S&P 500, Nasdaq close lower Wednesday as inflation report looms: Live updates

U.S. stocks ended Wednesday's trading session in the red.

The Dow Jones Industrial Average shed around 23 points, or 0.06%.

The S&P 500 and Nasdaq Composite dropped 0.17% and 0.55%, respectively.

— Hakyung Kim

Technical corrections almost always happen during the second year of bull markets, but that's normal and healthy, according to BMO Capital Markets.

"We believe the almost unimpeded rally off the October 2023 low and elevated valuation levels necessitate some near-term caution, if history is any sort of guide," chief investment strategist Brian Belski wrote in a Tuesday note, saying a breather is overdue. "Fortunately, the somewhat unexpected strength and resilience in earnings is likely to sustain stock prices since this is a trend we expect to continue throughout the year based on our above-consensus EPS target ($250)."

Belski advised investors to "not be too concerned" if the market sees some weakness in the upcoming months, and instead use potentially weaker periods as an opportunity to increase their exposure to some favored spots in their portfolios.

The S&P 500 is up 6.2% so far this year, but has lost 0.5% week-to-date.

— Pia Singh

Crude oil futures were mixed Wednesday as U.S. crude inventories rose while OPEC+ is considering extending its production cuts into the second quarter.

The West Texas Intermediate contract for April dropped 33 cents, or 0.42% to settle at $78.54 a barrel. April Brent futures gained 3 cents, or 0.04%, to settle at $83.68 a barrel.

U.S. commercial crude stocks rose by 4.2 million barrels last week, according to the Energy Information Administration.

OPEC+ is considering extending its voluntary production cuts into the second quarter, sources told Reuters. The cartel and its allies agreed last November to slash 2.2 million barrels per day in the first quarter.

— Spencer Kimball

Several stocks in the S&P 500 hit 52-week highs on Wednesday, including financials Wells Fargo and American Express, discount retailers Ross Stores and TJX Companies, and home improvement companies Home Depot and Lowe's.

Stocks in the broad market index that hit new highs include:

• Home Depot trading at levels not seen since Jan. 2022
• Hilton Worldwide trading at all-time highs back to its IPO in Dec. 2013
• Lowe's trading at levels not seen since Jan. 2022
• O'Reilly Auto trading at all-time high levels back to its IPO in Apr. 1993
• Ross Stores trading at all-time high levels since its IPO in Aug. 1985
• The TJX Companies trading at all-time highs back to IPO in 1987
• Ulta trading at all-time high levels back to its IPO in October. 2007
• Costco trading at all-time high levels back to its IPO in Dec. 1985
• American Express trading at all-time high levels back to its IPO in May 1977
• MasterCard trading at all-time high levels since its IPO in May 2006
• Marsh & McLennan trading at all-time high levels back to 1962 when it became a public company
• Raymond James Financial trading at levels not seen since Nov. 2022
• Synchrony Financial trading at levels not seen since Apr. 2022
• Wells Fargo trading at levels not seen since Feb. 2022
• Regeneron Pharma trading at all-time highs back to its IPO in Feb. 1991
• General Electric trading at levels not seen since July 2017
• Sherwin-Williams trading at levels not seen since Jan 2022
• Constellation Energy trading at all-time high levels back to its spin-off from Exelon in Jan. 2022
• NRG Energy trading at all-time highs back to its IPO in May 2000

— Pia Singh

Copper fell 0.3% Wednesday and hit a low of $3.8215, the lowest level since Feb. 20. Month to date, copper is down 1.7%. If it does end February lower, this would mark the commodity's first negative month in four months.

Gold also pulled back 0.07% at $2,042.7 Wednesday. The metal is around 1.2% lower for the month, putting it on pace for its second straight monthly fall, as well as its worst month since September 2023.

— Hakyung Kim

Bitcoin reached a fresh high of $64,000 Wednesday before turning lower, according to Coin Metrics. This marks the cryptocurrency's highest level since Nov. 15, 2021, when it rose as much as $66,333.33.

It was last trading at $61,097.00.

