Stocks climbed Thursday{

Stocks finish higher, build on record highs

Stocks finished higher on Thursday, with all the major averages notching fresh closing highs.

The Dow Jones Industrial Average jumped 269.24 points, or 0.7%, to close at 39,781.37. The S&P 500 advanced 0.3% to end at 5,241.53, while the Nasdaq Composite edged up 0.2% to finish at 16,401.84.

— Samantha Subin

The Dow Jones Industrial Average jumped 269.24 points, or 0.68%, to close at 39,781.37. The S&P 500 advanced 0.32% to end at 5,241.53, while the Nasdaq Composite edged up 0.20% to finish at 16,401.84.

"People have faith in the Fed right now, and that cuts are coming," said Jay Woods, chief global strategist at Freedom Capital Markets. "We are in a good place, and the market believes in the smooth landing narrative. Whatever the Fed is saying continues to be the music to the ears of the market."

Micron Technology jumped 14% on strong earnings and notched its best day since December 2011{

Micron Technology pops on strong AI-driven earnings, heads for best day since 2011

Micron Technology surged more than 16% before the bell and headed for its best day since December 2011 after posting stronger-than-expected quarterly results driven by a boom in demand for artificial intelligence.

The memory chipmaker posted earnings of 42 cents per share, far surpassing the 25 cent loss expected by analysts polled by LSEG. Micron reported revenues of $5.82 billion, ahead of the $5.35 billion expected.

"We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI," Micron CEO Sanjay Mehrotra said in a release.

Alongside the top-and-bottom line beat, Micron Technology offered rosy revenue guidance for its fiscal third quarter.

— Samantha Subin

Nvidia Marvell Technology Taiwan Semiconductor VanEck Semiconductor ETF (SMH) Broadcom

Some megacap tech stocks that led the recent rally also contributed to the session's gains, with Microsoft adding nearly 1%. Social media company Reddit surged more than 48%{

Reddit opens at $47 a share

Reddit popped 38% on Thursday to open at $47 a share in its New York Stock Exchange debut.

The social media company began trading under the ticket symbol "RDDT" after pricing its IPO at $34 a share on Wednesday. It marks the first major social media company to go public since Pinterest in 2019.

— Samantha Subin, Jonathan Vanian

market debut Apple

Apple shares slide after DOJ antitrust lawsuit

Apple shares slid 3% after the Department of Justice sued Apple on Thursday, saying that its iPhone ecosystem is a monopoly that drove its "astronomical valuation" at the expense of consumers, developers and rival phone makers.

Federal antitrust enforcement and 16 attorneys general also say that Apple's anti-competitive practices extend beyond the iPhone and Apple Watch businesses, citing Apple's advertising, browser, FaceTime and news offerings.

"Each step in Apple's course of conduct built and reinforced the moat around its smartphone monopoly," the complaint filed in the District of New Jersey said.

— Kif Leswing, Rohan Goswami

filed an antitrust lawsuit

Industrial stocks also outperformed, boosting their respective S&P sector by 1%. Stanley Black & Decker, Pentair and Rockwell Automation were among the notable gainers, jumping about 3% each.

Thursday's moves follow a winning day on Wall Street that sent the three major indexes to new closing highs, with the S&P 500 breaking above 5,200 for the first time.

Those gains came as the Federal Reserve reiterated expectations for three interest rate cuts this year and kept borrowing costs unchanged at the conclusion of its two-day policy meeting.

While the central bank failed to elaborate on the timing of cuts, Fed Chairman Jerome Powell said during a press conference Wednesday that he expects rates to ease as long as the inflation data continues to trend lower.

Despite the recent enthusiasm, Kayne Anderson Rudnick's Julie Biel cautions that the market may be getting overexcited about the prospect of three cuts this year.

"We need to recognize that this isn't like a slam dunk that we're going to get three or four rate cuts," the portfolio manager said. "There is enough dissent, and there still is a fair amount of spread beyond 2024 into 2025 of where rates are going to be."

As of Thursday morning, traders are pricing in a 67% chance that the Fed begins cutting rates in June, according to CME Group's FedWatch tool.

Wall Street will monitor earnings reports from FedEx and Nike after the market close.

Correction: Fed Chair Jerome Powell spoke Wednesday. A previous version misstated the day of the week.

Stocks finish higher, build on record highs

Stocks finished higher on Thursday, with all the major averages notching fresh closing highs.

The Dow Jones Industrial Average jumped 269.24 points, or 0.7%, to close at 39,781.37. The S&P 500 advanced 0.3% to end at 5,241.53, while the Nasdaq Composite edged up 0.2% to finish at 16,401.84.

