The Dow closes 100 points lower as the Federal Reserve’s rate decision approaches: Live updates

The three major stock indexes finished Tuesday's session lower.

The Dow ended more than 100 points down, or 0.3% lower. Meanwhile, the S&P 500 and Nasdaq Composite both shed around 0.2%.

— Alex Harring

Redburn Atlantic initiated coverage of Arm with a hold rating, citing a tricky execution path ahead.

"Arm's guidance for a rapid pivot in achieved royalty rates would be a marked departure from historical performance trends," wrote analyst Timm Schulze-Melander in a Tuesday note to clients.

"Given lackluster financial performance in FY23 and the June quarter, F2Q earnings in mid-November need to evidence how such a pivot will be both delivered and sustained," he added.

The next four to six quarter will be critical for Arm and should influence the company's growth and earnings power over the long run, according to Schulze-Melander.

"The stakes are high and the path ahead challenging," he wrote, placing a $50 price target on shares that represents about 14% downside from Monday's close.

Shares sit about 1% below last week's debut price Thursday and 13% below that session's closing level.

— Samantha Subin

Oppenheimer is optimistic that U.S. Bancorp could bounce back after its tough year.

The firm maintained its overweight rating and $67 price target on the stock, implying that shares stand to gain 92.8% from its close on Monday. The stock has plunged more than 21% so far this year, but has seen a modest increase this quarter.

"COVID-19 disruptions and declining rate headwinds have obstructed the quarterly progression of operating leverage and caused a likely minor lapse; however, we think USB is well poised to continue to outperform and will likely return to its prior trends once trends normalize," analyst Chris Kotowski wrote in a Tuesday note.

While he said that USB has long been one of the best-performing banks in the industry, it has consistently lagged its major rivals in earnings-per-share growth. The bank has started seeing accelerating core earnings growth again since interest rates started rising in 2015, he added.

— Pia Singh

The top 10 global stocks by market value have a greater hold than ever before on the capital markets, and that could be a bad thing, says Ned Davis Research.

The Wall Street firm said the top 10 names by market cap in the All Country World Index (ACWI) now account for nearly one-fifth, or 19%, of the value of the benchmark — a new record in terms of concentration, according to a Monday note.

Not only are all U.S. companies, the top eight — Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla — are the usual suspects that have enjoyed huge rallies this year on artificial intelligence enthusiasm.

But if history is any indication, that could mean choppy waters ahead for investors.

CNBC Pro subscribers can read the full story here.

— Sarah Min

Pinterest's stock gained more than 3% after the company shared expectations for strong year-over-year revenue growth.

The company said during its first investor day that it anticipates its compound annual growth rate to range in the mid to high teens over the next three to five years. That's above Pinterest's guidance for high-single digit revenue growth in the third quarter.

— Jordan Novet, Samantha Subin

The three major indexes regained some ground but were still on pace to end Tuesday lower with one hour of trading left.

The Dow was down about 125 points, or 0.4%, shortly before 3 p.m. ET. The S&P 500 and Nasdaq Composite both slipped 0.3%.

All three were off session lows. The Dow has lost more than 300 points, or 0.9%, at its worst point in the session. The S&P 500 and Nasdaq has tumbled about 0.8% and 1%, respectively.

— Alex Harring

Dell stock will continue to benefit from strong artificial intelligence demand and server backlog, according to Daiwa Capital Markets.

The firm upgraded shares of the computer company to outperform in a Monday note.

"It is very encouraging that Dell is seeing material demand now for their AI solutions, specifically their PowerEdge 9680," analyst Louis Miscioscia said. "The backlog is $2 [billion], with a 39 week lead time to May 2024 and with a sales pipeline that is even bigger than the backlog."

Shares added 1.3% in Tuesday trading.

CNBC Pro subscribers can read the full story here.

— Brian Evans

Royal Caribbean was upgraded to buy from hold, while Carnival was bumped up to hold from sell by Truist on Tuesday. The Wall Street firm also hiked its price target on Royal Caribbean to $137 from $115, suggesting nearly 43% upside from Monday's close.

