S&P 500 closes lower, notches a second week of losses, following disappointing consumer sentiment data: Live updates

All three major indexes closed lower on Friday, with the S&P 500 and Dow Jones Industrial Average notching a second consecutive week of losses.

The Nasdaq Composite slid 0.4%, while the Dow lost 0.03%, or about 9 points. The S&P 500 fell 0.2%.

Stocks started the session higher, but quickly reversed course after disappointing consumer sentiment data hit a six-month low of 57.7. Economists polled by Dow Jones had forecasted a reading of 63 for May.

Import prices also climbed 0.4% last month, data from the Bureau of Labor Statistics said Friday. Economists polled by Dow Jones predicted import prices were 0.3% higher in April.

— Brian Evans

Bank of America reiterated its buy rating on Krispy Kreme after the company beat Wall Street expectations for its first quarter.

On Thursday, the donut maker reported 9 cents in earnings per share and $419 million in revenue, while analysts polled by StreetAccount anticipated 7 cents per share on $402.1 million in revenue. The company also reaffirmed expectations for full-year financial performance.

Bank of America analyst Sara Senatore said the quarterly report was "strong," adding she was particularly impressed by expectations for growth in the U.S. and abroad. In addition to reiterating her buy rating, she increased her target price for the stock by $2 to $20. Senatore's new target implies the stock could rally about 32% over the next year from where it finished Thursday's session.

The stock has added about 1% in Friday's session.

— Alex Harring

Comerica Bank's chief economist Bill Adams says May's bigger-than-expected drop in consumer sentiment is a likely reflection of Americans' concerns about the ongoing debt ceiling debate.

"This is also apparent in the National Federation of Independent Business's Small Business Optimism Index, which fell to a ten-year low in April," Adams wrote in a Friday note. "Not coincidentally, the last time small business sentiment was this weak was when the federal government went over the fiscal cliff in early 2013."

The economist noted the large downside risks posed by the impasse over negotiations regarding the debt ceiling, which has led to large movements in Treasury yields over the past few weeks.

"Bonds issued by the Treasury are a basic building block of the American financial system. Nobody can predict what happens if those blocks all crack at the same time," Adams said. "In Washington's past fiscal games of chicken, sentiment recovered within a few months of the crises ending. On the other hand, if the government defaults, it won't be pretty."

— Hakyung Kim

Walmart's membership program has hit about 20 million customers, or roughly 15.5% U.S. households penetration, according to Morgan Stanley. In addition to being a record high for the program, called Walmart+, it's also a fifth straight increase from the firm's previous survey from early April.

"While a lower estimate than our prior one, our build still suggests Walmart+ fees could account for ~4-5% of total Walmart US EBIT in F'24 and drive ~20% of overall US EBIT growth in F'24 (though a caveat is this doesn't account for the higher costs to serve members)," the firm said in a note Thursday.

— Tanaya Macheel

Gold is on pace for a weekly decline, even as the S&P 500 and the Dow Jones Industrial Average limp through into the weekend – but the precious metal still has a place in investors' portfolios over the long term.

"After a decade of [quantitative easing] pushing bonds, alternatives and equities higher in tandem, gold still offers stable diversification benefits and plays an important role in efficient portfolios," said Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America.  

Gold has outperformed after "incomplete" Fed rate-hiking cycles, she noted, adding that geopolitical tensions and sanctions could spur investors' interest in the precious metal's hedging capabilities.

-Darla Mercado

Wolfe Research downgraded shares of Disney to peer perform, citing slowing growth within the company's direct-to-consumer business and linear TV segment.

"DTC plan for > subs, > prices and < cost seems like cognitive dissonance," wrote analyst Peter Supino in a Friday note to clients.

Read more on the downgrade from Wolfe Research here.

— Samantha Subin

This week's inflation data that showed price categories like used cars turning higher again is a reminder that regional banks can't count on Fed rate cuts to help repair their balance sheets, said Brian Mulberry, a client portfolio manager at Zacks Investment Management.

"We're not out of the woods yet. Regional banks still need to be prepared for what the new high cost of capital looks like. ... Any bank can be brought down by an emotional reaction and a run on deposits," Mulberry said.

The portfolio manager said that his team still owns some of the larger regional banks, like Fifth Third, but has been trimming some of the smaller names in the group.

The SPDR S&P Regional Banking ETF (KRE) was down less than 1% in midday trading.

— Jesse Pound

Wells Fargo downgraded Fox, citing a lack of near-term catalysts for shares of the media stock.

Analyst Steven Cahall said in a Friday note that there's "a lot less to get excited about" in the foreseeable future. Shares lost about 0.3% on Friday.

