Traders work on the floor during morning trading at the New York Stock Exchange (NYSE) on March 06, 2024 in New York City.
Stocks rose Thursday, pushing the S&P 500 and Nasdaq Composite back to record highs, as hope over easing inflation and gains in tech aided Wall Street's midweek bounce.
The broad S&P 500 advanced 1.03% to 5,157.36, while the tech-heavy Nasdaq Composite climbed 1.51% to 16,273.38. Both notched all-time highs during the session, while the S&P 500 also clinched a closing record. The Dow Jones Industrial Average gained 130.30 points, or 0.34%, to close at 38,791.35.
Information technology and communication services stocks led the S&P 500 to that record. Intel was the best performer in the Dow with a gain of more than 3%.
Investor optimism was boosted after the European Central Bank lowered forecasts for annual inflation and growth on Thursday, though the bank also held key interest rates steady. That can be taken as a positive signal on the international inflation front.
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The ECB's announcement comes after Federal Reserve Chair Jerome Powell told Congress on Wednesday that he expects interest rates to come down this year. While Powell said that the Fed was not immediately ready to begin cutting, he told the Senate Banking Committee on Thursday that the central bank isn't far from having the confidence it needs on inflation to start.
"The market was expecting it — and they're finally hearing it from Fed officials," said Adam Turnquist, chief technical strategist at LPL Financial, of Powell's commentary around interest levels. "It just adds to the confidence that rate cuts are coming."
The S&P 500 was now up 0.4% this week despite the rough start for stocks. The Nasdaq was near flat on the week, while the Dow was still down around 0.8%.
Money Report
The Nasdaq was helped by a gain of about 4.5% in Nvidia, the artificial intelligence darling whose shares have climbed more than 12% this week. But Apple ended the day slightly lower for its seventh straight losing session.
Investors are awaiting Friday's U.S. jobs report for insights into the state of the labor market, which has shown resilience despite higher interest rates.
Stocks close higher
The three major averages finished a second day higher on Thursday.
The Dow closed the day 0.3% up. The S&P 500 and Nasdaq added 1% and 1.5%, respectively. The S&P 500 and Nasdaq both set new intraday highs in the session, while the former also notched a new all-time close.
With Thursday's gains, the S&P 500 is now on track to end the week 0.4% in the green. The Nasdaq Composite is slightly below flat on the week, while the Dow is down 0.8%.
— Alex Harring
Oil prices edge lower as market weights interest rate outlook
Oil prices edged lower Thursday, giving up some of the previous session's gains.
The West Texas Intermediate contract for April lost 20 cents, or 0.25%, to settle at $78.93 a barrel. May Brent futures shed 21 cents, or 0.25%, to $82.77 a barrel.
U.S. crude and the global benchmark gained more than 1% on Wednesday after Federal Reserve Chairman Jerome Powell told Congress that interest rates have likely peaked and are expected to come down this year, although the central bank is taking a cautious approach given an uncertain economic outlook.
In a second day of testimony, Powell told the Senate Banking Committee Thursday that the Fed is "not far" from the point of cutting rates, so long as inflation moves sustainably at 2%.
Powell's testimony before Congress provided the oil market with an adrenaline rush, but his cautious approach on rates ultimately dented traders' enthusiasm, Tamas Varga, an analyst at broker PVM, wrote Thursday.
— Spencer Kimball
AI-powered gains to continue, says Wolfe Research
Mega cap technology companies have continued their upward trajectory this year. Nvidia is up 85.5% year to date, as well as the broader VanEck Semiconductor ETF (SMH)'s 34% rally. Although some investors are concerned these stocks may be nearing a ceiling, Wolfe Research believes there's more upside potential ahead.
"Our sense remains that stocks are likely to keep pushing higher, with AI-leveraged names, most of the 'Mag 7,' and Momentum outperforming, until fundamentals start to disappoint," chief investment strategist Chris Senyek wrote in a Thursday note.
— Hakyung Kim
Leading LatAm travel stock Despegar pops more than 10%
Shares of online travel agency Despegar soared more than 10% on Thursday after Cantor Fitzgerald initiated coverage of the stock, saying it has an "out of whack valuation."
The company is an attractive investment opportunity in Latin America's rapidly growing travel market, which was worth $150 billion last year and could grow at a double-digit rate over the medium term, according to analyst Brett Knoblauch.
"Given the growth opportunities ahead for DESP, as well as profitability improvements, we believe DESP's valuation is quite attractive ... shares can do well even if its multiple does not expand, stemming from adjusted EBITDA growth and an increasing cash balance," Knoblauch wrote in a Thursday note.
