Markets lost steam in afternoon trading, with Apple falling and the Dow erasing a 200-point gain. Positive economic data in the U.S. and China on Tuesday boosted sentiment, while severe weather led to a jump in oil prices. Here's what's happened.
Shares of FedEx surged 4% in extended trading after the logistics company beat Wall Street expectations on the top and bottom lines for its fiscal first quarter. The company reported $4.87 in adjusted earnings per share versus $2.69 expected by analysts, according to Refinitiv. Revenues also beat expectations, coming $1.75 billion higher than projected at $19.3 billion. — Jesse Pound
The three major indexes managed to finish the day higher despite losing momentum in the final hour of trading. The Nasdaq Composite was the outperformer, climbing 1.2%, and the S&P 500 rose of 0.5%. The Dow eked out a one-point gain, helped by a late swing into positive territory by Apple. — Jesse Pound
Shares of Facebook took a leg down after Kim Kardashian announced that she would join other celebrities in a one-day boycott of Facebook and Instagram on Wednesday. The move is part of the Stop Hate for Profit campaign that is lobbying Facebook and other social media companies to better police hate speech and related content on their platforms. The stock has gained about 2% for the day but is more than 1% off its session highs. — Jesse Pound
Bank stocks struggled on Tuesday, with the KBW Bank Index shedding 1.6%. Citibank has been one of the biggest losers in the sector, falling 4.8%. That comes after a 5.6% drop for the stock on Monday following a report from the Wall Street Journal that issues with regulators hastened the recently announced departure of CEO Michael Corbat, who will retire in February. — Jesse Pound
Shares of Apple gave up earlier gains and were down more than 1% after the company wrapped up an event to showcase new products. The tech giant debuted a new Apple Watch and a bundle for its services, such as Apple Music. The stock was up about 2% before the event began. — Jesse Pound
Oil gained nearly 3% on Tuesday as Hurricane Sally tears through the Gulf of Mexico. West Texas Intermediate crude futures gained $1.02, or 2.74%, to settle at $38.28 per barrel. Brent crude rose 92 cents, or 2.3%, to $40.53 a barrel. "Operators are shutting in production and evacuating personnel from the central Gulf of Mexico," noted Rystad Energy. "The current weather system can potentially shut down as much as 1 million barrels of oil per day, mainly in the Mississippi Canyon area," the firm added. - Pippa Stevens
Shares of Peloton fell from their highs of the day after Apple unveiled a new service that connects Apple Watch users to trainers. The new service, Fitness+, will provide a catalog of workout videos. Shares of Peloton were last up nearly 3%, but still off their highs. — Maggie Fitzgerald
Judy Shelton apparently does not have the amount of Senate votes she will need to be confirmed as a Federal Reserve governor. Sen. John Thune (R-S.D.) said the nomination remains a priority of the White House and will be brought to a vote if enough support can be found, according to a Bloomberg News report. The Senate Banking Committee in July pushed Shelton's nomination through to the full floor by a 13-12 party-line vote. Fellow nominee Christopher Waller received much stronger support, gaining an 18-7 approval. Thune's office could not be reached for comment. — Jeff Cox
Tech giant Apple has an event scheduled for 1 p.m. ET on Tuesday, where it is expected to unveil a new Apple Watch and iPad Air. The stock has gained just under 2% during Tuesday's trading session. Follow along with CNBC.com's technology reporters with their live coverage of the event here. — Jesse Pound
Read more about midday movers here. — Maggie Fitzgerald
The major averages were higher around midday with tech leading the charge. The Dow was up 91 points, or 0.3%. The S&P 500 climbed 0.8% and the Nasdaq Composite advanced 1.3%. Shares of Facebook, Apple, Amazon, Alphabet, Netflix and Microsoft rose broadly along with Tesla. —Fred Imbert
Kraft Heinz said Tuesday that it will sell several of its cheese businesses to a U.S. affiliate of France's Groupe Lactalis for $3.2 billion. The proposed transaction is expected to close in the first half of 2021, subject to regulatory review and approval. The deal includes Kraft Heinz's U.S. natural, grated, cultured and specialty cheese businesses and its grated cheese business in Canada. Shares of Kraft Heinz gained 1.6% on Tuesday.— Yun Li
Many on Wall Street are bracing for a much slower process to determine the next U.S. president, according to the September CNBC Fed Survey. Forty-seven percent of respondents think the winner of the presidential election will only be known a week after election day; 36% say it could take a month or longer. Just 6% believe the winner will be known on election night and another 6% think it will be known within two days. And 86% of the 37 respondents, who include fund managers, strategists and economists, believe a contested election is a current risk to the stock market. — Steve Liesman
A number of S&P 500 names hit new 52-week highs amid Tuesday's rally:
Pro Subscribers can read more here.- Michael Bloom
More fund managers surveyed by Bank America believe a credible vaccine for Covid-19 will be the catalyst for a move higher in bond yields, rather than inflation.
