Nasdaq pops more than 1% for third straight winning day as tech rebounds from August slump: Live updates

Brian Evans
Alex Harring

The Nasdaq Composite climbed more than 1% Tuesday, as investors flocked back to tech stocks in the final days of what's been a difficult August for the market.

The tech-heavy index gained 1.74% to close at 13,943.76. The S&P 500 climbed 1.45% to close at 4,497.63 — its best day since June 2. The Dow Jones Industrial Average added 292.69 points or 0.85% to finish the session at 34,852.67.

Chipmaker Nvidia led the charge of rising tech stocks with a gain of more than 4%. Shares of Meta Platforms, Tesla, Apple and Microsoft all ended the day higher. The sector seemingly received a boost from falling bond yields following the release of new U.S. economic data.

AT&T rose 3.9% after Citi upgraded the stock and said the telecom giant would be able to afford its hefty dividend. Elsewhere, shares of Best Buy added 3.8% after the retailer reported an earnings beat.

The 2-year Treasury yield tumbled as much as 16 basis points as consumer sentiment data came in softer-than-expected at 106.1. Economists polled by Dow Jones forecast a 116 reading. Elsewhere, the latest job openings and labor turnover survey showed a decline in open listings in July — another sign of a cooling economy.

"We think this presents a pretty good tactical entry point into risk assets, above all into US equities," wrote HSBC chief multi-asset strategist Max Kettner in a note Tuesday. Kettner said the August selloff had reduced investor euphoria back to more reasonable sentiment levels.

Also helping risk-taking on Tuesday was a court decision that could pave the way for a bitcoin ETF, which underpinned a nearly 15% climb in crypto exchange Coinbase.

Tuesday's moves come a day after the S&P 500 notched its first two-day advance of the month. The benchmark index rose 0.6% on Monday, while the Nasdaq advanced 0.8%. The Dow gained 200 points in the previous session.

As August draws to a close, the Dow is on pace to finish 1.9% lower. The S&P 500 and Nasdaq are poised for losses of 1.9% and 2.8%, respectively.

Tue, Aug 29 2023 4:21 PM EDT

Stocks close higher

Stocks closed higher on Tuesday, as a tech rally helped the S&P 500 notch its third-consecutive winning session.

The Dow Jones Industrial Average climbed more than 292 points, or 0.85%, to close at 34,852.67. The tech-heavy Nasdaq Composite added 1.74% to finish at 13,943.76, while the S&P 500 added 1.45% to close at 4,497.63.

— Brian Evans

Tue, Aug 29 2023 3:57 PM EDT

A quarter of U.S. workers are remote at least part of the week, Goldman Sachs says

The approach of Labor Day has been a benchmark employers have used in recent years to double down on efforts to coax employees back to the office. Indeed, in recent weeks, companies such as Meta and Amazon have reiterated their policies.

Three years after the pandemic started, the number of people working from home at least part of the week has stabilized at about 20% to 25%, Goldman Sachs chief economist Jan Hatzius wrote in a research note. While that's down from its pandemic peak of 47%, it's far above the average 2.6% rate prior to Covid.

Hatzius attributed the persistance of the trend to both structural (technology) and cyclical factors (a tight labor market). The firm found that for every 1 percentage point increase in the job-worker gap, there was a 0.3 percentage point increase in the number of remote job postings.

But the trend could swing the other way, it warned.

"This implies that further labor market rebalancing should reduce the share of remote job postings from 11.5% to 10.8% in the next 3 years," Hatzius said.

—Christina Cheddar Berk

Tue, Aug 29 2023 2:48 PM EDT

JPMorgan appears a little nervous about Salesforce ahead of earnings

J.P. Morgan is removing Salesforce from its list of top stock picks after the stock's AI-driven boom so far this year.

Although the firm still sees valuation upside, it views the company's outperformance and other sluggish metrics as a potential near-term drag on the stock. The move comes before the Dow Jones Industrial Average member reports earnings after the bell Wednesday.