Read more about the firm's investment thesis in CNBC Pro here.
— Pia Singh
Semiconductors outperform
Semiconductor stocks outperformed Thursday, helping lift the S&P 500 to a fresh record.
The VanEck Semiconductor ETF (SMH) advanced 3.5% during afternoon trading. Nvidia, which is the top holding in the ETF, climbed 3.5%. On Semiconductor, one of the top S&P 500 advancers on Thursday, jumped 8.5%.
Intel was the top Dow performer, adding 3.5%. Qualcomm shares rose by 4.8%. NXP Semiconductors NV gained 4.2%.
— Sarah Min
S&P 500 and Nasdaq enter positive territory for week
Thursday's advances have pulled two of the major indexes into positive territory on the week.
All three of the indexes were lower week to date heading into Thursday's session. Now, the S&P 500 is up 0.6% on the week, while the Nasdaq Composite has added 0.2%.
The Dow, meanwhile, was still down around 0.6% compared with the start of the week.
— Alex Harring
Apple poised to end losing streak
Apple shares advanced in the session, putting the mega-cap technology name on track to snap a series of negative sessions.
Shares were last up around 0.5% Thursday afternoon. If that holds through session close, it would mark the first positive trading day of the last seven.
It comes amid a period of underperformance, with the stock up less than 1% in 2024.
— Alex Harring
Tech leads S&P 500 higher
Technology stocks helped push the S&P 500 to new highs on Thursday.
The broad index climbed more than 1% in Thursday's session, returning to record levels after pulling back earlier in the week. Communication services and information technology stocks led the benchmark higher, with both sectors up nearly 2%.
Paramount, Meta and Warner Bros. Discovery led the communication services sector upward, with each rallying more than 3%. Every information technology stock traded higher in the session, but On Semiconductor saw the biggest advance of more than 9%.
Just two of the 11 sectors that comprise the S&P 500 traded lower. Real estate slipped 0.2%, while financials lost 0.3%.
— Alex Harring
Costco, Meta, Nvidia among stocks hitting new 52-week highs on Thursday
Dozens of stocks in the S&P 500 — from financial heavyweights to semiconductor names — hit new 52-week highs as the broader market rallied on Thursday.
Costco jumped about 1.1% ahead of its earnings due after the closing bell. Nvidia, Micron and NXP Semiconductors, as well as data center plays Eaton and GE, also reached record-highs, showing continued strength in AI-related names. Insurance companies Progressive and Prudential also gained during the day's trading session.
Here are several of the companies that reached new highs:
- Meta Platforms trading at all-time high levels back to its IPO in May 2012
- T-Mobile US trading at all-time highs back to the MetroPCS IPO in April 2007
- Colgate-Palmolive trading at all-time high levels back to its first listing on the NYSE in 1930
- Costco trading at all-time high levels back to its IPO in Dec. 1985
- Walmart trading at all-time high levels back to when it first began trading on the NYSE in Aug. 1972
- Marathon Petroleum trading at all-time highs back to its spinoff from Marathon Oil in June 2011
- American Express trading at all-time high levels back to its IPO in May 1977
- Bank of America trading at levels not seen since Feb. 2023
- Citigroup trading at levels not seen since March 2022
- JPMorgan trading at all-time high levels back to its IPO in 1983
- Progressive trading at all-time highs back to its IPO in 1971
- Prudential trading at levels not seen since May 2022
- Wells Fargo trading at levels not seen since Feb. 2022
- Boston Scientific trading at all-time high levels back to its IPO in May 1992
- Cigna trading at all-time high levels back to its IPO in 1972
- Caterpillar trading at all-time high levels back to when it first began trading on the NYSE in 1929
- Eaton trading at all-time high levels back to its IPO in July 1923
- General Electric trading at levels not seen since July 2017
- Applied Materials trading at all-time high levels back to its IPO in Oct. 1972
- International Business Machines trading at levels not seen since June 2013
- Micron trading at all-time highs back to IPO in June 1984
- Nvidia trading at all-time high levels back to its IPO in Jan. 1999
- NXP Semiconductors trading at all-time highs back to its IPO in Aug. 2010
- Qualcomm trading at levels not seen since Feb. 2022
- Sherwin Williams trading at levels not seen since Jan. 2022
— Pia Singh, Christopher Hayes
Stocks making the biggest moves midday
These are the stocks making the biggest moves in midday trading:
- Victoria's Secret – The intimate apparel retailer shed 36% and headed for its worst day on record after posting mixed fourth-quarter results and disappointing guidance. Victoria's Secret said it anticipates a larger-than-expected decline in revenues for the first quarter and full year.
