Traders work on the floor of the New York Stock Exchange.
The Dow Jones Industrial Average and S&P 500 slid on Wednesday, retreating from their latest records.
The S&P 500 lost 0.19% to close at 5,722.26, while the 30-stock Dow fell 293.47 points, or 0.70%, to end at 41,914.75. Both the Dow and S&P 500 hit fresh records in early trading, but the blue-chip index wound up snapping a four-day winning streak. The Nasdaq Composite eked out a narrow gain of 0.04%, closing at 18,082.21.
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Notable losers of the day include General Motors and Ford, which both fell more than 4% after downgrades from Morgan Stanley. A 5.5% drop in Amgen weighed on the Dow. Nine of the 11 sectors in the S&P 500 ended the day in negative territory, led lower by energy as U.S. crude oil futures slid. Chevron shares slumped more than 2%.
Tech was a bright spot in the market. Hewlett Packard Enterprise advanced more than 5% following an upgrade from Barclays, citing strong artificial intelligence data center demand as a positive catalyst. Chip powerhouse Nvidia added 2.2%, bringing its market capitalization above the $3 trillion mark.
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All three averages are on track for a positive September, though fears of a slowing economy still linger after last week's rate cut from the Federal Reserve. The central bank's move on interest rates has so far helped the S&P 500 defy what is usually a weak September.
"This is consistent with history: Stocks have tended to perform well in periods when the Fed is easing while the U.S. economy is still growing," UBS global wealth management chief investment officer, Americas, Solita Marcelli wrote in a Wednesday note. "But the Fed's level of success in guiding the US to a soft landing will be important in determining the outlook for other asset classes."
Now that the central bank has begun to lower interest rates, the economy is becoming a bigger focus for investors.
Money Report
On the data front, new home sales slipped 4.7% in August to 716,000, down from July's revised reading of 751,000. Investors will also look toward weekly jobless claims on Thursday.
S&P 500 closes lower, Dow slips
The S&P 500 closed lower on Wednesday, a day after reaching a fresh record high alongside the Dow Jones Industrial Average.
The broad market index fell 0.19% to close at 5,722.26, while the 30-stock Dow slipped 293.47 points, or 0.7%, to 41,914.75. The Nasdaq Composite added 0.04% to finish the session at 18,082.21.
— Brian Evans
Fed Governor Kugler says she 'strongly supported' big cut
Federal Reserve Governor Adriana Kugler said Wednesday that she "strongly supported" last week's decision to cut benchmark interest rates by half a percentage point.
In a speech delivered at Harvard, the central bank official insisted that easing inflation and a "cooling in the labor market" supported the larger-than-usual cut that she sees as the beginning of an easing campaign.
"While future actions by the FOMC will depend on data we receive on inflation, employment, and economic activity, if conditions continue to evolve in the direction traveled thus far, then additional cuts will be appropriate," said Kugler, who did not specify how large she thinks future cuts should be.
As a governor, Kugler is a permanent voting member of the Federal Open Market Committee. The overnight borrowing rate is now targeted in a range between 4.75% and 5%.
— Jeff Cox
It's 'hard to call this a turn in Chinese equities,' portfolio manager says
China's stimulus measures may not be enough to mark a turning point in equities, according to Krishna Mohanraj, portfolio manager at Diamond Hill.
China stocks came under pressure Wednesday, with the iShares China Large-Cap ETF (FXI) falling more than 2% in midday trading, one day after the announcement of new Beijing stimulus boosted the sector. Shares of Alibaba and JD.com were down 1.5% and 2%, respectively. Bilibili shares slid 2%. Internet services company Baidu was slightly lower by 0.4%.
Overnight, however, the Shanghai Composite closed up 1.2%.
But some market observers were skeptical the stimulus package — such as interest rate cuts, including for existing mortgages — would be enough to bolster China's economy, which has been contending with poor demand.
"Rate cuts, some housing support, lending program for equities — all announced together is a clear attempt to boost confidence. While this is all positive, it doesn't seem enough," Mohanraj wrote. "The key issue is the consumer is not willing to spend. And definitely a lot more is needed to address that."
