Equity ❀Indexes Wrap: Consumer Staples, Telecoms Lead S&P 500 Higher; 3M, J&J Weigh on Dow

The Dow

Verizon (VZ) jumped 6.7% after its 澳洲幸运5官方开奖结果体彩网:♎revenue topped W📖all Street estimates as an increase in wireless s𓃲ubscribers more than offset declin🐓es at its business services unit. 

Procter & Gamble (PG) added 4.1% after reporting better-than-expected earnings despite 澳洲幸运5官方开奖结果体彩网:missing sales estimates as volume growth stagnated. 

3M (MMM) slumped 10.9% after the maker of scotch tape projected 澳洲幸运5官方开𝓀奖结果体彩𓄧网:lower-than-expected full-year earnings, overshadowing its fourth-q🙈uarter earnin🐻gs beat. 

Johnson & Johnson (JNJ) slid 1.7% despite the company largely meeting or exceeding estimates with its fourth-quarter earningsꩵ𝓰. 

Boeing (BA) shares fell 1.6% after United Airlines said it was reconsidering its order of the jet maker’s Max 10 following the grounding of its 737 Max 9s. 

The S&P 500

RTX (RTX) rose 5.4% after reporting a 澳洲幸运5官方开奖结果体彩网:10% increase in revenue in the fourth quarter a🅠mid rising aerospace, defense, and engine unit sales.

Shares of United Airlines (UAL) jumped 5.3% after 澳洲幸运5官方开奖结果体彩网:its quarterly results blew past Wall Street estimates. Peers Southwest Airlines (LUV) and Delta Airlines (DAL) got a boost, rising✤ 3.2% and 2.8%, respe🐟ctively. 

Halliburton (HAL) added 2.6% after the oilfield services company beat quarterly earnings estimates, helped by strength in its international business. Competitor Baker Hughes (BKR) gained 1.8%. 

Homebuilder D.R. Horton (DHI) tumbled 9.3% following its quarterly earnings, which fell as the company 澳洲幸运5官方开奖结果体彩网:upped incentives for buyers to offset high mortgage rates and home prices. Peers NVR (NVR), Builders FirstSource (BLDR), and Pultegroup (PHM) all fell more than 5%. 

Invesco (IVZ) slumped 8.3% after re𝔍porting lower-than-expected quarterly revenue. 

Lockheed Martin (LMT) slipped 4.1% after it said sales fell in the fourth quarter from the prior year. Competitor Mohawk Industries (MHK) slid 3%. 

The Nasdaq 100

PACCAR (PCAR) rose 4% after the truck maker reported better-than-expected fourth-quarter earnings and sales.&nbs🌳p;

Semiconductor manufacturers outperformed, with GlobalFoundries (GFS) adding 2.9%, NXP Semiconductors (NXP) rising 2.3% and Onsemi (ON) gaining 2.1%. 

Netflix (NFLX) added 1.3% after the company 澳洲幸运5官方开奖结果体彩网:acquired exclusive rights to broadcast WWE Raw starting in 2025. Netflix reports🍰 ear🍌nings after markets close Tuesday.

Datadog (DDOG) led the index’s laggards, falling 3%. 

Intuitive Surgical (ISRG) lost 1.2% ahead of its earnings report after the bell. Its stock jumped earlier this month after the company reported 澳洲幸运5官方开奖结果体彩网:strong quarterly sales. 

Scotch Tape and Posꦰt-It Notes Maker 3M Craters on Profit Warning

3M (MMM🔯) shares plunged in intraday trading Tuesday as the maker of a wide range of industrial and consumer products warned about 2024 profit, saying it faces a “muted” ⛄macroeconomic environment.

The maker of Scotch tape and Post-it notes said it expects full-year 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) to be in the range of $9.35 to $9.75, missing analyst estimates.

The company noted the 2024 estimate reflects its health care unit, which it plans to spin off early this year, as part of the company. However, it does not reflect the potential cost impact of 3M’s settlements in lawsuits over so-called 澳洲幸𒅌运5官方开奖结果体彩网:“💃forever chemicals” in water systems and ♎mili𓆏tary earplugs alleged to have contributed to hearing loss.

The outlook overshadowed the company’s bette🍸r-than-expected results for the fourth quarter. 3M’s EPS of $2.42 and revenue of $8.01 billion were both higher than anticipated. 

Shares of 3M were down 11.5% at $95.62 Tuesday a🎃fternoon, and have lost more than 22% of their ♋value in the past year.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

D.R. Horton Tumbles Following Earnings Report

Shares of D.R. Horton (DHI), one of America’s largest homebuilders, slumpe👍d Tuesday after the company’s quarterly earnings report fell short𝔍 of Wall Street estimates as rising costs and a stalled housing market weighed on profit. 

Revenue increased by 6% year-over-year to $7.7 billion. Net sales orders increased 35% to 18,069 but came in below analysts’ expectations.

Meanwhile, D💞.R. Horton’s cost of sales increasꦏed 8% year-over-year, leading its net income to fall 1% to $947.4 million. 

