U.S. stocks fell on Tuesday as investors weighed chances that the Federal Reserve could delay cutting interest rates, while Tesla shares dropped after the electric car maker posted fewer quarterly deliveries for the first time in nearly four years.
Market Snapshot
The Dow Jones Industrial Average fell 396.61 points, or 1%, to 39,170.24. The S&P 500 lost 37.96 points, or 0.72%, at 5,205.81 and the Nasdaq Composite dropped 156.38 points, or 0.95%, to 16,240.45.
Market Movers
Tesla (TSLA) - Tesla reported first-quarter deliveries of 386,810 electric vehicles, well below Wall Street forecasts of 457,000. The company-compiled consensus number for deliveries was about 443,000 units. Tesla reported 423,000 deliveries in the first quarter of 2023. Tesla shares fell 4.9%.
Rivian (RIVN) - Rivian Automotive posted first-quarter deliveries 13,588 vehicles, better than forecasts of 13,000. The company backed its production guidance for 57,000 vehicles in 2024. The stock fell 5.2%.
Trump Media & Technology Group (DJT) - Trump Media & Technology Group rose 6%. Shares of the parent company of Truth Social plummeted 21% on Monday after it was disclosed it lost $58.2 million in 2023 on sales of just $4.13 million. The company went public last week by merging with special-purpose acquisition corporation, Digital World Acquisition.
Humana (HUM) - Humana was down 13.4%, UnitedHealth fell 6.4%, and CVS Health declined 7.2% after the Centers for Medicare and Medicaid Services announced an average 3.7% increase in revenue for Medicare Advantage plans in 2025. The amount is the same as the proposed increase the government had announced in January, but it came as a surprise to investors who were hoping for a slight increase.
ChampionX (CHX) - ChampionX rose 10.4% to $39.08 after SLB, the former Schlumberger, reached a deal to acquire the chemical and drilling technologies company for about $7.8 billion, or $40.59 a share. SLB was down 1%.
PVH (PVH) - PVH fell 22.2% after the owner of Calvin Klein and Tommy Hilfiger brands said it expects fiscal first-quarter revenue to decrease about 11% to $1.92 billion, below analyst estimates. Revenue in the fiscal year was forecast to drop 6% to 7%, with PVH pointing to a “tougher macroeconomic backdrop in 2024.” Fourth-quarter adjusted profit at PVH beat estimates and revenue was mostly flat at $2.49 billion.
Canoo (GOEV) - Electric-vehicle maker Canoo said it expects fiscal-year revenue of $50 million to $100 million, below analysts’ forecasts of $152.5 million. In the just-completed fourth quarter, Canoo said it completed 17 vehicles and posted revenue of $367,000, below analysts’ estimates of about $700,000. The stock tumbled 27.7%.
GE Vernova (GEV) - GE Vernova, the power generation business spun off from General Electric, began trading Tuesday under symbol “GEV.” The stock fell 1.4%. GE Vernova includes a money-losing wind business and a more stable gas-powered turbine unit. GE Healthcare Technologies was spun off last year. The remaining company will be renamed GE Aerospace and trade under symbol “GE.” GE Aerospace fell 2.4%.
Roivant Sciences () - Roivant Sciences rose 4.7% after the biotech company released positive study results for an eye-disease treatment and said it would be buying back $1.5 billion of stock.
Market News
Tesla Quarterly Deliveries Decline for the First Time in Nearly Four Years
Tesla on Tuesday posted a decline in quarterly deliveries for the first time in nearly four years and missed Wall Street estimates, a performance some described as "ugly" as price cuts failed to stir demand in a highly competitive market.
Tesla's deliveries declined by 8.5% in the first quarter to 386,810 vehicles from a year ago and the company produced 433,371 vehicles during the period. Wall Street had expected Tesla to deliver 454,200 vehicles, according to the average projection of 18 analysts polled by Visible Alpha.
The last time the automaker posted a sales fall was in the second quarter of 2020 when the COVID-19 pandemic forced Tesla to shut down production.
Tesla attributed the drop in volumes partly to efforts to prepare its Fremont, California, factory to handle increased production of the updated Model 3 and to shutdowns at its Berlin plant due to the impact of the Red Sea conflict and an arson attack.
But Tesla produced 46,000 more vehicles than it sold in the first quarter, signaling softer demand, analysts said.
Intel Discloses $7 Billion Operating Loss for Chip-Making Unit
Intel on Tuesday disclosed deepening operating losses for its foundry business, a blow to the chipmaker as it tries to regain a technology lead it lost in recent years to Taiwan Semiconductor Manufacturing.
Intel said the manufacturing unit had $7 billion in operating losses for 2023, a steeper loss than the $5.2 billion in operating losses the year before. The unit had revenue of $18.9 billion for 2023, down 31% from $63.05 billion the year before.