The S&P 500 stabilized Friday after hitting another record as investors wrapped the week on a high note.
The S&P 500 inched higher by 0.03% to close at 5,088.80. Earlier Friday, the broad market index broke above 5,100 for the first time. The Dow Jones Industrial Average added 62.42 points, or 0.16%, also reaching a fresh record and closing at an all-time high of 39,131.53. The Nasdaq Composite lost 0.28% to close at 15,996.82, but had notched a fresh 52-week high earlier in the session.
All three major averages registered winning weeks. The S&P 500 advanced 1.66%, while the tech-heavy Nasdaq gained 1.4% this week. The Dow is up 1.3% for the period.
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“The question from here is do investors shake that momentum? We’ve run up so far, so quickly. It might not make a lot of sense to chase that type of momentum,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.
“Obviously, we haven’t seen quite the momentum as we have from technology stocks…I think that does pose some risks in terms of where the index goes ultimately, because clearly everything’s front-loaded into the technology shares,” he added.
Wall Street is coming off a monster day as Nvidia shares roared on strong quarterly results, leading the chipmaker to briefly surpass a $2 trillion valuation. On Thursday, the S&P 500 had its best day since January 2023, while the Nasdaq Composite popped nearly 3% for its best session since February 2023. The 30-stock Dow gained about 1.2%.
On the corporate earnings front, Block surged 16.1% after fourth-quarter revenue surpassed Wall Street estimates. Carvana climbed 32.1% after the used car retailer said it expects retail units to grow in 2024.
FRI, FEB 23 20244:09 PM EST
Table of Contents
S&P 500 is little changed Friday, but ends the week higher
Here’s how the major indexes closed on Friday:
- The S&P 500 gained 0.03% to 5,088.80.
- The Dow Jones Industrial Average added 62.42 points, or 0.16%, to 39,131.53.
- The Nasdaq Composite lost 0.28% to 15,996.82.
— Pia Singh
FRI, FEB 23 20243:35 PM EST
Jamie Dimon sells $150 million of JPMorgan Chase stock
JPMorgan Chase & Co CEO Jamie Dimon arrives for a Senate Banking, Housing, and Urban Affairs Committee hearing on Capitol Hill September 22, 2022 in Washington, DC.
Drew Angerer | Getty Images
JPMorgan Chase CEO Jamie Dimon sold about 800,000 shares of the bank on Thursday, generating about $150 million, according to a securities filing and VerityData.
The move appeared to be part of 10b5 plan for corporate executives to sell their stock.
Dimon still owns about 7.7 million shares of JPMorgan, according to VerityData.
— Jesse Pound
FRI, FEB 23 20243:28 PM EST
Investors should ‘buy the dip’ in big tech, wealth manager says
AI-adjacent big tech stocks have propelled the equity market to new highs, but there could still be more room ahead for gains.
In fact, UBS Private Wealth Management’s Greg Marcus believes that investors should take advantage of market volatility to buy into big tech.
“There will likely be pullbacks and volatility over the next few months and we are supportive of the buy the dip mentality when it comes to big tech,” he said.
Besides being beneficiaries of the artificial intelligence theme, Marcus also pointed out that many big tech firms have strong balance sheets and earnings growth potential, characteristics that can weather a higher interest rate environment.
However, the wealth manager also underscored that the market rally is likely to broaden in 2024.
“While we expect a continued resilience in tech stocks, we also expect a less dramatic, albeit still heavy, focus on the Magnificent 7,” he said.
— Lisa Kailai Han
FRI, FEB 23 20242:47 PM EST
Consumer stapes sector leads S&P 500 sector gains for the week
Consumer staples is the S&P 500′s biggest outperforming sector this week, rising around 2.2%.
Hormel Foods, Kraft Heinz and Conagra Brands are all up more than 4% and are leading the sector’s gains.
The tech sector is close behind consumer staples, and is up about 2.1% week to date.
Nvidia has jumped 9.5% in the past week, followed by Micron Technology and Broadcom up 7.8% and 4.5% each.
— Hakyung Kim
FRI, FEB 23 20241:59 PM EST
Carvana’s surge is hurting short sellers
In an aerial view, a sign is posted on the exterior of a Carvana car vending machine on July 19, 2023 in Daly City, California.
Justin Sullivan | Getty Images
The sharp rebound for Carvana is burning short-sellers who bet the stock would continue to fall.
Shares of the online auto retailer jumped 32% on Friday and are now up more than 50% over the past month. According to a note from Ihor Dusaniwsky, managing director at S3 Partners, the stock was heavily bet against by hedge funds, which are now likely suffering big losses.
