Stock market live Friday: Record job losses, investors focused on reopening, Dow gains 450

U.S. equities rallied on Friday, despite a historic jobs report showing more than 20 million Americans lost their jobs in April, bringing the unemployment rate to a staggering 14.7% due to the coronavirus shutdown. Investors shrugged off the report and focused on the reopenings in some parts of the nation. 

• The Nasdaq closed up 1.58% for its 5th straight positive day for the first time since Dec. 26
• The Nasdaq closed above 9,0000 for the first time since March 4
• The Nasdaq closed up 6% for the week, its first positive in three and its best week since Apr 9 when it gained 10.59%
• The Nasdaq is up 1.66% year-to-date and is 7.29% from its intraday all-time high of 9,838.37 from Feb. 19
• The S&P 500 closed up 1.69% for its fourth positive day in five
• The S&P 500 closed up 3.5% for the week, its first positive week in three
• The S&P is down -9.32% year-to-date on pace for its worst year since 2008 when the index lost 38.49%
• The Dow closed up 1.91% for its fourth positive day in five
• The Dow closed up 2.56% for the week, its first positive week in three
• The Dow is down -14.74% year-to-date, on pace for its worst year since 2008 when the index lost 33.64%
• All 11 sectors were positive today led by Energy up 4.34%
• All 11 sectors were positive for the week led by Energy up 8.25%
• The only positive sector year-to-date is Tech up 3.37%
• Oil: West Texas Intermediate rose 25.08% this week and settled at $24.74
• Russell 2000 small caps closed up 3.64% for their fourth positive day in five —Francolla

All three major indexes rose by at least 1.5% on Friday, locking up their first positive week in three. The Dow led the way, rising 455 points, or 1.9%, while the S&P 500 and Nasdaq rose 1.7% and 1.6%, respectively. The beaten down retail and energy sectors rallied on the final day of the week. —Pound

The Dow Jones Industrial Average rose in the final hour of trading to trade 430 points above Thursday’s close. All 30 stocks in the Index were trading in positive territory for the day, according to FactSet. Legacy industrial companies Caterpillar and Boeing have been the biggest winners so far on Friday. —Pound

With roughly one hour left in the trading session, the major stock average were on pace for their first weekly gain in three despite the coronavirus sparking the biggest-ever monthly drop in jobs. The Dow and S&P 500 were each up at least 2% for the week while the Nasdaq has risen over 5% week to date. For the day, the averages were all up at least 1%. —Imbert

UBS’ Art Cashin said Friday the market’s surge from the March 23 lows may be premature, noting the economic recovery after the coronavirus pandemic may not be as strong as Wall Street thinks. “I don’t think the rebound will be quite as strong as the stock market seems to indicate it could be,” Cashin said on “Squawk Alley.” “I think the market’s a little ahead of itself.” The longtime trader’s comments came after the Labor Department reported a massive spike in job losses for April. —Imbert, Stankiewicz

About five stocks rose at the New York Stock Exchange for every decliner on Friday as Wall Street looked past record job losses for the market’s first weekly gain in three. Overall, 2,374 NYSE-listed stocks traded higher while 478 dipped, FactSet data showed. —Imbert

Labor Sec. Eugene Scalia said on “The Exchange” that the unemployment rate may rise above 14.7% next month but that the economy has “started down that path” to put people back to work.”In terms of the road ahead, very fluid. We know that there were even more job losses later in April, early in May. But we now know that 30 states are in the process of reopening and people are going back to work. So there’s a path ahead that’s a path out of this,” Scalia said. Scalia pointed to the nearly 80% of unemployed workers who say their layoff is temporary as a reason why this recession is not analogous to previous ones. —Pound

