Stock market live Friday: Nasdaq hits new record, Dow jumps 3%, S&P 500 close to breakeven for 2020

Stocks ended the week on a high note, as a record jobs report number pushed the major averages higher. The Dow, S&P 500 and Nasdaq Composite are all tracking for a third straight week of gains as a faster-than-expected economic recovery continues to fuel investor optimism.

• The Dow gained 829 points, 3.15%, its best daily performance since May 18 when it gained 3.85%
• Friday marked the Dow’s fifth positive session in a row for the first time since its 5-day streak ending Jan. 17
• This week, the Dow gained 6.81%, its best weekly performance since April 9 when it gained 12.67%
• Boeing (BA) has the most positive impact on the Dow, adding 145 points to the index
• The S&P 500 gained 82 points,  2.62%, its best daily performance since May 18 when it gained 3.15%
• Friday marked the S&P 500’s fifth positive session in 6
• The S&P 500 hit its highest level since February 25 in today’s session
• This week, the S&P 500 gained 4.91%, its best weekly performance since 4/9/2020 when it gained 12.10%
• SPY Impact: Apple (AAPL) has the most positive impact on the SPY, adding 0.52 points to the ETF
• The Nasdaq Composite gained 198 points, 2.06%, its best daily performance since May 20 when it gained 2.08%
• The Nasdaq hit a fresh all-time high in today’s session but failed to hit a record close.
• This week, the Nasdaq gained 3.42%, its third positive week in a row for the first time since its 6-week streak ending Jan. 17
• Nasdaq 100 (.NDX) Impact: Apple (AAPL) has the most positive impact on the NDX, adding 32 points to the index. — Hayes, Fitzgerald 

U.S. equities ended Friday with sharp gains following a better-than-expected jobs report that showed signs of economic recovery from the coronavirus downturn. The Nasdaq Composite jumped 2.06%. The technology-heavy index hit a new record high on Friday, making it the first of the major averages to make back all of its losses from the coronavirus downturn. The S&P 500 leaped 2.62%, bringing its week-to-date gain to nearly 5%. The S&P 500 is 1.1% from being positive for the year. The Dow Jones Industrial Average surged 829 points, or 3.15%. The 30-stock Dow is 5% from the flatline for the year. —Fitzgerald 

Gains for major airline stocks deflated as the Friday session progressed. American Airlines, up more than 36% earlier, has now risen 9.6% for the day. Shares of United Airlines have settled to roughly 8.9% higher after opening the session 25% higher. Raymond James analyst Savanthi Synth, who downgraded American to underperform from market perform on Friday morning, said on “Closing Bell” that airline stocks seem to be recovering at different rates and that the high flyers may be going too far. “There are some shares like American that seem to be trading like we are having a V-shaped recovery, while there are other stocks in the group that are still showing a little bit of a lag here,” Synth said. —Pound 

Moody’s said social unrest and underlying inequality is a source of credit risk for cities and states, with governments already facing weak economies and austerity because of the coronavirus. “The immediate credit effects of the unrest are an increase in public safety spending and further loss of tax revenue caused by disruptions in economic activity and the destruction of property,” Moody’s analysts wrote, noting the unrest comes just as economies reopen. It said longer-term credit risks depend on whether unrest becomes a recurring problem and whether governments find policy solutions to improve underlying social trends.

Some of these policy changes could be costly and take years to implement. It said the District of Columbia, for example has changed itself from a below investment grade city to a “growing and vibrant one” through policies that were aimed at expanding economic opportunities and better access to city services. Moody’s noted, however, that significant racial disparities still exist in D.C.In other areas,  there are risks of outmigration and business relocations. Moody’s said that historical examples of these issues were in the cities of Detroit, Hartford, Conn. and Newark, N.J. It noted none of the cities are now experiencing widespread property damage, but they did suffer long term credit declines following the unrest in the 1960s.— Domm

With roughly an hour left in the session, the Dow was up about 850 points, after jumping as much as 1,056 points at its high of the day. The S&P 500 jumped 2.7% Friday, putting the benchmark just 1% from turning positive for the year. The Nasdaq Composite rose 2.2% to a new record high and became the first of the three major benchmarks for the U.S. stock market to erase the coronavirus losses. –Li 

