Stocks snap 3-day win streak, Dow down 700

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• Deutsche Bank upgraded Qualcomm to buy from hold.
• Bank of America downgraded JPMorgan to neutral from buy.
• Loop Capital upgraded Home Depot to buy from hold.
• JPMorgan upgraded Deere to neutral from underweight.
• Bank of America downgraded Caterpillar to neutral from buy.
• Berenberg downgraded UPS to hold from buy.
• BTIG initiated CrowdStrike as buy.
• Morgan Stanley upgraded WW to overweight from equal weight.
• Morgan Stanley downgraded Quest Diagnostics to equal weight from overweight.
• William Blair upgraded Generac to outperform from market perform.
• Evercore ISI downgraded Macy’s, Guess, L Brands and Under Armour to in line from outperform .
• SunTrust upgraded Constellation Brands to buy from hold.
• Argus upgraded Boeing to buy from hold.
• Argus upgraded Coca-Cola to buy from hold.
• UBS upgraded Lam Research to buy from sell.
• New Street upgraded Tesla to buy from neutral.

CNBC PRO subscribers can read more here. – Bloom

U.S. consumer sentiment fell to its lowest level in more than three years as people grow more fearful of the coronavirus outbreak. The University of Michigan’s index of consumer sentiment dropped to 89.1 in March from 101 in February. Economists polled by Dow Jones expected a fall to 90. March’s decline in sentiment was the fourth-largest in nearly 50 years, according to Richard Curtin, chief economist for the Surveys of Consumers. – Imbert

From Tuesday to Thursday, the Dow and S&P 500 rallied more than 20%. Barclays pointed out that since 1937, eleven bear markets experienced a “head fake” rally, meaning stocks went up, giving investors hope of a rebound, but eventually spiraled downward again when the real economic pain was realized. “Bear market ‘head-fake’ rallies are not uncommon,” Barclays U.S. equity strategist Maneesh Deshpande said in a note to clients. “So if the SPX goes back down below 2237 we would consider this ~18% rally as a ‘head fake’ since it wasn’t the beginning to the actual recovery.” Barclays theory is materializing on Friday with the S&P 500 down more than 3%. – Fitzgerald

Stock losses accelerated minutes after the opening bell. The Dow is now down 1,058 points, or 4.7%. The S&P 500 is down 4% and the Nasdaq is 3.87% lower. – Stevens

Stocks dropped at the open, snapping the market’s best 3-day rally since the 1930s. The Dow Jones Industrial Average fell 812 points for a loss of 3.6%. The S&P 500 dropped 3.2%, while the Nasdaq was 3% lower. – Stevens 

Athletic retailer Lululemon said Thursday it won’t provide full-year earnings outlook due to uncertainty surrounding COVID-19. Shares of Lululemon fell nearly 4% in premarket trading on Friday. The yoga pants maker did, however, report fourth-quarter earnings and sales that topped analysts’ estimates. Same-store sales overall were up 20%, the company said, while online sales surged 41% during the quarter. Men’s revenue was up 32%, and women’s was up 17%. – Fitzgerald

Billionaire investor Leon Cooperman told CNBC on Friday he’s optimistic that the stock market has bottomed on coronavirus fears.

“If I’m right on the virus call, if I’m right and that’s the big ‘if’ … I think the market at the recent low … was close enough to the bottom to be called the bottom,” Cooperman said on “Squawk Box.”

The S&P 500 hit its recent low of 2191.86 on Monday, which was about 35% lower than the index’s last month’s all-time high. “If the economic shutdown goes beyond April into the third quarter, I would be less optimistic,” said Cooperman, founder of the Omega Advisors investment firm, which he turned into a family office at the end of 2018. The investor, who made his fortune picking individual stocks, said he sees an S&P range of 2,200 to 2,800 this year. – Stankiewicz

The Cboe Volatility Index rose more than six points on Friday morning to trade above 67. The index, often called Wall Street’s “fear gauge,” has remained elevated despite the market’s sharp rebound over the last three days. The index tracks the future volatility implied by S&P 500 options, suggesting that traders expect choppy trading to continue in the coming weeks. — Pound

Shares of KB Home gained 5.7% in premarket trading Friday after the home builder reported strong-than-expected quarterly earnings. The company earned 63 cents per share in its fiscal first quarter, beating consensus estimates by 18 cents, according to Refinitiv. KB Home said it sees a 31% jump in orders and a 28% increase in deliveries during the quarter. However, the company pulled its 2020 guidance given the uncertainty surrounding the coronavirus pandemic. – Li

The United States now has more confirmed coronavirus cases than Italy and China, making it the country with the largest outbreak in the world.

The total number of cases in the U.S. reached 82,404 Thursday evening, eclipsing China’s 81,782 cases and Italy’s 80,589, according to data compiled by Johns Hopkins University. Confirmed U.S. cases passed 5,000 last week. At the beginning of the month, there were roughly 100 confirmed cases in the U.S. – Stevens

China and the U.S. are aiming to work more closely as the coronavirus continues to spread, leaders of both countries said in a phone call Friday. 

President Donald Trump said in a tweet that he spoke with his Chinese counterpart Xi Jinping “in great detail” about the COVID-19 pandemic, which has so far killed more than 24,000 people globally.

“China has been through much & has developed a strong understanding of the Virus,” Trump said on Twitter. “We are working closely together. Much respect!” – Stevens, Cheng

U.S. stock index futures pointed to losses at the open, which would snap stocks’ record 3-day win streak. The Dow Jones Industrial Average was set to open more than 600 points lower for a loss of 2.7%. The S&P 500 was also on track to drop 2.7% at the open, while the Nasdaq was poised for a 2.6% decline.

On Thursday the Dow and S&P 500 each gained more than 6%, registering their largest 3-day win streaks since 1931 and 1933, respectively. 

Stocks got a boost after the Senate passed a $2 trillion economic stimulus bill aimed at mitigating the economic damage from the coronavirus outbreak. The House is expected to vote on the bill later today.

Comments from Federal Reserve Chairman Jerome Powell also lifted markets on Thursday.

“We still have policy room in other dimensions to support the economy,” Powell said on NBC’s “TODAY” show. “We’re trying to create a bridge from a very strong economy to another place of economic strength.”

Stocks managed to move higher despite the largest weekly jobless claims number on record. Even with the recent strength, the major averages are still more than 20% below their February all-time high levels. – Stevens

– CNBC’s Kevin Stankiewicz, Maggie Fitzgerald and Michael Bloom contributed reporting.

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