Shares are trading just below flat on Tuesday afternoon. The stock has gained more than 59% in 2023.

CNBC Pro subscribers can read more here.

— Pia Singh

Tue, Aug 29 2023 2:17 PM EDT

NextEra slips after Raymond James turns bullish

NextEra fell 0.1% after Raymond James said its yield spread signals a buying opportunity.

The stock's current yield of 7% is 290 basis points above the 10-year Treasury. That's wider than the long-term median of 170 basis points. The only time the spread surpassed 300 basis points was during the initial stages of the pandemic.

"Having been on the sidelines year-to-date – and following most of 2022 with an Underperform rating – we are upgrading NEP from Market Perform to Outperform," said analyst Pavel Molchanov. "This is an opportunistic rating change following the stock's steepest sell-off since the early days of COVID."

Molchanov also said the stock is "not priced for perfection."

See Chart...
NextEra, 1-day

— Alex Harring

Tue, Aug 29 2023 1:25 PM EDT

RBC Capital Markets raises Biogen price target

Biogen may be undervalued in its long-term sales potential, according to RBC Capital Markets, which is bullish on the company's Alzheimer's treatment Leqembi.

Analyst Brian Abrahams raised his price target on Biogen by $3 to $357 on Tuesday. The firm's new forecast suggests 34.7% upside for the Massachusetts-based biotech company.  

Shares are up 0.6% on Tuesday. The stock has declined 3.7% so far this year.

"Our analysis of prescription trends—which we believe may reasonably reflect unit demand—suggest Leqembi's growth trajectory is remaining steep including in July following full approval/broad [Centers for Medicare and Medicaid] reimbursement," Abrahams said. "We expect Leqembi will inflect further in the coming months with increased efficiencies in screening, formularies, and monitoring, and contribute meaningfully to BIIB's top line over time."

The firm expects Leqembi to attract $1.4 billion worth of sales in 2026, reaching $10.4 billion end-user sales by 2032. 

Leqembi was fully approved by the Food and Drug Administration in July, making it the first Alzheimer's antibody treatment to receive full FDA approval and the first such drug to receive broad coverage through Medicare.

— Pia Singh

Tue, Aug 29 2023 1:11 PM EDT

Citi upgrades Verizon and AT&T, says companies can support their nearly 8% dividend yields

Telecommunication giants AT&T and Verizon are turning a corner that will make it easier for both companies to maintain their high dividend yields, according to Citi.

Shares of AT&T added 2.6% on Tuesday and Verizon gained 2.4%, after losing 20.8% and 12.8% so far this year, respectively.

"A variety of concerns have weighed on Telco sentiment and valuation, including competition, industry structure, higher rates and lead. We see a more constructive investment case for large-cap Telcos," Analyst Michael Rollins wrote in a Monday note. "The wireless competitive environment is showing positive signs of stabilization that should help operating performance."

CNBC Pro subscribers can read more here.

— Pia Singh

Tue, Aug 29 2023 1:01 PM EDT

S&P 500, Nasdaq and Dow all trading above 50-day moving averages

All three major indices are trading above their respective 50-day moving averages on Tuesday.

The S&P 500 is above its 50-day moving average for the first time in nearly two weeks. If this pace is maintained, the S&P 500 could close above its 50-day moving average for the first time since August 14.

The Nasdaq Composite and Dow Jones Industrial Average meanwhile, are both trading above their 50-day moving averages for the first time since August 24.

— Brian Evans, Nick Wells

Tue, Aug 29 2023 12:47 PM EDT

Apple sends invites for Sept. 12 launch event

Apple just sent out invites for its September press event, where it's expected to announce the iPhone 15 and new Apple Watches.

The new iPhone models, likely branded as the iPhone 15, are expected to use a USB-C charging port. Some of the new devices Apple debuts could be made out of titanium, according to reports.

