The major averages rose on Tuesday as traders kept an eye on Washington amid continuing coronavirus stimulus negotiations. All three major averages closed in the green, with the Dow rising more than 150 points. The Nasdaq Composite closed at a record, its fifth session in a row.
Click below for some of the top stories on Wall Street on Tuesday:
Tuesday's rally by the numbers
- The Nasdaq Composite closed up 0.35%, at a new record close, its 30th record close this year, and its fifth straight daily gain
- The Nasdaq Composite hit a new intraday all-time high Tuesday of 10,941.91
- In 2020, the Nasdaq Composite is up 21.94%
- The S&P 500 rose 0.36%
- In 2020, the S&P 500 is up 2.34%
- The Dow rose 164 points on Tuesday, or 0.62%
- In 2020, the Dow is down about 6%
- Nine out of 11 sectors were positive today led by Energy up 2.46% — Gina Francolla
Disney reports fiscal third quarter earnings
Shares of Disney dropped as much as 3% in extended trading but is now paring losses on Tuesday following the media giant's quarterly earnings results. Disney reported adjusted earnings of 8 cents per share. Wall Street expected a loss of 64 cents per share. Revenue came in at $11.78 billion, missing the estimated $12.37 billion, according to Refinitiv. — Maggie Fitzgerald
Stocks close in the green, Dow up more than 150 points
All three major averages closed in the green on Tuesday, with the Dow Jones Industrial Average gaining about 165 points, for its third straight day of gains. The S&P 500 and Nasdaq Composite rose 0.36% and 0.35%, respectively. The Nasdaq notched its fifth day in a row with a record close. — Maggie Fitzgerald
Commodities on Tuesday
- Gold futures settled up 1.75% at $2,021, a new record close and its first settle above $2,000 ever
- Gold futures also set a new intraday all-time high of $2,027.3 while turning in its 12th positive day in 13
- Year to date, Gold is up 32.69%, on pace for its best year since 1979 when gold gained 114%
- WTI crude settled up 1.68% at $41.70, hitting at high of $42.08 its highest level since July 23rd when WTI traded as high as $42.36
- This year, WTI is down 31.71% on pace for its worst year since 2014 when WTI lost 45.87%
- Brent settled up 0.63% at $44.43
- This year, Brent is down 32.68% on pace for its worst year since 2015 when Brent lost 34.97%
- Natural Gas futures hit a high of 2.198 its highest level since Jan 14th when natural gas traded as high as 2.255 — Gina Francolla
Final hour of trading: Dow up 60 points
With roughly an hour left in the trading day, the Dow Jones Industrial Average rose about 60 points or 0.2%. The S&P 500 traded around the flat line, down less than 1 point. The Nasdaq Composite dropped 0.2%, dragged down by a 2.2% loss in Microsoft. — Maggie Fitzgerald
Consumer spending recovery stalled in recent weeks, JPMorgan Chase data shows
Credit card data shows that the recovery in consumer spending has stalled in recent weeks, with the most recent readings showing spending levels similar to those at the end of June, according to a note from JPMorgan. The data, which includes spending from select Chase credit and debit cards, shows that spending at restaurants and gas stations is still sharply below where it was a year ago, with total spending down roughly 10% year-over-year. — Jesse Pound
Kodak reportedly under investigation over disclosure of U.S. drug producing deal
The SEC is looking into Eastman Kodak's disclosure about getting awarded a $765 million loan from the U.S. government to start producing drug ingredients, which sent the stock up on heavy volume ahead of the official announcement, the Wall Street Journal reported Tuesday.
On July 27, a day before Kodak as well as President Donald Trump announced the deal, shares of the film pioneer soared nearly 25% with trading volumes far exceeding those in previous sessions.
The Journal previously reported that Kodak had released information about the loan to local reporters in Rochester on July 27 with no embargo time on the news advisory. Several news outlets published related stories and then deleted them upon Kodak's request.
"The company's internal communications team did not intend for the news to be published by the outlet in question," a Kodak spokesperson told CNBC. — Yun Li
Stocks moving midday: AIG, Edgewell Personal Care, Mosaic
AIG — The insurance company sank more than 6% after the company reported a quarterly loss of $7.9 billion, compared with a profit of $1.1 billion in the same period last year.
