Before an hour
Stocks close lower
Shares ended Thursday’s session lower.
The Dow closed down 1.1%, while the S&P 500 and Nasdaq Composite ended 0.8% lower.
Thursday’s losses put the indices on course for losing weeks. With only Friday left in the holiday-shortened trading week, the Dow is on track to end the week down 1.4%. The S&P 500 is expected to lose 0.9%, while the Nasdaq Composite is expected to lose 0.8% this week.
— Alex Harring
2 hours ago
Textron stock is well positioned for a recovery, says Citi
Citi kicked off coverage of aircraft manufacturer Textron with a buy rating.
“Given recent growth in orders, particularly in the company’s Aviation and Bell segments, we are bullish on revenue and earnings visibility,” analyst Jason Gursky wrote in a note on Wednesday.
Gursky added that Textron’s valuation has already discounted a recessionary environment and lower demand for business jets.
CNBC Pro subscribers can read more about the call here.
– Hakyung Kim
2 hours ago
Friday’s labor market report is likely to be strong, says the economist
Economic data released on Thursday points to strength in Friday’s jobs report, said Jeffrey Roach, LPL Financial’s chief economist.
Roach pointed to the ADP personal payroll report, job vacancies and sales data, and manufacturing index readings as signs Friday’s closely watched jobs report is likely to be strong. And that could mean bad news for those hoping the Federal Reserve won’t hike rates again after its pause at the June meeting, he said.
“The data ahead of Friday’s big jobs announcement points to another healthy jobs report,” Roach said. “Unless Friday’s report comes in much weaker than expected, the Fed is unlikely to change its rate hike plans during the next regular meeting later this month.”
— Alex Harring
3 hours ago
The shares remain in the red until the last hour
Shares remained in the red at the start of the last hour, but were off session lows.
The Dow lost 1% while the S&P 500 and Nasdaq Composite fell 0.7%. All three were down more than 1% early in the session.
— Alex Harring
3 hours ago
Piper Sandler downgrades Affirm but is more bullish on credit card companies
Kevin Barker, an analyst at Piper Sandler, said in a note to clients Thursday that the changing winds of the US consumer, including a possible recession and a resumption of student loan payments, will have an uneven impact on consumer finance stocks.
Piper Sandler downgraded point-of-sale lender Affirm to underweight from neutral, citing interest rates will continue to rise and student loan repayments are expected to resume in October. Shares of the company fell more than 15% on Thursday.
Meanwhile, the company raised its price targets on Capital One and Discover Financial.
– Jesse Pound
3 hours ago
keurig dr Pepper rises after Morgan Stanley upgrades shares to ‘overweight’
Shares rose about 1.5% after Morgan Stanley Keurig Dr. Pepper had upgraded it from “equal weight” to “overweight,” saying the stock’s “pronounced stock underperformance” has created a buying opportunity for investors.
“Put more simply, we don’t pretend to have full transparency on coffee, but some of the weaknesses are more related to factors that don’t add value to long-term value, and there is a clear path for continued upside in US soft drinks, KDPs.” Valuation looks compelling here after an outsized underperformance in shares,” the company said in a statement on Thursday
Read more about the upgrade here.
– Hakyung Kim
4 hours ago
Stocks that make the biggest moves at midday
Here are some of the stocks moving in midday trading:
- Genius Sports — Stock rose more than 22% after Genius Sports and the National Football agreed to a multi-year extension of their existing strategic partnership. Genius remains the exclusive distributor of real-time NFL statistics.
- Confirm – Shares fell about 14% after Piper Sandler downgraded the point-of-sale lender to underweight from neutral. Resuming student loan payments and higher interest rates could hurt the stock in the coming months, the Wall Street company said.
- keurig dr Pepper – The stock rose 1.5% after Morgan Stanley upgraded the stock from “equal weight” to “overweight.” Morgan Stanley said the stock’s valuation is too low given the clearly visible trends in soft drinks.
The full list can be found here.
4 hours ago
Russell 2000 is on course for its worst day since April
Small-cap stocks were weak on Thursday, with the Russell 2000 most recently down more than 2.2% and expecting its worst day since April 25.
On a weekly basis, the index is down 3% and is heading for its worst weekly performance since March. Since the beginning of July, the Russell 2000 is down 3.1%.
Archer Aviation has been one of the biggest laggards in the index, most recently down 12.5% and is on track to end a six-day winning streak. If the stock closes near these levels, it would be its worst daily performance since May 12.
Joby Aviation shares plunged 12%. The stock is headed for its worst day since June. Shares are down 8.5% this week.
— Samantha Subin, Chris Hayes
4 hours ago
Microsoft is only trading higher in the Dow share price
Only one of the 30 stocks in the Dow was up Thursday afternoon: Microsoft.
The tech giant gained 1%. As the other 29 names traded lower, the blue-chip average fell about 1.2%.
3M, Chevron, American Express and Nike led the index down more than 2.5%.
See grafic…
Microsoft vs. Dow, 1 day
5 hours before
The Dow and S&P 500 are on track for their worst daily performance in more than a month
The Dow and S&P 500 are both on track to post their worst daily performance in more than a month as Thursday’s session closes to a few hours.
