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

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