Markets

Stock market live Tuesday: Dow rebounds, Apple leads the way, coronavirus fears remain

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S&P 500 best day since Oct 4

This is a live blog. Check back for updates.

4:01 pm: Dow puts in nice session, but concerns linger

The Dow Jones Industrial Average ended the day up 187 points, or 0.7%. It was a solid showing, but the average closed far off its highs as the coronavirus fears linger. The Dow was up 287 points at its high of the day. Still, the rally represented a nice comeback from Monday's 454-point decline. Apple, Intel, and Microsoft were the top performers in the average.— Melloy

3:07 pm: Final hour of trading: Stocks head for strong gains despite coronavirus worries

With roughly one hour of trading left, the major averages were on pace to post solid gains and recover some of the lost ground from the previous session. The Dow is up more than 200 points, or about 0.8%. The S&P 500 and Nasdaq are both up more than 1%. Tech and financials have been the leaders of this rally, with Apple and Goldman Sachs driving the Dow's gains. —Imbert

3:01 pm: Oil settles higher, snapping 5-day losing streak

Oil caught a bid Tuesday, ending the session in positive territory for the first time in 5 days. The coronavirus-related sell-off saw prices sink to more than 3-month lows and pushed oil into bear market territory. U.S. West Texas Intermediate crude gained 0.6% to settle at $53.48. In addition to strength in the overall market -- the Dow surged more than 200 points -- oil prices were supported by speculation that OPEC would step in if necessary. According to a report from Reuters, OPEC officials were considering extending the production cuts that are currently in place. Additionally, production in Libyan has fallen almost 75%, according to Reuters, as production facilities in the country continue to be blockaded. Tuesday's move higher only makes a small dent in total losses, however. WTI is down more than 12% this month, while international benchmark Brent has shed just shy of 10%. —Stevens

2:57 pm: Three things to watch this week from the Fed Wednesday

The Federal Reserve concludes its two-day meeting Wednesday with an almost certainty that it will not change interest rates. There are, however, some other big items on the central bank's plate. For one, there's the coronavirus, with both its human toll and potential ramifications on China's economic growth. There's also consideration over the Fed's repo operations and how the market has taken the balance sheet expansion as another form of quantitative easing. Finally, the Fed may decide to raise the interest it pays on excess bank reserves in an effort to lift its benchmark funds rate. "At best, they can be patient and wait and see and stay to their original script, which is 'we're on hold this year,'" said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. "If they alter the script, I do think markets are going to be concerned." – Cox

2:48 pm: Stocks hit session highs

Stocks are now at session highs, led by Apple. The Dow is up about 280 points, making back more than half of its 454-point loss on Monday. Apple is now up almost 3% before earnings after the bell. Apple is also now almost in the green for the week, after falling Monday on fears the coronavirus would hurt sales and production in China. —Melloy

1:57 pm: Pfizer earnings disappoint, stock tanks

Pfizer's stock is down more than 5% because of a miss on the bottom line of its quarterly results. The pharmaceutical giant reported earnings of 55 cents per share, compared with the 58 cent per share expected, according to Refinitiv. The company said part of the miss was due to a loss of exclusivity for one of its key pain drug, Lyrica. Pfizer is the most actively traded stock in the U.S. right now, with more than 44 million shares switching hands, compared to the 30-day trading average of 19.6 million shares. Pfizer's 2020 outlook came roughly in-line with estimates. The company expects to earn between $2.82 and $2.92 per share and post revenue between $48.5 billion and $50.5 billion. –Fitzgerald

1:34 pm: Coronavirus could disrupt supply chains for six months, Sourcify CEO says

Factories in China a

nd Southeast Asia could be disrupted by the coronavirus for half a year, according to Sourcify CEO Nathan Resnick. "All of our employees are staying home. We know through our factory partners that they're telling their employees to stay home … There's going to be trickle-down effects in everyone's supply chains for, I would estimate, six months," Resnick said on "The Exchange." Sourcify is a platform that helps companies source products from overseas factories. Resnick noted that China has many raw materials factories, so supply chains outside the country could be impacted by the spread of the flu-like virus. - Stankiewicz

