Check back for updates throughout the trading day
U.S. stocks turned lower Friday, testing the recent run of records for the three major indices, as investors continue to search for bullish signals from a market spurred by the Federal Reserve's signaling of spring rate cuts.
Updated at 12:37 PM EDT
Mid-day slip
Stocks are extending, albeit modestly, their early-session gains into the middle of the trading day, with the S&P 500 down 11 points, or 0.21%, but still on pace for its best week of the year, and the Dow down 215 points, thanks in part to big moves to the downside for Nike and a 1% pullback in Goldman Sachs (GS) .
S&P 500 is up 9.9% in the first 56 trading days of 2024, the 15th best start to a year going back to 1928. $SPX pic.twitter.com/G3Dx4lTCEJ
— Charlie Bilello (@charliebilello) March 22, 2024
Updated at 10:49 AM EDT
Back in Spac
Digital World Acquisition Corp (DWAC) shares tumbled in early Friday trading after investors in the special purpose vehicle approved a merger with Donald Trump's Trump Media and Technology Group, paving that way for its long-delayed move onto the NYSE.
TMTG, which owns the social media website Truth Social, is now valued at around $5 billion, $3 billion of which is directly owned by the former President and presumptive Republican party nominee.
DWAC shares were last marked 4.25% lower on the session at $40.99 each, a move that still leaves the shares up more than 130% for the year.
🚨BREAKING🚨
— Grit Capital (@Grit_Capital) March 22, 2024
Donald Trump’s social media company, Truth Social, will officially go public via SPAC
Shareholders have approved the deal.
Donald Trump is set to make around $4 billion from the deal. $DWAC pic.twitter.com/37snwzWJWN
Updated at 10:26 AM EDT
They'll do it
Foot Locker (FL) shares are an interesting early mover, rising more than 4.4% to $24.67 each after Citigroup upgraded the sports retailer to 'neutral' and lifted its price target by $5, to $24 per share.
Citi said Nike's plan to revert back to wholesale distribution, following years of focus on its digital business, would support Foot Locker sales, which are heavily-reliant on Nike products.
Nike, meanwhile, was last marked 8.4% lower at $92.37 each after its weaker-than-expected sales outlook following stronger-than-expected third quarter earnings that were largely powered by heavy discounting.
"We're increasing our investment in wholesale to help us elevate and grow the entire marketplace. We recognize that our wholesale partners [ $FL ] help us scale our innovation and newness in physical stores and connect our brands in the path of the consumer,” said $NKE.
— notreload (@thudderwicks) March 22, 2024
Updated at 9:49 AM EDT
Softer open
A notable move lower in Treasury bond yields isn't giving much support for stocks at the start of trading, with the S&P 500 marked 6 points, or 0.11%, into the red and the Nasdaq down 34 points, or 0.21%.
Benchmark 10-year note yields, meanwhile, eased another 3 basis points in early New York trading to 4.214%, while 2-year notes slipped to 4.596%.
S&P 500 Opening Bell Heatmap (Mar. 22, 2024)$SPY -0.03% 🟥$QQQ -0.18% 🟥$DJI -0.03% 🟥$IWM -0.12% 🟥
— Wall St Engine (@wallstengine) March 22, 2024
Stocks on move: $FDX +9%, $BIDU +2.3%, $AAPL +0.4%, $GOOGL +1% (🟢) || $LULU -14.2%, $SOUN -4.5%, $NKE -7.2%, $TSLA -2.9%, $RDDT -2.9%, $MSTR -5% (🔴) pic.twitter.com/ZvtjJGSAOP
Updated at 9:22 AM EDT
Powell takes a pass
Fed Chairman Jerome Powell made no direct comments on monetary policy during his opening remarks to a 'Fed Listens' event in Washington, but said that the 2020 Covid pandemic had a "lasting" effect on both the U.S. and the global economy that makes rates decisions more challenging.
WATCH LIVE NOW: #FedListens: Transitioning to the Post-pandemic Economy
— Federal Reserve (@federalreserve) March 22, 2024
Watch Live: https://t.co/fXt6ew8I9A https://t.co/wwc2CpOwKb https://t.co/FJa6TbkDMt
Updated at 8:37 AM EDT
Tesla's China Challenge
Tesla shares extended their $240 billion year-to-date slump amid reports that suggest the EV maker is looking to trim production rates in China, it's biggest and most important market, amid fading consumer demand.
Tesla shares were marked 3.8% lower in premarket trading to indicate an opening bell price of $166.13 each, a move would extend the stock's year-to-date decline to around 33%.
Related: Tesla shares extend slump as China move highlights key demand risk
Check back for updates throughout the trading day
The Dow Jones Industrial Average led gainers Thursday, usurping the recent dominance of tech-focused Nasdaq, as all three major benchmark notched their second consecutive session of record closes – including the 20th of the year for the S&P 500 – powered by a dovish Fed, solid economic data and muted market volatility.
Reddit's opening-day trading on the NYSE, which saw the social-media group's stock leap 48% into the close, added to the bullish tenor, as did the ongoing gains for the chip sector and the underlying surge in AI investments.
A surprise dip in weekly jobless claims, which fell to 210,000 last week, as well as a robust reading of economic activity from S&P Global's benchmark PMI survey for March underscored the Fed's recent upgrades for growth and inflation.
Focus is likely to shift to the fleet of Fed officials due to provide public comment on policy over the coming weeks, including a brief set of remarks from Fed Chairman Jerome Powell this morning at a 'Fed Listens' event in Washington.
Benchmark 10-year Treasury note yields were little changed at 4.241% while 2-year notes eased to 4.608% in overnight dealing.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.94% higher at 104.388, although much of the move was linked to a slump in the yen, which hit a four-month low of 151.86 in overnight dealing.
On Wall Street, the market's key volatility gauge, the VIX index, slipped to within touching distance of the lowest levels in five years in the overnight session, and was last marked 1.15% lower at 12.89.
That effectively means that traders are expecting a daily moves for the S&P 500 of no more than 0.8%, or 41 points, over the next 30 days.
Several stocks are on the move in premarket dealing, however, with Nike (NKE) shares sliding 6.3% after the sportswear giant forecast weaker-than-expected sales over the second half of its fiscal year.
Lululemon Athletica (LULU) was also in the red, falling 13% after the upscale clothing retailer warned that North American sales would suffer amid a pullback in higher-end demand.
FedEx (FDX) , meanwhile surged 12% after the world's second-largest package delivery group topped Wall Street earnings forecasts and said its ongoing drive to cut costs is fattening its profit margins.
In broader markets, futures contracts tied to the S&P 500 suggest a 7 point opening-bell gain for the blue-chip benchmark, while those linked to the Dow suggest a 20 point dip.
The tech-focused Nasdaq, meanwhile, is called 50 points lower as pre-market gains for Nvidia (NVDA) , Apple (AAPL) and Micron (MU) can't offset another move lower for Tesla (TSLA) .
In overseas markets, Europe's Stoxx 600 was marked just 0.03% higher in early Frankfurt trading. Britain's FTSE 100 added 0.8% in London thanks in part to a weakening pound, which eased to 1.2581 following a dovish tilt from the Bank of England yesterday.
Overnight in Asia, another slump in China stocks pulled the MSCI ex-Japan benchmark 1.04% lower into the close of trading, while the weaker yen helped the Nikkei 225 gain 0.18% in Tokyo.
Related: Veteran fund manager picks favorite stocks for 2024
