What you need to know…
The S&P 500 Index ($SPX) (SPY) on Tuesday closed +0.23%, the Dow Jones Industrials Index ($DOWI) (DIA) closed +0.37%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up. down -0.23%.
Stocks on Tuesday settled mixed. The broader market on Tuesday posted moderate gains as T-note yields declined. Gains were limited due to mixed corporate earnings and hawkish comments from the Fed.
On the positive side for stocks, GE Healthcare Technologies closed up +11% after reporting better-than-expected Q4 adjusted EPS and forecast 2024 adjusted EPS above consensus. Also, Dupont de Nemours closed up +6% after reporting Q4 adjusted EPS above consensus and announcing a new $1 billion share buyback program.
US stocks also have carry support from a sharp +3% today in China’s Shanghai Composite on signs that China will step up efforts to stem the rout in its stock market, including a pledge of a sovereign fund to boost stock purchases.
On the downside, FMC Corp closed down more than -9% after reporting weaker-than-expected Q4 earnings and cutting its full-year earnings forecast. Also, Amkor Technology is down more than -4% after forecasting Q1 net sales below consensus.
US stocks also have carry support from a sharp +3% today in China’s Shanghai Composite on signs that China will step up efforts to stem the rout in its stock market, including a pledge of a sovereign fund to boost stock purchases.
Cleveland Fed President Mester’s comments on Tuesday were slightly hawkish and negative for stocks, when she said she was in no rush to start cutting interest rates and that policymakers would likely gain confidence to cut rates “later this year” if the economy develops as expected.
The markets are discounting the chances for a -25 bp rate cut at 20% at the March 19-20 FOMC meeting and 84% for that -25 bp rate cut at the next April-May 30 meeting 1.
US and European government bond yields are moving lower on Tuesday. The 10-year T note fell -7.1 bp to 4.087%. The 10-year German bund yield climbed to a 1-1/2-week high of 2.344% but fell back and ended down -2.4 bp at 2.292%. The 10-year UK gilt yield fell -5.7 bp to 3.950%.
Eurozone Dec retail sales fell -1.1% m/m, weaker than expectations of -1.0% m/m and the biggest decline in a year.
ECB 1-year inflation expectations fell to +3.2% from +3.5% in November, the slowest pace of increase in 1-3/4 years. December 3 inflation expectations increased to +2.5% from +2.4% in November.
German Dec factory orders unexpectedly rose +8.9% m/m, stronger than expectations of -0.2% m/m and the biggest increase in 3-1/2 years.
Japanese Dec household spending fell -2.5% y/y, weaker than expectations of -2.0% y/y.
Foreign stock markets are mixed. The Euro Stoxx 50 closed up +0.76%. China’s Shanghai Composite Index closed up +3.23%. Japan’s Nikkei Stock Index closed down -0.53%.
Today’s stock movers…
GE Healthcare Technologies (GEHC) closed up more than +11% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q4 adjusted EPS of $1.18, better than the consensus of $1.06, and forecasting 2024 adjusted EPS of $4.20- $4.35, stronger than. the $4.22 consensus.
Dupont de Nemours (DD) closed up +7% after reporting Q4 adjusted EPS of 87 cents, above consensus of 85 cents, and announcing a new $1 billion buyback program.
Wilis Towers Watson Plc (WTW) closed up +7% after reporting a Q4 adjusted operating margin of 34.2%, stronger than the consensus of 33.2%.
United Parcel Service (UPS) is up more than +3% after UBS upgraded the stock to buy from neutral with a price target of $175.
Simon Property Group (SPG) closed up +4% after reporting Q4 FFO/share of $3.69, stronger than the consensus of $3.34.
Xylem (XYL) closed up +4% after reporting Q4 revenue of $2.12 billion, better than the consensus of $2.06 billion, and forecast 2024 revenue of $8.40 billion – 8.50 billion, the midpoint above the consensus of $8.42 billion.
Linde Plc (LIN) closed up more than +3% after reporting Q4 sales of $8.30 billion, stronger than the consensus of $8.07 billion.
Palantir (PLTR) closed up more than +30% after reporting Q4 revenue of $608.4 million, stronger than the consensus of $603.1 million, which prompted Citigroup to upgrade the stock to neutral from sell.
FMC Corp ( FMC ) closed down more than -11% to lead losers in the S&P 500 after reporting Q4 revenue of $1.15 billion, weaker than the consensus of $1.24 billion, and cut its full-year revenue forecast to 4 .50 billion-$470 billion from a previous estimate of $4.65 billion-$4.85 billion, below the consensus of $4.68 billion.
Charter Communications ( CHTR ) closed down more than -4% to lead losers on the Nasdaq 100 after Citigroup cut its price target on the stock to $340 from $425.
Amkor Technology ( AMKR ) closed down more than -5% after forecasting Q1 net sales of $1.30 billion-$1.40 billion, weaker than the $1.51 billion consensus.
Carrier Global ( CARR ) closed down more than -3% after reporting Q4 sales of $51.0 billion, weaker than the consensus of $5.24 billion.
Fiserv ( FI ) closed down more than -2% after reporting Q4 payroll revenue of $1.72 billion, weaker than the consensus of $1.75 billion.
Catalent (CTLT) closed down more than -2% after UBS downgraded the stock to neutral from buy.
ON Semiconductor (ON) closed down more than -1% after Fubon Securities downgraded the stock to neutral from buy.
Gartner ( IT ) closed down more than -1% after forecasting 2024 revenue of at least $6.24 billion, below the $6.35 billion consensus.
Through the markets…
March 10-year T-notes (ZNH24) closed up +16 ticks on Tuesday, and the 10-year T-note yield fell -7.1 bp to 4.087%. Mar T notes on Tuesday posted moderate gains on some short covering after the hit seen over the past two sessions. T-notes raced to their highs Tuesday afternoon on strong demand for the Treasury’s 3-year T-note auction, which was awarded at 4.169%, below the 4.177% when-issued yield at the 1 pm EST deadline and a sign . of solid demand. T-notes retreated from their best levels on hawkish comments from Cleveland Fed President Mester, who said she was in no rush to start cutting interest rates.
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As of the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see Barchart’s Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.