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Nasdaq tumbles for a fourth day as fears of higher interest rates pressure markets: Live updates

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The Nasdaq Composite fell for a fourth session Thursday{

Nasdaq slumps nearly 0.9%, notches fourth straight losing session

The Nasdaq Composite slumped on Thursday, notching a fourth straight day of losses.

The tech-heavy index sold off 0.89% to end at 13,748.83, while the S&P 500 slipped 0.32% to finish at 4,451.14. The Dow Jones Industrial Average added 57.54 points, or 0.17%, to settle at 34,500.73.

— Samantha Subin

The tech-heavy Nasdaq sold off 0.89% to end at 13,748.83, while the S&P 500 slipped 0.32% to finish at 4,451.14. The Dow Jones Industrial Average added 57.54 points, or 0.17%, to settle at 34,500.73.

"People were hoping the Fed would be on hold for the rest of the year, but it's possible that we got one or two more rate hikes to come," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. "All things being equal, that's a little bit of a negative for the stock market, which was expecting the Fed to potentially be done for the year."

Apple shares dropped 2.9% on a Bloomberg News report that China is looking to broaden a ban on the use of iPhones{

Apple falls after report that China plans to ban iPhones in state-backed companies

Apple shares fell more than 2% after Bloomberg News reported China is planning to extend a ban on iPhone use to state-owned corporations. A day earlier, The Wall Street Journal reported the China was moving to prohibit iPhone usage in government agencies.

— Fred Imbert

Technology stocks weigh down S&P 500, Nasdaq

A slew of popular technology and semiconductor stocks dropped during Thursday's session, pressuring the S&P 500's information technology sector and the Nasdaq Composite.

The information technology sector slumped 2.1% during early morning trading, dragged down by Apple, Nvidia and Advanced Micro Devices, last down more than 3% each.

Seagate Technology, Skyworks Solutions plunged 9.2% and 7.3%, respectively. Qorvo, Qualcomm and Applied Materials dropped more than 5%.

— Samantha Subin

Nvidia Advanced Micro Devices Seagate Technology Skyworks Solutions Qualcomm Qorvo

A series of economic{

Jobless claims side while labor costs rose more than expected

A round of economic data Thursday morning showed a tight labor market in which costs are rising more than expected.

Initial jobless claims totaled a seasonally adjusted 216,000 for the week ended Sept. 2, a drop of 13,000 from the previous period and below the Dow Jones estimate for 230,000, the Labor Department reported. Continuing claims, which run a week behind, totaled 1.679 million, down 40,000 and below the FactSet estimate for 1.725 million.

A separate report from the Bureau of Labor Statistics showed that unit labor costs, a calculation of hourly compensation minus productivity, increased 2.2% in the second quarter, higher than the 1.9% estimate.

Nonfarm productivity, or output per hour, increased 3.5% for the quarter, a 0.2 percentage point downward revision but 0.1 percentage point above the forecast, the BLS said.

—Jeff Cox

Combined with the recent uptick in energy prices, a strong jobs market will boost the need for the Fed to act and potentially approve more hikes, Zaccarelli said.

While 93% of traders pricing in a rate pause at September's Federal Open Market Committee meeting, future hikes aren't off the table. Expectations for an additional increase in November have risen to roughly 43%, according to the CME Fed Watch tool.

Traders also combed through the latest corporate earnings reports. C3.ai slid 12.2% on weak guidance, while ChargePoint plunged 10.9% after missing revenue estimates.

Nasdaq slumps nearly 0.9%, notches fourth straight losing session

The Nasdaq Composite slumped on Thursday, notching a fourth straight day of losses.

The tech-heavy index sold off 0.89% to end at 13,748.83, while the S&P 500 slipped 0.32% to finish at 4,451.14. The Dow Jones Industrial Average added 57.54 points, or 0.17%, to settle at 34,500.73.

— Samantha Subin

Walmart trims pay for some new hires

Retail giant Walmart has lowered the starting pay for new employees who prepare online orders and stock shelves, a potential sign that the labor market is cooling.

The company confirmed to CNBC on Thursday that the wages were reduced in July. The news of wage changes was first reported by the Wall Street Journal.