“CVNA shorts are now down -$591.8 million in 2024 year-to-date mark-to-market losses, -37.2%,” the note said.
The latest move higher came after Carvana’s fourth quarter report. The company said its gross profit more than doubled year over year during the quarter, while its net income margin improved but remained negative.
— Jesse Pound
FRI, FEB 23 20241:22 PM EST
Dow heads for winning week
The Dow is on pace to end this week up about 1.5%, lifted by a group of rallying stocks.
Johnson & Johnson, Walmart and Coca-Cola led the 30-stock index higher, with each adding more than 3% this week. In all, about four out of every five Dow members are on track to finish the week up.
Still, the laggards somewhat capped gains for the blue-chip index. Most notably, Disney was the worst performing Dow stock this week with a slide of more than 4%. Boeing was the next biggest loser, slipping over 1.5%.
This performance marks a return to green for the Dow after finishing last week down 0.1%.
— Alex Harring
FRI, FEB 23 202412:54 PM EST
Stocks making the biggest moves midday
In this photo illustration, the Block Inc. logo is displayed on a smartphone screen.
Rafael Henrique | Sopa Images | Lightrocket | Getty Images
Check out the companies making headlines in midday trading.
Warner Bros. Discovery — Shares dropped 10% after the media conglomerate posted disappointing fourth-quarter results and failed to give 2024 free cash flow guidance. Warner Bros. Discovery reported a loss of 16 cents per share on revenue of $10.28 billion. Analysts polled by LSEG had expected a per-share loss of 7 cents on revenue of $10.35 billion.
Block — Block shares surged nearly 18% after the payments company reported a surprise quarterly profit and offered up strong guidance on earnings before interest, taxes, depreciation and amortization for the first quarter and full year.
DraftKings — The sports betting stock popped 4% following an upgrade to overweight from equal weight by Barclays. The firm said the stock was at an attractive entry point following a recent pullback.
The full list can be found here.
— Hakyung Kim
FRI, FEB 23 202412:05 PM EST
UBS Wealth Management raises its year-end S&P 500 target
UBS Global Wealth Management has lifted its end-of-year price target on the S&P 500 to 5,200 from 5,100 to reflect a more favorable environment despite recent mixed economic signals.
“We think the backdrop for US equities remains supportive, driven by healthy economic growth, moderating inflation, a Fed that’s pivoting to rate cuts, and a surge in AI investment,” the firm said in a note from the chief investment office Thursday.
“After the [more than] 20% rally since the October low, some sentiment and positioning indicators are starting to become elevated, which could lead to a modest pullback in the coming months,” the team added. “We maintain a neutral preference for U.S. equities in our tactical asset allocation and highlight that there may be better opportunities to add to equity positions.”
— Tanaya Macheel
FRI, FEB 23 202411:21 AM EST
Major averages on track for winning week
A sign is posted at Nvidia headquarters on February 05, 2024 in Santa Clara, California. Shares of Nvidia stock hit record highs on Monday after analysts increased their outlook on company.
Justin Sullivan | Getty Images
Thursday’s big rally led by Nvidia flipped the script on the week for Wall Street. The three major averages are now on track to finish higher for the sixth week in seven.
Here’s where things stand as of midday Friday:
- The S&P 500 is 1.6% week to date
- The Nasdaq Composite is up 1.3% week to date
- The Dow is up 1.4% week to date
— Jesse Pound, Christopher Hayes
FRI, FEB 23 202411:15 AM EST
S&P 500 breaks 281-session streak without rising 2%
Traders work on the floor of the New York Stock Exchange during morning trading on February 23, 2024 in New York City.
Michael M. Santiago | Getty Images
The S&P 500 recorded its first gain of more than 2% during a single session in more than a year on Thursday.
The broad index climbed 2.1% in Thursday’s session. That was the first time the benchmark index added more than 2% in a day since Jan. 6, 2023.
In other words, Thursday’s rally ended a streak of 281 trading days without an advance of more than 2% for the broad index, according to Bespoke Investment Group.
— Alex Harring
FRI, FEB 23 202410:42 AM EST
Chipmakers among Nasdaq’s biggest weekly winners
The Nasdaq Composite and concentrated Nasdaq-100 are poised to cap off the week with gains exceeding 2% thanks to a strong rally in semiconductor stocks after another blowout report from Nvidia.
The juggernaut semiconductor name is on pace for a more than 12% gain and headed for its best weekly stretch since May 2023. Other chipmakers have rallied alongside. Micron Technology’s on pace to add about 9%. Marvell Technology, Broadcom and Advanced Micro Devices are up more than 4% each, while Cadence Design Systems has jumped about 6%.