"Given how cheap the equities are, it is no surprise we are seeing some positive reaction," he added. "But it is hard to call this a turn in Chinese equities."
— Sarah Min
Cipher Mining shares jump for a second day, bringing two-day surge to 30%
Shares of Cipher Mining rose for a second day Wednesday, a day after the bitcoin mining firm completed its acquisition of the Barber Lake site in West Texas.
The stock was last higher by 14%. Earlier in the day, it surged as much as 21.5%.
Macquarie Research on Tuesday initiated coverage of Cipher with an overweight rating. On Wednesday, Northland Capital Markets initiated coverage on Cipher with an outperform rating.
— Tanaya Macheel
Vistra stock has tripled in value this year as AI demand for nuclear power grows
Vistra Corp. stock is up 6%, putting the power company on pace for its 13th straight day of gains on potential artificial intelligence demand for its nuclear energy portfolio.
Vistra stock has soared more than 200% this year to lead the S&P 500, outpacing AI chipmaker Nvidia.
The Texas-headquartered company's shares are gaining this week after Constellation Energy unveiled plans to restart the Three Mile Island nuclear plant, a watershed moment for the industry.
Vistra is expected to ink a deal at some point to power a data center with one of its nuclear plants. CEO Jim Burke told investors recently that the company is seeing interest in the Comanche Peak plant in Texas.
Analysts also see potential for Vistra to sign a deal to power a data center with one of its natural gas plants.
— Spencer Kimball
Leon Cooperman says stocks are still the best place to be
Billionaire investor Leon Cooperman believes the stock market is still the best place to be, urging investors to avoid bonds amid uncertainty of the Federal Reserve's rate cut schedule.
"I think stocks are the best place to be," Cooperman said on CNBC's "Squawk Box." "I would avoid bonds. You just don't know the timing."
With the S&P 500 trading around 21, 22 times forward earnings, the chair and CEO of family office Omega Advisors said the market is fully valued, but he said he is still finding plenty of things to do. He highlighted two of this favorite stocks: Canadian energy companies Paramount Resources and Tourmaline Oil.
— Yun Li
Amgen drags Dow lower in Wednesday trading
Shares of biotech firm Amgen were trading more than 4% lower on Thursday, making the stock the biggest laggard in the Dow Jones Industrial Average. The 30-stock index was down nearly 0.6% in early afternoon trading.
Investors sent the stock lower after topline results from Amgen's HORIZON Phase 3 study showed less meaningful efficacy than expected and versus competitors. The study tested rocatinlimab, designed to aid patients with atopic dermatitis.
— Lisa Kailai Han
Stocks making the biggest moves midday
Here are some of the companies on the move during midday trading:
- Flutter Entertainment — The sports betting stock rose more than 6% after the FanDuel parent announced a share buyback program of up to $5 billion. The company also forecasts total revenue growth of about $21 billion in 2027.
- Hewlett Packard Enterprise — The tech stock jumped more than 5% after Barclays upgraded the firm to overweight from equal weight. The Wall Street firm said rising demand for artificial intelligence servers will give HPE a boost.
- General Motors, Ford — Shares of both companies slipped on Morgan Stanley downgrades, which cited worsening U.S. consumer credit and China's increasing car production capacity as taking away from the automakers' market share.
Read the full list here.
— Samantha Subin
33 stocks in the S&P 500 hit new 52-week highs
Thirty-three stocks in the S&P 500 were trading at their 52-week highs Wednesday morning.
Names that hit this milestone included:
- Netflix
- Walmart
- BlackRock
- GE Vernova
- Lockheed Martin
- International Business Machines
- Motorola Solutions
- CBRE
- Pentair
- Live Nation Entertainment
On the other hand, Walgreens Boots Alliance was the only stock trading at a 52-week low on Wednesday.
— Lisa Kailai Han, Christopher Hayes
Nvidia market cap goes back above $3 trillion
Wednesday's 3% gain put Nvidia's market cap back above $3 trillion. If shares close at these levels, it will be the first time since Aug. 28 that the chipmaker's value finishes a session above $3 trillion.