The Dow’s 1.3% decline puts it on track for its biggest single-session loss since March 22, when the blue-chip average ended 1.6% lower.
Down 1%, the S&P 500 is set to post its worst day since May 23, when it fell 1.1%.
— Alex Harring
5 hours before
According to economic analyst, the future of the economy is uncertain according to the labor market data
The future of the US economy remains unclear after Thursday’s jobs data, said Mark Hamrick, senior economic analyst at Bankrate. And a big part of the question stems from uncertainty about how the Fed will change interest rates in the future.
“The state of the economy, including the labor market, remains questionable through to the end of this year,” Hamrick said. “If the anti-inflation Fed is forced to raise interest rates further, as it recently signaled, the risks of an economic downturn remain or even increase.”
— Alex Harring
5 hours before
The energy sector led the losses on Thursday
All 12 sectors of the S&P 500 fell during Thursday’s trading session, with the energy sector leading the losses.
The energy sector recorded a minus of 2.6%. ConocoPhillips, Hess, Marathon Oil and Devon Energy all saw shares fall more than 3.3%.
The second biggest losers were basic materials stocks, the sector lost 2.1%. Freeport-McMoRan lost 4.8% while Celanese fell 4.3%.
– Hakyung Kim
6 hours ago
Bitcoin falls after hitting a 13-month high
Bitcoin hit a 13-month high above $31,450 on Thursday as the drumbeat for institutional bitcoin demand grew following comments from BlackRock CEO Larry Fink. On Wednesday, he told Fox Business News that Bitcoin is “an international asset” and “isn’t based on any specific currency, so it can represent an asset that people can use as an alternative.”
The cryptocurrency was last down 1% to $30,147.48, according to Coin Metrics. It pared earlier gains after better-than-expected US jobs data increased investor concerns about interest rate developments.
The earlier rise contrasted with weaker stock prices and yields. In addition, minutes from the Federal Reserve’s June meeting, released on Wednesday, showed that most officials would support further rate hikes going forward. Cryptocurrency liquidity has been low for several months and continues to show exaggerated ups and downs.
For more on what’s driving Bitcoin on Thursday, read our full story here.
– Tanaya Macheel
6 hours ago
Plug Power surges after Citi says stocks are worth buying
According to Citi, shares in green hydrogen company Plug Power are rarely worth buying.
Analyst Vikram Bagri said Plug Power is on track to achieve positive gross margins this year and is targeting gross margin above 30% by 2026. He gave the stock a buy and high-risk rating.
“The company’s aggressive growth plans and significant operational leverage should allow for strong margin expansion,” Bagri said.
CNBC Pro subscribers can click here to read more.
– Hakyung Kim
7 hours ago
Major indices fall more than 1%
The three major indices all lost more than 1% in Thursday morning trade, showing the strength of the sell-off during the session.
The Dow slipped more than 400 points, or 1.4%. The Nasdaq Composite and S&P 500 each fell about 1.3%.
— Alex Harring
7 hours ago
The NYSE’s relegated leaders lead the promoted 12:1
About 12 stocks listed on the New York Stock Exchange fell for every gain in early trading Thursday as fears of even tighter Fed policy weighed on investor sentiment. Overall, 2,479 NYSE stocks posted losses while 182 gained.
— Fred Imbert
7 hours ago
Two-year government bond yields hit highest level since 2007
See grafic…
2-year return over the last 12 months
7 hours ago
The number of vacancies fell below 10 million in May
Job vacancies fell more-than-expected in May, according to a Labor Department report on Thursday, raising hopes that the labor market is easing.
The Job Vacancy and Labor Turnover Survey showed the total number of entries was 9.82 million, down from the previous month’s revised upwards of 10.32 million and below the FactSet estimate of 9.9 million.
The number of layoffs rose to just over 4 million for the month, with the rate-to-headcount ratio rising to 2.6%, up 0.2 percentage points from April.
A separate economic report released at 10am ET showed the ISM Services Index for June recorded a reading of 53.9, up from 50.3 in May and better than the estimate of 51.3.
-Jeff Cox
8 hours ago
Chances are that fed funds will rise another half a percentage point by September
According to CME Group’s FedWatch tool, the Federal Reserve’s Fed Funds rate is likely to come in a half-point higher at 5.50% to 5.75% by the end of its September meeting after Thursday’s better-than-expected jobs data were published.
Before that, however, the normally volatile ADP jobs survey for June came in almost twice as high as expected.
Rate traders now see a 95 percent certainty that the Fed will hike rates by a quarter point to 5.25% to 5.50% at the July 26th meeting in less than three weeks. The probability of another quarter-point hike in interest rates to 5.50%-5.75% at the September meeting is now 28.5%, up from 18.1% on Wednesday.
The Fed is skipping an October meeting, but the probability that rates will be half a point higher by the Nov. 1 meeting is now 40.1%, up from 31.6% on Wednesday. There is even an 8.4% chance that rates will rise by a three-quarter point by the end of the November session.
– Scott Snapper
8 hours ago
Stocks open lower
The three major indices were trading in the red immediately after the opening bell on Thursday.
The Dow lost nearly 250 points, or 0.7%, just after 9:30 a.m. ET. The S&P 500 and Nasdaq Composite fell 0.9% and 1%, respectively.
— Alex Harring