Major indexes fall as Nvidia leads chipmakers, energy stocks also fall

Tuesday’s biggest S&P 500 gainers

5 hours 43 minutes ago

refuser

Semiconductor stocks came under pressure after semiconductor equipment maker ASML (ASML) mistakenly released its earnings report one day earlier than expected, revealing lower-than-expected net bookings and lackluster sales guidance. ASML stock plunged 16.3%. The ASML results, as well as reports on possible U.S. export restrictions, weighed heavily on companies across the semiconductor industry and put significant pressure on the stock prices of similar semiconductor equipment makers. KLA (KLAC) stock fell 14.7%, the steepest decline of any S&P 500 stock, while Applied Materials (AMAT) and Lam Research (LRCX) stock fell 10.9% each. It fell by 10.7%. Raymond James lowered the price targets for all three stocks, as did ASML. Shares of solar technology company Enphase Energy (ENPH) fell 9.3% after RBC Capital Markets downgraded the stock to “sector perform.” Analysts said intense industry competition could weigh on Enphase’s growth rate.

progressive

Walgreens Boots Alliance (WBA) stock rose 15.8%, the best performer in the S&P 500, after the pharmacy giant reported better-than-expected sales and profits in its fourth quarter results. Recorded. The drugstore and healthcare chain also announced a restructuring plan that includes closing about 1,200 stores over the next three years.
Oil prices fell on signs of easing geopolitical tensions and the International Energy Agency cut its oil demand growth forecast. Expectations of lower fuel costs contributed to the rise in cruise lines’ stock prices. Carnival (CCL) stock rose 6.6% and Norwegian Cruise Line Holdings (NCLH) stock rose 4.1%. Charles Schwab (SCHW) stock rose 6.1% after the brokerage reported third-quarter results, which beat expectations for revenue and earnings per share (EPS). The strong performance was driven by year-on-year increases in total customer assets and the number of active brokerage accounts.

-Michael Blomberg

Apple hits record high

6 hours 31 minutes ago

Apple (AAPL) stock rose on Tuesday, briefly hitting an all-time high as the tech giant announced another new product, the updated iPad Mini.

The latest version of Apple’s smallest tablet will go on sale October 23 and will be available for pre-order starting Tuesday for $499. The new iPad Mini will come in a variety of colors and storage capacities and will be powered by the A17 Pro chip found in the higher-end models of last year’s iPhone 15 series.

The A17 Pro chip means the new iPad will be able to take advantage of the artificial intelligence (AI) features that Apple showed off when it launched the iPhone 16 last month. The AI ​​features will start rolling out to Apple users later this month via an iOS update, and the new Mini will also be compatible with the latest Apple Pencil Pro announced earlier this year.

Some analysts say the delayed release of AI features, at least a month after the iPhone 16’s launch, could dampen customer excitement about the new phone and slow sales until the features are released. It is doubtful that this is the case.

Apple shares rose 1.1% to close at $233.85 on Tuesday, after hitting an intraday high of $237.49 early in the session, surpassing its July intraday high of $237.23. The stock is up about 21% so far in 2024, matching the performance of the Nasdaq Composite Index and S&P 500 Index over the same period.

-Aaron McDade

Wolfspeed soars 21% on funding news

7 hours 17 minutes ago

Wolfspeed (WOLF) shares soared on Tuesday after the high-speed semiconductor maker reported it could receive up to $2.5 billion in funding from an investment group under the 2022 CHIPS and Science Act.

The company noted that the U.S. Department of Commerce is proposing $750 million in direct funding from the CHIPS Act and expects to receive $1 billion in refunds from tax credits included in the bill.

The company also announced that a consortium of investment funds led by Apollo, The Baupost Group, Fidelity Management & Research Company, and Capital Group have agreed to provide an additional $750 million.

Wolfspeed stock rose 21% on Tuesday. Even with today’s surge, the stock has lost two-thirds of its value this year.

-Bill McCall

UnitedHealth leads Dow decliners

8 hours 6 minutes ago

Shares of UnitedHealth Group (UNH) fell sharply on Tuesday after the company cut its full-year profit outlook to reflect the impact of February’s cyber attack on its Change Healthcare unit.