Oil jumped on Friday ahead of Saturday’s meeting between OPEC and its oil-producing allies, where the group will discuss extending current supply cuts. West Texas Intermediate crude futures gained 5.7%, or $2.14, to settle at a three-month high of $39.55. International benchmark Brent crude also gained more than 5%. Prices were also supported by the better-than-expected May jobs report, which suggests that the economy may rebound faster-than-expected. – Stevens

Grubhub is receiving interest from at least two European food delivery companies as the chances of an Uber acquisition have been clouded by antitrust concerns, according to people familiar with the matter.German company Delivery Hero and Netherlands-based Just Eat Takeaway.com have expressed interest in merging with Grubhub, according to people familiar with the matter, who asked not to be named because the discussions are private.Shares of GrubHub spiked in afternoon trading and have now risen 5% on Friday. —Sherman, Pound 

The Nasdaq Composite jumped more than 2% to hit a new record high of 9,841.57 on Friday, marking the first major average to completely wipe out the coronavirus-triggered losses. The tech-heavy benchmark has gained more than 9% this year, outperforming the S&P 500 and the Dow. The S&P 500 is 5.5% off its record high set in February, while the Dow is 7.8% away from reclaiming its record.— Li

New York Gov. Andrew Cuomo said the state had the lowest number of deaths from the coronavirus on Thursday since the start of the eight-week outbreak. A total of 42 deaths was reported on Thursday, while the state also had the lowest number of total hospitalizations to date. New York City is preparing to move into its “phase one” reopening next Monday. —Li

White House health advisor Dr. Anthony Fauci said on “Halftime Report” that the statistics that measure the coronavirus pandemic are “slowly going in the right direction.” Fauci pointed to a decline in deaths and a plateau in hospitalizations nation-wide as a reason for optimism, but did say there are variations in different states.

“Certainly, there are situations where you have individual locations where there may be blips. I think what we need to do, as we’ve said all along, is to put a lot of effort into making sure those little blips don’t become surges. But in general, things tend to be going in the right direction,” Fauci said. —Pound

Wall Street cheered the surprising record jump in U.S. jobs created last month. The Dow was up about 1,000 points, or 3.7%. The S&P 500 gained 2.9% while the Nasdaq Composite advanced 2.1%. Friday’s rally put the S&P 500 down just 0.9% for 2020 and the Dow 4.5% away from being flat year to date. Both indexes were down at least 30% earlier this year. —Imbert

The Dow continued its rapid climb and has now gained more than 1,000 points in a session for the first time since early April. The index has jumped roughly 3.8% for the day, while the S&P 500 and Nasdaq have risen 3% and 2.2%, respectively. —Pound

The unexpected surge in payrolls last month has created a job change chart that is starting to look like a “V.” While unemployment is still high by historical standards, the jobs report is one of several recent data points that indicates a possible strong recovery. At a news conference on Friday, President Donald Trump said “We’ve been talking about the ‘V’ — this is better than a ‘V.’ This is a rocket ship.” — Pound

The Dow rallied more than 800 points, or 3%, to hit a session high of 27,095 about an hour and a half into the trading session. The S&P last traded about 2.5% higher, while the Nasdaq jumped 1.8%. – Stevens

With Friday’s gain, the S&P 500 has now rallied more than 40% from its March 23 low. – Schoen, Stevens 

The U.S. leisure and hospitality jobs market rebounded sharply in May with an addition of 1.2 million jobs, by far the largest one-month increase in the sector’s history. The blowout numbers last month partially offset the worst month ever in April, when the sector lost 7.7 million jobs, or 47% of total positions.