— Hakyung Kim

The rally for bitcoin is translating into record high trading volume for bitcoin ETFs.

The iShares Bitcoin Trust (IBIT), widely seen as the biggest winner of the new bitcoin funds, has already blown past its record trading volume on Wednesday. The fund has already seen more than 60 million shares change hands.

The Fidelity Wise Origin Bitcoin Fund (FBTC) also appeared likely to set a new record high in trading volume Wednesday.

The increased in share volume, combined with the rising price of bitcoin, translates into billions of dollars of trading volume in the bitcoin ETFs on Wednesday.

— Jesse Pound

Homebuilder stocks such as D.R. Horton and Toll Brothers rose in afternoon trading, bucking the trend in the broader market.

D.R. Horton shares gained 0.7%, while Toll Brothers shares advanced about 1%. Shares of Lennar, also, rose 0.6%.

Meanwhile, the S&P 500 itself was down by 0.1%.

— Sarah Min

These are the stocks moving the most in midday trading:

• Beyond Meat — The plant-based meat company skyrocketed more than 40% following its revenue beat.
• eBay — Shares soared more than 7% after the online marketplace said it would raise its dividend by 2 cents.
• Urban Outfitters — The clothing retailer plunged 15% after missing estimates for its fourth-quarter earnings and revenue.

Read the full list of stocks moving here.

— Lisa Kailai Han

Beyond Meat is on track to see its biggest one-day advance in the alternative protein producer's history.

Shares soared more than 42% on Wednesday, bringing the stock price above the $10 mark. If that holds through the closing bell, it will be the stock's largest one-day percentage gain in its nearly five years on the market.

Wednesday's rally comes after the California-based company reported better-than-expected revenue in the fourth quarter and announced plans to cut operating costs and cash use.

Though the move is sizable when looking at the percentage, shares are still well off where they once sat. The stock traded at more than $230 per share at points, and its initial public offering was priced at $25 per share.

— Alex Harring

Urban Outfitters headed for its worst session in nearly half a decade after fourth-quarter earnings underwhelmed analysts.

Shares tumbled 14.8% in afternoon trading on Wednesday. If that holds through market close, it would mark the retailer's worst day since Nov. 20, 2019, when it dropped 15.2%.

Wednesday's decline came after the Philadelphia-based company missed Wall Street expectations on both lines. Urban Outfitters reported 69 cents earned per share, excluding items, on $1.49 billion in revenue, while analysts surveyed by LSEG estimated 74 cents and revenue at $1.5 billion.

Despite the sell-off, shares are still up more than 12% compared with the start of 2024.

— Alex Harring

U.S. investors aren't just looking toward Thursday's personal consumption expenditures data — they're also interested in the European Union's consumer price index data coming out on Friday.

The EU's CPI index will be for February, providing a closer update on inflation than the U.S.'s PCE results and most recent CPI report, which are for January.

"More interesting than the PCE will be the European CPIs (since they are for Feb instead of Jan) – if they show the type of disinflation anticipated by investors, it's likely [that] Lagarde's tone during the upcoming ECB press conference on March 7 is more dovish than the present narrative," Vital Knowledge wrote in a Wednesday note.

"The ECB will be forced to actually cut rates in June because inflation is going to be below their target," said Infrastructure Capital Advisors CEO Jay Hatfield. "If the ECB cuts rates then U.S. rates will drop accordingly."

— Hakyung Kim

The technology sector lagged the S&P 500 Wednesday.

Tech fell nearly 0.6% for the day, with chipmakers Applied Materials and Micron Technology falling more than 2% and leading the sector's losses.

While more S&P 500 sectors are positive for the day, rather than negative, the tech sector's heavy weight in the index has pulled the broader market in the red.

The sector is also underperforming the S&P 500 on a weekly basis. Tech is down 0.4% week to date, while the S&P 500 is 0.3% lower over the same period.

— Hakyung Kim

First Solar shares rose Wednesday after another solid quarter, with the company booked solid through 2026 on an order backlog that stretches into the end of the decade.

