JPMorgan downgrades energy utility stock over regulation concerns
JPMorgan downgraded Xcel Energy stock on Friday over lower electricity costs in Minnesota from state regulators.
"We expect this outcome and heightened market attention on the CO electric rate case to weigh on XEL for now mirroring reactions over the past nine months to varying levels of surprise in the rate case arena," analyst Jeremy Tonet said.
Xcel stock was down 1.3% on Friday. Shares have dropped more than 11% this year.
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— Brian Evans
Stocks extend gains
The three major indexes continued rallying in late morning trading.
The Dow jumped more than 500 points, trading up around 1.7%. The S&P 500 added 1.4%, while the Nasdaq Composite advanced 1%.
— Alex Harring
Fear gauge VIX hits lowest level since 2021
The Cboe Volatility Index, known as the VIX, hit a low of 14.82 Friday, reaching its lowest level since Nov. 4 2021 on an intraday basis. Any close below 15 would be the VIX's first close below that threshold since February 2020.
The VIX, which tracks the 30-day implied volatility of the S&P 500, has dipped 3 points in June after gaining over 13 points in May. The index looks at prices of options on the S&P 500 to track the level of fear on Wall Street.
— Yun Li
Labor force participation among prime age women hits highest level since 1948
A metric showing how many workers are employed or in search of work, rose to highest level on record dating back to 1948 in May among women between the ages of 25 and 54.
The measurement, known as the labor force participation rate, increased to 77.6% last month, data released Friday by the U.S. Bureau of Labor Statistics showed.
Overall labor force participation among prime age workers between 25 and 54 rose to 83.4% in May. That's the highest level since April 2002, when the prime participation rate was 83.6%.
— Gina Francolla, Samantha Subin
Amazon says it doesn't plan to add wireless 'at this time'
In response to the Bloomberg News report about Amazon exploring adding wireless service to its Prime members, Amazon spokesperson Bradley Mattinger released the following statement: "We are always exploring adding even more benefits for Prime members, but don't have plans to add wireless at this time."
Shares of wireless providers are still trading lower, with T-Mobile down about 7%. Shares of Amazon are up more than 2%.
— Jesse Pound
Nasdaq Composite trades at highest level since April 2022
The Nasdaq Composite reached its highest level since April 2022 amid Friday's rally.
The technology-heavy index has rallied in recent months amid excitement around artificial intelligence.
The Nasdaq
— Alex Harring
Friday rally puts Dow up on the week
A rally in the Dow on Friday morning pushed the index into positive territory on the week.
The Dow climbed about 0.7% week to date with Friday's advance accounted for. The index was down about 0.1% on the week after Thursday's close.
The Dow
— Alex Harring
Stocks open higher
The three major indexes were trading higher as Friday's session kicked off.
The Dow added more than 200 points, up about 0.7%. The S&P 500 rose 0.8%, while the Nasdaq Composite gained 1%.
— Alex Harring
Market observers try to predict how Fed will act at June meeting following jobs data
The Fed will have a difficult job when deciding how, or if, to move interest rates at the policy meeting later this month, market observers said following the May jobs report.
"This surge in job growth, combined with the recent passage of the debt ceiling/budget bill by the Senate, sets the stage for an intriguing course of action for the Federal Reserve in June," said Jon Maier, chief investment officer at Global X.
Maier said the higher-than-expected payroll data could make some think more monetary tightening is ahead, but he said the "marginal" increase in the unemployment rate could also be enough to prompt a pause on interest rate hikes at the next meeting.
"It really is 50/50 at this point on a June move," Maier said. "These developments present a multifaceted economic scenario for the Federal Reserve to decipher during their upcoming meeting."
To be sure, not everyone was uncertain. Jan Szilagyi, founder of financial technology platform Toggle AI, said a "June pause is now impossible" unless upcoming inflation data comes in far lower than economists anticipate.
— Alex Harring
AT&T, T-Mobile fall after report that Amazon is exploring wireless service
Shares of wireless phone service providers were under pressure in premarket trading after Bloomberg News reported that Amazon is exploring offering wireless service to its Prime members.
Shares of T-Mobile fell more than 7% in premarket trading, while AT&T and Verizon each sank about 6%.
The tech giant is talking to telecom companies to find the lowest possible wholesale price, and then would offer the plans to its customers for a low additional price or possibly for free, according to the report.