- Novo Nordisk — Shares rallied nearly 10% to record high level after the company reported positive Phase I trial results for its new experimental weight loss drug amycretin.
- American Eagle Outfitters — Shares jumped 2% after American Eagle Outfitters posted a beat on top and bottom lines. The company reported adjusted earnings of 61 cents per share on $1.68 billion in revenue for its fiscal fourth quarter. Analysts had estimated earnings of 50 cents per share on $1.67 billion in revenue, according to LSEG.
The full list can be found here.
— Hakyung Kim
Victoria's Secret shares plummet 30%, head for worst day ever
Shares of Victoria's Secret plunged 30% during Thursday's session, putting the maker of intimates apparel on pace for its worst day ever.
The declines came after the retailer posted mixed fourth-quarter results and disappointing guidance for the first quarter and full year. The company surpassed earnings estimates by 11 cents a share but fell slightly short of the $2.09 billion expected by analysts polled by LSEG.
Victoria's Secret said it anticipated a low-single digit decline in revenues for the year, versus the 0.4% decline expected by analysts polled by LSEG. The company also said it expects a mid-single digit drop in revenues for the first quarter.
The stock's down more than 32% since the start of the year.
— Samantha Subin
Powell says Fed 'not far from' being ready to cut rates
Federal Reserve Chair Jerome Powell said inflation is nearing the point where officials would feel comfortable about cutting interest rates.
"We're waiting to become more confident that inflation is moving sustainably at 2%. When we do get that confidence, and we're not far from it, it will be appropriate to begin to dial back the level of restriction," Powell said Thursday during testimony before the Senate Banking Committee.
He noted that cuts would be necessary "so that we don't, you know, drive the economy into recession rather than normalizing policy as the economy gets back to normal."
—Jeff Cox
Fed's Mester sees greater danger in cutting rates prematurely
Cleveland Federal Reserve President worries more about cutting rates too quickly than keeping them elevated for too long.
In a speech Thursday, the central bank official called reducing too quickly "the bigger mistake" compared to waiting too long to track the path of inflation. The Fed seeks 2% inflation, and Mester and other officials have said that progress is being made but they're not convinced enough yet to start easing.
"Doing so would undermine all of the good work that has gone into getting inflation to this point," she said in prepared remarks. "We don't want to find ourselves in a situation where we begin easing too soon, undo some of the progress we have made on inflation, potentially destabilize inflation expectations, and then have to reverse course. And with labor markets and economic growth both being very solid, we don't need to take that risk."
Mester is a voting member this year of the rate-setting Federal Open Market Committee.
—Jeff Cox
Novo Nordisk study results send rivals reeling
Obesity drug developer Viking Therapeutics shares fell more than 13% despite being initiated at a buy at Jefferies. Analyst Roger Song has set a $110 price target for the stock, which implies upside of more than 20% from Wednesday's close.
Instead, Viking shares are reacting to upbeat early-stage clinical data from Novo Nordisk, which is has set the bar even higher for weight loss drugs. The next-generation drug that Novo is developing is not only an oral formulation, which is easier for companies to manufacture and patients to take, but it also is showing great success in initial weight loss. Unlike Novo's Ozempic and Wegovy, this new formulation targets the GLP-1 and amylin hormones, which some think will be tolerated better by patients.
Novo's NYSE-listed shares were up more than 8% in trading. Rival Lilly shares were down less than 1%, but other biotechs looking to break into the space were even weaker. Take Structure Therapeutics stock, shares were down more than 7%, despite the fact that it too is developing a weight loss drug that is an oral amylin agonist.
—Christina Cheddar Berk
February sees worst month for layoffs since 2009, Challenger says
Announced layoffs in February hit their highest level for the month in 15 years, outplacement firm Challenger, Gray & Christmas reported Thursday.
Planned layoffs totaled 84,638 for the month, which was 3% higher than January and 9% above the same month a year ago. From a historical perspective, it was the worst February since 2009, when 186,350 cuts were announced as the global financial crisis was winding down.
Technology led the way with 12,412, though the month was down 55% from a year ago.
"As we navigate the start of 2024, we're witnessing a persistent wave of layoffs. Businesses are aggressively slashing costs and embracing technological innovations, actions that are significantly reshaping staffing needs," said Andrew Challenger, Challenger's labor and workplace expert.