Shares of Apple were up nearly 2% on the day.

— Yun Li, Kif Leswing

Tue, Aug 29 2023 12:44 PM EDT

See the stocks making the biggest midday moves

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

See the full list here.

— Alex Harring

Tue, Aug 29 2023 12:20 PM EDT

Ginkgo Bioworks jumps on partnership with Google Cloud

Shares of Ginkgo Bioworks surged more than 21% after the biotechnology company announced a five-year cloud and AI partnership with Google Cloud.

Through the deal, the company aims to create new AI tools for biology and biosecurity applications powered by Google Cloud's Vertex AI platform.

Shares of parent-company Alphabet were last up more than 3%.

— Samantha Subin

Tue, Aug 29 2023 10:48 AM EDT

Court rules against SEC in bitcoin ETF case; crypto and Coinbase soar

The push for a spot bitcoin ETF took a big step forward on Tuesday when a court ruled against the Securities and Exchange Commission in a lawsuit with Grayscale.

The court decision does not automatically trigger the creation of a spot bitcoin ETF, but the lawsuit was seen as a key roadblock to such a fund.

Cryptocurrencies and related stocks soared following the ruling. Shares of Coinbase jumped 13%. The price of bitcoin rose 6%.

— Jesse Pound

Tue, Aug 29 2023 11:32 AM EDT

Dollar reaches highest level against the Yen in 2023

The U.S. Dollar is up 0.5% against the Japanese Yen at 147.24, the highest level of the year. This marks the Dollar's highest level against the Yen back to Nov. 7, 2022 when it traded as high as 147.56 against the yen.

The Nikkei is down -2.85% in August, on pace for the worst month of the year back to Dec. 2022, when the Nikkei lost -6.7%.

The Japan ETF (EWJ) is down almost -4.6% month to date, on pace for the first negative month in six. The decline has been led by Sysmex, Yamaha, Olympus and more, which have lost almost 20% or greater this month.

— Hakyung Kim, Gina Francolla

Tue, Aug 29 2023 11:17 AM EDT

HSBC says this is a great time to load up on U.S. stocks

It's time to start loading up on U.S. stocks and other risk assets, HSBC said.

"A key difference to a month ago is that our short-term sentiment and positioning index is now way off contrarian sell territory and much more neutral now," Kettner said in a Tuesday note. "So we think this presents a pretty good tactical entry point into risk assets, above all into US equities."

Notably, the analyst pointed out that the U.S. economy has largely gone from "strength to strength," especially when compared to Europe and other parts of the world.

CNBC Pro subscribers can read the full story here.

— Sarah Min

Tue, Aug 29 2023 10:44 AM EDT

Investors jumped back into equity ETFs last week, Bank of America says

Investors were jumping into stock funds last week as the S&P 500 and Nasdaq Composite snapped three-week losing streaks, according to Bank of America.

"Clients were net buyers of US equities ($3.7B) for a fourth straight week. But clients bought ETFs and sold single stocks, opposite of the previous three weeks' trend of stock inflows outpacing ETF inflows," Bank of America strategist Jill Carey Hall said in a note to clients.

The inflows to equity ETFs is a notable change from earlier this month, when funds were enduring outflows.

The equity buying came from both retail and institution clients, and in both small caps and large caps, according to Bank of America. However, clients did sell mid-cap stocks.

— Jesse Pound

Tue, Aug 29 2023 10:10 AM EDT

Consumer confidence data shows weakening

Economic data capturing the state of consumer confidence came in notably cooler than economists anticipated in August.

The Conference Board's Consumer Confidence Index came to 106.1 for August. Economists polled by Dow Jones forecasted a reading of 116.

That also marks a pullback from July, which was revised to 114.  Dana Peterson, chief economist at The Conference Board, noted that August's data erased the back-to-back increases seen in June and July.