Edgewell Personal Care — Shares of the company tanked more than 10% following its dismal quarterly earnings results. Organic net sales dropped more than 14% in the second quarter.
Mosaic Co. — Shares of Mosaic jumped more than 13% after the fertilizer producer reported better-than-expected quarterly results. The company's quarterly revenue also topped estimates.
Take a look at more stocks moving midday here. — Maggie Fitzgerald
Markets at midday: Dow rises more than 100 points, heads for 3-day winning streak
The Dow traded more than 100 points higher in midday trading, putting it on track for its third consecutive gain, as Wall Street turned to Washington for clues over the next coronavirus stimulus package. The S&P 500 was also up for three straight days, rising 0.2% on Tuesday. The Nasdaq Composite hovered around the flatline. —Fred Imbert
Nearly one-third of rehired workers laid off again, survey says
More than 30% of workers who were re-hired after the initial coronavirus lockdowns have been laid off again, according to a new survey from Cornell University, RIWI and the U.S. Private Sector Job Quality Index. The report also said that 26% of respondents had been warned by bosses that they could be laid off again in the future. This particular question in the survey included 653 responses. The survey, which was conducted from July 23 to Aug. 1, comes as data from the initial jobless claims and small businesses show that the jobs recovery has stalled. — Jesse Pound
Goldman Sachs sees additional upside on Dick's ahead of earnings
Goldman Sachs raised its price target on Dick's Sporting Goods to $50 per share from $40 per share and said it sees more upside ahead in anticipation of the company's Aug. 26 earnings report. "While the stock is already trading back near pre-COVID highs and at ~13x 2021 consensus EPS, we do think there could be additional upside (driven by athletic apparel/footwear, outdoor, golf) and are raising our 2Q estimates and target price," analyst Kate McShane said. The firm also reiterated its buy rating. Shares are up almost 2% in midday trading. —Michael Bloom
Fewer stocks leading the broader market higher, analyst says
Jason Goepfert of Sundial Capital Research pointed out in a post that while the major indexes are rising, there are fewer stocks leading them higher. "We already know how much influence the top 5 stocks are having on the broader indexes, with a record increase in their weighting over the past year. That masked some troubling participation problems a couple of weeks ago and continues to do so now," Goepfert said. This lack of participation is also seen within the S&P 500 tech sector. Goepfert noted that, on average, 85% of the stocks making up the tech sector close above their 200-day moving average. Right now, however, only 75% of S&P 500 tech stocks are above that mark. "Yes, [the sector] is hitting new highs, but no it doesn't necessarily mean everything is copacetic. That's not an opinion, it's a simple fact that anyone can see if they care to objectively view the data." —Fred Imbert
Gold rises amid stimulus uncertainty
Gold futures rose more than 1% on Tuesday amid uncertainty in Washington over a second stimulus bill to help ailing Americans from the coronavirus crisis. Gold futures rose 1.15% to $2,009 per ounce. Spot gold jumped about 0.7% to $1,990 around midday. The precious metal has risen more than 30% this year as investors rush into the safe haven. — Maggie Fitzgerald
Apple rises to session high amid report company expressed interest in TikTok
Apple shares rose more than 1% to their highs of the day after Axios reported the tech giant had expressed interest in buying popular social video app TikTok. The report comes after Microsoft confirmed it was in talks to buy TikTok even amid concerns from President Donald Trump over the app's ties to China. —Fred Imbert
SolarEdge jumps to new record after earnings
Shares of SolarEdge Technologies gained more than 15% on Tuesday to hit an all-time intraday high after the company's second quarter earnings results. The company reported revenue of $331.9 million, which exceeded analyst estimates of $319.6 million, according to estimates from FactSet, and represented a 2% year-over-year increase. It was 23% below the prior quarter, however, as business took a hit amid the pandemic.