The monthly survey found that 41% of the fund managers expect a vaccine to trigger a move higher in yields, compared to 37% who expect inflation to be the driver. Treasury yields move opposite to price.
Thirty-nine percent expect a vaccine to be approved in the first quarter of next year, while 32% believe it will be in the fourth quarter of this year.
Another 11% expect high debt levels to force rates higher, while just 5% see the election outcome as the reason rates would move. The benchmark 10-year Treasury yield has been below 1% since March and was at 0.68% Tuesday morning.— Patti Domm
Major stock averages opened in the green on Tuesday, extending Monday's strong rally. The Dow Jones Industrial Average jumped 180 points, led by a 2.4% gain in Apple shares. The S&P 500 rose 0.8%, and the Nasdaq Composite climbed 1.1%. — Yun Li
The New York Federal Reserve's Empire State manufacturing index jumped to 17 in September, rebounding from more muted levels in August. Economists polled by Dow Jones expected a print of 7. The stronger-than-expected data was driven in part by a rebound in new orders and shipments. Delivery times also improved this month. —Fred Imbert
Chamath Palihapitiya said Tuesday his SPAC Social Capital Hedosophia II will acquire Opendoor, an online marketplace for buying and selling houses. Opendoor will receive $414 million from the capital generated from the April initial public offering of his SPAC. Additionally, a group of investors, including Palihapitiya and funds managed by BlackRock, agreed to infuse another $600 million through a PIPE, or a private investment in public equity. The deal values Opendoor at $4.8 billion — nearly equal to its 2019 revenue. The company's earlier investors include General Atlantic, SoftBank's Vision Fund and Lennar Corporation. Shares of Social Capital Hedosophia II surged more than 18% in premarket trading on Tuesday.— Leslie Picker
China's National Bureau of Statistics said Tuesday the nation's retail sales rose 0.5% in August from a year ago, the first positive report for the year so far. Notably, sales of communication equipment rose 25.1% from a year ago and that of autos rose 11.8%. Retail sales for the first eight months of the year were down 8.6% from a year ago, the bureau said.—Evelyn Cheng, Yun Li
Shares of homebuilder Lennar fell more than 3% in the premarket even after the company posted quarterly results that beat analyst expectations. Lennar reporter earnings per share of $2.12 on revenue of $5.87 billion. Analysts polled by Refinitiv expected a profit of $1.55 per share on revenue of $5.48 billion. New orders and deliveries were all above expectations. The move lower could be due to profit taking as the stock is up more than 41% year to date and has rallied nearly 73% over the past six months. —Fred Imbert
Tesla shares jumped more than 4% during premarket trading on Tuesday, building on Monday's strength, which saw the stock pop more than 12%. The stock was also on track for its fifth straight day of gains as it looks to claw back last Tuesday's 21.06% drop, which was Tesla's worst day on record. With the premarket move, the stock was set to open around $437, or about 13% below its all-time high of $502.49 from Sept. 1. - Pippa Stevens
The market is set to build on Monday's strong rally as technology shares continued to rebound from the recent rout. Dow Jones Industrial Average futures gained 200 points, indicating an opening gain of about 190 points. The S&P 500 futures rose 0.7%, while the Nasdaq Composite climbed 1.1%. Big Tech shares led the premarket gains as Amazon, Microsoft, Facebook and Alphabet all rose at least 1% each, while Apple jumped 2% after gaining 3% in the previous session. — Yun Li