Stock market today: Live updates

The S&P 500 retreated on Friday morning, after notching yet another record close in Thursday’s trading session.

The broad stock index slid 0.1%, while the Dow Jones Industrial Average lost 65 points, or 0.2%. The Nasdaq Composite teetered around the flatline.

— Lisa Kailai Han

The producer price index rose 0.3% in January, beating a Dow Jones estimate for a gain of 0.1%. Excluding food and energy prices, producer prices jumped 0.5%, also beating expectations.

The report comes days after the consumer price index, another widely followed measure of inflation, also rose more than anticipated. This raises concerns that the Federal Reserve may not be able to cut interest rates until later than expected this year.

— Fred Imbert

It’s hard to accurately estimate the impact of Biden’s latest student debt forgiveness plan, according to TD Cowen.

The Biden administration announced a revised student loan plan that would forgive debts for any borrowers with an 80% risk of defaulting within the next two years.

“We question if this will provide as much relief as the headlines suggest as there must be an 80% probability of a default within two years to qualify for help. We realize that will be difficult to calculate, but it certainly seems like a high hurdle except for those who were never likely to repay their student loans,” wrote analyst Jaret Seiberg. “Republicans may complain about this program, but we believe it will be tough to block as it is framed as forgiving debt that would be too costly to recoup.”

— Lisa Kailai Han

The fundamental macro backdrop “remains supportive” for the stock market, according to UBS.

The S&P 500 ended Thursday’s trading session by notching a new record close. Strategist Vincent Heaney believes that the broad index could end the year around its current levels.

“Markets are likely to be choppy amid shifting expectations for central bank policy easing. But we think lower interest rates, positive economic growth, and growing corporate earnings should create a supportive backdrop for equities in 2024,” he wrote.

However, Heaney added that uncertainty about the pace and timing of the Fed’s rate cutting cycle could introduce some near-term volatility.

“We recommend seeking exposure to quality stocks, including the U.S. IT sector, which should offer resilient earnings growth,” the strategist added.

— Lisa Kailai Han

Coinbase shares surged more than 12% in the premarket Friday after the crypt trading platform reported much better-than-expected results for the fourth quarter.

The company earned an adjusted $1.04 per share on revenue of $954 million. Analysts polled by LSEG expected a loss of 1 cent per share on revenue of $822 million.

“In Q4, and we’ve shared this for many quarters, a lot of the results of our fee rate is just the mix shift on our platform — who traded what product in the quarter,” CFO Alesia Haas told CNBC after the results came out. “So in Q4, when we saw higher volatility, we grew Simple trading, but Advanced grew more.”

Beijing needs to show “more clear signals” for aggressive policy easing to backstop the growth downturn, China markets expert Yan Wang said Friday.

“Other than that, I doubt the market can rally on a sustainable basis,” Wang, chief emerging markets and China strategist at global investment research and strategy firm Alpine Macro, said on CNBC’s “Street Signs Asia.”

Investment banks expect China’s economy to expand at a more sluggish pace in 2024 compared with 2023 — even last year the Chinese economy had a slower-than-expected recovery after exiting Covid-19 restrictions.

“The government has refused to issue very strong stimulus to to help the economy and structurally, the policy flip flop Beijing has done over the past few years has damaged confidence,” Wang said.

China markets are closed this week for the Chinese New Year holidays.

– Sheila Chiang

Japan’s finance minister said Friday that he was monitoring yen’s moves “with a strong sense of urgency,” according to a Reuters report, adding that a weak yen has its merits as well as demerits.

“Currency rates are set by markets reflecting fundamentals. Rapid moves are undesirable and stable moves are desirable,” Suzuki reportedly told a lower house session of parliament.

The yen weakened on Friday and was trading at the psychologically key 150 per dollar level, a day after the country entered a technical recession.

— Lee Ying Shan, Reuters

Japan’s finance minister Shunichi Suzuki said Friday that it was up to the Bank of Japan to decide when it would end its negative interest rate policy, according to a Reuters report.

Japan’s economy has lost its spot as the world’s third largest to Germany, slipping into a technical recession, and sparking hopes that the central bank might stick with its ultra-loose monetary policy for longer.

“I am aware there are various opinions in the market,” Suzuki reportedly said when asked whether the weak gross domestic product data might impact the timing of the central bank’s policy changes.

– Lee Ying Shan, Reuters

Investors should still expect to get solid returns from the equity market this year, according to BlackRock’s chief investment officer of global fixed income Rick Rieder.

“I think equities will do their job. I think equities will get you know 10%, 12%, maybe 15% return this year. That’s a pretty good portfolio, and I don’t think you need long bonds to hedge,” Rieder, who oversees $2.8 trillion in fixed income assets for the firm, told CNBC on Thursday afternoon. “I think today you can build a portfolio that’s reasonably stable, and work your way through.”

Sticky service-level inflation will begin to balance out over the next couple of months, Rieder added. He expects inflation is moderating and will allow for a “normal” economy with a roughly 4% nominal GDP growth. Consumer spending should also continue holding up, he said.

— Pia Singh

Check out the companies making headlines in after-hours trading.

• Coinbase – Shares of the cryptocurrency exchange gained 13% in extended trading after the company posted fourth-quarter earnings of $1.04 per share on revenue of $954 million. Analysts had expected a 1 cent per share loss on revenue of $822 million, according to LSEG.
• Applied Materials – Shares of the semiconductor equipment maker popped 11% in after-hours trading as earnings topped estimates and the company gave a rosy outlook for the fiscal second quarter. First-quarter earnings per share of $2.13, excluding items, bested estimates of $1.90 per share, from LSEG. Revenue for the period came out at $6.71 billion, topping the $6.48 billion estimate.
• Toast – The maker of restaurant point of sale systems saw shares rise 3% after hours following its fourth-quarter results. The company posted a loss of 7 cents per share, which was narrower than the 11 cent per share loss analysts expected, according to LSEG. Revenue of $1.04 billion came in about in line with expectations of $1.02 billion.

For the full list, read here.

— Pia Singh