—Jeff Cox
Tin hits most expensive price this year
LME Tin reached its highest price since August on Thursday morning.
The metal touched $27,680 per metric tonne. That's the highest since Aug. 8, when it at one point hit $27,800.
Elsewhere, copper and LME Zinc reached their most expensive levels going back to late January.
— Alex Harring, Gina Francolla
Stocks open higher
Stocks opened higher on Thursday.
The Dow traded 0.5% higher shortly after 9:30 a.m. ET. The S&P 500 rose 0.6%, while the Nasdaq Composite added 0.7%.
— Alex Harring
NYCB releases updated deposit, loan information
Shares of New York Community Bancorp were up 2% in volatile premarket trading after releasing updated financial information. The regional bank reported $77.2 billion in deposits as of March 5, down from $83 million on Feb. 5.
The bank released a breakdown of its loan book. NYCB said it has 12% of its loans in commercial real estate, and 44% in multi-family housing.
The bank also announced that it was cutting its dividend for the second time this year.
The update comes after NYCB raised $1 billion from investors on Wednesday, including from the firm of former Treasury Secretary Steven Mnuchin.
— Jesse Pound
Jobless claims hold steady, matching estimate
Initial filings for unemployment insurance were unchanged from a week ago and exactly in line with expectations, the Labor Department announced Thursday.
Jobless claims totaled 217,000 for the week ended March 2, matching the previous week's upwardly revised total. On a four-week rolling basis, claims nudged lower to 212,250.
Continuing claims, which run a week behind, totaled just over 1.9 million, up just 8,000 from the previous period and also almost exactly in line with the FactSet estimate.
—Jeff Cox
Stocks making the biggest moves premarket
Check out the companies making headlines before the bell:
- Novo Nordisk — Shares jumped 6.6% after the Danish pharmaceutical company reported positive Phase 1 trial data for its new experimental obesity drug, amycretin. Eli Lilly, the company's American rival, dipped 0.7% on the news.
- Nvidia — Semiconductor companies rose broadly as a group, with the VanEck Semiconductor ETF gaining 1.5% in the premarket. Nvidia shares gained 1.8% after Mizuho said the stock can go to $1,000. Micron Technology shares advanced 3.9% after Stifel upgraded the semiconductor to buy from hold, and raised its price target. Broadcom shares climbed 1.9%. Intel shares rose 1.7%.
- American Eagle Outfitters — Shares were 13% higher after the apparel retailer posted fourth-quarter results that beat analyst expectations. American Eagle Outfitters earned 61 cents per share, excluding items, on revenue of $1.68 billion. Analysts expected a profit of 50 cents per share on revenue of $1.67 billion, according to LSEG.
— Sarah Min
American Eagle pops on strong earnings, growth strategy
American Eagle shares climbed more than 10% in Thursday's premarket after exceeding Wall Street expectations for the fourth quarter and unveiling a plan to boost profits.
The retailer posted 61 cents in earnings per share on $1.68 billion in revenue, topping the respective consensus estimates of 50 cents and $1.67 billion from analysts polled by LSEG. American Eagle also shared its "powering profitable growth plan" with investors.
Shares of the stock have risen more than 10% in 2024.
— Alex Harring, Gabrielle Fonrouge
Stocks see losses this week
Wednesday's positive session snapped back-to-back losing days for the three major averages. But those indexes are still on pace for losses this week.
The S&P 500 has seen the narrowest loss this week, down 0.6%. The Dow has dropped 1.1%, while the technology-heavy Nasdaq Composite slipped 1.5%.
— Alex Harring
Novo Nordisk pops on positive weight loss trial results
U.S.-listed shares of Novo Nordisk were up more than 4% in the premarket on the back of Phase 1 trial results that showed 13.1% weight loss in participants using the company's amycretin, a drug aimed at treating obesity.
— Fred Imbert
China's dollar denominated exports jump in the first two months of 2024
China's dollar-denominated exports jumped 7.1% year-over-year in the first two months of 2024, according to official data.
It was much higher than a Reuters poll expectation of a 1.9% rise. Dollar-denominated imports totaled $402.85 billion, which was an increase of 3.5% year-over-year.
China's yuan-denominated exports rose 10.3% year-on-year during the January and February period, while imports increased 6.7%.
— Shreyashi Sanyal
Shares of Wuxi Appetec and Wuxi Bio plunge after U.S. Senate bill restricting business moves forward
Shares of Chinese biotech companies Wuxi AppTec and Wuxi Biologics plunged over 15% and 19% respectively, and were the two largest losers on Hong Kong's Hang Seng Index.
