The S&P 500 climbed to a record high close on Tuesday as investors digested a mixed bag of early quarterly results and awaited a slew of additional reports from Tesla and other companies later this week.
Market Snapshot
The S&P 500 climbed 0.29% to end the session at 4,864.59 points. The Nasdaq gained 0.43% to 15,425.94 points, while Dow Jones Industrial Average declined 0.25% to 37,905.45 points.
Market Movers
Fourth-quarter earnings at United Airlines topped Wall Street forecasts. The carrier said it expected 2024 adjusted profit of $9 to $11 a share, compared with analysts’ estimates of $9.48. The stock rose 5.3%. United said it anticipates a first-quarter loss wider than estimates because regulators have grounded Boeing‘s 737 MAX 9 planes.
3M posted better-than-expected adjusted earnings and sales for the fourth quarter but the company’s full-year adjusted earnings guidance for 2024 was about $9.55 a share, below Wall Street estimates of $9.90. Shares of the Scotch tape maker dived 11%.
Verizon Communications jumped 6.7% after the telecommunications company reported fiscal-fourth-quarter revenue and postpaid net additions that beat Wall Street estimates. Adjusted earnings were in line with consensus.
Plug Power gained 31% after the hydrogen-technology company said it was getting close to a substantial government loan. The company and the Department of Energy have finished negotiating terms for a $1.6 billion loan facility, CEO Andy Marsh said on a conference call Tuesday.
Home builder D.R. Horton reported mixed quarterly results on Tuesday, with earnings short of Wall Street forecasts but revenue ahead of expectations. The stock fell 9.2%.
General Electric reported better-than-expected fourth-quarter earnings and issued solid sales guidance. The stock fell 1% after GE said it expects first-quarter adjusted earnings of 60 cents to 65 cents a share, below consensus of 70 cents.
Johnson & Johnson fell 1.6% after the company reported fourth-quarter adjusted earnings of $2.29 a share, 1 cent above analysts’ estimates. Sales of $21.4 billion came in slightly higher than Wall Street forecasts.
Logitech, the computer peripherals maker, reported fiscal-third-quarter revenue of $1.26 billion, down from $1.27 billion a year earlier. The company forecast a full-year sales decline of 6% to 7% to $4.2 billion to $4.25 billion, narrower than its previous expectations for a drop between 9% and 12%. The company also raised its guidance for operating income. The stock fell 12%.
Alibaba jumped 8% after a Bloomberg report, citing anonymous sources, said the Chinese government was considering a package of measures to prop up the stock market.
Aerospace-and-defense company RTX reported adjusted earnings of $1.29 a share on sales of $19.8 billion for the fourth quarter, while Wall Street was looking for earnings per share of $1.24 on sales of $19.7 billion. For 2024, RTX said it expects earnings of $5.25 to $5.40 a share, while analysts expected $5.28. The stock gained 5.3%.
Procter & Gamble stock rose 4.1% after the consumer products titan beat core earnings estimates but delivered sales slightly below the consensus estimate for its fiscal second quarter ended Dec. 31.
Aerospace company Lockheed Martin reported fourth-quarter earnings of $7.58 a share from sales of $18.9 billion. Wall Street was looking for $7.29 a share from about $18 billion in sales. Shares edged 4.2% lower.
Coinbase fell 3.1% to $124.19 after shares of the crypto exchange were downgraded to Underweight from Neutral at J.P. Morgan and the price target was left unchanged at $80.
Enphase Energy gained 3.9% after the maker of micro inverter systems for solar panels was upgraded to Buy from Hold at Truist.
Sanofi plans to buy the assets and liabilities of INBRX-101, a therapy from biopharmaceutical company Inhibrx, in a deal valued at up to $2.2 billion. Before the deal closes, assets not associated with INBRX-101 will be spun off into a new publicly traded company. Under the terms of the agreement, Inhibrx shareholders will receive $30 a share in cash, plus a contingent value right. Inhibrx stock rose 8.9% to $36.30.
Market News
Netflix hits fourth-quarter subscriber record, fueled by 'The Crown' and 'The Killer'
Netflix on Tuesday blew past Wall Street subscriber estimates in the fourth quarter, driven by a strong slate of shows that included the final season of the long-running royal drama "The Crown" and David Fincher's original film, "The Killer."
The company reported it added 13.1 million subscribers in the December quarter, its largest fourth-quarter subscriber growth ever, handily exceeding projected gains of 8.97 million. That brings the total number of subscribers to 260 million.
Apple Dials Back Car’s Self-Driving Features and Delays Launch to 2028
Apple Inc., reaching a make-or-break point in its decade-old effort to build a car, has pivoted to a less ambitious design with the intent of finally bringing an electric vehicle to market.
After previously envisioning a truly driverless car, the company is now working on an EV with more limited features, according to people with knowledge of the project.
Even so, Apple’s goal for a release date continues to slip. With the latest changes, the company looks to introduce the car in 2028 at the earliest, roughly two years after a recent projection, said the people, who asked not to be identified because the deliberations are private. An Apple spokeswoman declined to comment on the company’s plans.