— Jesse Pound
U.S. jobs report for May comes in much better than expected
The U.S. economy added many more jobs than anticipated, in another sign that the U.S. economy is resilient. The Labor Department said 339,000 jobs were added last month. Economists polled by Dow Jones expected 190,000 were created in May.
— Fred Imbert
Cathie Wood bought $6 million worth of CrowdStrike shares Thursday
Ark Invest's Cathie Wood bought the dip in CrowdStrike on Thursday as shares of the cybersecurity stock dipped on slowing revenue growth.
Wood's ARK Next Generation Internet ETF added 17,255 shares of CrowdStrike, and she also scooped up 23,410 for ARK Next Generation Internet ETF, according to Ark's daily trading data. These purchases were worth more than $6.4 million based on Zoom's Tuesday close of $157.55.
The stock fell 1.6% on Thursday but the stock is still up nearly 50% this year.
— Yun Li
See the stocks making the biggest moves before the bell
These are some of the stocks making the biggest premarket moves:
- MongoDB — The data developer platform stock surged 27% after the company issued a strong forecast for the second quarter, seeing between $388 million and $392 million in revenue. Analysts forecasted $362 million, per Refinitiv. MongoDB also beat earnings and revenue forecasts for the most recent quarter.
- SentinelOne — Shares fell more than 35% in premarket trading after cybersecurity company missed revenue expectations for the first quarter and cut its full-year revenue guidance. The company reported first-quarter revenue of $133.4 million, below the consensus estimate of $136.6 million from FactSet. It sees just $141 million in revenue for the second quarter, well below the $152.1 million consensus estimate from FactSet. The company said in a shareholder letter that macroeconomic pressure was slowing sales growth.
- Lululemon — The athleisure company's shares jumped more than 14% after it reported a top and bottom line beat in its fiscal first quarter. The company's sales grew 24% from the previous year. Lululemon also raised its full-year outlook.
— Tanaya Macheel
Nasdaq and S&P 500 head toward weekly wins while Dow lags
With just Friday's trading session left, the Nasdaq Composite and S&P 500 are on pace to finish the week higher. Both closed Thursday's session at their highest levels since August 2022.
The Nasdaq Composite is poised for a 1% gain on the week. If it holds, it will be the sixth straight winning week for the Nasdaq — a streak length not seen for the tech-heavy index's weekly performance since 2020.
The S&P 500 is on track for a more modest 0.4% gain. Meanwhile, the Dow is slated to end the week 0.1% lower, weighed down by 4.7% and 3.9% week-to-date losses in Goldman Sachs and Nike, respectively.
The holiday-shortened trading week began Tuesday following Memorial Day on Monday.
— Alex Harring
Jobs report will give indication whether market rally can continue, JPMorgan traders say
Keep an eye on the upcoming jobs report as it will determine if the recent market rally can continue, said traders at JPMorgan.
"While June [Fed] pause has been largely priced in, further softening in labor market and slower wage inflation could give the Fed more comfort to keep rate in July," they said. "The market is currently 50-50 on a July pause vs. a hike and the next two CPI and payroll data before the Jul 26 meeting would be critical for the Fed to gauge their plan beyond June."
— Fred Imbert, Michael Bloom
Europe stocks open higher
European stock markets were upbeat early Friday, with the benchmark Stoxx 600 index up 0.4% at 8:30 a.m. London time.
Most sectors saw gains, with mining stocks up 1.7% and oil and gas 1% higher as healthcare dropped 0.4%.
France's CAC 40 rose 0.74% while Germany's DAX and the U.K.'s FTSE 100 were up 0.64% and 0.5%, respectively.
Stoxx 600 index.
— Jenni Reid
Senate passes bill to raise debt ceiling, preventing default
The Senate passed a bill Thursday night to raise the debt ceiling, sending it to President Joe Biden's desk.
He is expected to sign the legislation Friday, preventing what would have been the first-ever U.S. sovereign debt default.
The House-approved compromise bill passed the Senate by a 63-36 margin, garnering sufficient bipartisan support to overcome the chamber's 60-vote threshold to avoid a filibuster.
U.S. stock futures were slightly higher ahead of the vote and held at those levels after the bill was passed. Futures tied to the Dow Jones Industrial Average were up about 30 points.
— Christine Wang, Christina Wilkie
Hong Kong's Hang Seng Index pops 3% as consumer and tech stocks jump
Hong Kong's Hang Seng Index popped 3% led by gains in technology and consumer stocks, according to data from Refinitiv as of 10:30 a.m. Hong Kong time.
The index's top movers included automotive company Zhongsheng Group surging 8.70%. Sportswear company Li-Ning added 6.72%.