— Fred Imbert
Flutter Entertainment unveils $5 billion share buyback, shares surge
Flutter Entertainment soared more than 7% in morning trading, hitting a new 52-week high, following the FanDuel parent's announcement of a share buyback program of up to $5 billion.
The company also said revenue is expected to grow 14% annually, coming out to about $21 billion by 2027.
Shares have risen more than 38% this year and more than 16% this month.
— Sean Conlon
General Motors slips following Morgan Stanley downgrade
Automaker General Motors slipped more than 6% on Wednesday after Morgan Stanley downgraded the stock to underweight from equal weight.
Morgan Stanley's Adam Jonas cited worsening credit for consumers in the U.S. and China continuing to take market share as headwinds for the automaker.
"The China capacity 'butterfly' has emerged and is flapping its wings. China produces 9mm more cars than it buys, upsetting the competitive balance in the West," said Jonas. "Even if these units don't end up directly on US shores, the 'fungibility' of lost share and profit by key US players adds pressure here at home."
Wednesday's pullback put shares on track for their biggest one-day loss since July 23, when they shed 6.4%.
CNBC Pro subscribers can read Morgan Stanley's call here.
— Brian Evans
Stocks open flat
Stocks opened little changed on Wednesday as Wall Street takes a breather after record highs for the Dow Jones Industrial Average and S&P 500.
The broad market index inched up 0.08%. The Nasdaq Composite ticked down 0.04%, while the 30-stock Dow gained 41 points, or 0.1%.
— Brian Evans
Coinbase dips in premarket trading after extending its rally a sixth day
Coinbase shares were down 1% in early morning trading, the morning after the stock notched its sixth up day in a row.
The crypto exchange operator has rallied more than 6% since last Tuesday in its longest rally since March of this year, around the time bitcoin reached a new record.
Chart analysts warn that Coinbase could be entering a downtrend as its 50-day moving average has just crossed below the 200-day moving average.
— Tanaya Macheel
KB Home, General Motors among the names making moves in premarket trading
Here are some stocks making big moves in premarket trading:
- Progress Software — The tech stock advanced nearly 7% after better-than-expected fiscal third-quarter results. Progress posted adjusted earnings of $1.26 per share on revenue of $178.7 million. Analysts polled by FactSet were expecting $1.14 per share on revenue of $176.2 million.
- KB Home — Shares plunged more than 6% following weaker-than-expected fiscal third-quarter earnings. KB Home earned $2.04 per share, or 2 cents below the estimate of analysts surveyed by LSEG. The homebuilder's year-over-year housing gross margin also fell.
- General Motors, Ford Motor — The auto stocks fell following downgrades from Morgan Stanley's Adam Jonas due to rising China competition and a weakening U.S. consumer. The analyst downgraded Ford Motor to equal weight from overweight, while General Motors was lowered to underweight from equal weight. Shares of General Motors and Ford fell roughly 3% and 2%, respectively.
Read here for the full list.
— Sean Conlon
Berkshire unloads another chunk of BofA, total sales hit $9 billion
Warren Buffett's Berkshire Hathaway dumped yet another chunk of Bank of America shares, bringing its total sales to about $9 billion since mid-July and reducing its stake to 10.5%.
The Omaha-based conglomerate sold around 21 million shares between Sept. 20 and Sept. 24 for roughly $863 million, according to a new regulatory filing.
Once the stake dips below 10%, Berkshire will no longer be required to disclose any transactions within two business days.
Shares of the Charlotte, North Carolina-based company have fallen about 3% month to date. The stock is still up more than 17% this year.
Buffett famously bought $5 billion worth of BofA's preferred stock and warrants in 2011 in the aftermath of the financial crisis. He converted those warrants in 2017, making Berkshire the largest shareholder in BofA. The "Oracle of Omaha" then added 300 million more shares to his bet around 2018 and 2019.
