Stock market live Tuesday: Dow drops 150 points, Apple drops 2.7% after 5G event, earnings begin

This is CNBC's markets live blog that will be updated throughout the day. 

Tuesday's stock weakness by the by numbers

  • Dow closed down 0.55% for its first negative day in five
  • This year, the Dow is up 0.5%
  • Dow is 3.01% below its intraday all-time high of 29,568.57 from Feb. 12
  • S&P 500 closed down 0.63% for its first negative day in five
  • This year, the S&P 500 is up 8.7%
  • S&P 500 is 2.12% below its intraday all-time high of 3,588.11 from Sept. 2
  • Nasdaq Composite closed down 0.1% for its first negative day in five
  • This year, the Nasdaq Composite is up 32.22%
  • Nasdaq Composite is 1.74% below its intraday all-time high of 12,074.07 from Sept. 2
  • Sectors: Nine out of 11 sectors were negative Tuesday led by financials down 1.9%.— Maggie Fitzgerald, Gina Francolla

Dow has its first down day in five, drops more than 150 points

Stocks were under pressure on Tuesday with disappointing vaccine news and an impasse over Covid-19 stimulus. The Dow Jones Industrial Average closed down 157 points, for its first day of losses in five. The S&P 500 fell 0.64%, dragged down by a 2.65% drop in Apple's stock. The Nasdaq Composite also closed in the red, falling 0.1%. — Maggie Fitzgerald

Netflix pops 3% after streaming giant ditches free trials in the U.S.

Shares of Netflix rose about 3% on Tuesday on news the company no longer offers free 30-day trials for the streaming service in the U.S. Shares of Netflix are up more than 70% this year, a major beneficiary of the Covid-19 pandemic. — Maggie Fitzgerald

Final hour of trading: Dow heads for first decline in five days

The Dow was on pace to snap a four-session winning streak with less than one hour left in the session as traders weighed the latest news on earnings, coronavirus vaccine and antibody treatments, and U.S. fiscal stimulus. The 30-stock average traded 140 points lower, or 0.5%. The S&P 500 also dipped 0.5% while the Nasdaq eked out a 0.2% gain. —Fred Imbert

Eli Lily antibody trial halted

U.S. regulators have paused Eli Lilly's late-stage trial of its monoclonal antibody cocktail aimed at treating cases of Covid-19, the company confirmed to CNBC. An independent board recommended the stoppage due to safety concerns. Shares of Eli Lilly fell sharply on the news and are down 2.5% for the session. — Jesse Pound

Apple shares tick lower after tech giant unveils 5G iPhone

Apple was down about 1.7% on Tuesday shortly after the company's product event kicked off. Apple revealed an iPhone 12 with 5G connectivity, a long-awaited product for the technology giant. Apple shares often experience short term weakness around event days, but ultimately recover in the long term. Hedge fund analytics tool Kensho data shows Apple shares are down on average for the day and week of a media event, but the stock, on average, is 10.7% higher three months after the event.

Morgan Stanley noted Apple shares have outperformed the S&P 500 by an average of 13 percentage points in the six months following an iPhone launch event.

Apple shares are up 9% over the last one month heading into the event. — Maggie Fitzgerald

Stocks making the biggest moves midday

  • Ethan Allen — Shares of the furniture company surged more than 12% after reporting preliminary fiscal first quarter results well above analysts expectations.
  • Delta Air Lines — Delta shares fell more than 2% after the airline giant reported a loss of $3.30 per share, a bigger loss than Wall Street expected.
  • Citigroup — Shares of the bank fell 4.2% despite topping analyst estimates for its third quarter results

Read more about midday movers here. — Maggie Fitzgerald

Markets at midday: Stocks are mixed as earnings season kicks off

The Dow and S&P 500 both fell slightly on Tuesday while the Nasdaq Composite posted a small gain as traders pored through the first batch of corporate earnings. The Dow traded 106 points lower, or 0.4%. The S&P 500 dipped 0.3%. The Nasdaq, meanwhile, climbed 0.3%. —Fred Imbert

Stocks turn lower as Apple gives up gains, tech cools off

Though the Nasdaq Composite traded higher at the opening bell, it soon reversed course and turned negative after Apple and other major tech stocks came under pressure within the first half hour of the regular session.

The Composite was last seen down 0.25% while the Dow shed 100 points, or 0.35%. The S&P 500 lost 0.3%.

Utilities, real estate investments trusts and materials stocks were the biggest laggards on a by-sector basis of the S&P 500. Boeing and Johnson & Johnson had the largest negative impacts on the Dow.

Apple, which at one pointed had traded up 1.4% in premarket moves, lost 1.7% around 9:45 a.m. ET ahead of the company's hotly anticipated 5G iPhone event. — Thomas Franck

Pelosi says White House stimulus proposal falls 'significantly short'

House Speaker Nancy Pelosi said in a letter to colleagues that the White House's latest proposal for stimulus was insufficient and called President Donald Trump's attitude toward the negotiations "shameful."

Pelosi included quotes from other high-ranking House Democrats outlining issues with several points of the proposal, including state and local government aid and rental assistance.