The stock traded as much as 9% higher on the day. It was last up about 2%.

First Solar has a record order backlog of 80.1 gigawatts stretching through the end of the decade with the company completely booked through the next two years.

High interest rates pummeled the highly leveraged residential solar sector, but First Solar's focus on large, utility-scale projects has insulated the company from the macroeconomic headwinds.

"We continue to believe FSLRs extended visibility into margin levels and cash flows provides a relative safe haven for investors," JPMorgan analyst Mark Strouse told clients in a note. JPMorgan has a price target of $226 for the stock, implying about 56% upside from Tuesday's close.

— Spencer Kimball

Electric vehicle manufacturer Tesla rose 2.5% Wednesday. The jump comes on the back of the news that Apple has ended its efforts to build an electric car to rival Tesla.

Tesla shares have come under pressure in 2024 following the company's disappointing quarterly results and weak outlook for the year. The stock is down nearly 18% year to date.

— Hakyung Kim

Axon Enterprise and eBay were the top two advancers in the S&P 500 in midday trading. The broader market itself declined on Wednesday, falling by 0.1%.

Taser maker Axon Enterprise jumped 8.3% after reporting stronger-than-expected quarterly results. In its fourth quarter, the weapons maker posted adjusted earnings of $1.12, topping the 85 cents per share anticipated by analysts polled by FactSet. Revenue of $432 million topped the $420.7 million consensus estimate.

EBay gained about 8% after the online marketplace company beat expectations in its fourth quarter, on both the top and bottom lines. EBay posted adjusted earnings of $1.07 per share on revenue of $2.56 billion. Analysts polled by LSEG anticipated per-share earnings of $1.03 on revenue of $2.51 billion.

— Sarah Min

Equities have reached a "significant inflection point" as the major indexes hit fresh highs amid poor market breadth, according to Piper Sandler. The firm forecasts the next 10% move in the equity market to move lower, rather than to rise.

Stocks are "poised to either 'top out or broaden out,'" chief market technician Craig Johnson wrote in a Wednesday note. "Whether equities 'top out or broaden out,' we expect market/sector leadership will likely change."

Johnson believes this trend would benefit the financial and healthcare sectors, which are among the largest weightings in the small-cap focused Russell 2000.

"A topping out would likely result from profit-taking in the Mag Seven stocks, weighing on the DJIA, SPX, and NDX," Johnson said.

— Hakyung Kim

The U.S. Congress has yet to reach a budget deal ahead of the first deadline on Friday at midnight. Bank of America doesn't believe a shutdown will be the likely scenario, but said "this can't go on forever."

"We expect Congress to pass a continuing resolution and avert a shutdown. If it fails to do so, we think a brief shutdown cannot be ruled out, but a long one looks unlikely in an election year," economist Stephen Juneau wrote in a Wednesday note. "Congress cannot kick the can down the road forever.

Government shutdowns generally have "minimal" consequences to the economy, said Juneau, but a cut in discretionary spending would have serious consequences for growth.

"While a continuing resolution will likely solve this funding deadline, Congress is running out of time before a 1% across-the-board cut to discretionary spending kicks in. ... We estimate that these cuts could result in a 0.4pp drag on growth," Juneau said.

— Hakyung Kim

As investors navigate a market near all-time highs amid economic uncertainty, UBS expects it's time to consider preservation strategies.

The Wall Street firm does not expect concerns of the market peaking after all-time highs are warranted, read a Wednesday note from the firm's Solita Marcelli titled "Consider preservation strategies amid market uncertainty." In fact, over the past 60 years, the average S&P 500 return after a record high did not differ from the one-year return following other periods. And, three years out, the return following an all-time high was "slightly higher" than at other times.

But Marcelli said exposure to a large rally can be "psychologically challenging for investors, and market reaction to negative headlines may be larger than that to positive catalysts," spurring the need to allocate toward capital preservation strategies.