The change, which reduces wages by about a dollar an hour, was made so that the starting wage was consistent across job categories, Walmart said in a statement.

— Jesse Pound, Melissa Repko

Tesla leads declines in 'Magnificent 7' since each last made a 52-week high

Tesla was seemingly the first of the so-called "Magnificent 7" stocks to roll over.

Tesla's last 52-week high came Sept. 21, 2022 and since then the stock has slumped the most in the group against its 52-week high, down 20%.

Microsoft peaked on July 18 and is lower by 9.9%; Apple topped out one day later on July 19 and is almost 11% lower since; Meta Platforms' 52-week high was on July 28 and the stock is down 8.3% since; Amazon peaked on August 4 and is down 4.2%; Nvidia's 52-week high was on Aug. 24 and it's fallen almost 8% since then; Alphabet was the last of the seven to make a new high, on Aug. 31, and is down only 2% since then.

— Scott Schnipper

Morgan Stanley is bullish on Meta

Analyst Brian Nowak reiterated his overweight rating on Meta and maintained his $375 price target, which implies shares stand to gain about 25.4% since Wednesday's closing price. 

According to analyst Brian Nowak, the global average revenue per user for Reels is only at about 28% the rate of other average META engagement. The firm's base case implies that Reels revenue grows at about 108% year-over-year in 2024, adding $13 billion in ad revenue as Reels reaches $25 billion of revenue in 2024.

"This speaks to the Reels revenue opportunity yet to come (through higher ad load, performance-driven pricing, and improved matching/attribution)," Nowak wrote in a Wednesday note. "The fact that Reels engagement is driving incremental time spent on the platform (we believe at a rising rate in 2Q:23) gives more confidence in Reels ability to drive META's ad revenue."

The firm also expects Meta's click-to-message advertisements to grow at "outsized rates" and for the company to potentially launch AI-powered agents in WhatsApp, Messenger and Instagram that can increase the search and shopping capabilities of the app. 

Meta shares slipped 0.3%.

— Pia Singh

Energy is only S&P sector on pace for gains

Even with its 0.1% decline during Thursday's session, energy is the only S&P 500 sector on pace to finish the week in positive territory.

Energy's gained 0.5% this week thanks to a 3% boost from Halliburton and Marathon Petroleum. Valero Energy and Chevron have jumped 2.3% and 1.6%, respectively.

Energy is also the only sector in positive territory for September, up 2.6% since the start of the month.

— Samantha Subin

Higher valuation raises stakes for Roku, Loop Capital says

Loop Capital moved to the sidelines on Roku after its valuation multiple rose.

"We believe there is less margin of error at the current valuation, particularly with a challenging environment for media and entertainment advertising as the streaming companies have shifted their focus to profits from growth," analyst Alan Gould said when downgrading the streaming stock to hold from buy.

CNBC Pro subscribers can click here for the full story.

— Alex Harring

Crocs downgraded by B. Riley

B. Riley downgraded shares of Crocs to neutral from buy on Thursday, citing excess footwear inventory and declining sales for the sector after Labor Day.

"We believe the current footwear/slowing consumer backdrop will likely prove too challenging and clogged for CROX to avoid downward earnings revisions," analyst Jeff Lick wrote in a note to clients.

In addition, if there is another leg down for its HeyDude brand, which saw weak demand last quarter, there could be another wave of selling, he noted.

Shares of Crocs were little changes in afternoon trading and are down 11% year to date.

— Michelle Fox

Citi raises price target on chipmaker Micron, reiterates top pick

Citi thinks semiconductor stock Micron Technology can capitalize on stronger dynamic random-access memory (DRAM) chip pricing.

The firm raised its target price on shares of Micron to $85 from $75, equating to roughly 21% upside from Wednesday's close.

"Micron is exhibiting three signs of a bottom: lower capex, trough valuation, and most of the downside in Consensus estimates," analyst Christopher Danely wrote in a Thursday note. The analyst reiterated Micron as Citi's top pick in the U.S. semiconductors segment, and also initiated a positive catalyst watch on the stock.

— Brian Evans

Stocks making the biggest moves midday

Check out the companies making headlines in midday trading.

