Dow opens 150 points lower as latest stock rally fizzles on Wall Street
Gold hits highest level since April
Gold futures hit a high of $1,943.8 Tuesday, the highest level since April. The precious metal rose amid expectations for a less-aggressive interest rate hike path from the Federal Reserve.
Gold miners have had a strong start of the year with the VanEck Gold Miners ETF up 13% year to date, led by Dundee Precious Metals, Equinox, Coeur Mining, which are all up more than 20% this month.
— Yun Li, Gina Francolla
Stocks making the biggest premarket moves
Here are some of the companies making the largest premarket moves:
Verizon — Verizon shares slipped 1.51% after the company posted mixed results for the 2022 fourth quarter. While earnings met analyst predictions, forward earnings fell short of a Refinitiv consensus estimate. .
Bed Bath & Beyond — The meme stock gained 5.78%, building on its dramatic start to the year, even as the retailer warns of a potential bankruptcy. Year to date, Bed Bath & Beyond shares are up 17.1%.
Lockheed Martin — Lockheed Martin shares gained 1.52% after the company posted latest quarterly results. The defense company’s revenue came in at $18.99 billion, topping a Refinitiv forecast of $18.27 billion. Lockheed’s earnings per share also topped expectations.
For more big movers, check out our full list here.
— Hakyung Kim
Lyft gains 4% following KeyBanc upgrade
Lyft advanced more than 4% before the bell on the back of an upgrade from KeyBanc.
Analyst Justin Patterson upgraded Lyft to overweight from sector weight, noting the stock should be helped by cost-cutting measures and stabilizing demand. He also set a price target of $24, which would reflect a 55.7% upside from where the stock ended Monday’s session.
CNBC Pro subscribers can click here to read more about why Patterson anticipates the stock could rally.
Verizon falls on earnings outlook
Verizon shares fell more than 2% before the bell even after it met analysts expectations for the recent quarter.
The telecom giant shared a disappointing full-year adjusted earnings outlook, saying it expects EPS to come in between $4.55 and 4.85 excluding items. FactSet estimates called for EPS of $4.96.
Verizon also reported 41,000 net additions within its wireless retail postpaid business.
— Samantha Subin
3M falls on guidance cut, earnings miss
Shares of 3M declined more than 5% before the bell after the company shared disappointing guidance for the full year and posted an earnings miss.
The industrial conglomerate beats Wall Street’s revenue estimates for the recent quarter, although earnings fell short of expectations. The company reported earnings of $2.28 a share on revenues of $8.08 billion. Analysts had expected earnings of $2.36 a share on revenues of $8.04 billion, according to Refinitiv.
For 2023, 3M said it anticipates a 2% to 6% decline in sales and and earnings of $8.50 to $9.00 a share.
3M also said it’s cutting 2,500 global manufacturing jobs.
3M shares fall on guidance cut
GE shares rise on better-than-expected earnings
General Electric traded more than 2% higher in the premarket after the industrial giant posted quarterly results that beat analyst expectations.
GE earned $1.24 per share on revenue of $21.79 billion for the previous quarter. Analysts expected earnings of $1.13 per share on revenue of $21.59 billion, according to Refinitiv.
“2022 marked the beginning of a new era for GE. We successfully launched GE HealthCare, delivered strong financial performance, made significant operational progress, and continued our steadfast commitment to our customers. Thanks to the high-quality work of our team, GE ended the year with solid revenue growth and margin expansion,” CEO Larry Culp said in a statement.
— Fred Imbert
AMD falls after Bernstein downgrade
AMD shares slipped more than 2% after Bernstein downgraded the semiconductor manufacturer to market perform from outperform. The firm cited worsening personal computer market trends for the downgrade.
“It must be said that the PC environment has grown considerably worse since then,” Bernstein said in a note to client. “And our belief that AMD would prove relatively more immune to channel degradation proved unfortunately incorrect, and in recent months we have been growing more wary of potential PC dynamics.”
— Alex Harring
European markets flat as investors digest key PMIs
European markets were mixed on Tuesday with investors digesting the latest flash purchasing managers’ index data from the euro zone in January.
The pan-European Stoxx 600 index hovered fractionally above the flatline in early trade, with retail stocks adding 0.7% while oil and gas stocks fell 0.6%.
The S&P Global euro zone composite PMI came in at 50.2 in January, up from 49.3 in December and ahead of a consensus forecast of 49.8.
CNBC Pro: Goldman Sachs Asset Management singles out a corner of the U.S. market with ‘great opportunities’
A Goldman Sachs Asset Management strategist has named a segment of the market that could be poised for a comeback this year.
James Ashley, head of international market strategy at Goldman Sachs Asset Management, also pointed toward research that showed these types of companies tend to outperform when inflation is high but falling.
— Ganesh Rao
Zions shares fall after earnings
Shares of Zions Bancorp fell more than 2% despite the regional bank beating earnings estimates for the fourth quarter. Zions reported $1.84 in earnings per share, above the $1.65 expected by analysts, according to StreetAccount. Net interest income also beat estimates.
Noninterest income was lower than expected, however, and deposits fell 13% year over year to $71.7 billion.
Shares of Zion gained 2.27% in regular trading on Monday before its earnings were released.
Stocks need to notch this key level to potentially be considered rallying, Dawson says
Stocks rose on Monday, but aren’t quite high enough to be considered a true market rally, according to Cameron Dawson of NewEdge Wealth.
“We have to get through the most critical level of 4,100,” Dawson said on CNBC’s “Closing Bell: Overtime” on Monday. That’s because 4,100 is the S&P 500’s 65-day high.
The S&P 500 never hit the key moving level in 2022 because it was in a downtrend, Dawson said. If stocks break through this level, it may indicate that the rally has potential to move into a new bull market cycle.
Technicals and positioning can only get stocks so far, she added, before a fundamental shift is needed to really give stocks forward momentum.
“We’d need to see a change in fundamentals to really think this rally will continue,” she said.
She cautioned that stocks upside will likely stay capped until the Federal Reserve fully pivots and stimulates the U.S. economy again.
“It’s unlikely we can go back to pre-pandemic multiples without help from the Fed,” she said.
If stocks are able to rally and break the 65-day high, it would also likely lower the probability of the S&P 500 retesting its October lows, Dawson said.
Stock futures open little changed
Futures opened little changed on Monday evening after solid gains for stocks during regular trading hours. There were no large cap earnings reports after the bell to spark major moves in the futures market.
— Jesse Pound
Nasdaq, chip stocks led the way on Monday
Stocks enjoyed a broad rally on Monday. Here’s a look at some of the key numbers from the trading session.
- The Dow gained 254 points, or 0.76%, to close at 33,629.56.
- The S&P 500 gained 47 points, or 1.19%, to close at 4,019.81.
- The Nasdaq Composite gained 224 points, or 2.01%, to close at 11,364.41.
- Nvidia had the largest impact on the Nasdaq, adding 36 points.
- The VanEck Semiconductor ETF (SMH) rose 4.72% for its best day since Nov. 30.
— Jesse Pound, Christopher Hayes