Traders work on the floor of the New York Stock Exchange during morning trading on November 26, 2024 in New York City.
Michael M. Santiago | Getty Images
Stocks traded near the flatline Tuesday after the producer price index, the first of two major inflation reports this week, came in lighter than forecast.
The Dow Jones Industrial Average inched down 71 points, or around 0.2%. The S&P 500 and the tech-heavy Nasdaq Composite fell 0.3% and 0.4%, respectively. The major averages gave back their early gains following the cool inflation data.
Big tech stocks wavered Tuesday, putting pressure on the S&P 500 and Nasdaq. Nvidia and Meta Platforms lost around 2% each, while Alphabet and Microsoft pulled back 0.1% each. Meanwhile, Tesla and Palantir rose around around 1% and 2%, respectively.
The producer price index, which measures wholesale inflation, increased just 0.2% in December, according to a Bureau of Labor Statistics report. Economists polled by Dow Jones had estimated a 0.4% rise. Core PPI, which excludes food and energy, was flat.
Investors are now looking to Wednesday’s consumer price index report to gauge whether the Federal Reserve is succeeding at bringing inflation close to its 2% target, which would allow the central bank to ease interest rate policy.
“If CPI comes in hotter than expected, it would certainly be bad news for equity markets because it would imply that the Fed will indeed remain slower to lower interest rates,” said Sam Stovall, chief investment strategist at CFRA Research.
Fed funds futures trading suggests a near-certainty that the Fed will hold steady on interest rates at the conclusion of its two-day meeting later this month. Market pricing also suggests a near 80% likelihood rates will stay at their current target range of 4.25%-4.5% in March, according to the CME FedWatch tool.
On the earnings front, banking behemoths will kick off fourth-quarter earnings season this week, with JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo posting results on Wednesday. Morgan Stanley and Bank of America are slated to report on Thursday.
Boeing delivers more than 348 airplanes in 2024, gap with Airbus widens
Boeing delivered more than 348 airplanes last year, about a third fewer than in 2023 as it grappled with a crisis following a midday door panel blowing off and a machinist strike in the fall.
In contrast, rival Airbus delivered 766 airplanes last year — the most since 2019. Boeing shares were down more than 2% on Tuesday.
— Leslie Josephs
Housing stocks outperform Tuesday
The iShares US Home Construction ETF (ITB) on Tuesday
— Hakyung Kim
Jefferies will donate net global commissions to LA fire relief efforts on Thursday
The Tahitian Terrace mobile home park on Pacific Coast Highway, destroyed in the Palisades Fire, is seen in the Pacific Palisades neighborhood of Los Angeles, California, on Jan. 10, 2025.
Zoe Meyers | AFP | Getty Images
Jefferies will donate all net global commissions earned on Thursday to organizations supporting people impacted by the ongoing wildfires in Los Angeles.
Those funds will be donated on top of a $1 million donation from Jefferies, the bank announced on Monday. Jefferies said the money will be sent to “qualified” charities, but did not list specific recipients.
“We are heartbroken by the wildfires causing unfathomable destruction in the Los Angeles area,” CEO Rich Handler and President Brian Friedman said in a joint statement. “Our firm was founded in Los Angeles 62 years ago, and it has always been a resilient community, full of dynamism, opportunity and strength. Our hearts go out to all those affected, and we stand with them in this difficult time.”
Jefferies has held similar events in recent years, including for the Maui wildfires and after Hamas’ invasion of Israel in 2023. These so-called global trading days have raised more than $60 million over the last 5 years, according to the firm.
— Alex Harring
Investors are too concentrated on momentum and macro, BMO’s Belski says
Brian Belski, chief investment strategist at BMO Capital Markets, Dec. 1, 2022.
Scott Mlyn | CNBC
Two words that start with the letter “M” are occupying too much real estate in investors’ minds, according to Brian Belski.
Momentum and macro have become unnecessarily paramount for traders, the BMO Capital Markets investment strategy chief said Tuesday on CNBC’s “Squawk on the Street.” Instead, he said investors should be focused on stock picking amid a “golden age” and as a normalization period for the market begins.
“Investors are way too focused on the two ‘M’s,” he said, later adding: “Everybody needs to focus less on momentum, less on macro, and more on bottoms-up stock picking.”
While investors are closely watching the projected path of interest rates, he said that “we need to all settle down and just let stocks do their work.”
— Alex Harring
China internet stocks rise Tuesday
The KraneShares China Internet ETF jumped around 3% Tuesday.
Meituan and Kuaishou Technology climbed around 5%, while JD.com and Bilibili advanced more than 4% each.
— Hakyung Kim, Gina Francolla
Microstrategy shares jump as bitcoin swings back to near $97,000
Shares of MicroStrategy were up about 6%, following an upswing in bitcoin prices. The flagship currency briefly swung back above $97,000 on Tuesday and was last up 4% at $96,729. Fellow crypto stocks Coinbase and Riot Platforms also climbed 3.7% and 5.6%, respectively.
Bitcoin rises
— Fred Imbert
Stocks open higher Tuesday
U.S. stocks started Tuesday’s session on a positive note.
The Dow Jones Industrial Average added 180 points, or 0.4%. The S&P 500 rose 0.4%, while the Nasdaq Composite jumped 0.7%.
— Hakyung Kim
Chemical makers Celanese, Olin, Eastman jump on BofA upgrade
Pavlo Gonchar | SOPA Images | Lightrocket | Getty Images
Chemical makers Celanese, Olin and Eastman Chemical outperformed the broad market Tuesday following upgrades of all three by analysts at Bank of America.
