Post-Bell | Nasdaq Ends Slightly Lower While the Dow is Nearly Flat; Nvidia Stock Falls 4.7%
The Nasdaq ended lower while the Dow and S&P 500 were nearly flat on Tuesday as Treasury yields rose and shares of chipmakers fell after the Biden administration said it planned to halt shipments of advanced artificial intelligence chips to China.
Market Snapshot
The Dow Jones Industrial Average rose 13.11 points, or 0.04%, to 33,997.65, the S&P 500 fell 0.43 points, or 0.01%, to 4,373.20 and the Nasdaq Composite fell 34.24 points, or 0.25%, to 13,533.75.
Market Movers
These stocks made moves Tuesday:
$Nvidia (NVDA)$ fell 4.7% after the Biden administration said it would be tightening its restrictions on exports of artificial intelligence chips to China. A spokesperson at the chip maker told Barron’s that given the worldwide demand for its products, the company doesn’t expect a meaningful impact on its near-term financial results.
$VMware (VMW)$ declined 7.7% on concerns that intensifying trade tensions between the U.S. and China could spur regulators in Beijing to block Broadcom ‘s (AVGO) pending acquisition of the infrastructure software company.
$VF Corp. (VFC)$ rose 14% following a report from The Wall Street Journal that said investment firm Engaged Capital has “built a big stake” in the parent company of The North Face and Vans and has cost-cutting plans in mind.
$Bank of America (BAC)$ reported third-quarter earnings of 90 cents a share, topping Wall Street forecasts of 83 cents. Net interest income rose 4% to $14.4 billion because of higher interest rates and loan growth. The stock closed up 2.3%.
$Lockheed Martin (LMT)$, the defense contractor, reported third-quarter earnings of $6.73 a share on sales of $16.9 billion. Wall Street was looking for profit of $6.67 a share on sales of $16.7 billion. Lockheed closed up 0.2%.
$Johnson & Johnson (JNJ)$ reported third-quarter adjusted earnings of $2.66 a share, beating analysts’ estimates of $2.52. Sales of $21.4 billion also topped estimates of $21 billion and the healthcare giant lifted full-year guidance. The report marked the company’s first that doesn’t include the results of its consumer health division that separated from J&J over the summer. The stock was down 0.9%.
Third-quarter profit of $5.47 a share at investment bank $Goldman Sachs (GS)$ beat expectations of $5.42. Third-quarter revenue of $11.82 billion declined from almost $12 billion a year earlier. The stock fell 1.6%.
$Lucid (LCID)$ was down 5.3% after the electric-vehicle maker produced 1,550 vehicles in the third quarter, down 32.1% from a year earlier.
U.S.-listed shares of $Ericsson (ERIC)$ fell 2.9% after the Sweden-based maker of telecommunications equipment withdrew margin guidance for 2024, saying it expects current macroeconomic uncertainty to prevail into next year.
$Choice Hotels International (CHH)$ launched a hostile bid for $Wyndham Hotels & Resorts (WH)$ of $90 a share in cash and stock. Wyndham’s board rejected the unsolicited proposal. Wyndham shares jumped 9% to $75.29. Choice shares fell 6.8%.
$NetScout Systems (NTCT)$ fell 17% after the cybersecurity company said it was reducing guidance for fiscal 2024 “to reflect a recent slowing in order conversion.”
$Dollar Tree (DLTR)$ was upgraded to Buy from Neutral at Goldman Sachs and the stock rose 4.8%.
Market News
Fed's Barkin: Fed Has Time to See Data before Making Next Rate Move Call
Federal Reserve Bank of Richmond President Thomas Barkin said on Tuesday that the U.S. central bank still has time to decide on its next interest rate move as anecdotal information points to an economy that’s slowing amid a cooling trend in inflation pressures.
“I see an economy that is much further along the path to demand normalization than much of the data would tell you,” even as “the path for inflation isn’t clear yet,” Barkin said in the text of a speech to be delivered before the Real Estate Roundtable in Washington.
Having held rates steady at the September Federal Open Market Committee meeting, Barkin said “we have time to see if we have done enough, or whether there’s more work to do.”
US Retail Sales Jump 0.7% in September, above Forecast
Sales at U.S. retailers jumped a bigger-than-expected 0.7% in September, but most of the increase concentrated at auto dealers and gas stations. Most other retailers did not fare as well.
Economists polled by The Wall Street Journal had forecast a 0.2% increase in sales.
Retail sales represent about one-third of all consumer spending and usually offer clues on the strength of the economy.
Yet September falls between the busy back-to-school and holiday-shopping seasons and tends to reveal less about how consumers are doing.
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