— Samantha Subin

Five Below heads for worst day since March 2020

Five Below slumped 15% on Thursday, putting the value retail stock on pace for its worst daily performance since March 2020/

The drop in shares came after the company posted disappointing fourth-quarter earnings that fell short of Wall Street's estimates on the top and bottom lines. Earnings came in a $3.65 per share, 13 cents short of the $3.78 expected by analysts polled by LSEG.

Five Below also offered light first-quarter and full-year revenue and EPS guidance.

— Samantha Subin

Strong inflation in the services economy should justify rate cuts, says BlackRock's Rick Rieder

There's currently an "extraordinary" dichotomy between goods and services inflation, according to Rick Rieder, BlackRock's global chief investment officer of fixed income.

Services inflation has stayed elevated because of the cultural dynamic and consumers' willingness to pay for experiences.

"That's part of why I think the Fed is right to say the last mile is hard; bringing down service inflation is very hard," he said on CNBC's Power Lunch on Thursday afternoon. "But if you look at the more cyclical component, i.e. goods inflation, it's actually negative, so it's time to start moving that rate down."

Rieder added that in this market backdrop, he suggests investors look into buying high-quality fixed income as interest rates stay high. This includes assets such as investment grade credit, both European and domestically domiciled.

"This is a pretty extraordinary point in time where not only can you buy growth in the equity market, you can build a lot of income in a portfolio and you don't have to take a lot of risk," he added.

— Lisa Kailai Han

8 stocks with strong momentum and high free cash flow, according to Piper Sandler

High-quality stocks, or those that have high free cash flow yield, are a "most-have" factor for 2024, according to Piper Sandler's chief investment strategist Michael Kantrowitz.

In a recent note, Kantrowitz suggested that investors look towards high-quality stocks that also have high momentum for opportunities, even as the three major stock indexes hit new records.

"The current momentum trade has much stronger fundamentals than what we saw in 1999/2000, and we believe there is still room to run," he wrote.

The strategist shared several stocks that fit this description, including Gap and Cigna.

CNBC Pro subscribers can read the full story here.

— Lisa Kailai Han

Boeing chief executive David Calhoun may be ousted before the start of summer, Gordon Haskett's Don Bilson posits

Boeing CEO David Calhoun could be at risk of being ousted in a matter of months, according to Gordon Haskett head of event-driven research Don Bilson.

"David Calhoun on January 13 celebrated his four-year anniversary as CEO of Boeing," Bilson said. "Not only is the 66-year-old Calhoun not going to be given a chance to celebrate his five-year anniversary in 2025, but he is now at risk of not making it through the spring."

Bilson pointed to a report from the Wall Street Journal on Thursday that said airline executives are asking for meetings with Boeing's board of directors, albeit without Calhoun among those present.

"That, right there, is the kiss of death," he added. "It certainly suggests that the carriers have lost confidence in Calhoun and run out of patience with their most important supplier."

Boeing stock was 0.1% higher on Thursday.

— Brian Evans

Semiconductors outperform

Semiconductors outperformed Thursday after the Federal Reserve maintained expectations for three rate cuts this year. The VanEck Semiconductor ETF (SMH) climbed 3% during midday trading.

Major advancers driving the ETF higher include Nvidia, which was up by more than 1%. The U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. rose 2.5%. Shares of Broadcom advanced 7.1%.

Those gains put the VanEck Semiconductor ETF on pace for winning week, up by 4.6% thus far.

— Sarah Min

Reddit opens at $47 a share

Reddit popped 38% on Thursday to open at $47 a share in its New York Stock Exchange debut.

The social media company began trading under the ticket symbol "RDDT" after pricing its IPO at $34 a share on Wednesday. It marks the first major social media company to go public since Pinterest in 2019.

— Samantha Subin, Jonathan Vanian

See the stocks making the biggest moves midday

These are some of the stocks making the biggest midday moves:

• Micron — The semiconductor manufacturer popped 16% after beating analyst expectations for its fiscal second-quarter earnings and revenue. The company also guided for higher third-quarter earnings and revenue than consensus estimates.
• Apple — The technology stock dropped 3.5% on news that it was being sued by the Department of Justice.
• Chewy — Shares of the pet goods retailer fell 5.4% on the heels of disappointing guidance for the first quarter. 

See the full list here.

— Alex Harring

Shares of data center parts makers jump on Thursday

Amid the ongoing AI craze, Raymond James thinks investors can find opportunities in other parts of the data center industry—namely companies that manufacture optical materials and other data center parts.

Encouraged by Nvidia's unveiling of its new Blackwell graphics processing units earlier this week, the firm highlighted Coherent, Lumentum and Applied Optoelectronics as companies that could be additional beneficiaries of industry's continued growth.