The food service industry, a component of the broader hospitality sector, added back some 1.37 million chefs, waiters, cashiers and other staff in May. Health-care and retail also saw notable gains in May as more U.S. states began to allow businesses to reopen. – Franck

The VanEck Vectors Semiconductor ETF (SMH), which tracks the biggest 25 U.S. chipmakers, hit its highest level ever, going back to its inception in 2000. Its previous record was hit on February 14. Friday’s gains were led by Micron, Broadcom and NXP Semi, which all jumped 5% or more. The ETF is up 9% this week, on pace for its best week since April 9 when it gained 10.56%. – Li, Francolla 

Shares of Apple rose to a new all-time intraday high of $328 on Friday amid a large-scale market rally. The stock’s prior all-time high was from January 29. Shares of the tech name have rallied 11% this year. – Stevens

Vice President Mike Pence told CNBC on Friday that the discussions about additional pandemic aid proposals will continue even after a shockingly strong jobs report for May fueled optimism the economy is picking up faster than expected. “Those discussions are ongoing,” Pence said on CNBC’s “Squawk on the Street.” “We’re going to work in good faith to put the interests of the American families and American businesses first,” Pence said. “But what’s absolutely essential about any additional recovery package is that we have the kind of pro-growth policies that President Trump has been advancing,” the vice president added. – Li

• Rosenblatt initiated Qualcomm as buy.
• Goldman Sachs initiated UnitedHealth and Humana as buy.
• Raymond James downgraded American to underperform from market perform.
• Credit Suisse raised its price target on Apple to $295 from $260.
• BMO downgraded eBay to market perform from outperform.
• Susquehanna upgraded Kontoor Brands to positive from neutral.
• Piper Sandler named Broadcom as a top pick.
• Evercore ISI upgraded Toll Brothers to outperform from in-line.

CNBC PRO subscribers read more here. – Bloom

With Friday’s jump higher, the S&P 500 is now down just 1.6% for the year. The Nasdaq Composite is already positive for the year – registering a gain of more than 8% fueled by tech’s outperformance – while the 30-stock Dow is about 5% lower for the year. All three averages are also approaching their February all-time high levels. The S&P and Dow are 6.5% and 8.8% below their records, respectively, while the Nasdaq Composite is about 1% away from its all-time high. – Stevens

Stocks soared at the start of trading on Friday, after data showed that employment rose by a record 2.5 million in May. The Dow Jones Industrial Average jumped more than 700 points for a gain of 2.7%. The S&P 500 rose 1.9%, while the Nasdaq was the relative underperformer, advancing just 0.9%. Industries sensitive to the economy’s reopening including retail, banks and airlines, led markets higher, while some of the stay-at-home trades, such as Netflix and Amazon, took a breather. With Friday’s gain, the S&P 500 is now just 6.5% below its February all-time high. – Stevens

Bank stocks soared on Friday after the better-than-expected May jobs report fueled optimism about a quick economic recovery. The Financial Select Sector SPDR Fund (XLF), which tracks the financial sector of the S&P 500, jumped 5% in premarket trading on Friday. JPMorgan soared about 7%, while Citigroup and Bank of America gained 8.5% each. “The data gives us more confidence in either a ‘U’ or ‘V’ shaped recovery,” Mike Mayo, bank equity strategist at Wells Fargo, said in a note on Friday. “This comes before the Fed stress test in the next couple weeks which, to us, would make it difficult for them to impose across the board forced dividend cuts, which has been one overhang,” Mayo said. Shares of banks have been decimated during the pandemic as lending activity and margins dried up. — Li

Shares of retail stocks moved higher in premarket trading on Friday as better-than-expected jobs data fueled optimism about economic recovery from the coronavirus downturn. Nordstrom leaped more than 12% in premarket trading, after gaining more than 9% on Thursday. Kohl’s ripped 12% higher after registering a 4% gain on Thursday. –Fitzgerald

Nasdaq-100 futures were flat during premarket trading on Friday amid a market rotation that’s seen investors sell stay-at-home and pandemic names in favor of re-opening plays. Amazon and Netflix, both of which rose to new all-time highs in May, moved lower on Friday, with Gilead also down about 1%. Meanwhile airline and retail stocks jumped after data showed that employment rose by 2.5 million in May, the largest on record. –Stevens

Airline stocks continued to move higher as better-than-expected employment numbers fueled optimism about the economic recovery. Shares of American Airlines rose nearly 28% in premarket trading, while United Airlines jumped more than 22%. Those stocks also rose 41% and 16%, respectively, on Thursday. —Pound

Nonfarm payrolls rose by 2.5 million in May, driving the unemployment rate down to 13.3%, according to the Bureau of Labor Statistics. Economists surveyed by Dow Jones expected payrolls to decline by 8.3 million and the unemployment rate to rise to 19.5% from 14.7% in April.