Other major winners include DoorDash and Moderna, which have surged more than 11% and 6%, respectively. Major technology behemoths have also powered higher, with Meta Platforms up more than 4%. Amazon, Alphabet and Microsoft have jumped about 3% each.
— Samantha Subin
FRI, FEB 23 20249:42 AM EST
Nvidia tops $2 trillion market cap
Nvidia surpassed a $2 trillion market capitalization for the first time ever during intraday trading Friday as the chipmaker’s earnings-fueled rally stretched into a second trading session.
Shares rose more than 4% during early morning trading, building on a more than 16% surge Thursday following another blockbuster quarter and guidance.
Nvidia recently surpassed Amazon in market value and is the third most valuable U.S. company behind Microsoft and Apple.
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Nvidia tops $2 trillion market cap
— Samantha Subin
FRI, FEB 23 20249:35 AM EST
Stocks open higher on Friday
The S&P 500 opened 0.3% higher, while the Dow Jones Industrial Average gained 102 points, or 0.3%. The tech-heavy Nasdaq Composite added nearly 0.4%.
The broad market hit a new record above 5,100. The Dow also reached a record high at the open.
— Pia Singh
FRI, FEB 23 20248:27 AM EST
Stocks making the biggest moves before the bell: Block, Live Nation and more
In an aerial view, a sign is posted on the exterior of a Carvana car vending machine on July 19, 2023 in Daly City, California.
Justin Sullivan | Getty Images
These are the stocks moving the most in premarket trading:
- Block — Shares surged more than 14% after the payments company posted surprise quarterly earnings and issued strong full-year guidance for gross profits.
- Live Nation Entertainment — Shares of the entertainment platform popped nearly 5% following a fourth-quarter revenue beat.
- Carvana — Shares of the used car marketplace surged 33% in premarket trading after the struggling company posted its first-ever annual profit.
Read the full list of stocks moving here.
— Lisa Kailai Han
FRI, FEB 23 20248:27 AM EST
Rivian slides as UBS turns bearish
Rivian electric pickup trucks sit in a parking lot at a Rivian service center on May 09, 2022 in South San Francisco, California.
Justin Sullivan | Getty Images
Rivian fell more than 1% before the bell on Friday following a rare double-downgrade from UBS.
Analyst Joseph Spak lowered his rating to sell from buy and whittled his price target down to $8 from $24. Spak’s new price target shows shares of the electric vehicle maker could fall 30.1% from Thursday’s close.
“We had been optimistic on RIVN’s product and brand ultimately winning out,” he told clients in a Thursday note. “But a rapidly changing EV backdrop causes us to reassess our demand view and makes RIVN’s current strategy quite onerous on the ramp to profitability and cash flow.”
CNBC Pro subscribers can click here for the full story.
— Alex Harring
FRI, FEB 23 20248:13 AM EST
DraftKings pops after Barclays moves off sidelines
Justin Sullivan | Getty Images
Shares of DraftKings rallied more than 3% in Friday premarket trading after Barclays turned bullish.
Analyst Brandt Montour upgraded the sports betting stock to overweight from equal weight and increased his price target by $9 to $50. Montour’s new price target implies a 22.4% upside over Thursday’s close.
“We’re less concerned than we were 3-6 months ago over increased competition, and see the ~10% pullback off the highs post its (strong) 4Q report as an attractive near-term entry point,” Montour wrote in a Friday note to clients.
CNBC Pro subscribers can read the full story here.
— Alex Harring
FRI, FEB 23 20247:41 AM EST
Warner Bros. Discovery shares fall after fourth-quarter miss
Warner Bros. Discovery shares slid 0.7% in the premarket after the media conglomerate reported disappointing fourth-quarter results.
The company posted a loss of 16 cents per share on revenue of $10.28 billion. Analysts polled by LSEG had expected a per-share loss of 7 cents on revenue of $10.35 billion.
The stock is already down roughly 16% this year.
Warner Bros Discovery Inc
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— Sarah Min
FRI, FEB 23 20246:44 AM EST
Markets pare back anticipation for interest rate cuts
Traders have backed off the anticipation for aggressive interest rate cuts this year, now pricing in moves that align with prior indications from Federal Reserve officials.
The full-year outlook is now for three quarter-percentage point cuts, taking the benchmark fed funds rate down to 4.5%-4.75%, according to the CME Group’s FedWatch Tool, which measures futures pricing. The gauge is putting the chance of three cuts at right around 60%.
While markets are anticipating the first cut to come in June, there’s a rising probability — around 35% as of Friday morning — that the central bank might even wait until July. That contrasts with pricing in early January that had been pointing to cuts starting in March eventually totaling five or six for the year.