Olin jumped as much as 3.7% in early trading after BofA raised it to buy from neutral, while cutting its 12-month price target to $40 from $48. Olin’s valuation is appealing, its free cash flow yield allows stock buybacks at “very attractive levels” and it’s “relatively well-insulated from the potential risks of the incoming Trump administration given its more limited exposure to China and its significant U.S. operations which could benefit from lower taxes,” BofA said.
Celanese rallied 3.6% early Tuesday in the wake of a double upgrade from BofA to buy from underperform (price target to $88 from $95). The bank said the “the acetyls market is bottoming,” demand for Celanese products is likely to revive in coming years, the company probably won’t need to sell stock to raise capital and the stock is attractively valued.
Eastman rose to a buy from neutral (PT to $109 from $115) after an 18% fourth quarter selloff that BofA said was too extreme. The stock’s price/earnings ratio is 9.8 times BofA’s 2025 estimates and Eastman is generating $250 million annually in free cash flows after dividends that it can spend on mergers and acqusitions and buybacks. EMN was 1.6% higher early Tuesday.
— Scott Schnipper
Bank of America names Salesforce a top software pick
Salesforce is a relatively cheap stock that is well-positioned for the next frontier of artificial intelligence, according to Bank of America.
Analyst Alkesh Shah named Salesforce a top pick among software stocks for 2024. Shah said that the rise of “agentic AI” to be a key topic over the next few years, which plays into Salesforce’s Agentforce offering.
At the same time, Salesforce still trades at a reasonable price despite the excitement around AI.
“The stock has had a nice run after rallying 38% in 2024. However, the shares still trade at a discount to the software [growth at a reasonable price] group. … We believe the stock is likely to rerate higher with reaccelerating topline growth and sustainable margin expansion,” Shah wrote.
— Jesse Pound
Wholesale inflation rises less than expected in December
A worker operates a forklift to move a pallet of alcohol in the warehouse at Southern Glazer’s Wine and Spirits LLC distribution center in Louisville, Kentucky, U.S., on Friday, Sept. 28, 2018.
Luke Sharrett | Bloomberg | Getty Images
Wholesale prices rose less than expected in December, a welcome sign for investors hoping for Federal Reserve rate cuts later this year.
The producer price index rose 0.2% month over month. Economists polled by Dow Jones expected PPI to show a 0.4% increase for the month.
— Fred Imbert
See the stocks moving before the bell
These are some of the stocks making notable moves in Tuesday’s premarket:
- Signet Jewelers — The Kay Jewelers and Zales parent tumbled 22% after slashing its fourth-quarter guidance.
- KB Home — The homebuilder rallied 9.6% on the heels of fourth-quarter earnings that exceeded Wall Street expectations.
- Teladoc Health — The virtual healthcare stock popped 4.3% after announcing a partnership with Amazon.
Click here for the full list.
— Alex Harring
Big banks climb higher Tuesday
Several big banking stocks rose Tuesday before the bell ahead of their earnings announcements on Wednesday.
JPMorgan Chase added 0.3%, while Wells Fargo and Goldman Sachs gained around 0.4% each. Citigroup jumped nearly 0.7%.
All four banks are scheduled to kick off earnings season Wednesday morning.
— Hakyung Kim
Asia markets fall as traders assess a strong U.S. jobs report and China trade data
Large images of the late former leader Mao Zedong hang behind a vendor as a customer looks at items at a stall at the Panjiayuan Market on December 6, 2024 in Beijing, China.
Kevin Frayer | Getty Images
Asia-Pacific markets mostly rose Tuesday after a mixed session on Wall Street that saw the Dow soar and the Nasdaq slip as investors rotated out of tech stocks.
Hong Kong’s Hang Seng index was up 1.9% in its final hour of trade, while mainland China’s CSI 300 climbed 2.63% to end the day at 3,820.53. This is its largest one-day gain since Nov. 7.
Japan’s markets were the only outlier, with the Nikkei 225 dipping 1.83% to close at 38,474.30. The Topix fell 1.16% to 2,682.58. Both indexes extended their four-day losing streak.
South Korea’s Kospi closed up 0.31% to 2,497.40, while the small-cap Kosdaq added 1.39% to end the day at 718.04.
Australia’s S&P/ASX 200 closed 0.48% higher at 8,231, breaking a three-day losing streak.
— Amala Balakrishner
Stocks making the biggest moves after hours
Check out some of the companies making headlines in extended trading.
Lululemon — Shares of the athleisure company slipped more than 2% despite increasing its holiday outlook for earnings and revenue. Lululemon now forecasts earnings per share in the fourth-quarter of $5.81 per share to $5.85 on revenue of $3.56 billion to $3.58 billion. Analysts polled by FactSet were looking for $5.66 per share on $3.47 billion in revenue.
KB Home — Shares in the home building firm added more than 8% after fourth-quarter results surpassed analyst estimates on the top and bottom line. KB Home notched earnings per share of $2.52 on revenue of $2 billion, while analysts polled by LSEG forecast $2.45 and $1.99 billion.
IAC Inc. — Stock in the Daily Beast parent-company added more than 2% following news that it planned to spinoff home improvement marketplace Angi.
— Brian Evans
U.S. stock futures open higher
Stock futures were higher on Monday, as Wall Street prepared for the first of two key inflation readings this week.
Futures tied to the Dow Jones Industrial Average gained 64 points, or 0.15%. S&P 500 futures advanced 0.22%, while Nasdaq 100 futures climbed 0.32%.
— Brian Evans