Read more on the call here.

— Samantha Subin

Here are some of the names making the biggest moves in midday trading:

• First Solar — The stock soared nearly 24% after the solar company announced the acquisition of Evolar AB for up to $80 million. First Solar said move should accelerate its development of next-generation photovoltaic technology.
• News Corp — Shares jumped nearly 7% after the media company reported an earnings and revenue beat for its fiscal third quarter after the bell Thursday, according to FactSet. News Corp also said it expects to save an annualized $160 million by the end of 2023 through its previously announced job cuts.
• Robinhood — Shares shed about 7%. It's a reversal from Thursday's 6.4% gain, which came a day after Robinhood reported a first-quarter earnings and revenue beat. On Friday, Morgan Stanley said Robinhood's new 24-hour trading won't provide any material lift for the company's financials.

For more stocks making moves in midday trading, read the full story here.

— Michelle Fox

We're entering an age of "austerity," according to Daniel Clifton, head of policy research at Strategas.

"This is really the first of a multi-period of austerity that we're going into," Clifton said Friday on "Squawk on the Street." "This is the first time ... in 35 years that we have a rising debt servicing cost. So we've been able to cut taxes, increase spending, do it without increasing our debt servicing costs, and that free lunch is over."

Clifton made his remarks amid ongoing concerns of debt ceiling negotiations. On Friday, the Congressional Budget Office said tax revenues and emergency measures can help the U.S. avoid a default in July should the Treasury successfully wade through challenges in June. However, it also reiterated that the risk of default next month remains. 

— Sarah Min

Seventeen stocks in the S&P 500 reached fresh highs on Friday, with many trading at all-time highs. Food companies were among the notable names.

New S&P 500 52-week highs:

• O'Reilly Auto trading at all-time high levels back to its IPO in April 1993
• PulteGroup trading at all-time highs back to its IPO in 1972
• General Mills trading at all-time highs back to when it began trading on the NYSE in 1928
• Pepsico trading at all-time highs back to Pepsi-Cola's merger with Frito-Lay in 1965 to form Pepsico
• First Solar trading at levels not seen since September 2008

Meanwhile, there were 11 stocks reaching 52-week lows:

• Match Group trading at all-time lows back to its IPO in November 2015
• Organon trading at all-time lows back to its spin-off from Merck in June 2021

— Chris Hayes, Sarah Min

Carl Icahn's holding company Icahn Enterprises rebounded 6% on Friday, cutting this week's losses to 12%.

The stock has been on a wild ride after notable short seller Hindenburg Research took a short position, alleging "inflated" asset valuations and other reasons.

Icahn Enterprises on Wednesday released its quarterly report, which included a $500 million buyback authorization. The company also declared a $2 per share quarterly dividend.

— Yun Li

Consumers grew more pessimistic in May as persistently high inflation and troubles in the banking industry weighed on sentiment.

The University of Michigan's Survey of Consumers showed a reading of 57.7 for the month, down from 63.5 in April and below the Dow Jones consensus estimate of 63.

Inflation expectations for a year from now edged lower to 4.5% but rose on the five-year outlook to 3.2%, tied for the highest since June 2008.

—Jeff Cox

Shares of First Solar surged more than 20% in early trading Friday after the company announce the acquisition of Evolar AB, a developer of thin film used in solar panels, for up to $80 million.

That would be stock's best day since April 9, 2013, when it rallied 45.5%

— Fred Imbert

Some of the hardest-hit regional bank stocks were modestly higher on Friday as the sector tried to stabilize after seeing big swings and heavy losses in recent weeks.

Shares of PacWest Bancorp ticked up 1.5% in early trading. Western Alliance gained 1.1%.

The SPDR S&P Regional Banking ETF (KRE) was flat.

—Jesse Pound

The World Health Organization is embarking on its first review of obesity treatment guidelines in 20 years, according to a Reuters report.

Francesco Branca, WHO director of nutrition and food safety, said the talk around the new class of weight loss medications, which include Novo Nordisk's Wegovy and Eli Lilly's Mounjaro, are offering a false impression.

"This is not a silver bullet," Branca told the news service, adding that treatment should include lifestyle changes.

Known as GLP-1 agonists, the drugs have provided patients with greater success in losing weight, but the hard-won results can slip away after medication is stopped, studies have shown. Wall Street has predicted demand for these drugs could exceed $100 billion a year.

WHO's draft recommendation for treating children may come by year's end, with guidelines for adults to follow.

Novo shares are up 1.5%, while Eli Lilly shares are up 2.5%. Earlier, Lilly shares hit a 52-week high.

