Stock Market Today: Live Updates

Nvidia shares fell on Friday and are on track for their worst week since April 19, when the stock ended the weekend down nearly 14%.

This comes amid a rotation out of large technology stocks into more sensitive stocks like small caps, which have surged this week, with the Russell 2000 Index hitting its highest level since January 2022 on Tuesday.

The index was up more than 2% for the week in morning trading.

Sean Conlon

SunPower shares plummeted 70% this week after the company halted new leasing, installations and product shipments.

According to a July 17 letter obtained by Ross MKM, the residential solar installer told dealers it recognized the “significance” of the decision and was seeking alternative providers to transfer the sold projects.

SunPower shares have lost nearly all of their value in the past 12 months, falling 92% to trade at 80 cents on Friday. Guggenheim Securities cut its price target to $0 from $1.

“We believe this effectively marks the end of SPWR’s operations,” Guggenheim analysts Joseph O’Sha and Hilary Corey said in a client note on Friday.

Spencer Kimball

The shift toward small-cap stocks hasn’t yet shown evidence that it’s a true rotation, according to Michael Green, chief strategist at Simplify Asset Managers.

In fact, he said traders should view this as a “disruption” rather than a “rotation” based on the current facts.

“The question is, will that be sustained in any meaningful way,” Green told CNBC on Friday morning. “There’s plenty of room for this rotation to continue, but I would argue that we haven’t really seen evidence of that reversal yet.”

Alex Harring

The three major indexes were little changed at the start of trading on Friday.

The Dow Jones Industrial Average was down about 78 points, or 0.2%, just after 9:30 a.m. ET. The Nasdaq Composite was also down 0.2%, while the S&P 500 was little changed.

The S&P 500 and Nasdaq are on track to end the week down more than 1% and 3%, respectively, while the Dow is up more than 1%.

Alex Harring

Here are some names that will be making moves before the bell rings.

• American Express — The financial company reported second-quarter revenue that fell short of expectations, sending its shares down about 2%, but adjusted earnings per share beat expectations.
• Comerica — Shares fell about 10% after the bank reported its second-quarter financial results. Comerica’s net interest income beat expectations but was lower than a year ago. The bank said high interest rates were squeezing deposits and that lending volumes were declining.
• SLB — The oil services giant said its second-quarter adjusted earnings per share came in at 85 cents, beating the 83 cents expected by analysts surveyed by LSEG, sending its shares up 2%. Revenue also beat expectations.

If you want to know more about stocks moving in pre-market trading, read the full story here.

Michelle Fox

American Express shares fell more than 2% after earnings fell short of Wall Street expectations.

The financial-services company reported second-quarter sales of $16.33 billion, below the $16.59 average forecast by analysts surveyed by LSEG. Meanwhile, American Express earned $3.49 a share, excluding expenses, beating analysts’ estimates of $3.24 a share.

The stock price rose about 33% in 2024.

Alex Harring

Cybersecurity company CrowdStrike Inc. saw its shares plummet before the close of trading on Friday after the company said a product update caused a major outage that affected information technology systems around the world.

Shares were down more than 12% before the close of trading. Microsoft shares were down more than 1% after the company reported issues related to its Azure and Microsoft 365 products.

Other cybersecurity stocks also rose as investors considered whether companies would switch to competitors in the wake of the debacle, most notably Palo Alto and Fortinet, which rose 2% and more than 1%, respectively.

Check out CNBC’s live updates for the widespread impact of the outage.

Alex Harring

Netflix’s third-quarter revenue outlook is slightly lower at $9.73 billion, compared to Wall Street’s forecast of $9.82 billion.

But that may not be much of a problem for investors. Lately, it’s not uncommon for streaming companies to issue revenue forecasts that are below analysts’ initial expectations. In each of its past four quarterly reports, Netflix has issued forecasts that were below consensus estimates at the time, only to report revenue that was in line with or above those expectations three months later. Moreover, in each of these earnings reports, Netflix’s actual revenue numbers beat the company’s original guidance.

This comes as Netflix works to shore up its revenue metrics. The company plans to stop publishing subscriber numbers by next year as it relies more on its advertising model. In another sign of the growing importance of ad-supported plans, in a report this afternoon, Netflix said it will also phase out its ad-free basic plan in the US and France, after it has already done so in the UK and Canada.

— Robert Ham

Here’s how the major indices are doing with one session left this week:

• The S&P 500 is down 1.26% so far this week and is on track for its worst week since April.
• The Dow Jones Industrial Average is up 1.66% so far this week and is on track for its third consecutive weekly gain.
• The Nasdaq Composite Index has fallen 2.87% so far this week, snapping a six-week winning streak.
• The Russell 2000 is up 2.33% so far this week and is on track to mark its fourth week of positive growth out of five.

— Jesse Pound, Christopher Hayes

The rotation into small-cap stocks may not be over yet, according to Nuveen’s Saira Malik.

“Historically, these rotations last about four weeks on average,” the firm’s chief investment officer said on CNBC’s “Closing Bell.” “Tech earnings in the coming weeks could disrupt this, but the bar is high.”

Malik also said the strong performance of small-cap stocks could come to an end around September when the Federal Reserve is likely to cut interest rates.

The Russell 2000 was down about 2% in trading on Thursday but has risen about 8.6% over the past month, more than eight times the gain of the S&P 500 over the same period.

The index rose for a fifth straight day on Tuesday, just the fifth time since 1979 that it has posted five consecutive days of gains of 1% or more, according to Bespoke Investment Group.

The S&P 500’s healthcare sector fell 2.29% on Thursday, its worst close since September 2022.

Health care, typically considered a defensive stock for investors, was the worst-performing of the 11 sectors in the S&P 500. Energy was the only sector to post gains amid Thursday’s sharp sell-off.

Earnings reports led stock prices in extended trading on Thursday.

Shares of Netflix Inc. were volatile after the streaming giant reported better-than-expected second-quarter results but a disappointing revenue outlook, while shares of biotech company Intuitive Surgical Inc. rose more than 6% after the company reported better-than-expected sales and profits.

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Jesse Pound

The New York stock market was little changed as of 6 p.m. Nasdaq 100 futures were up more than 0.2%, while Dow and S&P 500 futures were roughly flat.

Jesse Pound