Mortgage rates were climbing toward a 25-year high of around 8% at the start of the quarter, leading the firm to offer potential buyers discounts and other incentives to make homes more affordable. That hit the company’s gross margin on home sales, which fell 100 澳洲幸运5官方开奖结果体彩网:basis points to 22.9%.

“We eဣxpect our incentive levels to remain elevated in the near term,” said Chief Financial Officer Bill Wheat on a post-earnings call with analysts. 

D.R. Horton fell more than 10% on Tuesday, its largest one-day decline since March 2020. Still, shares are up moreꦡ than 48% in the last 12 months. 

RTX Gets a Boost From a Ri🐟se in Air Travel Demand and Military Spending

RTX (RTX) shares surged close to 6% in intraday trading Tuesday after the aerospace and defense contractor posted 澳洲幸运5官方开奖结果体彩网:better-than-expected results, helped by🍒 a rise in air travel and military spending.

The company formerly known as Raytheon reported fourth quarter 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $1.29, with revenue up 10% from the year before to $19.9 billion. Both exceeded expectations.

♛ Sales at the Collins Aerospace division were up 14% to $7.12 billion, boosted by a commercial settlement and a jump in demand for aftermarke💟t products as airlines put more planes in the air amid a travel boom.

Revenue at the defense arm of RTX, called Raytheon, gained 3% to $🔯6.89 billion. The group produces AMRAAM rockets and the Patriot missile system𒐪.

Shares of RT🀅X were 5.6% higher at $89.82 per share Tuesday afternoon. D🐲espite Tuesday’s gains, shares of RTX were down 6.5% year-over-year.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Pr💫ಞocter & Gamble Q4 Sales Grew With Inflation, But Gillette Shaved Off Earnings

The Procter & Gamble Company's (PG) sales rose, driven by higher prices, but a $1.3 billion 澳洲幸运5官方开奖结果体彩网:impairment charge due to Gillette tไrimmed earnings for the three months ending December.

The maker of Tide and Tampax reported net earnings of $3.46 billion or $1.4 per diluted share, missing analyst estimates and down roughly 12% from the year-ago quarter. Higher prices propelled net sales 3% to $21.4 billion, though a shade under the $21.6 billion 澳洲幸运5官方开奖结果体彩网:analyst consensus compiled by Visible Alpha.

The charge accrued on account of the "reduction in the estimated fair value of the Gillette" brand also forced P&G to cut its earnings projections for fiscal year 2024. The company now expects earnings for the full fiscal year in the range of a 1% decline to in-line earnings compared to FY2023 EPS of $5.90, as opposed to the six to nine percent growth it estimated before.

P&G stock was up over 4% in early trading.

-澳洲幸运5官方开奖结果体彩网:Mrinalini Krishna

Optimism Abounds on Wall Street, but Can It Last?

The S&P 500, which closed at a record high for the first time in over two years last Friday, has risen more than 1🌠4% in the last three months, largely on optimism the Federal Reserve with cut interest rates later this year.

But that’s not the only factor giving stocks a boost. Deutsc♑he Bank macro strategist Henry Allen, in a research note Tuesday, elaborates on four reasons for Wall Street’s optimism: 

1. Financial conditions are easier than they’ve been in years. Investment grade bond spreads are at their tightest in two years, and real yields are at six-month lows. Lower borrowing costs should help support the real economy. 
2. Economic data has proved surprisingly resilient. Inflation expectations have 澳洲幸运5官方开奖结果体彩网:fallen to their lowest since 2020, while the labor market remains strong and 澳洲幸运5官方开奖结果体彩网:consumer spending has held up. 
3. Central bankers are openly discussing rate cuts. Though a few have 澳洲幸运5官方开奖结果体彩网:urged caution recently, that officials are even acknowledging cuts on the horizon is a welcome development for markets. 
4. Artificial intelligence really could 澳洲幸运5官方开奖结果体彩网:fuel economic growth at a pace unseen in over a decade. 
   

However, he also explains why today’s optimism “will be dif💮fic🌊ult to sustain”:

1. Easier financial conditions could reaccelerate inflation, prompting the Fed to take a tougher stance. 
2. “Today, inflation swaps are already pricing in US CPI back at 2% from mid-2024, and fed funds futures are expecting over 130bps of cuts by the December meeting," writes Allen. With expectations so high, there's little room left for upside surprises.
3. Wall Street’s optimism makes it more difficult for the central bankers to pivot without inciting euphoria and risking reigniting inflationary pressures. 
4. Last year’s market gains were the narrowest since the 澳洲幸运5官方开奖结果体彩网:dotcom bubble. The market could feel the pain if sentiment toward the 澳洲幸运5官方开奖结果体彩网:Magnificent 7 changes. 

Chinese Stocks Gain as Beijing🃏 Considers Lending a Helping Hand

The 澳洲幸运5官方开奖结果体彩网:American 🌊depositary receipts (ADRs) of Chinese companies trading on U.S. exchanges rose Tuesday morning following reports the government may create a stabilization fund to prop up the country’s struggling stock marke💝t. 

