S&P 500 falls as consumer confidence cools, but still headed for weekly gain: live updates

Nvidia outperforms Apple and Microsoft on Friday morning, pushing the market cap of mega-cap tech stocks even closer.

Nvidia shares rose more than 2%, while Apple and Microsoft were each almost flat.

Friday’s performance could have a big impact on a $70 billion technology ETF – the Technology Select Sector SPDR Fund (XLK) – as June 14 is the cutoff date for an index rebalancing. Nvidia’s rally, combined with the fund’s diversification rules, could create demand for more than $10 billion in chipmaker stocks from this fund alone.

—Jesse Book

Outgoing Cleveland Federal Reserve President Loretta Mester said Friday that she believes monetary policy is well-positioned to manage risks to the U.S. economy and that she doesn’t think it’s time yet to lower interest rates.

“We’re in a very good position right now on monetary policy,” the soon-to-be former Fed official said on CNBC’s “Squawk Box.” “I would like to see a few more months of good inflation data, a decline in inflation and short-term inflation expectations starting to come down.”

“Then you have to start thinking: OK, this might be the right set of data,” she added. “If you wait too long (to cut rates), if inflation falls, by maintaining the current level you actually become more restrictive.”

Reflecting on his 39 years of service at the Fed, Mester said service to the public has always been the primary goal.

“I can tell you that in 39 years, politics has not entered this room,” said Mester, who has reached the Fed’s mandatory retirement age of 65 for a regional president. .

—Jeff Cox

Stocks opened lower Friday morning, a day after the S&P 500 and Nasdaq Composite closed at new record highs.

The broader stock index fell 0.4%, while the tech-heavy Nasdaq lost 0.3%. The Dow Jones Industrial Average also lost 229 points, or 0.5%.

—Lisa Kailai Han

Further evidence of falling inflation emerged in May, as prices for imports and exports fell, the Bureau of Labor Statistics reported Friday.

Import prices fell 0.4%, while the Dow Jones estimate calls for stagnation and a change from April’s 0.9% jump. Export prices fell by 0.6% after increasing by 0.6% the previous month.

A 2% drop in fuel costs helped push prices down, but prices for food, feed and drink also fell 1.6%.

—Jeff Cox

See the companies making headlines before the bell.

• HR — The high-end retailer fell 12.3% after posting a first-quarter loss per share that was much wider than Wall Street had expected.
• Adobe — The software maker climbed 14.2% after reporting better-than-expected profits and revenue, with annualized revenue from new digital media, which includes Creative Cloud subscriptions, higher than analysts expected. Adobe also raised its guidance for the full year. JPMorgan upgraded its shares from neutral to overweight on Friday, saying Adobe was ready for “easier sailing” after its strong quarterly results.
• Hasbro — Bank of America upgraded the toymaker to buy from neutral, sending its shares up 1.7%. The company said in a note Friday that Hasbro’s digital gaming strategy could lead to a profit rebound in 2024 and 2025.

For the full list, read here.

— Pia Singh

This year, the stock market continued its rise to new heights.

So far, the S&P 500 has gained 13.92% in 2024, while the Nasdaq Composite is up 17.69%. The Nasdaq 100 gained 16.35%.

Here’s how many records have been closed by some of the major averages since the start of the year:

• S&P 500: 29
• Nasdaq Composite Index: 17
• Nasdaq 100: 26

—Lisa Kailai Han

The S&P 500 and Nasdaq Composite are heading for their seventh weekly rise in eight weeks, hitting record highs along the way.

The broader market index is up 1.6% since the start of the week, while the Nasdaq has jumped 3.1%. The Dow Jones struggled, however, falling 0.4%.

—Fred Imbert

The Bank of Japan kept its benchmark interest rate unchanged on Friday, but indicated it was considering reducing its purchases of Japanese government bonds.

At the end of its two-day policy meeting, the central bank left short-term rates unchanged at between 0% and 0.1%, as widely expected.

The BoJ said it may reduce its purchases of Japanese government bonds at its next monetary policy meeting, scheduled for July 30-31.

The yen weakened beyond 158 against the US dollar following the announcement. The yield on 10-year Japanese government bonds fell to 0.929%.

-Lim Hui Jie

Famed stock trader Keith Gill – also known as “Roaring Kitty” and “DeepF——Value” – appears to have increased his stake in the company to 9 million shares.

Gill posted a new screenshot of his E-Trade wallet on Reddit’s Superstonk forum on Thursday after the market closed. The image appears to show that he now owns 9.001 million GameStop shares and more than $6 million in cash.

The total value of his portfolio exceeded $268 million on Thursday evening, up from $210 million on June 2. GameStop shares jumped more than 14% in regular trading but slipped 4% in after-hours trading.

Hear more from CNBC’s Yun Li about how Roaring Kitty was able to up its ante here.

–Darla Mercado

Shares of software giant Adobe soared more than 16% Thursday after the company’s second-quarter results beat Wall Street estimates.

Adobe raised both its full-year earnings and revenue outlook. The company now expects earnings per share of between $18 and $18.20, on revenue of between $5.33 billion and $5.38 billion.

—Brian Evans

Tesla shareholders voted Thursday to reinstate CEO Elon Musk’s controversial $56 billion compensation package, although the measure must be settled in court to take effect.

The vote on Elon Musk’s compensation was one of several measures set to be voted on by shareholders Thursday, including a provision to reincorporate the company in Texas.

Tesla shares rose about 1%. Tesla stock closed up nearly 3% during the regular session in anticipation of the pay package being approved.

—Brian Evans

Stock futures were little changed Thursday, following the S&P 500’s latest record close and Adobe’s strong quarterly results.

S&P 500 futures fell 0.1%, while Nasdaq 100 futures slipped 0.04%. Dow Jones Industrial Average futures fell 57 points, or 0.1%.

—Brian Evans