—Christina Cheddar Berk

Copper (JUL) is down -3.7% week to date, on track for its worst week since Feb 24^th when copper fell 3.81%.

Meanwhile, LME Zinc hit a low of $2,517.50 per metric tonne. This marked the lowest level since Nov 4, 2020 when Zinc traded as low as $2,506.5.

— Gina Francolla, Hakyung Kim

The major average advanced slightly in early trading Friday. The Dow climbed about 60 points, while the S&P 500 and Nasdaq gained around 0.2% each.

— Fred Imbert

Baird analyst Peter Benedict said in a note to clients on Thursday evening that investors should dial back their expectations for upcoming earnings reports from Home Depot and Lowe's.

"Decelerating demand indicators and a delayed onset of spring have us lowering our 1Q comp and EPS estimates for HD/LOW. While last year was seasonally soft as well, our checks point to another lackluster start for outdoor seasonal categories, and all three sector demand benchmarks we track slowed materially from 4Q's pace," Benedict said.

Despite lowering the estimates and trimming price targets, Benedict kept an overweight rating on both stocks.

Home Depot will report its first-quarter results before the bell on May 16, while Lowe's will report a week later on May 23.

— Jesse Pound, Michael Bloom

Baird analyst Peter Benedict said in a note to clients on Thursday evening that investors should dial back their expectations for upcoming earnings reports from Home Depot and Lowe's.

"Decelerating demand indicators and a delayed onset of spring have us lowering our 1Q comp and EPS estimates for HD/LOW. While last year was seasonally soft as well, our checks point to another lackluster start for outdoor seasonal categories, and all three sector demand benchmarks we track slowed materially from 4Q's pace," Benedict said.

Despite lowering the estimates and trimming price targets, Benedict kept an overweight rating on both stocks.

Home Depot will report its first-quarter results before the bell on May 16, while Lowe's will report a week later on May 23.

— Jesse Pound, Michael Bloom

Bitcoin is on pace to finish the week down 10.6%, which would make it its worst week since Nov. 11, in the days following the FTX collapse, according to Coin Metrics.

It was last trading down more than 1% at $26,416.31. Earlier, it hit a low of %26,138.19, its lowest level since March 17. The crypto asset has been sliding all week as investors weighed a host of negative developments, including:

• A false alarm suggesting the U.S. government's movement of bitcoin for potential sale, which triggered a wave of long liquidations;
• Network congestion and higher fees, which led Binance to pause bitcoin withdrawals;
• Market makers Jump and Jane Street announcing a reduction in their U.S. crypto operations, pressured by the regulatory crackdown and adding to the existing liquidity problem in crypto,
• Uncertainties surrounding the U.S. debt ceiling and Federal Reserve policy.

Bitcoin has finished lower or less than 1% higher for the last six days. That itself could weigh on the mood, said Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank.

— Tanaya Macheel

Molson Coors stock is "finally 'getting its due'" as the company's management revitalization program gains hold, according to Jefferies.

Jefferies reiterated its buy rating on Molson Coors in a Thursday note. The firm also raised its price target to $74 on shares, implying 15.6% upside from where shares closed on Thursday.

"Near-term, the bar is as high as its been in years as TAP benefits from Bud Light's (transitory?) social media fallout," said analyst Kevin Grundy.

Shares were up 1.2% Friday during premarket trading. The stock has rallied more than 24% year to date.

— Hakyung Kim

Prices for imported goods rose for the first time this year in April, posting a 0.4% gain that was above the Dow Jones consensus estimate, the Labor Department reported Friday.

The increase followed a 0.8% decline in March that was revised lower and still left year-over-year import prices down 4.8%.

Much of the gain came from a 4.5% rise in imported fuel that was offset by flat nonfuel import prices. Fuel prices were down 25.9% from a year ago.

—Jeff Cox

Check out the companies making headlines in premarket trading.

News Corporation — Shares gained 4% after the media company reported an earnings and revenue beat. News Corp posted 9 cents earnings per share and $2.45 billion in revenue for the third fiscal quarter. Analysts polled by StreetAccount had estimated earnings of 5 cents per share and $2.38 billion in revenue. The company announced its cost-cutting measures, which include laying off 5% of its workforce, are expected to result in $160 million in annualized savings by the end of 2023. 

JD.com — The Chinese e-commerce company's U.S.-listed shares lost 1.4% Friday during premarket trading. The company's earnings and revenue came above analysts' estimates, according to Refinitv data. Meanwhile, it announced its current CEO Xu Lei, who has been the leader of the company for about one year, would step down in June. 