Beijing is weighing pulling together 2 trillion yuan ($278 billion) from the offshore accounts of state-owned enterprises to purchase shares in Hong Kong, according to a report from Bloomberg News, citing undisclosed sources. 

Chinese authorities are seeking to stop the decline of Chinese stocks, which have slumped in the last year amid slowing economic growth, a shrinking population, and an ailing property sector. The Shanghai Composite Index fell to a nearly 4-year low yesterday, while Hong Kong’s 澳洲幸运5官方开奖结果体彩网:Hang Seng Index is trading near a 15-year low. 

Shares of e-commerce giant Alibaba (BABA) surged more than 7% early Tuesday, as did competitor JD.com (JD) and search provider Baidu (BIDU). Electric vehicle maker Nio (NIO) jumped more than 9%. 

Verizon Posts Q4 Loss On One-😼Time Cha𒀰rge Despite Revenue Beat

Verizon's (VZ) 澳洲幸运5官方开奖结果体彩网:fourth-quarter earnings were 澳洲幸运5官方开奖结果体彩网:dragged into the red due to a $7.8 billion loss on special items despite posting better-than-expected revenue.

Verizon earnings by the numbers

• Net income: ($2.57 billion) vs. 4.56 billion expected, according to analyst estimates compiled by Visible Alpha
• Adjusted earnings per share: $1.19 vs. $1.08 expected
• Revenue: $35.13 billion vs. $34.6 billion expected

The company reported a los🅷s of $2.57 billion, or 64 cents per diluted shꦍare, for the quarter.

The one-time loss comes as Verizon disclosed a 澳洲幸运5官方开奖结果体彩网:$5.8 billion goodwill impairment charge for its business reporting unit, and almost $992 million in mark-to-market adjustments to its pension 🧜and employee benefits programs, among other thin🦩gs.

Excluding these special items, the company's adjusted earnings per share would be $1.19.

The company's shares were up more than 5% in early trading.

-澳洲幸运5官方开奖结果体彩网:Mrinalini Krishna

United Airlines Stock Soars After Strong Q4 Earnings Report—K💛ey Chart Levels to Monitor

Shares in United Airlines (UAL) 澳洲幸运5官方开奖结果体彩网:jumped nearly 7% in premarket action Tuesday morning after the full-service carrier surpassed Wall Street’s 澳洲幸运5官方开奖结果体彩网:top and bottom line expectations.

The Chicago-based airline posted Q4 澳洲幸运5官方开奖结果体彩网:adjusted earnings of $2.00 per share, comfortably ahead of the $1.69 a share figure analysts had projected. Revenue for the period came in at $13.63 billion, topping forecasts of $13.54 billion. Moreover the top line improved nearly 10% from a year earlier, boosted by healthy travel demand over the holiday season.

“Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible — and set new operational records for our customers,” CEO Scott Kirby said in a statement accompanying the earnings release.

United shares rallied toward the 澳洲幸运5官方开奖结果体彩网:200-day moving average in early January but stalled late last week to close below the 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA). If the price climbs back above the 50 MA today, keep an eye on the $44.50 level, where it may run into selling pressure near a 澳洲幸运5官方开奖结果体彩网:horizontal line that dates back to mid-March last year. On the downside, monitor the 2023 low around $34 as a potential area of support if💧 the stock declines over the coming weeks.

-澳洲幸运5官方开奖结果体彩网:Timothy Smith

Stocks Making the Biggest Moves Premarket

Gains:

• United Airlines Holdings Inc. (UAL): Shares of the airline jumped more than 6% after it beat earnings and revenue estimates for the fourth quarter, which overshadowed a warning it could lose as much as 85 cents a share in the current quarter as Boeing 737 Max 9 jets remain grounded during an FAA safety investigation.
• Verizon Communications Inc. (VZ): Shares of the telecom giant gained about 4% after beating Wall Street estimates on the top and bottom lines in the fourth quarter amid strong growth in its wireless services business.
• Netflix Inc. (NFLX): Shares rose about 2% after it acquired exclusive rights to WWE Raw starting in 2025, part of the streaming giant’s forays into sports and event broadcasting. Shares of WWE-owner TKO Group (TKO) surged more than 20%. 
  

Losses:

• 3M Co. (MMM): The industrial products manufacturer’s shares tumbled more than 7% after its 2024 earnings outlook fell short of analyst estimates.
• D.R. Horton Inc. (DHI): Shares of the homebuilder fell more than 6% after its earnings came in below Wall Street estimates as labor costs and a sluggish housing market weighed on margins. 
• General Electric Co. (GE): Shares of the industrial conglomerate fell about 2% after it offered weaker-than-expected full-year guidance, overshadowing its fourth-quarter earnings beat. 

Stock Futures Mixed Amid a Sle🧸w of Earnings Reports

Futures contracts c🌞onnected to the Dow Jones Industrial Average were 0.1% lower in premarket trading Tuesday.

S&P 500 futures inched up 0.1%.

Nasdaq 100 futures added 0.2%.