Wells Fargo equity strategist Christopher Harvey thinks the market may can keep moving higher even after its massive surge from the late-March lows. “We think there’s more room to run,” he said in a note to clients. “What we find encouraging: corporate credit issuance is abundant; cash is piling up in money market funds; the saving rate has ratcheted up; homebuilders’ numbers were mostly better-than-expected; WTI spot rising from -$38 to +$24 as well as Saudi cooperation; and (outside NYC) large swathes of the US are naturally “socially distant” – i.e., less densely populated and not reliant on mass transit.” —Imbert, Bloom

The deadly coronavirus will be a thing of the past when a treatment is discovered, JPMorgan’s chief U.S. equity strategist Dubravko Lakos-Bujas told clients on Friday. “Most likely we are going to get dramatic improvement in treatment/prevention that puts COVID-19 firmly behind us,” said Lakos-Bujas. “Never in the history of the world have so many resources been poured into vaccine development.” The Wall Street firm is sticking to its target that the S&P 500 will recover its losses and reach 3,400, which is 16% upside from current levels, in the first half of 2021. — Fitzgerald 

The Cboe Volatility Index, known as the VIX, traded around 28.62 around midday, on pace to close below the 30 threshold for the first time since Feb. 26. The VIX, which tracks the 30-day implied volatility of the S&P 500, is a popular measure of fear in the stock market. On March 16, the gauge closed at a record high of 82.69, surpassing the peak level of 80.74 on Nov. 21 2008, as the coronavirus pandemic sent shock waves through the financial markets. –Li

The two-year Treasury yield hit an all-time low not far above zero on Friday, as more economic data pointed to the devastating impact from the coronavirus pandemic. The rate reached a record low of 0.105% on Friday after the Labor Department said a record number of Americans lost their jobs in April amid the coronavirus-induced economic shutdown. The two-year yield last traded at 0.121%. At the end of March, yields on both the 1-month and 3-month Treasury bills dipped below zero after the Federal Reserve cuts its benchmark rate to near zero and as investors have flocked to the safety of fixed income amid general market turmoil. They have since rebounded and traded around 0.1%. – Li

Around midday, the major averages were up sharply even after the release of the worst-ever monthly U.S. jobs report as investors look ahead to the economy reopening soon. The Dow was up more than 300 points, or 1.6%. The S&P 500 gained 1.4% while the Nasdaq advanced 1.5%. The three indexes were also on pace for their first weekly advance in three. —Imbert

According to a new report from Morningstar, in the first quarter of 2020 global sustainable funds saw inflows of $45.6 billion. This is in sharp contrast to the broader fund universe, which saw outflows of $384.7 billion. “Sustainable funds showed resilience during the coronavirus pandemic market sell-off,” the report said, driven by “growing investor interest in environmental, social, and governance issues.” Global sustainable fund assets stood at $841 billion as of the end of the first quarter, according to Morningstar. – Stevens

Wharton School professor Jeremy Siegel told CNBC that the stock market’s March 23 bottom is “definitely going to be the low” from the coronavirus. The longtime bull pointed to the Fed’s response, as well as continued process on treatments or a vaccine for Covid-19, as the reasons for his optimism. Siegel also said on “Squawk Box” that he is paying closer attention to virus data than announcements such as the April jobs report. - Stankiewicz

Shares of conversational commerce and AI software technology company LivePerson are up 50% this week as consumers continue to social distance. Investment firm Berenberg sees a buying opportunity. “We believe the need for social distancing will accelerate the shift toward automation and messaging and away from voice, which bodes well for demand for LivePerson’s platform over the medium term,” the firm said. The company beat on revenue estimates earlier this week. —Bloom

Stocks opened higher on Friday with the Dow Jones Industrial Average jumping more than 300 points, despite a record number of Americans filing for unemployment in April. Experts say the bounce – which has seen the major averages rebound more than 30% from the March 23 low – can be attributed to a number of factors, including states beginning to reopen their economies, as well as record stimulus measures from governments and central banks. Strategists also note that weakness in areas of the market that have been hardest hit by the pandemic – such as hotel and airline companies – shouldn’t overshadow strength in other areas. Tech stocks, for example, have been a bright spot, and the Nasdaq is now positive for the year. – Stevens