Coherent's share price popped 5.3% on Thusday, while shares of Lumentum and Applied Optoelectronics rose 4.7% and 3.1% respectively. Optical materials maker Coherent, the firm's top pick, has gained more than 45% so far this year.

For more on these Nvidia derivate plays, read here.

— Pia Singh

Industrials lead S&P 500's gain

Industrials stocks were among the best performers in the S&P 500 during Thursday's session.

The sector rose more than 1% during late-morning trading and was the top performer in the broad-based index thanks to 3% gains from Uber Technologies and Stanley Black & Decker. Other notable gainers included Caterpillar, Rockwell Automation, Cummins and Builders FirstSource.

Financial stocks also outperformed, boosting the sector 0.9%. Goldman Sachs, Blackstone and BlackRock each rallied 3%. PayPal and regional bank stocks such as Comerica, Raymond James and Citizens Financial added about 2% each.

— Samantha Subin

Papa John's stock falls after Shake Shack names pizza chain's CEO as its new chief

Shares of pizza chain operator Papa John's International fell 5.6% on Thursday after Shake Shack named Papa John's CEO Rob Lynch as its chief on Thursday, replacing Randy Garutti, who helped found the burger chain in 2004.

Lynch, who has served as Papa John's CEO since 2019, will join Shake Shack in his new role on May 20. He will be in an advisory role at Papa John's until April 30.

Shake Shack's shares were down 1.6%.

— Pia Singh

Apple headed for worst day since August

Apple shares dropped more than 3% after the Justice Department sued the iPhone maker in a landmark antitrust case. That decline would be the tech giant's biggest since Aug. 4, when it fell 4.8%.

— Fred Imbert, Gina Francolla

Apple shares slide after DOJ antitrust lawsuit

Apple shares slid 3% after the Department of Justice sued Apple on Thursday, saying that its iPhone ecosystem is a monopoly that drove its "astronomical valuation" at the expense of consumers, developers and rival phone makers.

Federal antitrust enforcement and 16 attorneys general also say that Apple's anti-competitive practices extend beyond the iPhone and Apple Watch businesses, citing Apple's advertising, browser, FaceTime and news offerings.

"Each step in Apple's course of conduct built and reinforced the moat around its smartphone monopoly," the complaint filed in the District of New Jersey said.

— Kif Leswing, Rohan Goswami

Existing home sales post surprise jump for largest gain in a year

Existing home sales posted an unexpected surge in February despite another big jump in prices, the National Association of Realtors reported Thursday.

Completed sales of single-family homes, townhouses, condos and co-ops jumped 9.5% from January, countering expectations for a 1.3% decline in the Dow Jones consensus. It was the largest monthly increase since February 2023.

The gains came even as the median sales price rose 5.7% from a year ago to $384,500. Declining interest rates helped soften the blow, with a 30-year fixed-rate mortgage averaging 6.74%, down 0.14 percentage point on the month but up the same level from a year ago.

— Jeff Cox

U.S. manufacturing gauge hits 22-month high

Manufacturing activity in the U.S. hit a 22-month high in March, according to the S&P Global Flash U.S. Composite reading released Thursday.

The index came in at 52.5 for the month, up 0.3 point from February and the highest going back to mid-2022. Economists surveyed by Dow Jones had been looking for 51.8 on a gauge that measures the percent difference between companies reporting expansion versus contraction.

On the services side, the flash PMI was 51.7, a decline of 0.6 point from a month ago and just below the 51.8 estimate.

— Jeff Cox

Micron Technology pops on strong AI-driven earnings, heads for best day since 2011

Micron Technology surged more than 16% before the bell and headed for its best day since December 2011 after posting stronger-than-expected quarterly results driven by a boom in demand for artificial intelligence.

The memory chipmaker posted earnings of 42 cents per share, far surpassing the 25 cent loss expected by analysts polled by LSEG. Micron reported revenues of $5.82 billion, ahead of the $5.35 billion expected.

"We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI," Micron CEO Sanjay Mehrotra said in a release.

Alongside the top-and-bottom line beat, Micron Technology offered rosy revenue guidance for its fiscal third quarter.

— Samantha Subin

Stocks open higher on Thursday

Stocks opened higher on Thursday as Wall Street looked to continue its rally to record highs.

The S&P 500 gained 0.5%, while the Nasdaq Composite jumped 0.9% The Dow Jones Industrial added 128 points, or 0.35%.