"With help from solid spending and broadening demand in artificial intelligence (AI), the benchmark has made gains in 15 of the last 17 weeks," Marcelli wrote. "But investor sentiment can be fragile, especially as markets sit at record high levels when the outlook for the US economy remains uncertain."

She likes oil and energy stocks, gold, as well as hedge funds.

— Sarah Min

UnitedHealth Group shares declined more than 4% Wednesday, making it the Dow's biggest decliner.

The stock fell on the news that the U.S. Department of Justice has launched an antitrust investigation into the company. The company has also been struggling with the fallout from a cyberattack on its subsidiary Change Healthcare's systems last week.

— Hakyung Kim

U.S. stocks started Wednesday's trading session in the red.

The Dow Jones Industrial Average dropped 190 points, or 0.5%.

The S&P 500 and Nasdaq Composite declined 0.3% and 0.4%, respectively.

— Hakyung Kim

Bitcoin continued its surge on Wednesday morning, crossing the $60,000 mark for first time since November 2021.

The largest cryptocurrency was up about 6% on Wednesday and is now up more than 40% year to date.

— Jesse Pound

Here are some of the names moving in premarket trading:

• Beyond Meat — The plant-based meat company soared 56% one day after topping fourth-quarter revenue estimates and saying it would "steeply reduce" costs this year.
• Advance Auto Parts —The stock added 2% following the auto parts retailer's upbeat guidance for the full year. AAP guided for 2024 earnings per share of $3.75 to $4.25, topping the $3.65 consensus estimate, per FactSet.
• Lemonade — Shares tumbled nearly 20% one day after the insurance company gave disappointing guidance for the first quarter and full year.

To see more stocks moving before the bell, read the full story here.

— Michelle Fox

The U.S. economy grew at a slightly slower pace in the fourth quarter of 20234 than previously reported, according to a revision the Commerce Department released Wednesday.

Gross domestic product accelerated at a 3.2% annualized rate adjusted for seasonality and inflation, 0.1 percentage point below the initial estimate. The downward revision came primarily due to smaller than expected private inventory investment, which offset upward revisions in local government and consumer spending.

On the inflation front, the personal consumption expenditures price increased 1.8% in the quarter on headline and 2.1% for core excluding food and energy, both 0.1 percentage point higher than the initial estimate.

—Jeff Cox

Chocolate-making raw material cocoa has soared 30.1% month to date, putting it on pace for its largest monthly gain since November 2021, when it gained 31.66%.

Cocoa futures reached a record-high of $6,648 per metric tonne on Monday. The rise in prices is due in part to news that Ghana's 2023–2024 production season is estimated to come almost 40% below its target outpet

Chocolate producers Nestle and Hershey are down 5.5% and 3% this month, respectively.

— Hakyung Kim, Gina Francolla

The rate of change of economic growth appears stable, per Wolfe Research.

"Overall momentum is steady/a bit softer, as capex gains steam, consumer momentum is fading, and housing is growing firm. We expect these trends to continue this year," chief economist Stephanie Roth wrote in a Wednesday note.

A clearer outlook and an improving financial environment has contributed to the rise in momentum for capital expenditures, according to Roth.

— Hakyung Kim

Shares of First Solar rose more than 4% in the premarket after the solar panel maker reported fourth-quarter earnings that beat analyst expectations.

The company posted a profit of $3.25 per share, beating an LSEG estimate of $3.13 per share. Revenue came in at $1.16 billion, slightly below a $1.32 billion forecast.

— Fred Imbert

Shares of Boston Beer fell 10% in the premarket after the Sam Adams beer maker posted much weaker-than-expected results for the fourth quarter.

The company lost $1.49 per share on revenue of $394 million. Analysts expected a loss of 25 cents per share on revenue of $414 million. Full-year earnings guidance was also below analyst estimates, according to LSEG.

— Fred Imbert

Hong Kong announced its budget on Wednesday and said it will scrap plans to tighten its property market with immediate effect.

The measures included cancellation of all buy-side property tightening measures for residential properties and waiving of stamp duties payable on the transfer of REIT units.

