Traders work on the floor at the New York Stock Exchange on April 25, 2024.
The S&P 500 ended flat on Friday, touching a record-high intraday, despite a stronger-than-expected jobs report.
The broad market index slipped 0.11% to close at 5,346.99, after reaching an all-time high earlier in the session. The Dow Jones Industrial Average slipped 87 points to 38,798.99. The Nasdaq Composite edged down 0.23% to finish the session at 17,133.13.
All three of the major averages notched a winning week. The Dow posted a 0.29% gain, while the S&P 500 added nearly 1.32% and the Nasdaq advanced 2.38%.
Stocks are rebounding from pressure earlier in the session following Friday's jobs report. That news sent the yield on the benchmark 10-year Treasury more than 15 basis points higher.
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Nonfarm payrolls increased by 272,000 in May, above the 190,000 estimate from Dow Jones and April's 175,000 gain. Average hourly wages increased 0.4% last month and ticked up 4.1% from a year ago. However, even with the job gains, the unemployment rate ticked higher to 4%.
Investors had been hoping for weak jobs figures on a hunch it would give the Federal Reserve the greenlight to cut rates later this year. Now, with the labor market showing continued resilience, Wall Street seems focused on the idea that the economy is strong enough to keep growing without the help of lower interest rates.
"We should all be happy that we've got a strong economy," IBM vice chairman and former National Economic Council Director Gary Cohn told CNBC's "Squawk on the Street" on Friday. "At the end of the day, it's all about the economy, it's all about GDP growth, GDP corporate earnings, the health of the consumer, [and] that's going to win out all of the time in the long run."
Money Report
The jobs report comes after the European Central Bank on Thursday cut rates for the first time since 2019, adding pressure to the Fed to potentially lighten up on policy. The Fed will give its decision on rates next week after its June 11-12 policy meeting.
Chipmaker and artificial intelligence darling Nvidia closed down slightly on Friday, but still ended the week up 10%. The stock set a record high on Thursday after pushing past the $3 trillion mark for the first time on Wednesday.
Stocks close marginally lower but notch winning week
Stocks closed slightly lower on Friday but ended the week higher, with the S&P 500 touching a fresh intraday record in midday trading.
The broad market index slipped 0.11% to close at 5,346.99. The Nasdaq Composite ticked down 0.23% to finish the session at 17,133.13, while the Dow Jones Industrial Average slipped 87.18 points, or 0.22%, to 38,798.99.
— Brian Evans
Crude oil posts third straight weekly loss
Crude oil futures on Friday posted a third straight weekly loss on worries that demand may be softening even as OPEC+ plans to increase production.
U.S. crude oil and global benchmark Brent sold off earlier in the week after OPEC+ members announced that they would start phasing out 2.2 million barrels per day in production cuts starting in October. Poor U.S. manufacturing data and weak private payrolls also weighed on the market.
Oil prices have bounced back over the past two days on hopes that lower rates might boost demand, but the two crude benchmarks are still down about 2% for the week.
— Spencer Kimball
CrowdStrike, Nvidia lead Nasdaq's weekly gains
The concentrated Nasdaq-100 is poised to finish the week with a 2.6% weekly gain due to gains from popular semiconductor and software stocks.
CrowdStrike leads the index's weekly gains, with shares up about 11%. Nvidia has surged 10%, while ASML Holding is up more than 7%. Other gainers include PayPal, Autodesk, Broadcom, Zscaler and Meta Platforms, with gains exceeding 6%.
— Samantha Subin
'Roaring Kitty' returns to host first live stream in three years
Keith Gill, also known as "Roaring Kitty" on social media site X and YouTube and "Deep-------Value" on Reddit, remerged to host his first livestream in three years on Friday.
The retail investor that rose to notoriety during the height of the meme stock craze discussed his position in GameStop as shares have once again reignited controversy this week. Check out CNBC's live coverage here.
— Brian Evans
Stocks making the biggest moves midday
Check out some of the companies making the biggest moves midday:
- GameStop — The meme stock plunged more than 28% after the video game retailer posted an abysmal earnings report. Net sales of $881.8 million for the first quarter marked a 29% decline from a year prior. The company also said it would sell additional stock. Meme stock trader "Roaring Kitty" was set to kick off his livestream at noon ET, which could move the stock even more.
- Vail Resorts — Shares tumbled 12% following disappointing quarterly results. After Thursday's close, the ski resort owner said it earned $9.54 per share on $1.28 billion in revenue, falling short of the LSEG consensus estimate of $9.97 per share in profits on $1.30 billion in revenue.
- Oddity Tech — Shares soared 23% after the beauty and wellness company's board approved a $150 million share buyback program of the company's Class A ordinary shares. The company also boosted its second-quarter earnings outlook.
Read the full list here.
— Brian Evans
Stocks open lower
Stocks opened lower Friday after a stronger-than-expected jobs report worried investors over the forward path of U.S. monetary policy.
The Dow Jones Industrial Average slipped 70 points, or 0.1%. The Nasdaq Composite pulled back 0.3%, while the S&P 500 fell 0.3%.
— Brian Evans
U.S. jobs growth for May comes in much hotter than expected
The U.S. economy added 272,000 jobs in May, easily surpassing the 190,000 Dow Jones consensus estimate. Stock futures fell to session lows after the report was released, signaling investors are growing wary of the Federal Reserve's ability to cut rates later this year.
