Traders work on the floor of the New York Stock Exchange on Jan. 10, 2025 in New York City.
NYSE
Stocks slipped Monday as key tech shares that have led the bull market continued to be dumped by investors.
The S&P 500 lost 0.6%, and the Nasdaq Composite dropped 1.3%. The Dow Jones Industrial Average was the relative outperformer, rising 180 points, or 0.4%. All three benchmarks are down for the last two weeks, with tech shares causing most of the damage.
Palantir and Nvidia, two of the bull market leaders popular with retail investors, shed more than 3% each — building upon their losses from last week. Nvidia fell nearly 6% during the period, while Palantir lost 11%. Other popular tech shares including Tesla and Micron were also down.
Surging bond yields have been one of the catalysts for the sell-off in growth-oriented shares. The 10-year Treasury yield on Monday touched the highest level since November 2023. Yields surged on Friday following a stronger-than-expected jobs report that cast doubt on further rate cuts by the Federal Reserve.
“With the 10-year yield potentially getting to 5%, I think it’s going to be very hard for the equity market to really gain any meaningful traction here until there’s — at minimum — stability in interest rates,” said Adam Turnquist, chief technical strategist at LPL Financial.
“We don’t think there’s risk for the market going over to bear market territory, but certainly think a correction could be in the cards on a short-term basis,” added Turnquist.
Stocks are coming off a losing week. The Dow lost 697 points on Friday. The 30-stock Dow and S&P 500 both ended the week 1.9% lower, while the Nasdaq Composite lost 2.3%. All three are now in the red for the young year.
Investors are hoping the start of the fourth-quarter earnings season with stabilize markets. Banks including Citigroup, Goldman Sachs and JPMorgan Chase report on Wednesday, while Morgan Stanley and Bank of America will post results on Thursday.
Data this week includes the December consumer price index on Wednesday morning. Before that, investors will parse wholesale inflation with December’s producer price index report on Tuesday.
U.S. Steel rises on potential Cleveland Cliffs-Nucor joint bid
Moderna tanks 20% after guidance cut
Moderna shares tanked more than 23% after the biotech giant cut its 2025 sales forecast.
The company said it expected revenue for this year to range between $1.5 billion and $2.5 billion, most of which will come in the second half. Moderna previously issued full-year guidance of $2.5 billion to $3.5 billion.
Monday’s decline put the stock on track for its worst day on record.
MRNA tanks
— Fred Imbert
Stocks open lower Monday
U.S. stocks began Monday’s session in the red.
The S&P 500 fell 0.9%. The Dow Jones Industrial Average declined 59 points, or 0.1%. The tech-heavy Nasdaq Composite dropped 1.4%.
—Hakyung Kim
Jefferies downgrades shares of Pinterest on weaker growth expectations
Jefferies is officially stepping to the sidelines on Pinterest.
Shares fell around 3% in the premarket after analyst James Heaney downgraded the stock to hold from buy. His price target still reflects some gains ahead, implying more than 4% upside potential.
“PINS has struggled to move beyond experimental brand budgets into ‘always on’ performance budgets,” the analyst wrote in a Monday note. “While PINS has made progress with some lower funnel ad tools (e.g. Direct Links), our checks suggest that PINS hasn’t been able to progress beyond 5% of spend for most performance advertisers.”
Heaney added that new products such as Performance+ — its tool that seeks to boost ad campaigns through artificial intelligence and automation features — are still “too early” to spur mid-teens revenue growth for the company. He also said the pace of margin expansion will likely slow from here.
The stock has seen declines in recent months, falling more than 25% over the past six months and more than 10% over the past three.
— Sean Conlon
Stocks making the biggest moves before the bell: Abercrombie & Fitch, Pinterest and more
These are the stocks moving the most in premarket trading:
- Abercrombie & Fitch — Shares of the clothing retailer plunged 11% in premarket trading even after Abercrombie raised its outlook for the fourth quarter on strong holiday sales expectations.
- Pinterest — Shares of the visual sharing platform slid 3% in the wake of Jefferies’ downgrade to hold.
- Howard Hughes Holdings — Shares of the real estate developer jumped 9% after Bill Ackman’s Pershing Square proposed a deal to form a new entity to merge with the real estate company, offering current holders $85 a share.
Read the full list of stocks moving here.
— Lisa Kailai Han
Bill Ackman offers to take over Howard Hughes for $85 a share
Bill Ackman, Pershing Square Capital Management CEO, speaking at the Delivering Alpha conference in New York City on Sept. 28, 2023.