  • WestRock — The stock gained 5% in midday trading on news that the company is nearing a merger with Europe's Smurfit Kappa in a deal that could create a global paper and packaging giant worth around $20 billion, as first reported by The Wall Street Journal.
  • GameStop — The videogame retailer saw shares dip 1% even after the firm posted quarterly revenue that surpassed Wall Street estimates as well as a smaller-than-expected loss. GameStop said the strong revenue in the quarter came from "significant software release."
  • Semiconductors — Semiconductor stocks slid as a group. Shares of Lam Research and Advanced Micro Devices fell more than 3% and 2%, respectively. Shares of Qualcomm dropped more than 6%. Nvidia declined more than 2%. On the other hand, shares of Intel bucked the trend, rising 2%.

Read the full list here.

— Sarah Min

Cooperman says he's buying energy stocks at these oil prices

Omega Family Office chairman and CEO Leon Cooperman told CNBC's "Squawk Box" that he has been buying energy stocks even though he is cautious on the broader market.

"I think the price of oil will probably stay in the 80-to-90 zone, not go much higher. But at 80-to-90, these companies are coining money," Cooperman said.

Check out the full interview, including Cooperman's comments on energy stocks he owns, on CNBC Pro.

— Jesse Pound

Credit calendar is fueling market weakness, Wells Fargo says

Wells Fargo is offering up its perspective on the recent weakness in equities and September seasonality.

"The credit calendar is the main driver of seasonal stock/bond weakness, in our view," said Chris Harvey, head of equity strategy in a Thursday note to clients.

"September's credit deluge (and damage) likely will occur in the two weeks prior to FOMC (Sep 20) as bond investors sell/short Treasuries for new credit positions," he added.

— Samantha Subin

What's leading the Dow higher

The Dow Jones Industrial Average bucked Thursday's downtrend in the S&P 500 and Nasdaq Composite, gaining more than 60 points, or about 0.2%.

The index got a boost from Intel and UnitedHealth, last up about 2% each. Health care stocks Merck, Johnson & Johnson and Amgen gained more than 1%.

Apple and Walgreens Boots Alliance were the biggest laggards in the index, falling 3.2% and 2.4%, respectively, during midday trading.

— Samantha Subin

Copper falls to lowest level since late August

Copper prices reached their lowest levels in nearly two weeks, as investors around the world fretted over the impact of higher Fed rates on the global economy. Futures hit a low of $3.739 per pound — a level not seen since Aug. 25.

Copper is seen by many as a gauge on the world economy given its range of uses, which stretch from construction to electronics, among others.

— Fred Imbert, Gina Francolla

Climate-focused ETFs hit multi-year lows

Two ETFs focused on clean energy reached lows not seen in multiple years during Thursday's session.

The Invesco Solar ETF (TAN) was last down nearly 3% in the session and touched its lowest point since September 2020. Maxeon Solar and JinkoSolar led the fund down, with both sliding around 6%.

Meanwhile, the iShares Global Clean Energy ETF (ICLN) was last down more than 1% and hit its lowest since August 2020. With a drop of more than 5%, Sunnova Energy was the worst performer in the ETF

— Alex Harring, Gina Francolla

Former Fed official Bullard says more rate hikes possible

The likelihood that inflation numbers are going to remain stubbornly high for a while could mean more interest rate increases, former St. Louis Federal Reserve President James Bullard said Thursday.

In a CNBC interview, the the current dean of the Mitchell E. Daniels Jr. School of Business at Purdue University raised the prospect of more policy tightening as core inflation is stuck around 4%.

"That's raising the risk that the Fed will have to follow through on its promise rate increase sometime in the next couple of meetings, and there's some risk that they'd have to go a little bit higher even from there," Bullard told CNBC's Steve Liesman.

Inflation numbers "have got to come down into the 3% range, and eventually the 2% range, and if that is not happening and they hang up too high, the Fed may have to do more," he said.

—Jeff Cox

Leon Cooperman says the market won’t have a new high for a long time

Billionaire investor Leon Cooperman said Thursday the stock market could be stagnant for an extended period of time, adding that he's standing by his recession call.