The Hang Seng Property index jumped nearly 2%, while the broader Hang Seng index dipped 0.3%. New World Development shares jumped nearly 6%, while Hysan Development added 1.4%.

Financial Secretary Paul Chan also said he expected the economy to grow in a range of 2.5% to 3.5% this year.

— Shreyashi Sanyal

The likelihood of achieving the Bank of Japan's 2% inflation target is "not sufficiently high" yet, said the central bank's executive director Seiichi Shimizu at a parliament session.

Shimizu added he would review the bank's monetary easing when the achievement of the inflation target is in sight, and will continue to keep an eye on wage trends and price data.

Japan's core consumer prices rose at a slower pace in January compared with a year earlier, but the reading was still above Reuters poll expectations of a 1.8% year-over-year increase.

—Reuters, Lee Ying Shan

The Reserve Bank of New Zealand kept its main lending rate steady on Wednesday, according to its monetary policy statement.

New Zealand's central bank held its official cash rate at 5.50% — a 15-year high.

"Headline inflation remains above the 1% to 3% target band, limiting the committee's ability to tolerate upside inflation surprises," RBNZ governor Adrian Orr said in the statement.

Inflation in the fourth quarter of last year was at 4.7%, far above the central bank's target range.

— Shreyashi Sanyal

Investors should turn their attention to alternative investments including small caps and emerging markets outside of the "Magnificent 7" stocks, according to Richard Bernstein Advisors chief Richard Bernstein.

"There's no sound wealth building strategy that says put all of your eggs in seven stocks, there has to be some opportunities outside the U.S. and in some smaller cap stocks," Bernstein told CNBC's "Power Lunch" on Tuesday.

"It's such an amazing bearish view of the world to say there's only seven companies we can invest in," he added.

— Brian Evans

The Russell 2000 captured its fourth consecutive winning day in what had been a very tepid session for the major averages.

The small-cap index advanced more than 1% on Tuesday, outpacing the S&P 500's roughly 0.2% gain and the Nasdaq Composite's nearly 0.4% jump.

The last time the Russell 2000 notched four straight winning sessions was in late December 2023.

Though the small-cap index has been having a strong month – up 5.6% in February – it remains sharply behind the three major averages on the year. In 2024, the Russell 2000 is up only 1.4%, while the S&P 500 has already gained nearly 6.5%.

-Darla Mercado, Chris Hayes

Check out some of the companies making headlines in extended trading.

• Beyond Meat — Shares skyrocketed more than 78% after the plant-based meat company beat revenue estimates in the fourth quarter. Beyond Meat reported revenue of $73.7 million, while analysts polled by LSEG, formerly known as Refinitiv forecast $66.7 million.

• eBay — The online marketplace added 4% after announcing a dividend raise of 2 cents a share and an additional share buyback of $2 billion. Ebay's fourth-quarter results beat Wall Street estimates on the top and bottom lines, while guidance for first-quarter earnings per share was above analysts' estimates.

• First Solar — The solar company gained more than 3% after full-year guidance met Wall Street estimates. Fourth-quarter earnings of $3.25 per share beat analysts' estimates of $3.13 per share, according to LSEG.

Read the full list here.

— Brian Evans

First Solar's stock popped nearly 5% in extended trading after the company beat Wall Street's earnings expectations.

The solar panel manufacturer booked net income of $349.2 million for the fourth quarter, an increase of 30% compared to the year-ago period.

First Solar posted a profit of $3.25 per share, beating Wall Street's expectations of $3.13 per share. The company generated revenue of $1.16 billion for the quarter, missing Street expectations of $1.31 billion.

First Solar expects net sales of $4.4 billion to $4.6 billion in 2024 and adjusted earnings of $13 to $14 per share this year, which is largely in line with expectations.

— Spencer Kimball

Stock futures were little changed on Tuesday, with investors turning their attention to fresh inflation data later this week.

Futures tied to the Dow Jones Industrial Average slipped 32 points, or 0.08%. S&P 500 Futures hovered near the flatline, while Nasdaq 100 futures fell 0.04%.

— Brian Evans