Leisure and hospitality employees saw an eye-popping 7.7 million job cuts in April as the U.S. economy clinched a post-World War II record number of employment losses last month. The 7.7 million loss represented 47% of the sector’s total employees. Workers in the food service industry, including waiters, chefs and cashiers, comprised the vast majority of the sector’s employment losses with a decline of 5.5 million. Health care, too, saw a steep decline of 1.4 million as hospitals and clinics paused elective and routine procedures to prioritize preparation for, and treatment of, Covid-19 patients. — Franck

Furniture and electronics rent-to-own store Rent-A-Center was upgraded to buy on Friday by Loop Capital. “We believe the stock has sold off over the past few months based on what we view as a major investor misconception about the company—that Rent-A-Center’s skip/stolen losses will skyrocket given the unprecedented rise in jobless claims over the past few weeks, in turn decimating the company’s profitability,” analyst Anthony Chukumba said.” On the contrary, we believe Rent-A-Center is one of the best positioned companies in our coverage universe given its essential retailer status and performance during the Great Recession,” he said. Shares of the company are up 19% this week. —Bloom

The economy lost more than 20 million jobs in April, but 78.3% of those worker see their layoffs as temporary. The number of employees who saw themselves as temporarily furloughed was 18.06 million, up from 1.84 million in March. “It’s high in a good way. The market could be reacting to that. If you see them move to permanent that’s a problem,” said John Briggs, head of strategy at NatWest. Michelle Meyer, Bank of America head of U.S. economics, called the high number of temporary layoffs a “silver lining” in a bleak report. “With 78% classified as temporarily unemployed, workers should be able to be more seamlessly rehired upon reopening. But time is of the essence,” she wrote in a note. — Domm

Ed Yardeni of Yardeni Research said on “Squawk on the Street” that the dramatic sell-off in March as investors flocked to cash is now supporting stocks despite a historic increase in unemployment. “There’s still like over a trillion dollars that was accumulated during the mad dash for cash during March that’s just sitting there. That still I think provides a cushion for any downside in the market,” Yardeni said. Yardeni pointed to support from the Federal Reserve and market indexes’ increased concentration in big tech stocks as other reasons why the market has rebounded strongly over the past six weeks. —Pound

• DA Davidson upgraded Uber to buy from neutral.
• MKM downgraded Constellation Brands to sell from buy.
• Guggenheim downgraded Square to neutral from buy.
• Wells Fargo downgraded Murphy Oil to equal weight from overweight.
• Jefferies downgraded Nintendo to hold from buy.
• Macquarie downgraded Hyatt Hotels to neutral from outperform.
• Susquehanna downgraded Marathon Oil to neutral from positive. —Bloom

U.S. equities started the day in the green, as investors shrugged off the jobs report and focused on the economy reopenings. The Dow Jones Industrial Average jumped 320 points. The S&P 500 also rose 1.15%. The Nasdaq Composite — which closed with a positive year-to-date gain on Thursday — ticked up 0.85% after the opening bell. — Fitzgerald 

With stock futures gaining on the back of this report, many people are likely confused. Peter Boockvar, chief investment officer of Bleakley Advisory Group, tries to make sense of it for clients. “Bottom line, we can analyze the internals every which way but when the jobs lost were due to a purposeful shutdown, it has a different context rather than if it was from a natural economic downturn,” Boockvar wrote. “We need to shift the focus now to how many businesses will reopen in coming months and quarters and how many of these lost jobs will come back. ” —Melloy

April’s jobless rate was worse than the post-war record of 10.8% and the high seen during the depths of the financial crisis at 10% in October 2009. Looking further back, it was short of the Great Depression high, estimated to be 24.9%. —Cox