—Jeff Cox
FRI, FEB 23 202412:46 AM EST
StanChart shares rise after $1 billion share buyback, higher annual profit
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Hong Kong-listed shares of Standard Chartered rose 2.8% by afternoon trading after the company announced a $1 billion share repurchase program.
StanChart also reported 2023 pretax profit of $5.09 billion, up about 18% year-on-year.
The bank earns most of its revenue in Asia.
“We have increased full year dividends, up 50%, and have announced a new $1 billion share buyback, bringing our total shareholder distributions to $5.5 billion since January 2022,” the company said in a statement.
The bank also reported a $850 million impairment charge due to its stake in Chinese lender Bohai Bank.
— Shreyashi Sanyal
THU, FEB 22 20249:21 PM EST
China property price declines narrow month-on-month in January
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Declines in China’s commercial housing sales prices narrowed on a month-on-month basis, according to data from the National Bureau of Statistics.
The official data showed sales prices of newly built commercial houses in first-tier cities fell 0.3% in January from the previous month, with declines narrowing by 0.1 percentage points from the previous month.
Prices continued to drop from last year, falling 0.5% from a year ago or 0.4 percentage points more than the previous month.
The January data comes after the country’s troubled property market recorded its worst declines in new home prices in nearly nine years at the end of last year.
China’s CSI 300 added 0.2%, set to rise for the ninth straight session if gains hold till the end of the trading day.
— Shreyashi Sanyal
THU, FEB 22 20248:03 PM EST
Korean won falls a day after Bank of Korea decision
The South Korean currency, the won
Nora Carol Photography | Getty Images
The Korean won eased against the U.S. dollar on Friday, a day after the Bank of Korea held interest rates.
The won dipped 0.2%. The BOK held interest rates unchanged at 3.5% as widely expected on Thursday.
Goldman Sachs said Thursday that the central bank could be the first to cut rates.
Analysts at Commerzbank said “diverging views within the board on the direction of rates could also add to volatility. Two board members are also due to be replaced. This could change the dynamics on the board, depending on who will be appointed.”
Stocks in Korea rose, with the Kospi adding 0.5% after the Nvidia’s blockbuster results helped boost semiconductor stocks globally.
— Shreyashi Sanyal
THU, FEB 22 20247:01 PM EST
Nvidia stole the show, but Thursday’s rally was fairly broad
Nvidia’s CEO Jensen Huang attends a media roundtable meeting in Singapore December 6, 2023.
Edgar Su | Reuters
Nvidia’s 16% jump headlined Thursday’s market action, but the major averages saw sizeable gains across much of the board.
The S&P 500 closed 2.11% higher, and the Nasdaq Composite added nearly 3%. Both indexes saw their best day in more than a year.
While tech was the leading sector with a 4.35% gain, industrials and health care each gained more than 1% and hit fresh record closes. Quanta Services was the big winner in industrials, rising more than 10%, while Moderna popped 13.5% to help lift health care. Utilities was the one losing sector, down 0.77%.
In another sign of how broad the rally was Thursday, the Invesco S&P 500 Equal Weight ETF (RSP) touched a 52-week high and closed nearly 1% higher.
–Darla Mercado, Chris Hayes
THU, FEB 22 20246:27 PM EST
Stocks making the biggest moves after hours
Check out some of the companies making headlines in extended trading.
- Intuit — Shares pulled back roughly 1% after the financial software company posted revenue of $3.39 billion in its fiscal second quarter. The result was in line with what analysts polled by LSEG had expected. Adjusted earnings came in ahead of Wall Street’s estimate at $2.63 per share, compared to $2.30 per share anticipated by analysts.
- Live Nation Entertainment — Shares added about 1% in extended trading. Live Nation reported revenue of $5.84 billion, surpassing analysts’ estimates of $4.79 billion, per LSEG. The entertainment company also posted fourth-quarter operating income that was slightly below consensus.
- Booking Holdings — The online travel company fell more than 4% even after reporting a fourth-quarter earnings and revenue beat, while room nights booked increased by 9%. Booking Holdings also announced it would initiate a quarterly cash dividend of $8.75 per share.
Read the full list here.
— Brian Evans
THU, FEB 22 20246:05 PM EST
Stock futures are little changed
Stock futures were little changed on Thursday after both the S&P 500 and Dow Jones Industrial Average reached record highs following a blowout earnings report from Nvidia.
Futures tied to the Dow Jones Industrial Average ticked down 9 points, or 0.02%. S&P 500 futures pulled back 0.03%, while Nasdaq 100 futures slipped 0.09%.