"I don't expect we see a new high in the market for a long time," Cooperman said on CNBC's "Squawk Box." "We've had a very bad policy mix, and part of the strength this year has been very simulative fiscal policy and restrictive monetary policy."

— Yun Li

Barclays downgrades Seagate Technology, shares sink 8%

Barclays downgraded shares of Seagate Technology to equal weight from an overweight rating, citing weaker fundamentals and a longer-than-anticipated recovery.

"Nearline recovery is a 'finger in the air' exercise at this point and likely comes later than advertised and the stock trades at 30x our CY24 numbers," analyst Tom O'Malley in a Thursday note to clients.

While normalizing server spending should benefit the company in the next year, he noted that hard drive deployment encompass later stages of the artificial intelligence boon.

"We understand this is a name that trades on momentum and think many will point to '25, but we step to the sideline here with a PT of $65 as its clear this is taking much longer and the stock has run," O'Malley wrote.

Shares plunged more than 8% during early morning trading, with the price target suggesting about 9% downside from Wednesday's close.

— Samantha Subin

Technology stocks weigh down S&P 500, Nasdaq

A slew of popular technology and semiconductor stocks dropped during Thursday's session, pressuring the S&P 500's information technology sector and the Nasdaq Composite.

The information technology sector slumped 2.1% during early morning trading, dragged down by Apple, Nvidia and Advanced Micro Devices, last down more than 3% each.

Seagate Technology, Skyworks Solutions plunged 9.2% and 7.3%, respectively. Qorvo, Qualcomm and Applied Materials dropped more than 5%.

— Samantha Subin

Buy Valvoline after recent underperformance, Wells Fargo says

Valvoline's sell-off is a buying opportunity, according to Wells Fargo.

While electric vehicles present a long-term risk, "recent underperformance is sharp and we see opportunity," said analyst David Lantz. He initiated coverage of the auto repair stock at overweight.

CNBC Pro subscribers can read more about his decision here. Shares were last up 1.3%.

— Alex Harring

Stocks open lower, Nasdaq falls for a fourth day

Stocks opened lower Thursday.

The Nasdaq Composite dropped 1.5%, falling for a fourth straight day, while the S&P 500 slumped 0.7%. The Dow Jones Industrial Average hovered near the flatline.

— Samantha Subin

Dollar on pace for 8th straight weekly gain for first time since 2015

Maybe the strong dollar is another September headwind for the stock market.

The dollar index Thursday is on pace for its fifth straight daily advance, near a six-month high, and headed for an eighth straight weekly gain — the latter for the first time since February 2015. The index measures the dollar against six leading currencies, but mostly the euro and the Japanese yen.

The onshore Chinese yuan (which isn't in the index) is at its weakest since Dec. 2007, while the euro and the British pound (in the index) are at three-month lows.

While the strong dollar helps American tourists in Paris, the problem for stocks is that it raises the cost of U.S. exports, damaging U.S. competiveness, and diminishes the value of profits earned outside the U.S. when translated back into greenbacks.

— Scott Schnipper, Gina Francolla

Jobless claims side while labor costs rose more than expected

A round of economic data Thursday morning showed a tight labor market in which costs are rising more than expected.

Initial jobless claims totaled a seasonally adjusted 216,000 for the week ended Sept. 2, a drop of 13,000 from the previous period and below the Dow Jones estimate for 230,000, the Labor Department reported. Continuing claims, which run a week behind, totaled 1.679 million, down 40,000 and below the FactSet estimate for 1.725 million.

A separate report from the Bureau of Labor Statistics showed that unit labor costs, a calculation of hourly compensation minus productivity, increased 2.2% in the second quarter, higher than the 1.9% estimate.

Nonfarm productivity, or output per hour, increased 3.5% for the quarter, a 0.2 percentage point downward revision but 0.1 percentage point above the forecast, the BLS said.

—Jeff Cox

These are the stocks moving before the bell: Apple, WestRock, McDonald’s and more

Here are Thursday's biggest premarket movers:

  • WestRock — Shares added 6.7% after The Wall Street Journal reported that the company is nearing a merger with Europe's Smurfit Kappa in a deal that could create a global paper and packaging giant worth around $20 billion.
  • Apple — Apple shares fell 2.9% after Bloomberg News reported China is planning to extend a ban on iPhone use to state-owned corporations.
  • Dutch Bros — The drive-through coffee chain dropped 5.8% in premarket trading after it announced a public offering of $300 million in shares of its Class A common stock after market close Wednesday.