Top trade negotiators for China and the U.S. agreed to work toward implementing the “phase one” trade deal the two countries signed in January. U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer held a phone call late Thursday with Chinese Vice Premier Liu He. Both sides “agreed that in spite of the current global health emergency, both countries fully expect to meet their obligations under the agreement in a timely manner,” according to the Office of the U.S.Trade Representative. The two sides also pledged to maintain communications. Tensions between the U.S. and China had flared again in the face of the coronavirus pandemic. –Li

The Labor Department said on Friday 20.5 million jobs were lost in April, bringing the unemployment rate to 14.7%. Economists were forecasting a record 21.5 million jobs were lost in April, sending the unemployment rate higher to 16% from just 4.4%, according to Dow Jones. Stock futures jumped after the report. — Fitzgerald 

Shares of companies that would benefit most if the U.S. economy reopened led premarket gains Friday morning. Airline stocks advanced with United, American, Delta and Southwest up 2.1%, 1.1%, 1.9% and 1.5%, respectively. Hotel operator Marriott added 1.8% while cruise line company Carnival Corp. rose a similar 1.9%. Simon Property Group, the largest shopping mall operator in the U.S., climbed 2.6% and Kohl’s rose 2.5%. U.S. stock futures were up roughly 1% in the premarket. — Franck

Wall Street firm D.A. Davidson upgraded shares of Uber to buy from neutral following ride-hailing company’s quarterly earnings. “We believe UBER is well-positioned to leverage its multi-product platform (Rides, Eats, and increasingly Grocery) to emerge post-pandemic in a significantly stronger competitive position,” D.A. Davidson senior research analyst Tom White told clients. Uber reported first-quarter results Thursday, including revenue of $3.54 billion and a net loss of $2.9 billion, the company’s biggest loss in three quarters. Despite the large losses, White said Uber has better “cost discipline.” “UBER is also getting leaner, with recent cost actions/ market exits set to reduce annualized fixed costs by $1B and help ensure adj. EBITDA profits are delayed only slightly (to early 2021 in our view) despite COVID,” White added.  The firm also raised its price target on Uber to $39 per share from $23.50 per share. Shares of Uber jumped more than 7% in premarket trading on Friday.  —Fitzgerald

Investors are bracing for a dismal U.S. jobs report Friday but Goldman Sachs economists point out the labor market’s rebound could be just as swift as its losses. “Over the last 50 years, the three recessions with the highest share of temporary layoffs were followed by the fastest labor market recoveries,” Goldman Sachs’ Jan Hatzius said in a note. Goldman expects U.S. nonfarm payrolls dropped by 24 million in April, slightly more than the consensus estimate of 21.5 million. —Imbert, Bloom

Shares of big technology stocks moved higher in premarket trading on Friday, building on recent strength the group has seen during the rebound from the coronavirus market rout. Shares of Microsoft ticked up 1% before the opening bell. Apple and Amazon rose 1.5% and 0.5%, respectively. Facebook also jumped 1% and Netflix shares rose about 0.4%. —Fitzgerald

The U.S. economy is expected to have lost a record 21.5 million jobs last month, according to Dow Jones, as the coronavirus pandemic sparks massive layoffs and a near-complete halt of all economic activity. That would be a record loss for a single month. The unemployment rate is also forecast to have surged to 16% — which would be the highest since 1939 — from just 4.4%. ”This is the biggest and most acute shock that we’ve seen in post-war history. It’s a dramatic loss of output in a very short period of time,” said Michelle Meyer, head of U.S. economics at Bank of America. The report is scheduled for release at 8:30 a.m. —Imbert, Domm

U.S. stock futures rose sharply on Friday even as investors awaited what could be the ugliest monthly jobs report ever. Dow Jones Industrial Average futures were up more than 200 points, or about 1%. S&P 500 and Nasdaq 100 futures also gained 1% each. Wall Street was headed for its first weekly gain in three after sharp gains in the previous session put the Nasdaq Composite index in positive territory for 2020. —Imbert

—With reporting from Patti Domm, Yun Li, Jesse Pound and Michael Bloom. 

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.