import, export prices both post declines for May
More evidence of a pullback in inflation came in May as prices for both imports and exports fell, the Bureau of Labor Statistics reported Friday.
Import prices declined 0.4%, against the Dow Jones estimate for no change and a switch from the 0.9% jump in April. Export prices declined 0.6% after rising 0.6% the prior month.
A 2% decline in fuel costs helped bring prices down, but food, feed and beverage prices also fell 1.6%.
— Jeff Cox
Adobe, Hasbro among stocks making biggest premarket moves
Check out the companies making headlines before the bell:
- RH — The high-end retailer tumbled 12.3% after posting a much wider loss per share in the first quarter than Wall Street anticipated.
- Adobe — The software company soared 14.2% after posting better-than-expected earnings and revenue, with higher new annualized Digital Media revenue, which includes Creative Cloud subscriptions, than analysts had called for. Adobe also lifted its full-year guidance. JPMorgan upgraded shares to overweight from neutral on Friday, saying Adobe is poised for "smoother sailing ahead" after its strong quarterly print.
- Hasbro — Bank of America upgraded the toymaker to buy from neutral, sending shares 1.7% higher. The firm said in a Friday note that Hasbro's digital gaming strategy can drive an earnings rebound in 2024 and 2025.
For the full list, read here.
— Pia Singh
Here's how many record highs the major indexes have cinched so far in 2024
This year, the equity market has continued its rally to new highs.
So far, the S&P 500 has gained 13.92% in 2024, while the Nasdaq Composite is up 17.69%. The Nasdaq 100 has added 16.35%.
Here is how many record closes some of the major averages have notched year to date:
- S&P 500: 29
- Nasdaq Composite: 17
- Nasdaq 100: 26
— Lisa Kailai Han
S&P 500 and Nasdaq headed for weekly gains
The S&P 500 and Nasdaq Composite are headed for their seventh weekly gain in eight weeks, reaching record highs along the way.
The broad market index is up 1.6% week to date, while the Nasdaq has popped 3.1%. The Dow has struggled, however, slipping 0.4%.
— Fred Imbert
Bank of Japan set to reduce JGB purchases, leaves interest rate unchanged
The Bank of Japan kept its benchmark interest rate unchanged on Friday, but indicated it is considering the reduction of its purchase of Japanese government bonds.
At the end of its two-day policy meeting, the central bank left short-term rates unchanged at between 0% to 0.1%, as widely expected.
The BOJ said it could reduce its purchases of Japanese government bonds at its next monetary policy meeting, scheduled for July 30 and July 31.
The yen weakened past 158 against the U.S. dollar following the announcement. The yield on the 10-year Japanese government bond fell to 0.929%.
— Lim Hui Jie
Roaring Kitty’s GameStop bet appears to top 9 million shares
Famed meme stock trader Keith Gill — also known as "Roaring Kitty" and "DeepF------Value" — seems to have bolstered his stake in the company to nine million shares.
Gill posted a new screenshot of his E-Trade portfolio to Reddit's Superstonk forum on Thursday after the market close. The image seems to show that he is now holding 9.001 million GameStop shares and more than $6 million in cash.
The total value of his portfolio surpassed $268 million Thursday evening, compared to $210 million on June 2. Shares of GameStop jumped more than 14% in regular trading, but slid 4% in after-hours trading.
Read more from CNBC's Yun Li on how Roaring Kitty may have upped his stake here.
— Darla Mercado
Adobe soars following earnings beat, higher forward guidance
Shares of software giant Adobe soared more than 16% on Thursday after the company's second-quarter results surpassed Wall Street estimates.
Adobe raised both its full-year earnings and revenue outlook. The company now forecasts earnings of $18 to $18.20 per share on revenue in the range of $5.33 billion to $5.38 billion.
— Brian Evans
Tesla shareholders reapprove Elon Musk's pay package
Tesla shareholders voted to reinstate CEO Elon Musk's controversial $56 billion pay package on Thursday, although the measure has to be settled in court to take effect.
The vote on Musk's compensation was one of several measures poised for a shareholder vote on Thursday, including a provision to reincorporate the company in Texas.
Shares of Tesla traded roughly 1% higher. Tesla stock closed nearly 3% higher during the regular session in anticipation that the pay package would be approved.
— Brian Evans
Stock futures are little changed on Thursday
Stock futures were little changed on Thursday, following the S&P 500's latest record-high close and strong quarterly results from Adobe.
S&P 500 futures ticked down 0.1%, while Nasdaq 100 futures slipped 0.04%. Dow Jones Industrial Average futures ticked down 57 points, or 0.1%.
— Brian Evans