"August's disappointing headline number reflected dips in both the current conditions and expectations indexes," she said. "Write-in responses showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular."

— Alex Harring

Tue, Aug 29 2023 10:09 AM EDT

Job openings fall in July

The number of open job postings fell to 8.8 million in July from 9.5 million a month prior, the Bureau of Labor Statistics reported Tuesday. That's also the lowest level since March 2021.

The report points to more stability in the labor market and could provide clues on where the Federal Reserve might take its monetary policy outlook.

— Fred Imbert

Tue, Aug 29 2023 9:45 AM EDT

Few surprises on list of drugs subject to Medicare price talks

Wall Street analysts are saying there weren't many big surprises on a list of drugs that will be subject to Medicare price negotiations. Wells Fargo analyst Mohit Bansal said the most notable inclusions were Merck's Januvia, Johnson & Johnson's Stelara and AstraZeneca's Farxiga as well as insulins.

"Stelara [, a Crohn's disease treatment,] and Farxiga [, a type 2 diabetes drug,] are big surprises as these 2 products may be facing generic/biosimilar competition ahead of 2026 discounts," Bansal wrote, adding that the two drugs may ultimately be excluded from the final list.

The exclusion of Pfizer's Xtandi is a "minor positive" for the company. The drug, which treats prostate cancer, had been expected to be included on the list.

The analyst added inclusion of Januvia shouldn't be a big hit to Merck as the type 2 diabetes medication was expected to face generic challenge in May 2026 anyway.

At the moment, the stocks appear to be taking the news in stride, with only modest movement in premarket trading. That said, many of these stocks have logged declines for the year. Pfizer shares are down 29% year to date, while Bristol-Myers' stock has shed 14% of its value over that time.

Bristol's Eliquis, which protects against blood clotting, is on the list. It is one of several companies that has sued to blog implementation of the law.

—Christina Cheddar Berk

Tue, Aug 29 2023 9:07 AM EDT

First Bancshares an attractive buy, according to Davidson

First Bancshares is now "an attractive combo of offense and defense," according to Davidson.

Analyst Kevin Fitzsimmons upgraded the regional bank to buy. He maintained his price target at $34, which implies almost 19% upside from Monday's close. 

Shares are still down more than 8% year to date following a sharp sell-off beginning in March. However, the stock has rallied 10.6% on the back of a better-than-expected second-quarter earnings report.

"The bank boasts solid defensive characteristics, including favorable comps vs. peers on funding and liquidity, while capital and credit quality remain solid," Fitzsimmons said in a Tuesday note. "At the same time, FBMS seems incrementally upbeat on loan pipelines, and appears poised to continue demonstrating above-peer core profitability.

See Chart...
First Bancshares

— Hakyung Kim

Tue, Aug 29 2023 9:35 AM EDT

Stocks open little changed

Stocks opened little changed on Tuesday, following two-consecutive winning sessions on Wall Street.

The Dow Jones Industrial Average ticked down 7 points, or 0.02%. The S&P 500 pulled back 0.02% while the Nasdaq Composite slipped 0.2%.

— Brian Evans

Tue, Aug 29 2023 9:07 AM EDT

First Bancshares an attractive buy, according to Davidson

First Bancshares is now "an attractive combo of offense and defense," according to Davidson.

Analyst Kevin Fitzsimmons upgraded the regional bank to buy. He maintained his price target at $34, which implies almost 19% upside from Monday's close. 

Shares are still down more than 8% year to date following a sharp sell-off beginning in March. However, the stock has rallied 10.6% on the back of a better-than-expected second-quarter earnings report.

"The bank boasts solid defensive characteristics, including favorable comps vs. peers on funding and liquidity, while capital and credit quality remain solid," Fitzsimmons said in a Tuesday note. "At the same time, FBMS seems incrementally upbeat on loan pipelines, and appears poised to continue demonstrating above-peer core profitability.

See Chart...
First Bancshares

— Hakyung Kim

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