1:29 pm: Sell-off could resume going by market performance during past epidemics

Stocks may be rebounding Tuesday, but the S&P 500's performance during past epidemics suggests the market could have more to lose. Going back 20 years, previous epidemics from SARS in 2003 to the Ebola scare six years ago resulted in 6% to 13% losses in the S&P 500 over different lengths of time, according to Citi. Many medical experts have compared the coronavirus to the SARS, which lasted 38 trading days and led to a 12.8% sell-off in the benchmark. Read more on stocks' reaction to past virus scares here. —Li

1:26 pm: Most bullish tone on earnings calls since 2017

Although earnings season is in its early stages, Bank of America said executives on post-earnings conference calls haven't sounded this bullish since the end of 2017, when Trump passed the Tax Cuts and Jobs Act. The quantitative analysis looks at mentions of words such as "better" or "stronger" vs. "worse" or "weaker" on earnings calls. "Optimism is also building, with 47% of reported companies so far expressing optimism, again the highest level since 4Q17," the bank said. —Fitzgerald

12:37 pm: Apple rises into earnings report

Shares of Apple are up 2.5% Tuesday as investors prepare for the tech company's first quarter earnings report after the bell. Morgan Stanley analyst Katy Huberty said in a note to clients this morning that she thought Apple's stock would move higher in anticipation of 5G iPhones expected later this year, but that a strong result out of today's earnings report was more likely to come from the company's wearables segment. The stock is up more than 100% in the past 12 months, but Evercore ISI analyst Amit Daryanani said in a note that, "the trifecta of – better services growth, wearables acceleration and iPhone 5G cycle tailwinds" will power the stock even higher. —Pound

11:51 am: Stocks at midday: Wall Street rebounds after worst day of 2020, Dow up 220 points

U.S. stocks are jumping in midday trading, making up some of the lost ground from Monday's session, which was the worst of the year. The Dow is up more than 200 points, while the S&P 500 and Nasdaq Composite are both trading around 1% higher. However, worries over the coronavirus remain in the market. "The wall of worry is back under construction," says Terry Sandven of U.S. Bank Wealth Management. —Imbert

11:39 am: Cramer warns against buying amid virus fears

CNBC's Jim Cramer said on "Squawk Box" that there were too many unknowns about the coronavirus to be a buyer in the stock market. The market could take another dip if the World Health Organization declares the outbreak a global emergency, Cramer said. "I just think you're coming in on quicksand here," Cramer said. — Pound

11:06 am: United Airlines into red as White House discussing travel restrictions

United Airlines shares, which have been volatile all day, are back into the red slightly after CNBC's Eamon Javers reported that the White House is discussing China travel restrictions amid the coronavirus outbreak. However, no final decision has been made. Shares of American Airlines and Delta remained higher, however. The broader market fell slightly off its highs on the news. —Melloy

10:42 am: Dow up more than 200 points

Market has moved to the highs of the day. No headlines appear to be driving the gains, instead it looks like accelerating gains in names like Apple, JPMorgan Chase and Goldman. Apple is up 1.9%. Note that Apple is still down more than 1% for the week, however. —Melloy

10:09 am: Amazon briefly slides into correction territory

Shares of Amazon briefly fell into correction territory on Tuesday after declining more than 10% from the stock's 52-week high in July. The stock rebounded and was last slightly higher. Wall Street is still bullish. In a note to clients Tuesday Morgan Stanley analysts said that the company's "reacceleration since the launch of Prime Free One Day delivery and its record Holiday season could portend a new wave of retail disruption," and that they're keeping a "close watch on Q4 results for signs of fresh AMZN inroads." –Stevens, Francolla

10:05 am: Not much of a rebound for coronavirus-impacted stocks

Wynn Resorts, one of the stocks that took the hardest hit from the coronavirus, gave up premarket gains of nearly 2% and was last down more than 1%. The stock has tanked 14% in the past week. Another casino company Las Vegas Sands also dipped slightly. Airlines came back a tad after days of selling off, with American Airlines up 1% and Delta and United Airlines both rising slightly. —Li