Technology heavyweights Baidu and JD.Com also drove gains, surging 5.59% and 4.26% respectively. Meituan rose 4.52%. Tencent rose 4.5% and Alibaba climbed 4.98%.
–Lee Ying Shan
Oil prices edge slightly higher ahead of OPEC+ meeting
Oil prices traded slightly above the flatline as traders look toward an OPEC+ meeting this weekend.
Global benchmark Brent inched 0.2% lower at $74.44 a barrel Friday, while the U.S. West Texas Intermediate futures was 0.24% down to $70.27 per barrel.
"If [OPEC] don't do anything, we could really see prices sell off, we've seen them selling off this week," said Kpler's lead oil analyst Matt Smith.
The oil cartel is not likely to deepen output cuts in the upcoming meeting, Reuters reported citing sources from the alliance.
Smith forecasts that Brent prices could slip to $70 per barrel should OPEC maintain the status quo.
"Oil prices fell sharply in May, with the WTI benchmark dropping below USD70/b," HSBC wrote in a report dated June 1. The bank noted that the decline came despite the previously announced OPEC+ production cuts coming into effect during the month.
Aside from the uncertainty that had been swirling around the U.S. debt ceiling standoff, China's subdued growth indicators also weighed on prices, the report noted.
—Lee Ying Shan
SentinelOne craters on guidance cut
SentinelOne shares plummeted more than 35% in extended trading after the cybersecurity provider cut its revenue guidance and reported mixed quarterly results.
The company reported a smaller-than-expected loss per share for the first quarter, but posted revenue that came in slightly below Wall Street's projections, according to FactSet.
SentinelOne slashed its full-year outlook, saying that it now expects revenue to range between $590 million and $600 million, versus its prior guidance of $631 million to $640 million. Analysts polled by FactSet had projected revenue of $637.1 million for the year.
SentinelOne shares dive on guidance cut
— Samantha Subin
MongoDB, Five Below among stocks making the biggest moves
These are some of the stocks making the most significant moves after the bell:
MongoDB — Shares of MongoDB jumped 23%. The data developer platform posted blowout guidance. MongoDB anticipates revenue in the second quarter will range between $388 million and $392 million, compared to analysts' forecasts of $362 million, per Refinitiv. MongoDB beat on top and bottom lines in its latest quarterly report.
Five Below — Shares of the discount store chain jumped 5% in extended trading. Five Below posted earnings of 67 cents per share, while analysts polled by Refinitiv estimated earnings of 63 cents a share. However, Five Below posted revenue of $726 million, compared with Wall Street's forecast of $728 million. Second-quarter guidance was also short of analysts' expectations.
PagerDuty — Shares of the digital operations management company slumped more than 14% after the bell. PagerDuty reported adjusted earnings per share that beat Wall Street's estimates, but issued weaker-than-expected revenue guidance.
Read the full list of company's moving after the bell here.
— Samantha Subin
Individual investors dialed back bond allocations in May, but stepped up their equity exposure
In May, investors pruned some of their exposure to fixed income, according to data from the American Association of Individual Investors.
Allocations toward bonds and bond funds decreased by 0.9 percentage points to 14.8% last month. It marked a decline from the 26-month high set in April 2023, the association found.
Meanwhile, investors added to their equity holdings. Exposure to stocks and stock funds inched up by 0.9 percentage points to 65.2%. They also built their cash cushion, raising allocations to cash by 0.1 percentage points to 20%.
— Darla Mercado
Lululemon pops on earnings, guidance lift
Lululemon shares surged more than 13% after the bell on strong earnings that beat Wall Street's expectations and a boosted full-year outlook.
The athletics apparel retailer posted earnings of $2.28 a share on $2 billion in revenue. Analysts polled by Refinitiv had anticipated EPS of $1.98 on revenue of $1.93 billion.
Revenue grew 24% over the year-ago period. Lululemon lifted its full-year revenue guidance as it benefitted in part from improving freight costs and growth in China.
The company said it now expects full-year revenue in the range of $9.44 billion and $9.51 billion. That's up from the previous range of $9.31 billion and $9.41 billion and above Wall Street's $9.37 billion forecast, according to Refinitiv. Profit expectations also exceeded consensus estimates.
Lululemon shares pop on earnings
— Samantha Subin
Stock futures open slightly higher on Thursday evening
Wall Street rally gains steam, Dow surges more than 500 points after strong jobs report: Live updates - CNBC
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