The downturn in the US stock market on Friday was broad, but modest, as tensions between the United States and China, as well as an upcoming press conference hosted by President Trump, dampened another strong week. Dow and the S&P 500 are on track to end the week with 3.2% and 2% respectively.
This is a live blog. Come back for updates.
11.00am: Powell speaks
Federal Reserve Chairman Jerome Powell will speak at 1
Tune in to CNBC to watch. -Imbert
10:51 am: Cramer says that without more coronavirus stimulation, stock market rallies can end
The stock market boom from the masses can “spurt out” without more financial stimulus from Congress’s corona virus, CNBC’s Jim Cramer said Friday. “I get worried,” adds the host “Mad Money” and warned that record high unemployment “will eventually catch the market.” Earlier this month, the House Democrats passed another massive relief package. However, the $ 3 trillion bill has been a nonstarter in the GOP-led Senate. Cramer said a new round of stimulus could act as a “bridge” to a Covid-19 vaccine so that more companies don’t have to close. –Stankiewicz
10:49 am: NYSE decliners lead advancers 2-1
About two shares traded lower for the ever advanced on the New York Stock Exchange on Friday as investors looked ahead to a news conference from President Donald Trump. In total, there were 1,864 NYSE listed stocks while approximately 900 advanced FactSet data shows. –Imbert
10:25: Twitter flags Trump tweets for “glorifying violence”
Twitter flagged a tweet from President Donald Trump for violating the company’s guidelines for “glorifying violence.” The move comes after the social media giant fact-checked Trump earlier this week for a tweet about post-in polls and voter fraud Trump then addressed social media companies with an executive order aimed at cracking down on “censorship” of social media companies. Twitter shares fell by 2.6%. – Imbert
10 o’clock: Consumer sentiment rises to 72.3 in May but does not meet forecasts
The University of Michigan said on Friday that its consumer sentiment index rose to 72.3 in May from 71.8 in April. Although the print suggests that Americans felt a little more optimistic this month than they did in April, the figure did not fail what economists Dow Jones had visited, a reading of 74. Americans remain historically conservative with their personal incomes given the ongoing Covid – 19 concerns and government rules to contain its dissemination, but some may feel a little more hopeful given that some states have begun to ease the restrictions on business closure in recent weeks. – Franck
9:57: Here are Friday’s biggest analyst calls: Lululemon, Bloomin ‘Brands, Slack & more
- Raymond James raised his price target on Lululemon to a high of $ 335 from $ 250.
- Jefferies upgraded Bloomin ‘Brands to buy from a distance.
- Stephens raised its price target on Slack to $ 37 from $ 32.
- Baird initiated waste management as better.
- Credit Suisse initiated S&P Global and Moody’s as better.
- Argus downgraded VF Corp to keep from buying.
- Cowen downgraded Halliburton to market results from better results.
Pro subscribers read more here: https://www.cnbc.com/2020/05/29/fridays-biggest-calls-lululemon-bloomin-brands-slack-more.html – Flower
9:50 am: Energy and economy slows down, technology and healthcare better than US-China anxiety
Shares with high exposure in global markets underperformed the large indices 20 minutes into Friday’s regular trading as tensions between the US and China kept investors lauded in safer investments such as technology and healthcare. Boeing and Caterpillar, both of which have a significant portion of their revenues abroad, had the most downward pressure on Dow with declines of 2.1% and 1.6%, respectively. Microsoft and UnitedHealth added the most upside, but failed to fully offset Dow’s fall by about 60 points. – Franck
9:30 am: Stocks open mostly lower as traders wait for Trump’s China orientation
US stocks mostly opened lower on Friday with the Dow Jones Industrial Average down 140 points and the S&P 500 losing 0.35%. The Nasdaq Composite was the lone winner among the three indices, up one hair above the line. Traders cited bridging US-China tensions, as well as an expected press briefing on the case by President Donald Trump, for sale at the end of the week. The president is expected to condemn some of Beijing’s recent actions, including its handling of the outbreak of Covid-19, its involvement in the Hong Kong government, and its treatment of Muslim minority groups. – Franck
9:25: Kudlow says in an interview that the US government is “furious” with China
President Donald Trump’s top economic adviser Larry Kudlow said in an interview Friday morning that the US government is “furious” at the way China has behaved in recent weeks in its handling of the coronavirus outbreak and its involvement in Hong Kong’s autonomy. “As for Hong Kong, China is now breaking a 50-year treaty,” Kudlow told Fox News Channel from the White House. “Honestly, the US government is … I will use the word furious at what China has done in the last days, weeks and months. They have not behaved well and they have lost confidence in the entire Western world.”