Fox —The media stock dipped 2.4% after Wells Fargo downgraded shares to equal weight from overweight, citing challenges related to demand for linear TV and the costs for sports rights. On Tuesday, the company reported a net loss for the third fiscal quarter due to costs related to Fox News' settlement with Dominion Voting Systems. 

The full list can be found here.

— Hakyung Kim

The AI boom this year has been so strong that, without it, the S&P 500 would be lower year to date, according to Societe Generale. The bank said in a note that, excluding "AI-popular stocks," the broader market index would be down 2% year to date instead of up 7.6%.

"The AI boom and hype [are] strong," Societe Generale wrote. "While AI as a theme has been with us for a while and we suggested being long SG Robotics and AI Equity as a secular theme last year, it is tough to fight against a very strong hype  on a very short-term. What you can own is the defensive-Growth stocks with the top-20 most AI-held stocks within the top 15 AI ETFs."

— Michael Bloom, Fred Imbert

More interest rate increases may be needed if economic data doesn't show more convincing signs that inflation is coming down, Federal Reserve Governor Michelle Bowman said Friday.

"Should inflation remain high and the labor market remain tight, additional monetary policy tightening will likely be appropriate to attain a sufficiently restrictive stance of monetary policy to lower inflation over time," Bowman said in prepared remarks for a speech delivered in Frankfurt, Germany.

Even though consumer and producer price indexes this week showed that the annual pace of inflation cooled slightly in April, the central bank official said those numbers, combined with last week's nonfarm payrolls report, "have not provided consistent evidence that inflation is on a downward path."

—Jeff Cox

RBC upgraded Barclays to outperform from sector perform, noting that the British bank is trading at an attractive valuation relative to peers.

"Our calculations suggest that BARC will be the biggest beneficiary of a structural hedge tailwind, the magnitude and duration of which, we think, are underappreciated by the market," RBC analyst Benjamin Toms wrote. "We see the bank's current valuation as a good entry point."

— Samantha Subin

European stocks were higher early Friday, with the benchmark Stoxx 600 up 0.36%, as markets look for a positive end to the week after three straight declines.

The U.K.'s FTSE 100 was up 0.4% after U.K. first-quarter GDP showed 0.1% growth but was dampened by squeezed household incomes and strike action.

France's CAC 40 was 0.77% higher, while Germany's DAX was up 0.3%.

— Jenni Reid

The U.K. economy grew by 0.1% in the first quarter, figures published Friday morning showed, though March gross domestic product was down by 0.3% from the month prior.

Factors including high inflation squeezing household incomes, falls in wholesale and retail trade and unusually wet weather dampened economic activity.

— Jenni Reid

Malaysia's first quarter gross domestic product grew by 5.6% year on year, higher than the 4.8% predicted by economists in a Reuters poll.

This was also higher than the 4.8% rise recorded in the same period of 2022.

On a seasonally adjusted quarter-on-quarter basis, Malaysia's economy grew marginally by 0.9%, compared to a contraction of 1.7% in the final quarter of 2022.

Malaysia's chief statistician said the service sector was the "main impetus" for the growth, recording an increase of 7.3% compared to the same period last year.

The country's construction sector expanded 7.4%, while its manufacturing sector grew 3.2% in the first quarter.

— Lim Hui Jie

Taiwan electronics contract manufacturer Foxconn saw its first-quarter net profit tumble by 56% to 12.83 billion Taiwanese dollars ($417.2 million), down from from NT$29.45 billion in the same period the previous year.

Foxconn, which is formally known as Hon Hai Precision Industry, attributed this to impairment losses related to its 34% stake in Japanese electronics company Sharp.

Hon Hai's CFO David Huang elaborated that Sharp had "large material asset impairments" of 219.7 billion yen or NT$50.5 billion for its financial year ended March. As such, due to Hon Hai's shareholding ratio, it has to recognize NT$17.3 billion of investment losses.

The company's operating results are still strong, however, with revenue increasing 4% to a record high of NT$1.46 trillion, and operating profit of NT$40.5 billion, 11% higher year-on-year.

Shares of Hon Hai slid 1.9% on Friday.

— Lim Hui Jie

MSCI will remove two Adani entities from its indexes including its India gauge on May 31 following changes to tradable shares calculation.

"Adani Transmission and Adani Total Gas will deleted from the MSCI GIMI, as well as the related MSCI Factor, MSCI ESG, MSCI Thematic and MSCI Capped Indexes as of the close of May 31, 2023," MSCI announced as a result of its May index review.

This comes after Adani Enterprises on Wednesday announced plans to raise funds with a board meeting set for Saturday, according to a filing.

Adani companies shares fell in a nearly $150 billion sell-off earlier this year after short-selling firm Hindenburg Research accused the companies of stock manipulation and accounting fraud.