— Samantha Subin

Stocks moving in premarket trading

Here are some of the names making moves before the bell:

• Micron — Shares jumped nearly 16.6% after the company's fiscal second-quarter earnings and revenue beat analyst expectations. Micron also guided for higher-than expected third-quarter earnings and revenue.
• Revolve Group — The fashion retailer added 4.5% after getting an upgrade from TD Cowen to outperform from market perform. The firm said it expects Revolve to see a return to growth after a year of markdowns and broad-based softness.
• Astera Labs (ALAB) —The stock gained 5%, one day after debuting on the Nasdaq. Astera, which sells data center connectivity chips to cloud and artificial-intelligence infrastructure companies, soared 72% on its first day trading.

To see more stocks making premarket moves, read the full story here.

— Michelle Fox

Philadelphia manufacturing grows; price index hits nearly four-year low

Manufacturing activity in the Philadelphia area showed unexpected growth in March, according to a survey from the regional Federal Reserve released Thursday.

The Philadelphia Fed's Manufacturing Business Outlook Survey showed a reading of 3.2, representing the percentage difference between companies reporting expansion against contraction. That was down 2 points from February but ahead of the Dow Jones consensus for a -5 reading.

It was the second straight month for a positive number and only the fifth expansionary level since May 2022.

While most firms reported ongoing inflation pressures, the prices paid index registered its lowest reading since May 2020, down 13 points to 3.7. Employment remained negative at -9.6 while new orders showed growth for the first time since October.

—Jeff Cox

Jobless claims edge lower, below expectations

Initial filings for unemployment insurance changed little last week, indicating that companies are still reluctant to let go of workers.

Jobless claims totaled 210,000 for the week ended March 16, a decrease of 2,000 from the previous period's upwardly revised level, the Labor Department reported Thursday. Economists surveyed by Dow Jones had been looking for 213,000.

Continuing claims, which run a week behind, edged up to 1.807 million, an increase of 4,000 and slightly higher than the 1.79 million FactSet estimate.

— Jeff Cox

Bank of England leaves interest rates unchanged

The Bank of England maintained interest rates at the 5.25% level on Thursday, but suggested that cuts could come in the near future if inflation falls quicker than expected.

The Monetary Policy Committee voted 8-1 to leave rates at their current level. One member voted for a 25 basis point cut to 5%.

— Elliot Smith, Samantha Subin

Five Below sinks on disappointing earnings, guidance

Five Below shed nearly 12% before the bell after posting quarterly results that fell short of analyst expectations on both the top and bottom lines.

The value retailer reported earnings of $3.65 per share on $1.34 billion in revenue. Analysts polled by LSEG had anticipated earnings of $3.78 per share and revenues totaling $1.35 billion.

The company also offered light revenue and EPS guidance for the first quarter and full year.

— Samantha Subin

Zero rate cuts by the Fed this year 'definitely on the table,' Matt Higgins of RSE Ventures says

The Federal Reserve is unlikely to cut rates thrice this year, Matt Higgins, CEO and co-founder of RSE Ventures, said Thursday on CNBC's "Street Signs Asia," in a view at odds with Fed signals and market expectations.

No rate cuts were "definitely on the table," with one cut most likely later in the year, he added.

The Federal Reserve signaled Wednesday that it would cut interest rate three times in 2024 while holding them steady at its latest meeting.

"If unemployment does not start to pick up, and you don't see some more downward pressure on core inflation, I'm not sure there are going to be three rate cuts in the second half of this year," Higgins said.

- Dylan Butts

Gold prices hit a new record — market watchers expect rally to continue

Spot gold hit over $2,200 per ounce Thursday, notching a new high after the U.S. Federal Reserve reaffirmed plans for three rate cuts this year. And there's more room for bullion to rally.

Prices could rise to $2,300 per ounce in the second half of 2024, especially against the backdrop of expectations that the U.S. Federal Reserve could cut rates in the second half of 2024, Aakash Doshi, Citi's North America head of commodities research, told CNBC.

State Street's APAC Gold Strategist Robin Tsui wrote in a March 21 note that he anticipates gold could hit $2,400 per ounce once the Fed starts to pivot.

—Lee Ying Shan

Nikkei 225 hits new record high as business sentiment improves, exports strengthen

Japan's Nikkei 225 index hit a new record on Wednesday, rising as much as 40,642.89 and surpassing its all-time closing high of 40,109.23.

The rally was powered by consumer cyclicals and industrial stocks, and also came on the back an improved business sentiment in Japan, as well as better exports data for February.

The top gainer on the index was semiconductor firm Sumco Corp which gained 5.42%, followed by financial technology firm Rakuten Group, which was up 3.65%.

