Dow sheds nearly 300 points Friday, S&P 500 and Nasdaq suffer second straight week of losses: Live updates – CNBC

Stocks closed lower Friday.

The Dow Jones Industrial Average slid 288.87 points, or by 0.83%, to 34,618.24. At its lows it completely wiped out Thursday’s 332-point rally. The S&P 500 was lower by 1.22% to 4,450.32. The Nasdaq Composite dropped 1.56% to 13,708.33.

The Dow closed out a positive week, up by 0.12%. However, the S&P 500 and Nasdaq both suffered a second straight week of losses, lower by 0.16% and 0.39%, respectively.

— Sarah Min

The Nasdaq Composite erased earlier weekly gains on Friday, putting the tech-heavy index on pace for a 0.5% loss for the week. The concentrated Nasdaq-100 is slated for a 0.6% loss.

Some of the biggest laggards include chip equipment stocks KLA Corporation, Lam Research and Applied Materials, down at least 7% each. Adobe‘s shed more than 6%, while On Semiconductor‘s slumped 5.4%. Netflix is the biggest loser in the Nasdaq-100, headed for a 10.6% weekly loss.

Despite the downtrend, some stocks are poised for weekly gains. That includes Charter Communications, PayPal and Qualcomm, up more than 6% each. Tesla is the biggest winner, on pace for a 9.2% gain, followed by Moderna.

— Samantha Subin

Investors must be more selective about homebuilding stocks in a rising interest rate environment, according to housing market analyst Ivy Zelman.

“I think you really have to be stock picker in this market, and you have to recognize there are builders that are gaining share, executing and generating strong returns, and have balance sheets that are rock-solid,” Zelman told CNBC’s “Squawk on the Street” on Friday.

— Lisa Kailai Han

Stocks tied to companies that make medical devices for diabetes fell on Friday. Dexcom fell 4.4%, making it one of the worst performers in the S&P 500, while Insulet fell more than 3%.

The moves come after Bloomberg News reported on Thursday afternoon that Apple has selected a new leader for its team working to develop a noninvasive blood sugar monitoring device.

Raymond James analyst Jayson Bedford also cut price targets for both stocks, according to FactSet.

— Jesse Pound

These are some of the stocks making the biggest moves midday:

• Ford, General Motors, Stellantis — Shares of Ford rose slightly, while General Motors gained 1% and Stellantis was up 2% as a targeted strike by the United Auto Workers began.
• Planet Fitness — Shares tumbled 13% after the gym chain’s board pushed out CEO Chris Rondeau.
• Nucor — The steelmaker fell 5% after offering weaker-than-expected guidance for third-quarter earnings.

See the full list here.

— Alex Harring

Stocks hit session lows in early afternoon trading.

The Dow Jones Industrial Average slid 256 points, or by 0.73%. The S&P 500 was lower by 1.04%, and the Nasdaq Composite dropped 1.41%.

— Sarah Min

The Dollar Index is headed toward its 9th straight weekly gain for the first time since Oct. 3, 2014. The Dollar Index marked a 12-week win streak then, which is the longest winning streak on record.

Week to date, the Dollar Index is up 0.16%.

— Hakyung Kim, Gina Francolla

The market has already gone through an earnings recession, according to Edward Jones senior investment strategist Mona Mahajan. However, the picture is likely changing in the coming quarters, according to the strategist.

“Q3 we’re starting to reemerge, and in Q4 we could start to see a rebound in earnings growth, especially after easier year-on-year comparisons,” Mahajan told CNBC’s “Squawk on the Street” Friday.

The earnings growth rebound could even reach double-digits in 2024, Mahajan added.

“Were looking at a more normalized earnings growth picture, combined with valuations, especially outside of the Magnificent Seven, that may have some room to expand,” said Mahajan. “That gives you a better backdrop we think overall for for at least some expansion in your portfolio’s broadening of market positioning.”

— Hakyung Kim

The August slump in the stock market was not a sign that investors were growing more pessimistic, according to Vanguard.