But despite the critical tone, Pelosi left some hope and said she believes it's still possible to make a deal.

"I remain hopeful that the White House will finally join us to recognize the needs of the American people, and take action to address the health and economic crisis in their lives," Pelosi said. — Jesse Pound

S&P 500, Dow open lower, but tech leads Nasdaq upward

Both the Dow Jones Industrial Average and the S&P 500 opened lower Tuesday morning as rekindled concerns about the spread of Covid-19 and efforts to develop a vaccine weighed on stocks of the largest U.S. companies.

The Dow shed 80 points, or 0.3% at the start of the regular session while the S&P 500 lost a more modest 0.05%.

The Nasdaq Composite, however, traded 0.25% higher as strength from mega-cap stocks like Amazon and Apple drove the index higher. Apple, Amazon, Facebook and Microsoft gained 0.1%, 1%, 0.1% and 0.5%, respectively, at the opening bell. — Thomas Franck

Royal Caribbean drops 6% after announcing stock offering, U.S. update

Shares of cruise operator Royal Caribbean dipped more than 6% in premarket trading Tuesday after it said that it has begun a public offering of $500 million worth of common stock and offered an update on its U.S. business.

The cruise company, a microcosm of the broader travel and vacation industry, has been hit especially hard during the Covid-19 pandemic as would-be travelers stay home.

The company also said that it could reassess the employment of its U.S. shoreside workforce and idle more ships to cut costs. The cruise operator hasn't sailed for more than six months in the U.S. and said about 23% of its U.S. shoreside employees have either been laid off or furloughed. — Thomas Franck

Disney announces major reorganization, media giant will focus on streaming

Disney announced a major overhaul of its media and entertainment divisions on Monday as the company makes streaming its "primary focus."

In order to further accelerate its direct-to-consumer strategy, the company will be centralizing its media businesses into a single organization that will be responsible for content distribution, ad sales and Disney+.

The move comes as Disney's parks and theatrical divisions have been hammered by the coronavirus pandemic.

"I would not characterize it as a response to Covid," CEO Bob Chapek told CNBC's Julia Boorstin on "Closing Bell" on Monday. "I would say Covid accelerated the rate at which we made this transition, but this transition was going to happen anyway."

"We are tilting the scale pretty dramatically [toward streaming]," Chapek added. Shares of Disney advanced more than 4% during premarket trading on Tuesday. — Sarah Whitten, Pippa Stevens

JPMorgan, J&J and BlackRock kick off corporate earnings season

The third-quarter corporate earnings season began in earnest on Tuesday after financial firms JPMorgan Chase and BlackRock topped analyst profit expectations for the three months ended Sept. 30.

For JPMorgan, the better-than-expected earnings results came as the big bank set less aside for loan losses in the third quarter after having built up reserves in the first half of 2020 to protect against sudden defaults sparked by the Covid-19 crisis. Its stock rose 1.2% in premarket trading.

BlackRock, the globe's largest asset manager, said its healthy profits came as the recovery rally in global financial markets boosted asset values and pulled in more investor funds. The company ended the third quarter with $7.81 trillion in assets under management, up from the $7.32 trillion in the second quarter and $6.96 trillion a year earlier. BlackRock equity gained 3.8% before the opening bell.

Even though Johnson & Johnson beat analyst expectations on both the top and bottom lines, its stock fell 1.2% in premarket trading after it announced that it was pausing its Covid-19 vaccine trial. The drugmaker said that an "adverse event" in one of its trial participants prompted the halt. — Thomas Franck

Apple shares rise in the premarket ahead of new iPhone launch

Apple rose more than 1% in the premarket as investors eagerly awaited the unveiling of a new iPhone with 5G cellular capability. Historically, Apple shares have outperformed the broader market in the six months after the tech giant releases a new iPhone, data from Morgan Stanley shows.

Apple's event is set to start at 1 p.m. ET. — Fred Imbert

Johnson & Johnson pauses vaccine trial

Johnson & Johnson announced Monday that it has paused the late-stage trial of its Covid-19 vaccine due to an "adverse event" on Sunday. Chief Financial Officer Joseph Wolk said on CNBC's "Squawk Box" that the pause will allow the company's data and safety monitoring board to investigate the unexpected illness in one of its trial participants.

Shares of the company were down 1.8% in premarket trading despite beating analyst expectations in its third-quarter earnings report. — Jesse Pound, Berkeley Lovelace Jr.

Futures mixed between virus headlines, tech resilience

U.S. stock futures traded mixed in premarket trading Tuesday morning between negative Covid-19 headlines and resilience in the technology sector.

Dow futures lost more than 100 points, or more than 0.3%, after Johnson & Johnson announced its pausing its vaccine trial after an unexplained illness in one of its study participants. The premarket moves in Dow futures implied an opening decline of about 30 points.

Nasdaq-100 futures, however, rose 1% as mega-cap tech names Apple and Amazon rose 1.6% and 1.4%, respectively, ahead of big events this week.

S&P 500 futures were little changed as some of the nation's largest financials firms kicked off the third-quarter earnings season. — Thomas Franck