On Buffett's sales, BofA CEO Brian Moynihan said he does not think the stock is overvalued, and the market likes to analyze the Oracle of Omaha's every move.
"I think the market speculates on what he does. He has an investment strategy, investment theory and he sold a lot of different companies … but at the same time he's buying companies, and I'll let the market decide it," Moynihan told CNBC's Leslie Picker earlier this week. "From our standpoint, our stock is a great buy and we're buying it every day."
— Yun Li
More rate cuts could ease pain of a softening labor market, says Bank of America
The Federal Reserve cutting interest rates further could aid a more cautious economic outlook surrounding the labor market after some weak data points, according to Bank of America.
"The series of rate cuts going forward should help ease some concerns around the labor market and support sentiment," BofA economist Shruti Mishra wrote Wednesday.
— Brian Evans
SAP shares fall after CFO confirms DOJ investigation
Shares of German tech company SAP fell 3% in the premarket after Chief Financial Officer Dominik Asam confirmed an earlier report of a U.S. Justice Department investigation into possible price fixing.
"I am not aware of any criminal investigations into SAP at present related to Carahsoft, which is I think the case you allude to. What we are aware of and all I can say on that second case is that since awhile we have been aware of a civil investigation from the DOJ and we have been fully cooperating with the DOJ up until now and we will continue to do so," Asam said on CNBC's "Worldwide Exchange."
— Fred Imbert
U.S. stock futures dip
U.S. stock futures traded slightly lower Wednesday morning.
At around 3:40 a.m. ET, S&P 500 futures were down 0.2%, Nasdaq 100 futures fell 0.3% and futures tied to the Dow Jones Industrial Average dipped 0.2%.
— Sam Meredith
Europe markets edge lower
European stocks traded slightly lower Wednesday morning, paring gains from the previous session on the back of Chinese stimulus measures.
The pan-European Stoxx 600 slipped 0.1% shortly after the opening bell, with most sectors and major bourses in negative territory.
— Sam Meredith
Gold still has upside, but near-term could be rocky, Strategas' Verrone says
Gold futures settled at another record high on Tuesday, extending a rally that started long before the Federal Reserve's rate cut became assured.
Strategas head of technical strategy Chris Verrone said on CNBC's "Closing Bell" that he sees further upside for the yellow metal but cautioned that there could be a near-term dip.
"Some of the sentiment the last week or two I think is getting a little on the hotter side. If you got a pullback $2,450, $2,500, I think is very good support. I'd be a buyer there," Verrone said.
Verrone also said silver looks "timely" right now. Silver futures rose more than 4% on Tuesday for their best day since May.
— Jesse Pound
KB Home slides after earnings miss
Shares of KB Home dropped 6% in extended trading after earnings for the fiscal third quarter came in below expectations.
KB Home reported $2.04 in earnings per share, slightly below the $2.06 per share expected by analysts, according to LSEG. The company's housing gross margin also declined year over year.
Homebuilders will be a group watched closely by Wall Street now that the Federal Reserve has started to cut rates. Investors will want to see if home sales can rise as mortgage rates fall. New home sales data for August is due out on Wednesday.
Check out more after-hours movers here.
— Jesse Pound
S&P 500 futures open flat
Stock futures were little changed at 6 p.m. in New York, with S&P 500 futures hovering near the flat line.
— Jesse Pound
Market could be due for an ‘everything rally,’ says EMJ Capital’s Eric Jackson
The market could be in store for even more growth ahead, according to EMJ Capital's Eric Jackson.
"We could be in for an everything rally," the firm's founder and president told CNBC's "Money Movers" on Tuesday. "It's not just small-cap tech, although that will participate, it'll be the Mag Seven, it'll be other stuff, too."
In terms of where he sees opportunities, Jackson said he likes Tesla especially, believing it could be a beneficiary of China's new economic stimulus measures. The stock has soared more than 14% over the past month and more than 38% over the past three months.
"I just don't think they have gotten the credit to this point for being an AI play that they will," he said, adding that he thinks the rally will continue.
— Sean Conlon