10:00 am: Consumer confidence beats expectations

January consumer confidence from the Conference Board came in at 131.6, much higher than estimates. The reading gave a slight boost to the market, with the Dow now up more than 100 points again, though still short of the highs of the day. —Melloy

9:51 am: Stocks off their highs

Stocks couldn't follow through on the strong open. News that the CDC was advising Americans avoid travel to China is not helping the market's attempted rebound. 3M down nearly 5% is also holding back the market. The Dow was up 119 points at its high and is up 95 points now. On the positive side, market breadth is healthy with advancers outpacing decliners on the NYSE by nearly 3-to-1. —Melloy

9:47 am: JPMorgan boosts Q4 GDP to 1.7% after durable goods report

JP Morgan economists said they boosted their forecast for fourth quarter GDP growth to 1.7% from 1.6%, after an upside surprise in inventories in the December durable goods report.Durable goods was a mixed bag. Headline orders rose 2.4% and were better than expected. But Boeing took a bite out of orders, with nondefense aircraft down 75% in December, at the lowest level since 2009. But the government made up for it with a surge in defense aircraft orders, which were up almost 170%.The government releases Q4 GDP data on Thursday. -Domm

9:33 am: Dow climbs 100 points at the open

The Dow rose 100 points at the open, while the S&P 500 and Nasdaq Composite were also higher, rebounding from a big sell-off Monday. However, 3M and Harley-Davidson fell 2.6% and 4.1%, respectively, on disappointing quarterly results, capping the gains in the broad market. The Dow as last up about 70 points. —Li

9:20 am: Monday's sell-off did not have unusual volume

The Dow plunged more than 450 points Monday on heightened coronavirus fears, suffering its biggest one-day fall since October and wiping out the average's gains for the year. However, the pullback was not on unusually heavy volume, perhaps suggesting less conviction, Matt Maley, chief market strategist at Miller Tabak, pointed out. "The market gapped lower on the opening, so it was not forced lower by selling," said Maley. He noted the trading volumes were slightly more than 3 billion shares Monday, which was not a big jump from an average Monday. —Li

9:06 am: Harley-Davidson falls on earnings

Shares of the motorcycle company fell more than 6% in premarket trading on Tuesday after a big miss on revenue for its fourth quarter earnings. Harley-Davidson reported revenue of $874.1 million, falling short of estimates of $920.1 million, according to Refinitiv. The company also issued weaker-than-expected revenue guidance for the new year. Harley-Davidson expects to post sales between $4.53 billion and $4.66 billion in 2020, while analysts forecast annual revenue of $4.65 billion. 2020 is a "pivotal year" in the transformation of the company as it tries to "build the next generation of Harley-Davidson riders," the company said. Earnings per share came in a 20 cents, topping estimates of 9 cents per share. -Fitzgerald

8:50 am: China ETFs in correction territory

Some of the largest funds that track the performance of Chinese stocks closed in correction territory on Monday as fears over the impact the coronavirus could have on business grew. Major exchange-traded funds including the iShares China Large-Cap ETF and the iShares MSCI China ETF closed down 11.5% and 10% from their respective 52-week highs on Monday. The MSCI China fund's dive into correction comes just days after it hit a 52-week high on Jan. 13. — Franck

8:32 am: 3M drops on disappointing earnings, new round of job cuts

Shares of 3M are down more than 2% in the premarket after the manufacturing giant posted weaker-than-forecast results for the previous quarter. The company posted a profit of $1.95 per share on revenue of $8.11 billion, both of which are below analyst expectations. Investors also sold the stock after the company announced a new round of job cuts. Shares of 3M are the second-worst performers in the Dow over the past 12 months. They are down more than 9% in that time. —Imbert