Read here for the full list of stocks on the move.

— Pia Singh

McDonald's rises following Wells Fargo upgrade

McDonald's shares advanced about 1% in premarket trading after Wells Fargo upgraded the stock to overweight and said the fast-food chain was "firing on all cylinders."

"Despite well-telegraphed deceleration, we see upside to 2H," analyst Zachary Fadem told clients. And even after beating same-store comparable stats in the first and second quarter, "we believe MCD is just getting started."

CNBC Pro subscribers can read the full story here.

— Alex Harring

Apple falls after report that China plans to ban iPhones in state-backed companies

Apple shares fell more than 2% after Bloomberg News reported China is planning to extend a ban on iPhone use to state-owned corporations. A day earlier, The Wall Street Journal reported the China was moving to prohibit iPhone usage in government agencies.

— Fred Imbert

Expect equal-weighted S&P 500 to outperform, BofA says

Bank of America's Savita Subramanian said the bank expects the equal-weighted version of the S&P 500 to outperform the cap-weighted version of the index. "Why? (1) profits growth troughed in 2Q, and investors tend to become price sensitive as growth accelerates. (2) value stocks are historically inexpensive; and(3) our regime model shifted to Recovery, which favors deep value."

— Fred Imbert, Michael Bloom

China trade falls less than expected in August

China's exports and imports fell less than expected in August, declining 8.8% and 7.3% year on year respectively.

This is less steep than the fall of 9.2% in exports and 9% in imports expected by economists polled by Reuters.

The country's trade balance came in at $68.36 billion, less than the $80.6 billion seen in June and also lower than the $73.9 billion expected in the Reuters poll.

— Lim Hui Jie

Australia's July trade surplus lower than expected; exports and imports both fall

Australia's trade surplus for July came in at 8.04 billion Australian dollars ($7 billion), almost a third lower than June's revised figure of AU$10.27 billion.

This figure was also lower than the AU$10 billion surplus expected by economists polled by Reuters.

Exports fell 2% on a monthly basis, led by a fall in driven by non-monetary gold, while imports were 2.5% higher, driven by imports of non-industrial transport equipment.

— Lim Hui Jie

India’s consumer market to become the 3rd largest in the world by 2027

India's consumer market is set to become the world's third largest by 2027 as the number of middle- to high-income households rise, according to a report by BMI.

The report predicted that growth in India's household spending per capita will outpace that of other developing Asian economies like Indonesia, the Philippines and Thailand at 7.8% year-on-year.

BMI estimates India's household spending will exceed $3 trillion as disposable income rises by a compounded 14.6% annually until 2027. By then, a projected 25.8% of Indian households will reach $10,000 in annual disposable income.

"The majority of these households will be located in the economic centres, such as New Delhi, Mumbai and Bengaluru. The wealthier households are mainly located in urban areas, making it easy for retailers to target their key target markets," BMI said. 

Read the full story here.

Charmaine Jacob

West Texas crude oil futures hit high for the year Wednesday

October West Texas Intermediate (WTI) crude oil contracts touched an intraday $88.08 per barrel Wednesday, the highest price since Nov. 15, 2022, when crude traded at $88.68 a barrel. (A barrel of oil holds 42 gallons). WTI is hiugher by 9.1% so far in 2023.

November Brent contracts, the global benchmark, closed at $90.60 a barrel Wednesday and are ahead by 5.5% in 2023.

September RBOB gasoline futures (the RBOB stands for reformulated blendstock for oxygenate blending) rose 0.80% Wednesday to $2.6014 a gallon, up 5.8% for the year-to-date.

— Scott Schnipper, Gina Francolla

Stock futures open little changed

Stock futures were little changed Wednesday, with Wall Street now focusing on the Federal Reserve's future path for benchmark interest rates.

Futures tied to the Dow Jones Industrial Average fell 9 points, or 0.03%. S&P 500 futures ticked down 0.02% while Nasdaq futures declined 0.06%.

— Brian Evans

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