After conversations with travel agency executives and examining big data on future bookings and pricing, forward-looking trends look "exceptionally strong" for 2024 and 2025, analyst Patrick Scholes wrote in a note to clients. On top of that, the stocks have cooled off after several months of outperformance, he said. Shares of Royal Caribbean are down about 12.5% from its 2023 closing high of $109.68 on July 27.

"Assuming no major 'unforeseen events' (this industry unfortunately has been susceptible to such things), we believe consensus earnings expectations for 2024 and 2025 are too conservative, especially for RCL," Scholes said.

Royal Caribbean added more than 2%, while Carnival gained around 0.9%.

— Michelle Fox

Evercore downgraded shares of Deere to in-line from outperform on Monday, citing slowing production and declining revenues in the next fiscal year. Shares of Deere fell over 2% during Monday's trading session.

Analyst David Raso reduced the price target for Deere accordingly to $424 from $456. With the stock opening this morning at $402.59, that still implies an upside of over 5%.

However, Raso noted that Deere's near-term revenues still look better than those of competitors such as CNH Industrial and AGCO.

"Keeping DE's overall '24 sales declines likely less than, say, CNHI or AGCO is DE's superior mix of high hp tractors, particularly for North America and its greater exposure to North America construction equipment," Raso wrote.

— Lisa Kailai Han, Michael Bloom

The IPOs of Arm Holdings and Instacart have raised hopes of a revenue rebound for Wall Street banks, but investors should stay away from Lazard, according to Goldman Sachs.

Analyst James Yaro downgraded the financial stock to sell from neutral, saying in a note to clients that Lazard would struggle to keep up with its peers.

"We see slower top-line growth than at peers, driven by a combination of slower senior banker hiring ..., the overhang from structurally lower growth in asset management that comprises ~40% of LAZ's revenue, and less skew to areas of M&A that we expect to outperform," the note said.

Shares of Lazard were down 1.3% on Tuesday.

— Jesse Pound

These are some of the stocks making the biggest midday moves:

• Starbucks — Shares fell 2% in midday trading after a downgrade to market perform from TD Cowen.
• Instacart — The grocery delivery stock roared out the gates and rallied 35% as it debuted on the public market midday Tuesday.
• Deere — The industrial stock fell nearly 3% after Evercore downgraded the shares to in line from outperform. 

See the full list here.

— Pia SIngh

All 11 sectors in the S&P 500 traded down on Tuesday.

The broad index slipped around 0.7% shortly after 1 p.m. ET. Consumer discretionary, energy and industrial stocks were among the worst performing, with the three sectors all down more than 1%.

Utilities and health care were able to keep losses mitigated, down just 0.3% each.

— Alex Harring

Instacart shares popped 40% in their Nasdaq debut on Tuesday, opening at $42, after the grocery-delivery company's long-awaited IPO.

The offering late Monday valued Instacart at about $10 billion on a fully diluted basis, down from a private market valuation of $39 billion at the height of the Covid pandemic in early 2021. The opening price lifted its valuation to about $14 billion.

— Ari Levy, Tanaya Macheel

Disney's drop of more than 3% following news of increased investment in its parks and cruise businesses has weighed on the Dow.

The 30-stock index was down about 0.8% in Tuesday's session. Intel was the next worst performer with a drop of more than 2%.

Just two stocks in the blue-chip average traded notably up in the session, with IBM and Amgen rising 0.5% and 0.4%, respectively. Meanwhile, Apple flickered around the flatline.

— Alex Harring

Evercore ISI thinks CVS' "attractive" valuation and effort to improve operational headwinds will boost shares.

The firm upgrade CVS stock to outperform from in-line in a Tuesday note.

"CVS, like many [managed care organizations], is a complex organization, and we see a number of factors swinging in a positive direction, pointing to both a higher degree of confidence in [management's] outlook as well as supportive of higher valuation," analyst Elizabeth Anderson said.

CNBC Pro subscribers can read the full story here.

— Brian Evans

ProShares Online Retail ETF (ONLN), which tracks 25 ecommerce companies, sold off 2% Tuesday, for its third straight day of losses. The fund was dragged lower by Carvana, MercadoLibre, Overstock.com, Coupang and Amazon, which all fell at least 2%.