The jobs gain was the biggest on record, but the unemployment rate was still higher than it was during the financial crisis more than a decade ago. The labor force participation rate, which measures those working and those looking for work, rose by 0.6 percentage points to 60.8% in May. The measure had fallen by 2.5 percentage points in April. —Pound

The unemployment rate in May was 13.3%, beating estimates of 19.5%, according to the Labor Department. Dow futures rose higher following the report and are now up roughly 500 points. —Pound

Bond yields continue their rapid rise, with the benchmark 10-year yield touching 0.89%, its highest level since March 24. Treasury yields, which move opposite price, have been rising on a better economic view, but got a big kick up when the ADP report Wednesday showed less than 3 million jobs were lost in May. As the market awaits the government employment report this morning, bond yields are in sync with the move higher in stocks that benefit from the economic reopening. Some bond traders say there’s a whisper number for the jobs report that is about 3 million better than the 8.3 million expected by economists surveyed by Dow Jones. The trade toward risk is global and got a boost from the European Central Bank’s announcement of expanded stimulus Thursday. — Domm

Shares of the major U.S. airlines are jumping in premarket trading again on Friday as investors pile into the beaten-down industry on hopes of recovery as the economy reopens. American Airlines surged 20% in premarket trading after its 41% surge on Thursday. Delta Air Lines and United Airlines rose 11% and 14%, respectively. Southwest ticked up about 5%. The US Global Jets ETF is up 27% this week, and has gained more than 10% in premarket trading. — Fitzgerald

Shares of casinos climbed in premarket trading Friday as Las Vegas began opening gambling locations Thursday during phase two of Nevada’s reopening process. MGM Resorts jumped 3.5% in premarket, while Wynn Resorts and Las Vegas Sands rose 2.7% and 3.1%, respectively. These stocks are set to close the week with solid gains on reopening optimism. Through Thursday’s close, MGM soared more than 26%, while Wynn and Las Vegas Sands gained 14% and 9%, respectively. — Li

Futures contracts tied to the major U.S. stock indexes suggested another rally to finish an otherwise robust week on Wall Street. Dow futures rose 350 points, indicating an opening gain of 340 points or 1.3%. S&P 500 futures implied a 0.8% climb while Nasdaq-100 futures suggested an advance of 0.35%. — Franck

Unemployment likely hit its worst level since the Great Depression era in May, with the only question being just how bad things got. Economists surveyed by Dow Jones expect nonfarm payrolls to show a decline of 8.333 million for the month and an unemployment rate of 19.5% that would be the worst since the 1930s. The principle question going forward is whether the month marked a bottom for a self-induced economic downturn from efforts to stem the coronavirus pandemic. — Cox

Investor optimism over the economy’s reopening continued to fuel stocks this week, and the major averages are on track for their third straight week of gains. If the S&P 500 and Dow Jones Industrial Average finish higher for the week they will both notch their first three-week winning streak since December. It’s the Nasdaq Composite’s longest weekly winning streak since January.

On Thursday, the Nasdaq-100 rose to an all-time intraday high, thereby erasing all of its coronavirus-induced losses, before reversing gains and closing modestly lower. Still, it was the first index to reach a new record since the pandemic began. Tech shares have continued to lead the market higher, and the Nasdaq Composite is now roughly 2% below its record high. The S&P 500 and Dow are 8.3% and 11.1% below their highs, respectively. Elsewhere in the market, the NYSE Arca Airline Index has gained nearly 30% this week putting it on track for its best week since 2008, while the SPDR S&P Bank ETF (KBE) is pacing for its best week since April after jumping more than 10%. — Stevens

— CNBC’s Pippa Stevens, Maggie Fitzgerald, Jeff Cox, Patti Domm and Michael Bloom contributed reporting.

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