The asset management firm said in a Vanguard Investor Expectations Survey report on Wednesday that investors in August expected stocks to return 5.5% over the next 12 months. That was the same projection as in June, when the rally was in full swing.

“Although this year’s market rally paused in August, investor expectations remain elevated as summer comes to a close,” Xiao Xu, an analyst in Vanguard Investment Strategy Group, said in the report.

— Jesse Pound

Shares of Arm Holdings added 0.8% during midday trading Friday, crawling back slightly from its previous rally. The stock popped nearly 25% during Thursday’s trading session, when the company made its blockbuster Nasdaq debut through an initial public offering that priced shares at $51 each and valued the company at about $54.5 billion.

Some analysts are concerned about Arm’s valuation.

Needham earlier initiated coverage of British semiconductor stock with a hold rating, but said the company’s valuation may look “full” in a post-smartphone era. Quilter Cheviot earlier told CNBC that “the pricing is expensive.”

Investors are focusing on some of the risk around the company, including its exposure to China and rising competition from a rival semiconductor architecture, called RISC-V, that is backed by some of Arm’s biggest customers. Arm’s chip architecture is in 99% of the world’s smartphones.

— Pia Singh

— Drew Richardson, Gabrielle Fonrouge

Estée Lauder’s company fundamentals remain intact despite necessary investments to grow the stock, according to Redburn Atlantic.

The firm upgraded the cosmetic stock to neutral from sell in a Friday note, but lowered its price target to $150 per share, which equates to roughly 3% downside from Thursday’s $154.24 close. The stock is higher by more than 2% in midday trading.

“The portfolio has been underperforming the prestige beauty market for over ten years, and this diverged further in the most recent quarter. We assume that the current high growth rates for the category normalize – an increasingly common phrase across the US consumer industry,” analyst Chris Pitcher said. “Over the coming quarters this, combined with an improvement in Estée Lauder’s own performance, should help close the gap, although not fully.”

— Brian Evans

Shares of Charles Schwab fell nearly 4% Friday after the company reported a decline in client assets last month.

The financial institution said average interest-earning assets in August were down 23% from the year-ago period to $449.5 billion and were down 4% from July. Total client assets came to $8.09 trillion as of the end of August, up 14% from a year ago but down 2% from the previous month.

— Yun Li

Automotive stocks tied to companies now facing employee strikes traded higher in early trading Friday.

Thousands of United Auto Workers went on strike at three key assembly plants of General Motors, Ford and Stellantis. About 12,700 workers walked off the job, the union said, after the automakers failed to reach a deal with UAW by the Thursday night deadline.

General Motors rose about 2% in Friday morning trading, while Ford and Stellantis each rose about 1%.

— Alex Harring, Lisa Kailai Han

The inflation outlook for one year from now fell to its lowest level in more than 2½ years, according to a widely followed sentiment gauge released Friday.

The University of Michigan’s consumer sentiment survey showed one-year inflation expectations plunged to 3.1% in September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7%, tied for its lowest since December 2020.

However, the overall sentiment gauge declined to 67.7, down from 69.5 in August and below the Dow Jones estimate for 69.2.

—Jeff Cox

Trane Technologies, Deere and Waste Management are three “highly attractive” industrial names that are set to win as the world moves towards a greener future, according to HSBC.

The firm initiated coverage on the three stocks with a buy rating, setting the price targets for Trane, Deere and Waste Management respectively at $256, $486 and $192. All three stocks were higher by less than 1% in midday trading.

“We see attractive growth driven by energy transition themes and regulatory support in the context of ESG-related initiatives, with upside to valuations,” analyst Wesley Brooks wrote. “[The three companies] also have high market shares of 20- 60% in their respective sectors, making them instrumental enablers and key beneficiaries of what we see as attractive and long-term growth drivers.”

— Lisa Kailai Han

The major averages were lower at the open Friday.

The Dow Jones Industrial Average fell 54 points, or 0.16%. S&P 500 declined by 0.34% and Nasdaq Composite were off 0.29%.

— Sarah Min