The health insurance company lowered its earnings per share (EPS) forecast from $15.95 to $16.40 to $15.50 to $15.75.

On an adjusted basis, the company said it absorbed the disruption from the cyber attack by an estimated 75 cents per share, an increase of 10 cents from the prior quarter’s estimate.

In February, the company announced that Change Healthcare’s information technology systems had been compromised by a “suspected state-linked cybersecurity threat,” disrupting its medical billing and medical authorization portals.

UnitedHealth shares fell nearly 8% late Tuesday, leading the Dow Jones Industrial Average decline and trading at their lowest since mid-July. Stocks are up 6% since the beginning of the year, and the Dow Jones Industrial Average is up 13.5% in that period.

Charles Schwab soars after strong results, boosts outlook

10 hours 17 minutes ago

Shares of Charles Schwab (SCHW) soared Tuesday after the financial services company reported better-than-expected third-quarter results and also raised its full-year revenue forecast.

The investment management company reported total revenue of $4.85 billion, up about 5% from the same period last year and beating analysts’ expectations, according to estimates compiled by Visible Alpha. Earnings also exceeded expectations, increasing 25% to $1.41 billion, while net interest income (NII) fell by several million dollars to $2.22 billion, narrowly beating expectations.

The company also raised its full-year sales forecast, now calling for sales growth of 2% to 3%, up from the previous forecast of flat sales of 2%.

Charles Schwab stock rose about 7% early Tuesday afternoon, trading at a three-month high. Stock prices have returned to positive territory since the beginning of the year.

Shares plunged in mid-July after Chief Executive Officer Walt Bettinger announced in the company’s second-quarter report that it planned to reduce the size of the bank to improve profitability.

-Aaron McDade

J&J’s results rise to meet highest expectations

11 hours 17 minutes ago

Johnson & Johnson (JNJ) shares rose on Tuesday after the pharmaceutical and medical device company posted better-than-expected third-quarter sales and adjusted earnings.

Johnson & Johnson reported revenue of $22.47 billion, up 5% from a year ago and beating analyst expectations, according to estimates compiled by Visible Alpha. Net income fell 38% to $2.69 billion, significantly lower than expected due to billions of dollars in one-time costs such as litigation and acquisition costs.

Johnson & Johnson’s adjusted profit of $5.88 billion beat expectations by more than $500 million, after factoring in more than $3 billion in one-time charges such as litigation costs, “intangible asset amortization” and acquisition costs.

The company also adjusted its full-year outlook, raising its sales forecast to $88.4 billion to $88.8 billion from the previous range of $88 billion to $88.4 billion.

Shares rose nearly 2% in recent trading.

-Aaron McDade

Walgreens soars on earnings and closure plans

12 hours 51 minutes ago

Walgreens Boots Alliance (WBA) said Tuesday it will close about 1,200 stores over the next three years as the drugstore chain looks to rebuild its struggling U.S. business.

Walgreens also reported fourth-quarter sales and adjusted earnings that beat Wall Street expectations.

The company’s stock has risen more than 15% in recent trading, leading the S&P 500 gainers. Despite the rise, the stock has fallen about 60% since the beginning of the year.

Read the full article here.

-Nisha Gopalan

Bank stocks rise on strong financial results

14 hours 47 minutes ago

Bank of America (BAC), Citigroup (C), and Goldman Sachs (GS) shares were in premarket trading Tuesday after the financial services giants each reported better-than-expected third-quarter results. It rose.

The latest report continues the strong performance of big banks by rivals JPMorgan Chase (JPM) and Wells Fargo (WFC) that began last week.

Bank of Amercia, Citi and Goldman each rose more than 2% before closing, while JPMorgan and Wells Fargo both rose slightly.

Major index stock price futures remain almost unchanged

15 hours 38 minutes ago

Futures, which track the Dow Jones Industrial Average, rose less than 0.1%.

S&P 500 futures fell less than 0.1%.

Nasdaq 100 futures also fell less than 0.1%.