— Lim Hui Jie

New Zealand unexpectedly slips into technical recession as economy contracts 0.1%

New Zealand slipped into a technical recession last year as the country's gross domestic product contracted by 0.1% in the fourth quarter of 2023 compared to the quarter before.

This was a surprise contraction as economists polled by Reuters had expected 0.1% growth.

The contraction followed a 0.3% fall in GDP in the quarter ending September 2023, which meant that the country has experienced two successive quarters of contraction — the commonly accepted definition of a technical recession.

On a year-on-year basis, GDP in New Zealand expanded 0.6%, slowing from the 1.3% growth recorded in the third quarter.

— Lim Hui Jie

Fundstrat’s Tom Lee sees Russell 2000 rising 50% in 2024

The Russell 2000 popped nearly 2% on Wednesday for its best day in more than a month – and Fundstrat Global Advisors' Tom Lee thinks the small-cap benchmark has even higher to go.

On a relative value basis, small caps are back to where they were in 1999, which was "a launch point for a 12-year outperformance period," Lee, head of research at Fundstrat, said on CNBC's "Last Call."

"I think that means with the Fed doing a dovish pause and CEOs getting more confident, that means M&A and IPOs and people looking at other sectors – I do think the Russell can rise 50% this year," he said. Indeed, the Federal Reserve held rates steady and kept to its forecast of three rate cuts in 2024 at the conclusion of its March meeting on Wednesday, lifting the major averages to record closes.

An array of factors could boost the Russell 2000 this year, he added, noting that companies that earn money in the small-cap index are trading around 11 times earnings, "a huge PE story, along with a price-to-book story." The benchmark also has a big biotech weight, and the financial companies within the Russell 2000 are likely to benefit once the Fed begins cutting rates, he said.

"I think the Russell 2000 represents… the best of things that happen when the Fed starts cutting," Lee said.

-Darla Mercado

Reddit prices IPO at $34 per share

Reddit priced its initial public offering at $34 per share.

That number is at the top of the expected range of between $31 and $34. It values the social media company at around $6.5 billion.

Reddit will make its public market debut Thursday under the ticker "RDDT."

— Alex Harring, Leslie Picker, Jonathan Vanian

Corporate buybacks of stock are surging, Bank of America says

It's not just institutional and individual investors pushing stock prices higher. Last week was huge for corporate buybacks of stock too, Bank of America equity and quantitative strategists including Savita Subramanian said in a note out Tuesday.

Buyback trends are "hitting multi-year highs," BofA noted, with those conducted by the bank's own corporate clients reaching the third highest weekly level ever in data going back to 2010.

The pace of repurchases is also "tracking above the typical seasonal levels at this time" of year for a second straight week, the strategists wrote. So far in 2024, buybacks as a percentage of the entire S&P 500 market capitalization have totaled 0.34% versus the 2023 high at the same time of year at 0.29%.

Buybacks over the past 52 weeks as a percentage of total market value are the highest since August 2020, during the first Covid pandemic summer, according to BofA.

— Scott Schnipper

Stocks head for winning week

With more than half of the trading week in the rearview mirror, the three major indexes are on track for gains.

The Nasdaq Composite has led the three higher this week, adding 2.5%. The Dow and S&P 500 were each up about 2.1%.

— Alex Harring

Big tech advance may be coming to an end, UBS warns

The big technology rally may be on "borrowed time," according to UBS.

Strategist Jonathan Golub said the advances to Apple, Amazon, Alphabet, Meta, Microsoft and Nvidia could be short-lived. While valuations are not an issue in this case, he said an end to these major gains for the "Big 6" stocks is becoming a question of when, not if.

"With earnings momentum rapidly decelerating for the Big 6, and the broader market trend improving, continued outperformance of these stocks—and the narrowness of market returns that it implies—becomes increasingly difficult," Golub wrote in a note to clients Wednesday. "While upward revisions are currently supporting these companies, the deceleration in future profits cannot be ignored."

Golub's call comes amid a year of strength for the sector, with the technology-heavy Nasdaq Composite up more than 9%.

— Alex Harring

See the stocks moving after hours

These are some of the stocks posting notable moves in extended trading:

• Micron Technology — Shares popped 13% after the semiconductor company beat expectations on revenue and gave strong guidance for the measure. The company also posted earnings per share despite analysts forecasting a loss.
• Five Below — The value retailer tumbled 13% on weak fourth-quarter earnings and outlook for the current quarter and full year.

See the full list here.

— Alex Harring

Stock futures are higher

Stock futures traded modestly higher shortly after 6 p.m. ET.

Dow futures added 0.1%. S&P 500 and Nasdaq 100 futures rose 0.2% and 0.3%, respectively.

— Alex Harring