— Jihye Lee

U.S.-listed shares of e-commerce giant JD.com rose after the company beat earnings expectations.

China's second largest e-commerce company closed 7.21% higher after the company reported stronger-than-expected first-quarter earnings.

The Alibaba rival saw its net sales for the quarter rising 1.4% year-on-year to 243 billion Chinese yuan ($35 billion), beating an analysts' average estimate of 239.42 billion yuan, according to Refinitiv data.

The company also announced CEO Xu Lei would step down and be replaced by the current chief financial officer, Sandy Ran Xu.

— Arjun Kharpal, Jihye Lee

Don't let debt ceiling rhetoric spook you into dumping your short-term Treasury bills.

Investors were dealt another disappointment late Thursday as President Joe Biden and congressional leaders postponed their meeting — originally scheduled for Friday — until next week.

The uncertainty around whether Washington's leaders will reach an agreement is showing in short-term T-bills, as yields for 1-month issues have leapt sharply this month.

Now might be a good time to take inventory of your holdings, especially on the fixed income side, and perhaps consider moving toward longer-dated bonds in preparation for the day the Federal Reserve will soften its policy.

Read more about how your portfolio might be affected by the debt ceiling here.

-Darla Mercado

As of Thursday's close, the Dow Jones Industrial Average and the S&P 500 are headed for weekly losses, while the Nasdaq Composite is on pace to end the week higher.

• The Dow is down 1.08%, on pace for its second negative week in a row for the first time since its two-week streak ending March 17.
• The S&P 500 is down 0.14%, on pace for its second negative week in a row for the first time since its three-week streak ending Feb. 24.
• The Nasdaq is up 0.76%, on pace for its third positive week in a row.

— Chris Hayes, Sarah Min

News Corp. added 4.6% in extended trading after its third-quarter results topped analysts' expectations.

On Thursday evening, the mass media company reported earnings of 9 cents per share, surpassing estimates of 5 cents per share, according to analysts polled by StreetAccount. It posted revenue of $2.45 billion, better than the consensus estimate of $2.38 billion.

— Sarah Min

July copper contracts fell 3.4% Thursday to reach $3.71 a pound, leaving Dr. Copper at its weakest since late November. Copper is down some 4.5% so far this week and on pace for its fourth straight weekly decline. The United States Copper Index Fund is off 2.3% in 2023.

Meanwhile, June West Texas Intermediate oil contracts fell another 2.3% Thursday and are also on course for a fourth straight weekly loss. WTI is down about 11.7% year-to-date, while the United States Oil Fund is lower by about 8.2% in 2023.

— Gina Francolla, Scott Schnipper

The debt ceiling meeting slated for Friday between President Joe Biden and top congressional leaders has been postponed until early next week, a source told CNBC.

Biden was set to sit down with House Speaker Kevin McCarthy, R-Calif., Senate Minority Leader Mitch McConnell, R-Ky., Senate Majority Leader Chuck Schumer, D-N.Y., and House Minority Leader Hakeem Jeffries, D-N.Y.

The U.S. government faces a potential default as soon as June 1 if Congress doesn't address the debt limit.

— Emma Kinery

Elon Musk said Thursday that Twitter is getting a new CEO and that he will move to a product and technical role.

Musk said via Twitter that the new CEO, an unnamed woman, would start in about six weeks.

He added that he would transition "to being exec chair & CTO, overseeing product, software & sysops."

Tesla shares ticked higher by 0.6% in extended trading.

— Jonathan Vanian

Bearish opinion among retail investors that stock prices would weaken over the next six months remained "unusually high" for a second week in the latest weekly survey conducted by the American Association of Individual Investors.

Bearishness dropped to 41.2% from 44.9%, but the historical average over decades is 31.0%. Pessimism toward stocks has stayed above the historical average for 72 out of the past 77 weeks, AAII said.

Bullishness rose to 29.4% from 24.1% last week, versus an historical average of 37.5%. That marked the 75th week out of the past 77 that bullishness was below the historical norm. "Optimism continues to be at a low level but is no longer unusually low," AAII said. The remainder of investors surveyed are neutral on the market.

Investor sentiment is regarded as a contrarian indicator. A great deal of bearishness is viewed positively as connoting less risk, since the thinking is that most investors have already sold and are holding large amounts of cash. The reverse is true when bullishness is high.

— Scott Schnipper

U.S. stock futures were flat on Thursday night.

Dow Jones Industrial Average futures fell by 7 points, or 0.02%. S&P 500 futures climbed 0.01%, while Nasdaq 100 futures dipped 0.01%.

— Sarah Min