Stock Market Today: Live Updates

New York Community Bancorp shares rose 5.8% in late morning trading, a relatively subdued move for a company that has fallen more than 60% in the past two weeks.

NYCB's surprisingly large reserve buildup and dividend cut announced in late January has sparked new concerns for regional banks, this time focused on their exposure to commercial real estate.

Many Wall Street analysts and investors have described NYCB's problems as “unusual,” but there are concerns that the possibility of rising interest rates for an extended period of time could put stress on other regional banks. There is also.

— Jesse Pound

Rather than chasing the S&P 500 past its latest milestone, investors would be better off shifting to small- and mid-cap stocks, according to JPMorgan.

Strategist Eduardo Lekbari said in a note to clients on Friday that he thinks stocks are near the ceiling and that a decline will push large stocks closer to small-cap stocks.

“We remain firm in our view that upside potential from here is limited and that stocks will fall 20-30% from their 2024 peak, with small and mid-caps already looking attractive relative to large-caps. “However, we expect to deliver 45% of alpha over the next two to three years,” the note said.

Lekbari noted that the performance of small and mid-cap stocks, along with regions such as China, may be due to investors taking a risk-off approach. But now that the S&P 500 has topped 5,000, the same approach clearly doesn't apply to large-cap stocks.

“While it is certainly understandable that one asset class may outperform another over a period of time, why would SMid need to price in such a risk premium today? “I don't understand why large-cap stocks, on the other hand, are not taken into account at all. The risks on the table today apply to both,” the memo said.

— Jesse Pound

The S&P 500 rose on Friday, opening above the 5,000 level.

The benchmark index rose 0.1% and the Nasdaq Composite Index rose 0.3%. The Dow Jones Industrial Average fell 7 points.

For the week, the S&P rose 0.9%, while the blue-chip Dow and Nasdaq Composite rose 0.2% and 1.4%, respectively.

— Samantha Subin

Check out the companies making headlines before the bell.

• PepsiCo — Shares fell 1.4% after the beverage and snack giant reported mixed fourth-quarter results. Revenue was $27.85 billion, below the LSEG consensus estimate of $28.4 billion. Adjusted earnings per share were $1.78, compared to expectations of $1.72. Pepsi said high borrowing costs and reduced personal savings are hurting consumer finances.
• Cloudflare — Shares rose 27% after the cloud service provider beat analyst expectations in the fourth quarter. Cloudflare reported adjusted earnings per share of 15 cents on revenue of $362 million. Analysts polled by LSEG had expected earnings of 12 cents a share and revenue of $353 million. The company also issued a rosy full-year outlook for adjusted earnings per share.
• Pinterest — Shares fell more than 8% after the image-sharing company announced a weaker-than-expected outlook. Pinterest also missed expectations in its fourth-quarter report, but beat expectations in terms of revenue.

Read the full list here.

— Sarah Min

Bitcoin ended the week higher, with its price breaking above the $47,000 level for the first time since March 2022. The flagship cryptocurrency rose more than 4% to $47,307 on Friday, according to Coinmetrics. Ether rose 3% to $2,511.75.

Positive sentiment now appears to be returning as GBTC capital outflows have slowed. Furthermore, the momentum that saw the S&P 500 index briefly reach 5,000 for the first time in history on Thursday may be spilling over into cryptocurrencies.

The move sent crypto stocks higher in pre-market trading. Cryptocurrency exchanges Coinbase and Bitcoin proxy MicroStrategy each rose 6%, while the largest miners Riot Platforms and Marathon Digital rose 8% and 10%, respectively.

Read the full text here.

— Tanaya Machel

PepsiCo shares fell 2% before the bell after the food and beverage giant reported mixed quarterly results due to weaker demand in North America.

The company's adjusted earnings per share were $1.78, compared to LSEG's estimate of $1.72. Sales were $27.85 billion, lower than expectations of $28.4 billion.Net sales decreased by 0.5%

Pepsi's North American division reported a decline in sales volumes, with Quaker Foods reporting an 8% decline. Frito-Lay North America reported a 2% decline, and the company's North American beverage sales volume fell 6%.

— Samantha Subin, Amelia Lucas

Hong Kong Exchange CEO Nicolas Aguzin said on Friday he will step down on March 1, about two months before his three-year term officially ends in May 2024, and will be replaced as co-chief operating officer. (COO) Bonnie Y. Chan will take over the top job.

Aguzin said in a statement that the transition was going “very well” and expressed confidence in Zhang and the senior management team.

During his tenure as Hong Kong Exchange CEO, Mr. Aguzin oversaw a Hong Kong market that suffered regulatory crackdowns from the Chinese government during the pandemic, leading to a decline in investor enthusiasm for Hong Kong listings.

HKEX's share price has fallen more than 46% since Mr. Aguzin took over the management team, plummeting from HK$450.4 ($57.59) to HK$242 per share.

According to a report from Reuters, Bank of Japan Governor Kazuo Ueda said in the House of Representatives, “Even if the negative interest rate policy is lifted, the easy monetary environment is likely to continue for some time.''

The Governor of the Bank of Japan answered questions from opposition members at the House of Representatives Budget Committee.

Ueda's views echo those of Deputy Governor Shinichi Uchida, who said on Thursday that the Bank of Japan is “unlikely to actively raise interest rates even after ending its negative interest rate policy.”

— Lim Huijie, Reuters

Shares of Japan's SoftBank Group rose nearly 10% on the move, up from an 11.06% rise recorded on Thursday.

The move comes after chip design company Arm's stock soared 48% on Thursday, valuing it above $116 billion.

SoftBank still owns about 90% of the outstanding shares, meaning its stake in Arm increased by more than $34 billion in one day.

Wharton finance professor Jeremy Siegel said the market doesn't look expensive, especially from a long-term perspective, even though the S&P 500 index has breached the 5,000 mark.

“Longer term, you're going to see more volatility. I don't recommend being a short-term trader,” he said Thursday on CNBC's “Closing Bell.” “I definitely don't think the market is overvalued at this point for long-term investors.”

— Yun Li, Lisa Han

Cloudflare stock rose 18% in after-hours trading Thursday after the web security and content delivery network provider reported results and quarterly guidance that turned out to be stronger than analysts expected.

Cloudflare achieved a new annual contract value record with significant deals from new and existing customers.

— Jordan Novett