Stocks were mixed on Friday, with Wall Street heading towards a losing week, as investors grew concerned that a more aggressive Federal Reserve could lead to a recession. The Dow Jones Industrial Average climbed over 100 points higher, while the S&P 500 Index and Nasdaq Composite lost about 0.3% and 1.3%, respectively.
For the week, the Dow slid 0.1% lower, while the S&P 500 lost over 1% and the Nasdaq sunk over 3.7%.
Here's how the market settled to close out the week:
S&P 500 Index (NYSE: SPY): -0.26% or -11.53 points to 4,488.68
Dow Jones Industrial Average (NYSE: DIA): +0.33% or +113.17 points to 34,696.74
Nasdaq Composite Index (NASDAQ: QQQ): -1.34% or -186.30 points to 13,711.00
Bank of America sees 'recession shock' coming:
Bank of America (NYSE: BAC) strategists warned in a research note on Friday that the U.S. economy many soon face recession as the Federal Reserve tightens its monetary policy to curb rising inflation.
"'Inflation shock' worsening, 'rates shock' just beginning, 'recession shock' coming," Michael Hartnett, chief investment strategist at Bank of America, wrote in a note to clients. Hartnett added that in this context, cash, volatility, commodities and crypto currencies could outperform bonds and stocks.
The financial giant also said emerging market equity funds saw the biggest inflow in ten weeks at $5.3 billon in the week through Wednesday, as emerging market debt vehicles saw $2.2 billion, their best week since September.
Block, Blockstream, and Tesla team up on solar-powered bitcoin mine:
Jack Dorsey's Block (NYSE: SQ) and Blockstream, a company that makes Bitcoin infrastructure, are partnering with Tesla (NASDAQ: TSLA) on an open-source, solar-powered mine for Bitcoin in Texas, the companies announced Friday.
Tesla's 3.8-megawatt Solar PV array and its 12 megawatt-hour Megapack will power the facility, and the companies plan to have the facility completed "later this year." Once running, the companies will publicly disclose "real-time metrics of the project's performance, including power output and Bitcoin mined."
"We're excited to start the construction of this facility using Tesla Solar and Megapack," Adam Back, CEO and co-founder of Blockstream, said in a press release. "This is a step to proving our thesis that Bitcoin mining can fund zero-emission power infrastructure and build economic growth for the future."
Morgan Stanley sees Peloton exceeding 3 million connected fitness subscribers in Q3:
Morgan Stanley (NYSE: MS) analyst Lauren Schenk said Peloton Interactive (NASDAQ: PTON) could exceed three million subscribers in the third quarter. Earlier this year, Peloton said it expected to post Q3 subscribers of 2.93 million, and to 3 million for its full year 2022 outlook.
"From a net adds perspective, seasonally this shouldn't be surprising with 3Q CF [Connected fitness] net adds accelerating q/q in each of the past 4 years, although the company's guide implied a significant deceleration," Schenk wrote.
"Management's more cautious guide is understandable given considerable marco and micro disruption, but we don't see any evidence in the data that 3Q experienced the magnitude of deceleration the guide implies," she added.
Morgan Stanley rates Peloton as equal-weight, with a price target of $32 per share, with implies an upside of nearly 41%.
Here's how benchmarks started trading after market open:
S&P 500 Index: -0.15% or -6.65 points to 4,493.56
Dow Jones Industrial Average: +0.02% or +7.98 points to 34,591.55
Nasdaq Composite Index: -0.45% or -63.13 points to 13,837.07