Trump is expected to host a press conference later Friday to condemn Beijing’s latest behavior. – Franck
9:23 AM: US savings is considered a record high during the coronavirus crisis
Americans are saving more than ever before because coronavirus has the American fear of the future of the economy. The personal savings rate reached a historic 33% in April, the US Bureau of Economic Analysis said Friday. The kit represents how much people save as a percentage of their disposable income. The April print is by far the highest since the department began tracking in the 1960s, surpassing consumer savings when the United States became embroiled in the financial crisis. The increase in savings came when spending fell by a record 13.6% for the month. The deadly virus, which has caused more than 40 million Americans to apply for unemployment, has crippled consumer spending. – Fitzgerald
8:48 am: Corporation raises $ 1 trillion in debt issuance
Corporate debt issues have surpassed $ 1 trillion when companies borrow money at twice the rate last year when the Federal Reserve moves to support the corporate credit market amid the coronavirus pandemic. Of the new $ 1,038 billion issues, over $ 700 billion in new debt was rolled out since the Fed announced it would support the corporate bond market. –Imbert, Domm
8:43 AM: US personal spending plummets 13.6% in April
8:30 am: Citi: Stock market rally has been driven by short coverage
The S&P 500 has increased more than 30% since they hit an intraday flame on March 23. But strategists at Citi think these gains are a by-product of investors covering short positions. The strategists point out that stock prices have risen despite $ 120 billion in redemption from equity funds. “From here, a higher movement will need new links and inflows,” they said in a note. –Imbert, Bloom
8:09 pm: Powell scheduled for a conversation with former Fed Vice President Alan Blinder
Federal Reserve Chairman Jerome Powell is scheduled to speak Friday to The Griswold Center for Economic Policy Studies at Princeton University. The event, which takes place virtually at 11 a.m. ET, will be moderated by Alan Blinder, former Fed Vice President under Bill Clinton. The focus of the conversation is likely to be on the economy and the central bank’s stimulus measures during the coronavirus crisis. Powell will also participate in a moderated audience question and response session. Earlier this month, Powell said decision-makers may need to use additional tools to pull the country out of an economic downturn that has caused “a level of pain that is difficult to capture in words.” –Li
08:02: Raymond James becomes the biggest bull on Lululemon
Shares of the athletic retailer ticked up in the premarket trade on Friday after Raymond James raised his price target to the highest on Wall Street. Raymond James, who has a buy rating on Lululemon, raised his 12-month target to $ 335 per share from $ 250 per share. The new target represents an almost 18% rally from Thursday’s closing price of $ 284.42 per share. The company said that the yoga pants manufacturer remains of its best ideas for long-term, secular winners in a retail landscape characterized by a growing gap between winners and losers. “We believe that LULU’s dominance in the growing sportswear market will continue to increase as its innovation machine continues to deliver exciting and unique product to its loyal customer base,” said Raymond James retail analyst Matthew McClintock in a note to customers. Raymond James increased his fiscal profit estimates for the first quarter of 2020, but the number still represents major declines from 2019. “The key takeaway here is that short-term revenue reductions are transient and, more importantly, the current crisis only accelerates LULU’s positive positioning as a leader in the sportswear market, “McClintock added. Lululemon shares rose 0.6% in early trading. – Fitzgerald
08:00: Oil on track for best month on record after winning more than 70%
Oil moved lower on Friday, but for the month, West Texas Intermediate, the US benchmark, is on track to record a more than 70% gain for its best month on record. After falling to record lows in April, an increase in demand as well as historical supply cuts have driven prices higher. But prices are still far from the recent highs. On Friday, WTI traded about $ 33 per barrel, or about 50% during the January high of $ 65.65 per barrel. “It really doesn’t feel like it was the best month of oil ever,” says Regina Mayor, KPMG’s global energy manager. “The low $ 30 for WTI is clearly better than where we were at the end of April, but that’s not enough to get most of the production back online,” she added. –Stevens
07:23: Stock futures fall as Trump’s news conference resumes
Stock futures fell slightly on Friday morning as traders waited for a news conference from President Donald Trump on China. Dow Jones Industrial Futures fell 70 points, or 0.3%. The S&P 500 and Nasdaq 100 futures both fell 0.1%. Trump announced that he would hold the news conference late during Thursday’s session and send stock prices lower for the day. The news conference comes after China approved a controversial national proposal on national security earlier this week. Despite the downturn in the future, Wall Street was heading for solid weekly profits. The Dow and S&P 500 are both up 3.8% and 2.5% respectively during the week, while the Nasdaq Composite has risen 0.5%. –Imbert
– With reports from Yun Li, Thomas Franck, Michael Bloom, Patti Domm and Kevin Stankiewicz.
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