Following the report, Cowen reiterated its outperform rating on the stock, due to the "growth profile of the company coupled with continued diversification and share gains as well as the cost reduction trajectory." The firm also raised its target on the stock to $209 from $189. With Tuesday's spike higher, shares traded around $200. - Pippa Stevens
Stocks slip at the open
Major U.S. equity indexes began Tuesday's trading in the red, giving back some of Monday's strong gains. The Dow Jones Industrial Average fell 20 points, while the S&P 500 dipped 0.1%. The Nasdaq Composite fell less than 0.1%, retreating from a record close. The rally in some of the biggest tech companies took a breather with Amazon, Facebook and Microsoft all trading lower at the open.— Yun Li
Ford CEO Jim Hackett announces retirement
Ford announced that CEO Jim Hackett will retire, effective Oct. 1, unexpectedly handing the reigns to chief operating officer Jim Farley in the middle of an $11 billion restructuring project. Farley will become Ford's fourth CEO since the Great Recession, with Hackett's tenure lasting a little more than three years. Shares of the automaker jumped more than 3% in premarket trading. — Michael Wayland, Jesse Pound
Here are Tuesday's biggest analyst calls of the day: Disney, Roku, Zillow & more
- Piper Sandler raised its price target on Take-Two Interactive to $200 from $146.
- Deutsche Bank upgraded McKesson to buy from hold.
- Susquehanna upgraded Zillow to neutral from negative.
- UBS upgraded Seagate to neutral from sell.
- Rosenblatt raised its price target on Roku to $190 from $145
- BMO reiterated Disney as a top pick.
Pro Subscribers read more here.- Michael Bloom
Abiomed jumps 2% after heart pump gets approval to treat coronavirus
Shares of Abiomed gained 2% in the premarket trading on Tuesday after the Food and Drug Administration approved the use of its Impella heart pump, combined with an oxygen machine, to treat coronavirus patients who suffer heart and lung failure. For 10% of patients, the virus produces extreme inflammation of the heart along with the buildup of fluid in the lungs. — Yun Li
Take-Two jumps on earnings
Shares of Take-Two Interactive gained more than 4% during premarket trading on Tuesday after the company said sales more than doubled in the latest quarter as consumers stayed home amid the pandemic. The company also raised its full-year forecast as strength in games including NBA 2K20, Grand Theft Auto V and Red Dead Online drove the company's outperformance.
"With more people staying at home, we have experienced, and are continuing to experience, heightened levels of engagement and Net Bookings growth-to-date," the company said in a statement. - Pippa Stevens
Natural gas futures hit highest level since January
Natural gas futures jumped more than 2% on Tuesday to trade at $2.169 per million British thermal units, the highest level since January. The move higher follows a 16.79% jump on Monday as traders bet that the ongoing heat wave will increase cooling demands. U.S. liquefied natural gas exports are also on pace to rise in August, according to a report from Reuters. - Pippa Stevens
Despite 'productive' meeting, top lawmakers remain divided over stimulus bill
Top Democrats and Trump administration officials announced that Monday's meetings were "productive," but that each side still has issues with the current coronavirus legislation.
The marginally positive comments came after House Speaker Nancy Pelosi, D-Calif., Senate Minority Leader Chuck Schumer, D-N.Y., Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows met for more than two hours at the Capitol on Monday.
Pelosi categorized the talks as fruitful, but that the negotiators "still have our differences." The motivation to pass another stimulus package gained urgency after a $600 per week federal unemployment benefit expired at the end of July with tens of millions of Americans out of a job thanks to the pandemic. — Thomas Franck
Twitter dips after warning of possible fine
Shares of Twitter were trading 1.2% lower on Tuesday after the company warned investors that it was facing a $250 million fine from the Federal Trade Commission. The company disclosed the warning in its quarterly securities filing and said the potential punishment stems from using email addresses and phone numbers in targeted advertising. — Jesse Pound
Microsoft falls 1% in premarket
Shares of Microsoft fell more than 1% in premarket trading on Tuesday after rallying 5.6% in the previous session. The stock got a boost after the tech giant confirmed it has held talks with Chinese technology company ByteDance to acquire its trendy social app TikTok in the U.S. President Donald Trump weighed in on the deal Monday, saying that it could be easier if Microsoft were to buy TikTok in its entirety and suggesting the company should pay the U.S. Treasury as part of the deal. Trump also said he would like to see the app banned in the U.S. if it's not bought by Sept. 15. — Yun Li
Futures dip following rally fueled by Big Tech
Stock futures fell slightly early Tuesday as investors continued to monitor the earnings season as well as the stimulus talks in Washington. The Dow Jones Industrial Average futures dipped about 50 points, indicating a slightly lower open. The S&P 500 futures fell 0.3%, while the Nasdaq 100 futures traded 0.4% lower. In the previous session, a strong rally in major technology shares pushed the Nasdaq Composite to a new record. — Yun Li