Stocks close day, week higherA Friday rally on the back of new economic data left stocks positive on the both the day and week when markets closed.
The Dow ended up 2.1% on the day and 1.5% on the week.
Meanwhile, the S&P 500 gained 2.3% Friday and 1.5% in the week.
The Nasdaq posted the biggest daily win, adding 2.6%. But it had the smallest weekly gain at 1%.
— Alex Harring
Where the 11 S&P 500 sectors stand with 30 minutes left in tradingAll 11 S&P 500 sectors traded up as stocks rallied Friday afternoon.
Materials posted the biggest gain, adding 3.4%. Health care lagged the other 10 sectors, but was still up 1%.
All but one sector were on pace to close the week higher than where each started. Communication services was poised for the biggest gain despite trailing Friday, on track to finish the week up 3.8%. Health care was the sole sector on pace to close the week lower, at 0.1% down.
— Alex Harring
Biogen extends gains after drug approvalShares of Biogen resumed trading shortly after 3 p.m. and extended their gains.
The biotech stock trading was up by more than 5.2% after the FDA granted accelerated approval to a new Alzheimer’s drug. The stock was up about 3.6% before it was halted at 2 p.m.
— Jesse Pound
Stocks trade up entering final hour of tradingThe three major indexes all traded up as investors entered the final hour of trading.
The Dow gained 726 points, or 2.2%. The S&P 500 added 2.4%, while the Nasdaq rose 2.7%.
All three indexes are also on pace to end the week up. The Dow and S&P 500 are each on track to gain 1.5% for the week, while the Nasdaq is poised for a 1.1% advance.
— Alex Harring
Party City falls 50% on report of imminent bankruptcyParty City’s stock hit a 52-week low Friday, dropping approximately 50% after the Wall Street Journal reported the retailer was planning to file for bankruptcy within weeks.
A share of Party City stock traded around 17 cents at 2 p.m. That’s a 97% drop from the $6.55 price the stock closed at on Jan. 6, 2022.
The stock lost 93.4% of its value in 2022. Its share price has dropped for each of the past five years besides 2020, when it leapt up 162.8% as the pandemic prompted an unexpected shift in consumer spending to goods.
— Alex Harring
Trading halted in Biogen as FDA approves Alzheimer’s drugShares of Biogen have been halted for pending news as the Food and Drug Administration announced the accelerated approval of lecanemab, an Alzheimer’s drug developed by Biogen and Japanese firm Eisai.
Clinical trials of the new drug showed that it slowed cognitive decline in people with mild symptoms from Alzheimer’s disease. Biogen and Esai were also behind another Alzheimer’s treatment called Aduhelm which was controversially approved by the FDA last year.
The stock was up 3.56% on the day when it was halted at 2 p.m.
Bond prices surge, yields fall as economic data signals cooling inflation Bond prices rallied with stocks, sending yields down, after two key economic reports signaled inflation my be cooling off as the Fed raises interest rates.
The yield on the benchmark 10-year Treasury was down by 16.2 basis points at 3.56%. The 2-year Treasury yield fell 18.9 basis points to 4.264%. The yield on the 30-year Treasury was down 11.8 basis points at 3.68%.
The spread between the 10-year Treasury and the 3-month Treasury, a key inversion that signals a recession, is the largest since 1982.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Stocks making the biggest moves middayCheck out the companies making headlines in midday trading.
World Wrestling Entertainment — The wrestling entertainment stock surged 21% after WWE announced that founder Vince McMahon is returning to its board of directors and that the company is exploring strategic moves. McMahon stepped down as CEO last year after an investigation into sexual misconduct, but has remained majority shareholder. The Wall Street Journal reported that McMahon is returning to pursue a potential sale of the business.R1 RCM — Shares of the healthcare technology firm soared more than 11% after the company raised its revenue outlook for 2023. The company also reaffirmed its projection for full-year 2022.Costco Wholesale — Shares of the big-box retailer jumped more than 6% after it reported solid sales numbers for December. Costco posted net sales of $23.8 billion in December 2022, marking an increase of 7% year-over-year. Evercore ISI also added Costco to its “fab five” list, saying it’s a defensive stalwart.Read the full list here.
— Sarah Min
First week of year signals volatility ahead for stocks, Goldman Sachs saysInvestors may not want to get too excited about Friday’s rally.
“This first week of 2023 (and January) has come with the usual raft of major economic data points which on net point to the unusual post-pandemic era combination of a resilient labor market set against eroding business sentiment across the economy,” analysts at Goldman Sachs wrote in a Friday note. “Even as Corporate America continues to hire over 200,000 net new workers a month and post over 10mn job openings, both the Manufacturing and Service sector feels like things are getting worse.”
Of course, things getting worse is relative to one of the best GDP expansions the U.S. has seen, according to the note. This was partially fueled by pandemic stimulus through 2021.
“But this unusual combination we are now seeing of slow growth, high inflation, and elevated stock market valuations is likely to make for an uneven trading landscape in the year ahead,” Goldman said. That’s likely to mean modest returns for stocks this year.
Tesla reverses slump, trades higherTesla reversed a more than 5% slump Friday following news that the electric vehicle maker would lower prices on some models of cars in China.
Later in the day, however, Tesla rose with the broader market. It was up 1.85% at midday.
Fed’s Barkin says rate hikes can be done ‘more deliberately’ nowRichmond Federal Reserve President Thomas Barkin said Friday the central bank has to keep working to bring down inflation but can do so with a little less intensity.
“We still have work to do,” the central bank official said in prepared remarks. “Inflation is too high, and we will need to stay on the case until it is sustainably back to our 2% target. We have forecasted additional rate increases this year.”
Policymakers indicated in December that they’re likely to take rates up another percentage point or so before pausing. Atlanta Fed President Raphael Bostic earlier in the day told CNBC he expects the central bank’s benchmark funds rate rising past 5%, from its current 4.25%-4.5% target range.
Barking did not specify how high he thinks the rate should go. However, he said the Fed now can move “more deliberately” after raising rates aggressively seven times in 2022.
Health care, hospitality lead December job gainsHealth care and social services was the top category for job growth in December, followed by leisure and hospitality, as the U.S. labor market continues to show strength despite the Federal Reserve’s aggressive rate hikes.
Meanwhile, two sectors that had been struggling in recent months — retail and transportation and warehousing — snapped back to growth in December.
Bank of America downgrades Chevron as oil prices coolAs oil prices cool, Bank of America is expecting Chevron won’t outperform as much as it did in 2022.
The firm expects a modest 9% upside after gaining more than 50% in share value last year. Analyst Doug Leggate also downgraded the stock to neutral from buy, citing limited upside as oil prices stabilize following the jump prompted by Russia’s invasion of Ukraine.
“Put simply we see CVX as a victim of its own success – but with