The Dow Jones moved higher as Boeing and Intel kept investors cautious about any economic recovery, but all three major U.S. indexes were highly volatile heading into the final 30 minutes of trading this week, plus more in today’s Closing Bell on Money & Markets.
The Top Story
A cut in production by Boeing Co. (NYSE: BA) and a weak second-quarter earnings outlook from Intel Corp. (Nasdaq: INTC) put hopes of a quick economic turnaround in check.
Boeing shares fell more than 5% after a report the plane-maker was planning to cut 787 Dreamliner output by about half, while Intel shed nearly 0.8% on a weak second-quarter profit forecast and claims it could not issue a full-year outlook.
The Dow was looking at a strong close, up 1.5% at about 3:30 p.m. EDT, but then sank the last few minutes before the closing bell to finish up 256 points for the day. The Dow closed the week down about 2.4%, however, its first week ending negative the past three.
The S&P 500 was bolstered by Apple and Microsoft as investors brace for the tech giants’ earnings reports next week. Apple was up over 2.7% about 5 minutes before the closing bell, and Microsoft gained about 1.6%.
The energy index was on track for its fifth straight week of gains as oil prices recovered after a historic collapse on Monday.
On Friday, data showed orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, edged up 0.1% last month, compared with economists’ expectations of a 6% plunge.
The Nasdaq saw the day’s biggest gains, rising 1.65% by the closing bell.
Stock Market Update: Closing Bell*
S&P 500: 2,836 (+1.4%)
DOW: 23,771 (+1.1%)
NASDAQ: 8,634 (+1.7%)
GOLD: $1,738.80 (-0.3781%)
BITCOIN: $7,533.92 (+0.13%)
U.S. 10-YEAR YIELD: 0.59% (-0.021%)
*- as of 4:05 p.m.
A Big Win
In this morning’s Opening Bell, we told you to be on the lookout for Intel Corp. (Nasdaq: INTC) as the company reported a solid first quarter but suggested its second-quarter earnings would not hit projections. Intel was almost flat in afternoon trading, down only 0.2%
We also told you about World Wrestling Entertainment Inc. (NYSE: WWE) and its 60% jump in revenue for Q1. The company also reported earnings of $0.31 per share. WWE stock moved more than 14% higher in afternoon trading.
Golden Nuggets
After moving higher earlier in the day, precious metals turned downward as equities picked up steam and gold traders took profits on a strong week of gains.
Gold futures reached a weekly gain of 0.7% in the morning session but fell 0.3% to trade at $1,739.30 an ounce. Silver futures were also down 0.3% to $15.31 an ounce.
Platinum fell off by 1.3% to $778 an ounce, while palladium was down 0.9% to trade at $1,983 an ounce — retreating from the $2,000-mark from the previous day.
Cannabis Corner
The coronavirus lockdown has forced many businesses to rethink how they operate. The same holds for cannabis companies.
According to Marijuana Business Daily, cannabis companies are launching several measures to keep their product front-of-mind with consumers. These include social media campaigns, virtual happy hours and livestreaming various events.
Marijuana companies are also exploring the prospect of using digital advertising — something not yet done to this point.
Some Public Companies Say They Aren’t Giving PPP Money Back
No matter the pressure from the Department of the Treasury, some public companies say they have no intention of giving back relief funds from the Small Business Administration.
In a survey of the 41 biggest publicly traded companies that received Paycheck Protection Program funds, CNBC found six that had no intention of returning the money. Thirty said their decision was pending or did not respond.
The companies that plan to keep the money said the loans have helped them keep employees on the payroll.
On Thursday, upon the passage of an additional $310 billion to the program, SBA officials revised its guidance for issuing the funds. It stipulated that companies can only receive funding if they have no other means of generating capital.
Public companies have the ability to issue new shares in the market to raise more money.
Today’s Big Winners:
(as of 3:15 p.m. EDT)
Freeport-McMoRan Inc. (NYSE: FCX) +9.1%
Carmax Inc. (NYSE: KMX) +8.3%
Capri Holdings Ltd. (NYSE: CPRI) +8.2%
Today’s Big Losers:
(as of 3:15 p.m. EDT)
Helmerich and Payne Inc (NYSE: HP) -6.9%
Boing Co. (NYSE: BA) -5.5%
Las Vegas Sands Corp (NYSE: LVS) -3.9%
Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.