— Fred Imbert
Stocks making the biggest moves before the bell
Here are the stocks making the biggest moves before the bell:
- GameStop — The meme stock declined 15% premarket, giving up a gain of nearly 30% earlier. GameStop posted a surprise earnings report, showing net sales of $882 million for the first quarter, down 29% from a year prior.
- Lyft — Shares of the ride-sharing company added more than 3%. Multiple analysts upgraded the stock to buy following Lyft's investor day Thursday.
- Vail Resorts — The ski resort owner sank 8% after posting disappointing quarterly results that fell short of Wall Street's estimates for both sales and net income.
Read the full list of stocks on the move here.
— Samantha Subin
GameStop reports 29% sales decline in Q1
GameStop reported its first-quarter results Friday, showing a steep decline in sales along with a loss on the bottom line.
The video game retailer on Friday posted net sales of $881.8 million for the period. That is down 29% from $1.237 billion a year prior. The sales decline was steeper than what the two Wall Street analysts that cover the stock expected. The company also lost $32.3 million during the quarter.
Shares were more than 20% down despite the results as traders awaited a livestream from meme trader "Roaring Kitty" slated to begin at noon ET.
— Fred Imbert
European markets marginally lower
European stocks were slightly lower on Friday after closing at a record high during the previous session following the European Central Bank's decision to cut rates for the first time since 2019.
The pan-European Stoxx 600 was down 0.04% in early deals, with all major bourses and the majority of sectors in the red.
The U.K.'s FTSE 100 was down 0.2% at 8,268, Germany's DAX was 0.4% lower at 18,580, France's CAC 40 0.3% was down at 8,017 and Italy's FTSE MIB was 0.3% lower at 34,726.
— Karen Gilchrist
Nio shares plunge 7% even as CEO announces Middle East expansion plans
Shares of Chinese EV company Nio plunged over 7% even as CEO William Li announced plans to expand to the Middle East this year.
The nearly 10-year-old company will also start shipping its lowest-cost brand, Firefly, in the first half of next year, Li said.
Nio, which recently received funding from Middle East-based investors, saw record-high deliveries of 20,544 vehicles in May.
The U.S.-listed Chinese carmaker, which has been operating at a loss, plans to start offering its products and services in the United Arab Emirates by the end of this year, Li said, according to a FactSet transcript.
Read the full story here.
— Evelyn Cheng
China May exports beat expectations, but imports fall short
China's May exports beat expectations, climbing 7.6% against the 6% expected by a Reuters poll of economists and vastly higher than the 1.5% rise seen in April.
However, imports climbed 1.8% year on year, missing the 4.2% expected in a Reuters poll and slowing from the 8.4% gain in April.
The Caixin manufacturing purchasing managers' index showed that new export orders grew in May for a fifth-straight month, although at a slower pace.
Read the full story here.
— Evelyn Cheng
Japan's household spending rises for the first time since February 2023, but misses estimates
Real household spending in Japan climbed 0.5% year on year in April, rising for the first month since February 2023, but missed Reuters poll estimates of a 0.6% growth.
The average of monthly consumption expenditures per household for April was 313,300 yen, up 3.4% in nominal terms.
The average monthly income per household stood at 566,457 yen, up 2.3% in nominal terms, but down 0.6% in real terms from the previous year.
April's data is significant as most Japanese companies restart their financial year and enact corporate changes in that month, which means that the record wage increases that unions managed to negotiate this year would most likely take effect from April.
— Lim Hui Jie
Waystar announces pricing of initial public offering
Waystar, a health-care payments software maker, has raised $968 million in its initial public offering, the company said Thursday. The IPO of 45 million shares was priced at $21.50 per share.
The shares are expected to begin trading on the Nasdaq on June 7 under the symbol WAY. The offering is expected to close on June 10, subject to customary closing conditions.
— Tanaya Macheel
Stocks making the biggest moves after hours
These are some of the biggest movers in extended trading Thursday:
- Vail Resorts — The resort operator saw its stock fall more than 5% after posting fiscal third-quarter earnings of $9.54 per share on revenue of $1.28 billion. Those results missed analysts' expectations of $9.97 in earnings per share on revenue of $1.3 billion, according to LSEG.
- DocuSign — The electronic signature company lost 6%. DocuSign reported first-quarter adjusted earnings of 82 cents per share on revenue of $710 million. Analysts called for 79 cents a share in earnings and revenue of $707 million, per LSEG. DocuSign also authorized a $1 billion share repurchase increase.
- Braze — The customer engagement platform provider surged about 13% on better-than-expected results for the first quarter. Braze reported an adjusted loss of 5 cents per share, while analysts expected a loss of 10 cents per share, according to LSEG. Revenue came in at $135 million, slightly topping expectations of $132 million.
For more names on the move, check out our full list here.
— Tanaya Macheel
Stock futures open flat
Stock futures were little changed to begin trading Thursday evening.
Futures tied to the Dow Jones Industrial Index inched higher by 13 points, or 0.03%. S&P 500 futures and Nasdaq 100 futures hovered under the flat line at 0.05% and 0.01%, respectively.
— Tanaya Macheel