8:30 am: BorgWarner acquiring Delphi Technologies

Shares of auto supplier Delphi Technologies jumped more than 15% in Tuesday's premarket trading after BorgWarner announced that it will acquire the company in an all-stock transaction valued at $3.3 billion. A press release said that the acquisition will strengthen BorgWarner's "power electronics products, capabilities and scale." Delphi Technologies was one of two companies spun out of Delphi Automotive in 2017. The other was Aptiv, which focuses on tech systems in cars. — Stevens

8:28 am: United Technologies shares slip in face of climbing 737 Max costs

United Technologies delivered fourth-quarter earnings of $1.94 a share, better than the $1.84 analysts surveyed by FactSet expected. But shares slipped 1.3% in premarket trading as United reported its aerospace division would face "an estimated headwind of approximately $550 to $600 million resulting from the 737 MAX" in 2020. The industrials giant also told shareholders it would forecast year ahead earnings and cash flow once its acquisition of Raytheon is complete. —Sheetz

8:26 am: Suppliers warn Apple coronavirus could impact iPhone production

Despite Apple's plans to ramp up iPhone production in the first half of 2020, its suppliers are warning that the rapid pace of production could be derailed by the outbreak of the coronavirus in China's Hubei Province, the Nikkei Asian Review reported Tuesday. Apple has asked its Asian suppliers to make up to 80 million iPhones in the first half comprised of 65 million of its older iPhones and up to 15 million of a less-expensive model it plans to unveil in March, according to the report. However, the mass production that's scheduled to begin in late February might be delayed due to the virus outbreak, the Nikkei reported. Apple is set to report first-quarter earnings Tuesday afternoon after the closing bell. Shares were up 1.1% in premarket trading. —Franck

8:19 am: Portion of yield curve briefly inverts

The 3-month Treasury bill yield was briefly higher than the 10-year yield in the early morning hours New York time.
The coronavirus has set off a stampede into 10-year Treasurys as investors seek a safe haven, and the yield touched a low of 1.57%. It was at 1.63% as stock futures rebound Tuesday morning from Monday's selling. The inversion of the yield curve is sometimes an ominous sign of a coming recession, but the yield curve had inverted last year and steepened again as investors were cheered by improved trade relations between the U.S. and China. —Domm

8:17 am: Chip stocks rally after Huawei gets limited access to UK's 5G networks

Britain said Tuesday it will allow Chinese telecom giant Huawei to play a limited role in its next generation 5G mobile networks, defying pressure from the U.S. The news sparked a rally in U.S. semiconductors that supply chips to their big customer Huawei. The VanEck Vectors Semiconductor ETF, which includes the top S&P 500 chipmakers, rose 1.5% in premarket. Micron and AMD are both up nearly 2%, while Nvidia, Broadcom and Qualcomm climbed 1% each in premarket.—Li

8:12 am: Coronavirus-related names rebound with the broad market

Travel companies affected by the deadly coronavirus are bouncing back along with the broad market after a deep sell-off since last week. Shares of Wynn Resorts, one of the hotel and casino stocks that took the hardest hit because of its Macau exposure, are up nearly 2% in premarket. Airlines Delta and United Airlines both climbed almost 1%, while Carnival Cruise Lines also rebounded 1.2%. —Li

8:10 am: Stock futures rise as Wall Street tries to rebound from worst day in more than 3 months

Wall Street is trying to rebound from its worst session since October, with U.S. stock futures trading higher. Dow Jones Industrial Average futures are up more than 140 points, while S&P 500 and Nasdaq 100 futures pointed to solid opening gains. On Monday, the Dow dropped more than 450 points and wiped out its gains for the year as coronavirus fears deepened. But while futures pointed to a decent start, not everyone is ready to look past the coronavirus fallout. CNBC's Jim Cramer said in a tweet: "I wouldn't trust the market until the future are down, perhaps dramatically to flush out those who think the virus is unstoppable." —Imbert

—With reporting from Tom Franck, Michael Sheetz, Pippa Stevens, Maggie Fitzgerald, John Melloy, Jesse Pound, Kevin Stankiewicz, Jeff Cox.