Stocks were mixed in early trading Tuesday as the market attempts to recover from a steep downturn fueled by growing concerns about the health of the U.S. economy.
The Dow Jones Industrial Average and S&P 500 were down 0.7% and 0.2%, respectively, about half an hour after the opening bell, while the tech-heavy Nasdaq added 0.4%. Stocks kicked off the week with sharp losses after big declines last week, as investors have grown increasingly concerned about the potential impact of policies coming from the Trump White House and the possibility that the economy could slip into a recession.
The Nasdaq Composite’s 4% decline yesterday marked its biggest one-day drop since 2022, while the S&P 500 and Dow both had their worst days since December. The S&P 500 and Nasdaq are at their lowest levels since September, as major indexes have wiped away all the gains that led to a series of record highs after the presidential election.
Shares of EV maker Tesla (TSLA), which fell 15% yesterday to lead the tech sector rout, were up 5% in early trading Tuesday. The stock has fallen more than 50% from its mid-December record high amid investor concerns about how CEO Elon Musk’s heavy involvement in the Trump administration could affect the company’s brand image and sales.
Other mega-cap tech stocks were mostly higher. Chipmakers Nvidia (NVDA) and Broadcom (AVGO) gained 2.5% and 3.5%, respectively, while Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG) and Meta Platforms (META) also rose. Apple (AAPL) shares were down more than 2%.
Other tech stocks that have been hard hit recently were also on the rise. Analytics software provider Palantir (PLTR) and advertising platform AppLovin (APP), two AI investor favorites, were up 4% and 8%, respectively. Shares of server maker Super Micro Computer (SMCI) jumped 6%.
Strategy (MSTR), formerly known as MicroStrategy and one of the world’s largest holders of bitcoin, was up 2%, recovering some of Monday’s 17% loss as the price of the digital currency rebounded. Crypto exchange Coinbase Global (COIN) added 3%. Bitcoin was at $80,800 in recent trading, after falling to an overnight low of $76,600.
Shares of Verizon (VZ) were down nearly 8%, leading Dow decliners this morning, after the telecommunications giant warned of weak subscriber growth.
Delta Air Lines (DAL) fell 4% after the carrier last night cut its sales and profit guidance for the first quarter, citing economic “uncertainty” that has hit travel demand. American Airlines (AAL) and Southwest Airlines (LUV), in turn, lowered their outlooks early Tuesday. Despite the lowered guidance, shares of Southwest rose 10% as the airline also announced it would end a longstanding policy of not charging fees on checked bags. American shares were down 2%.
The yield on 10-year Treasurys, which has slumped in recent weeks as the concerns about the health of the economy have mounted, was at 4.24% recently, up from 4.21% at yesterday’s close. The economic data calendar is light today, but investors will be paying close attention to the consumer price index report that is due to be released tomorrow morning.
Gold futures were up 0.9% at $2,925 an ounce, while West Texas intermediate futures, the U.S. crude oil benchmark, rose 1.5% to $67.05 per barrel.
Kohl’s Stock Plunges on Disappointing Outlook
18 minutes ago
Shares of Kohl’s (KSS) plunged in early trading after the struggling retailer’s forecasts fell short of analysts’ expectations.
For fiscal 2025, Kohl’s projects net sales to fall 5% to 7%, comparable sales to fall 4% to 6%, and earnings per share (EPS) of between $0.10 and $0.60. Analysts were looking for 2025 net sales to decline by about 2%, comparable sales to decline by 1.83%, and EPS of $1.26, according to Visible Alpha data.
The department store chain’s fiscal fourth-quarter results were mixed, with profits lagging analysts’ projections. It posted EPS of $0.43 on net revenue of $5.4 billion. (After adjusting for one-time costs like store closures, Kohl’s adjusted EPS of $0.95 topped estimates.) Analysts polled by Visible Alpha had expected $0.71 and $5.38 billion, respectively. Last year, Kohl’s registered profit of $1.67 per share and sales of $5.96 billion.
Comparable store sales fell by 6.7%, a bit better than the 6.9% decline that analysts had projected.
Kohl’s missed estimates last quarter, when its said craft store chain Michaels Cos. CEO Ashley Buchanan would be replacing Tom Kingsbury as chief executive.
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Kohl’s shares were down 15% in recent trading and have lost more than 60% of their value over the past year. The stock dipped below $10 for the first time since 1997 this morning.
Tesla Prices to Watch After Stock’s 50% Decline from Record
1 hr 27 min ago
Tesla (TSLA) shares moved slightly higher in premarket trading after tumbling 15% on Monday to lead S&P decliners, closing below their Election Day level for the first time.
Since hitting a record high in mid-December, Tesla shares have fallen 55% amid investor concerns about potential fallout from Musk’s extensive involvement in the Trump administration and weak sales figures.
Tesla shares fell below the closely watched 200-week moving average in Monday’s trading session. Moreover, increasing volumes have accompanied the recent drop, signaling selling participation by larger market players, such as institutional investors and hedge funds.
While the relative strength index confirms bearish momentum with a reading below 50, the indicator has moved into a region that has typically corresponded with bounces in the stock stretching back to May 2022.
Investors should monitor key support levels on Tesla’s chart around $215 and $165, while also watching major resistance levels near $265 and $300.
The stock was up 0.4% at $223 in recent premarket trading.
Read the full technical analysis piece here.
Major Stock Index Futures Point to Higher Open
2 hr 3 min ago
Futures tied to the Dow Jones Industrial Average were up 0.4%.
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S&P 500 futures rose 0.5%.
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Nasdaq 100 futures were up 0.6%.
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