Adam Jeffery | CNBC
Bill Ackman proposed forming a new subsidiary of Pershing Square, which currently owns about 38% of Howard Hughes, that would merge with Howard Hughes Holdings, the real estate developer based in The Woodlands, Texas.
“While we are pleased with the substantial business progress Howard Hughes Holdings has made over the more than 14 years since it went public, we, like other long-term shareholders and this board, have been displeased with the Company’s stock price performance,” wrote Ackman in a letter to the Howard Hughes board.
Howard Hughes shares jumped 11% to $79.67 a share in premarket trading on the news.
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— Yun Li
Barclays dials back optimism on small-cap stocks after jump in yields
The jump in Treasury yields seems likely to put any potential small-cap rally on the back burner, according to Barclays.
Paris-based strategist Matthew Joyce said in a note to clients that the firm is downgrading its outlook on small caps to neutral from positive because of the rise in yields.
“Our Small Cap basket was up around 0.5% vs. the market last month, but Small Caps are suffering [month to date] on surging yields. We still think they are attractive, trading at a 20y low valuation relative to the market. But given the risk that yields could continue higher from here and still awaiting a definitive uptick in European economic activity data, we think it is prudent to downgrade Small Caps while we wait to see how these two drivers play out,” the note said.
— Jesse Pound
Johnson & Johnson to acquire Intra-Cellular Therapies for more than $14 billion
People visit the booth of Johnson & Johnson at the China International Import Expo (CIIE) in Shanghai, China November 7, 2024.
Andrew Silver | Reuters
Johnson & Johnson announced Monday it will acquire Intra-Cellular Therapies for $132 per share in cash, valuing the neurological disorder treatment company at $14.6 billion.
Shares of Intra-Cellular soared 35.5% on the news. J&J’s stock was flat.
“This unique opportunity to add Intra-Cellular Therapies to our Innovative Medicine business demonstrates our commitment to transforming care and advancing research in some of today’s most devastating neuropsychiatric and neurodegenerative disorders,” said Johnson & Johnson CEO Joaquin Duato in a statement.
ITCI soars
The deal is expected to close later this year.
— Fred Imbert
Tech stocks under pressure again
Tech stocks were under pressure again on Monday, dragging down the broader market. Nvidia and Palantir shed more than 3% each. Tesla and Meta Platforms lost 2.6% and 1%, respectively in the premarket.
Those losses will add to notable declines seen last week from some these names. Nvidia dropped 5.9% during that time, while Palantir plunged 15.8%. Tesla dropped 3.8% last week.
— Fred Imbert
Asia markets fall as traders assess a strong U.S. jobs report and China trade data
Asia markets fell Monday as traders assessed a stronger-than-expected U.S. jobs report, which could support a slower rate cycle out of the U.S. Federal Reserve.
Investors also parsed through December trade data from China, which saw both imports and exports beat expectations.
Exports rose 10.7% from a year earlier, beating Reuters’ expectations of a 7.3% year-on-year growth. The country’s imports in December unexpectedly rose 1%, compared with Reuters’ estimates of a 1.5% decline.
Despite this, mainland China’s benchmark CSI 300 fell 0.27% to 3,722.51, extending losses after having closed at its lowest level since September 2024 on Friday.
Hong Kong’s Hang Seng Index was down 0.73% as of its final hour of trade, falling below 19,000 for the first time since last September.
— Lim Hui Jie
China’s central bank pledges support to stabilize the yuan
A man wearing a mask walks past the headquarters of the People’s Bank of China, the central bank, in Beijing, China, on Feb. 3, 2020.
Jason Lee | Reuters
The People’s Bank of China and other regulators pledged to enhance the management of the foreign exchange market and prevent any risk of “overshooting” of the yuan, the PBOC said in a statement.
During a meeting held in Beijing, officials stressed that it was “necessary to unswervingly maintain the basic stability of the RMB exchange rate at a reasonable and balanced level,” according to the PBOC statement.
The Chinese currency strengthened on Monday, with the onshore yuan trading at 7.331 against the dollar, while the offshore yuan was at 7.352.
— Lee Ying Shan
Stock futures open little changed
Stock futures were little changed on Sunday, with Wall Street looking toward a data-heavy week as well as fresh corporate earnings.
Dow Jones Industrial Average futures ticked down 13 points, or 0.08%. S&P 500 futures fell 0.25%, while Nasdaq 100 futures slipped 0.3%.
— Brian Evans