— Yun Li, Gina Francolla

Canada's inflation rate rose more than expected in August thanks to a big increase in gas prices, the government announced Tuesday.

The consumer price index accelerated 0.4% on the month, double the Dow Jones estimate though less than the 0.6% increase in July. On a yearly basis, the CPI rose 4%, topping the 3.8% estimate.

A 4.6% monthly increase in gas prices pushed the year-over-year level higher by 0.8%, the first annual gain since January.

U.S. Treasury yields briefly lurched higher following the news, with the 10-year yield most recently at 4.34%, just off its highest level since 2007.

Goldman Sachs CEO David Solomon is "not going anywhere anytime soon" even with his leadership under fire in recent media coverage, according to Wells Fargo's Mike Mayo.

Mayo, head of U.S. large-cap bank research at Wells Fargo Securities, made his comments Tuesday following a sit-down conversation he said he had Monday with the lead director of the board of directors at Goldman Sachs. The lead director is Adebayo Ogunlesi.

"He made it very clear that there is no CEO issue at Goldman Sachs. He said look at the results, the execution and the strategy, they're going very well. He said the reputation is still fine," Mayo said on CNBC's "Squawk Box."

"He all but like gave a silver medal," said Mayo, adding. "Basically a metaphor for what the board of directors is effectively giving David Solomon. So, if you have a silver medal for your performance, you're not going anywhere anytime soon."

— Sarah Min

The Nasdaq-100 slumped nearly 1% during morning trading, led to the downside by shares of software and semiconductor stocks.

Some of the biggest laggards included Amazon, Datadog and Zoom Video, falling nearly 3% each. Marvell Technology, Qualcomm, CrowdStrike and Applied Materials slumped more than 2%.

Uruguay-headquartered e-commerce company MercadoLibre was the biggest laggard on the index, last down 3.6%.

— Samantha Subin

Oil prices surged more than $1, marking a fourth consecutive session of gains as weak U.S. shale output added to supply concerns from extended production cuts by Saudi Arabia and Russia.

Here's how prices fared Tuesday morning:

• Global benchmark Brent crude futures were up $0.90, or 0.95%, to $95.33 a barrel
• U.S. West Texas Intermediate crude futures were up $1.27, or 1.4%, to $92.75. 

Prices have gained for three consecutive weeks, with both benchmarks reaching their highest since last year.

— Pia Singh

Disney shares fell 3% during early morning trading after revealing plans to nearly double its planned investment in its parks and and cruise business, according to securities filings released Tuesday.

The entertainment giant said it will invest roughly $60 billion in this segment over the next decade.

— Lillian Rizzo, Samantha Subin

Barclays says Supermicro stock can jump thanks to exceptional artificial intelligence exposure.

The firm began coverage of the computer technology stock on Tuesday with an overweight rating.

"On the back of the compelling AI investment trend, we believe SMCI's robust AI server offerings will enable it to seize the increasing opportunity in this area, leading to strong revenue growth over the next few years," analyst George Wang said.

CNBC Pro subscribers can read the full story here.

— Brian Evans

Stocks were down as trading kicked off.

The Dow and S&P 500 each slid 0.2% shortly after 9:30 a.m. ET. The Nasdaq Composite slipped 0.3%.

— Alex Harring

It's a big week for central banks — both within the U.S. and abroad.

The Federal Reserve begins its two-day policy meeting Tuesday. Traders are pricing in a 99% probability the Fed skips a rate hike when announcing policy on Wednesday, according to CMEGroup's FedWatch tool, which gauges pricing in fed funds futures. The Fed will also offer economic forecasts on Wednesday.

The central banks of multiple other countries are also expected to announce policy decisions this week. Here's a list of the countries scheduled to release decisions in the 36 hours following the Fed's announcement expected at 2 p.m. ET on Wednesday, per Bespoke Investment Group:

• Brazil
• Indonesia
• Japan
• Norway
• South Africa
• Sweden
• Switzerland
• Taiwan
• Turkey
• The United Kingdom

Sam Stovall, chief investment strategist at CFRA Research, said investors around the globe "are on edge waiting to find out what their central banks are likely to do."

— Alex Harring

Rocket Lab shares dropped in premarket trading after the aerospace company suffered its first launch failure in more than two years early Tuesday morning. The stock was last lower by roughly 20%.