The declines come after the U.S. Senate homeland security committee approved a bill that could restrict business with Chinese biotech companies on national security grounds. The measures would still need to be passed by both chambers of Congress before reaching the president's desk. The bill could be revised in the process, but its potential approval has sparked concern among investors.
WuXi AppTec, for example, generates two-thirds of its revenue from its U.S. business. While Wuxi Biologics did not disclose how much of its revenue comes from the U.S. specifically, its 2023 earnings report said it derived 46% of its revenue from the North American region.
— Lim Hui Jie
Goldman Sachs says it's positive on Indian stocks, bonds and the rupee
Goldman Sachs said Thursday that it was positive on Indian equities, bonds, as well as the rupee.
Indian benchmark indexes hit fresh record-highs on Wednesday, with the Nifty 50 rising to 22,474.05 and the BSE Sensex climbing to 74,085.99.
Sunil Koul, vice-president and Asia-Pacific portfolio strategist at the investment bank, told CNBC's "Squawk Box Asia" that last year's rally in Indian equities was due to earnings growth, and there "is still room" for more this year.
"India printed 20% earnings growth and the market is up 20%. So the entire rally last year was driven by earnings accrual," he said, elaborating that the country can expect to see bonds rally once they are included in the JPMorgan bond index in June.
— Charmaine Jacob
JD.com jumps more than 8% after beating revenue estimates and launching share buyback
Hong Kong-listed shares of JD.com spiked over 8% after the Chinese e-commerce company released better than expected fourth-quarter earnings and announced a share buyback plan of up to $3 billion, including American depository shares.
Revenue for the quarter ended Dec. 31 rose 3.6% from a year ago to 306.1 billion yuan ($42.54 billion), beating estimates of 300.04 billion yuan, according to LSEG data.
Attributable income for the fourth quarter came in at 3.4 billion yuan, compared to 3 billion yuan for the same period last year.
For the full year, attributable net income was 24.2 billion yuan, a 133% surge compared with 10.4 billion yuan in 2022. Full year revenue climbed 3.7% to 1.08 trillion yuan.
JD.com also declared a dividend of 38 cents per share.
— Lim Hui Jie
Nikkei hits fresh all-time high on Wednesday as energy and financials stocks rise
Japan's Nikkei 225 hit a fresh all-time high on Wednesday, gaining 0.54% and surpassing its March 4 record of 40,109.23.
The advance was led by energy and financial stocks, although the largest gainer on the Nikkei was motorcycle and heavy-equipment manufacturer Kawasaki Heavy Industries, rising 8.5% within the first half hour of trade.
Other names on the top gainers list included financial services firm Sumitomo Mitsui Trust Holdings, and copper ore company Mitsui Mining & Smelting.
— Lim Hui Jie
Bitcoin edges lower as blistering rally cools
Bitcoin cooled after a blistering rally this week that saw it briefly rise above a record high.
The world's most popular cryptocurrency edged 0.5% lower to trade at $66,132.42, according to Coin Metrics. Bitcoin had jumped around 8% in the previous session. Bitcoin touched an all-time high topping $69,210 on Tuesday.
"The boost in liquidity and the prospect of Federal Reserve rate cuts are propelling risk assets. However, given the stretched positioning and significant volatility, prudent risk management is warranted," Charu Chanana, head of FX strategy at Saxo Markets, told CNBC.
U.S. spot bitcoin ETFs started trading earlier this year driving gains in cryptocurrencies. Bitcoin supply is also tightening ahead of the late April "halving," an event designed to create scarcity.
— Shreyashi Sanyal
Victoria's Secret sinks 25% following mixed earnings, weak guidance
Shares of Victoria's Secret plummeted more than 25% after the intimate apparel maker reported mixed quarterly results and issued disappointing guidance.
The company posted earnings of $2.58 per share that topped the $2.47 expected by analysts polled by LSEG, but revenues came in at $2.08 billion and shy of the $2.09 billion anticipated.
For the full year, Victoria's Secret forecasted revenues to fall in the low single digits, versus an LSEG estimate of a 0.4% decline. The company also anticipates a bigger-than-expected decline in revenues for the first quarter.
Alongside its earnings report, the company authorized a $250 billion buyback plan.
— Samantha Subin
Stock futures open little changed
Stock futures opened little changed on Wednesday evening.
Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq-100 were flat.
— Samantha Subin