The company said its 41st Electron rocket launch – lifting off from New Zealand and carrying the Acadia 2 satellite for San Francisco-based Capella Space – failed about 2 minutes and 30 seconds into the flight. Rocket Lab said it has begun working with the Federal Aviation Administration on investigating the root cause of the issue, which appeared to happen around the time the rocket's first and second stages separated.

The aerospace stock is set to open below $5. Shares closed Monday at $5.04.

— Michael Sheetz, Sarah Min

Check out the companies making headlines before the bell:

• Carnival, Royal Caribbean Group — The cruise lines both gained about 2% after being upgraded by Truist. The Wall Street firm moved Royal Caribbean to buy from hold and Carnival to hold from sell, citing forward-looking trends for 2024 and 2025 that look "exceptionally strong." Truist maintained its hold rating on Norwegian Cruise Lines, which was up more than 1% in premarket trading.
• Deere & Company, CNH Industrial — The two stocks slid in the premarket after Evercore ISI downgraded each to in-line from outperform, citing agricultural production cuts. Deere fell 1.4%, CNH declined 1.2%.
• Starbucks — Shares fell 1.2% after TD Cowen downgraded the coffee giant over the "worrisome" macro backdrop in China. The firm believes slower consumer spending in China could hit share growth and affect Starbucks' multiple.

Read the full list here.

— Sarah Min

Starbucks shares slid more than 1% before the bell after TD Cowen said slower consumer spending and macroeconomic headwinds China could hurt the coffee chain.

The firm downgraded the stock to market perform from outperform on Tuesday.

"While we forecast consensus 2023-25E EPS is achievable, in our view the multiple isn't discounted enough vs the 5Y [average] that leads us to expect shares will be in a holding pattern," analyst Andrew Charles said. "We like the long-term story but move to the sidelines as we monitor China macro & competitive dynamics."

CNBC Pro subscribers can read the full story here.

— Brian Evans

The three major indexes finished Monday's session little changed as investors readied for the Federal Reserve meeting that begins Tuesday.

The Dow ended the session 0.02% higher, while the Nasdaq Composite inched up just 0.01%. Meanwhile, the S&P 500 was the most changed with a gain of 0.07%.

— Alex Harring

European markets opened lower Tuesday, with investors looking ahead to the start of the U.S. Federal Reserve's two-day monetary policy meeting.

The pan-European Stoxx 600 index opened 0.2% lower, with sectors spread across tentatively positive and negative territory. Health-care stocks made the biggest losses, down 0.7%, while travel and leisure stocks were up 0.2%.

— Hannah Ward-Glenton

The CEO of Square is set to depart the company, according to regulatory filings released Monday.

Alyssa Henry is slated to leave the unit of fintech company Block on Oct. 2 after more than nine years at the company.

Shares of Block dipped nearly 2% in extended trading.

— Samantha Subin

Ark Invest's Cathie Wood reiterated her massively bullish call on her EV darling Tesla, seeing it hitting $2,000 in five years driven largely by a robotaxi boom.

"About a third of our valuation is associated with electric vehicles," Wood said on CNBC's "Fast Money" Monday. "Two thirds of our evaluation is around autonomous [driving] and autonomous taxi platforms."

Wood's bear case on Tesla is a $1,400 target by 2027 and $2,500 as her bull case. Tesla is the biggest holding in her flagship Ark Innovation ETF (ARKK) fund, with a 11.5% weighting. Shares of Tesla have mpre than doubled this year after losing 65% in 2022.

— Yun Li

Instacart priced its IPO at $30 a share Monday evening, valuing the grocery delivery company at roughly $10 billion.

The company is set to debut Tuesday on the Nasdaq under the "CART" ticker symbol.

The puts the offering at the top end of the $28 to $30 a share range expected.

— Ari Levy, Samantha Subin

Stock futures opened little changed on Monday evening as Wall Street looked ahead to the start of the Federal Reserve's policy meeting.

Futures tied to the Dow Jones Industrial Average added 13 points, or 0.03%, while S&P 500 futures and Nasdaq 100 futures inched up 0.02% and 0.06%, respectively.

— Samantha Subin