Stocks fell on Tuesday and Bitcoin plummeted after briefly topping $69,000, an all-time high.
The Nasdaq Composite traded 1.5% lower Tuesday afternoon, while the S&P 500 fell 0.8% and the Dow Jones Industrial Average lost 0.7%.
Bitcoin climbed above $69,000 Tuesday morning, surpassing its November 2021 record high, before turning sharply lower. The cryptocurrency has gained more than 50% this year amid a flood of money into new spot Bitcoin ETFs and anticipation of an impending halving.
The yield on the 10-year Treasury note fell 6 basis points to about 4.15%, a 3-week low. Optimism about when the Federal Reserve with cut interest rates is beginning to creep back in after a series of hot inflation reports last month dashed hopes for a March cut. Over the last week, the chances of the Fed holding rates steady until July have fallen from 42% to less than 34%, according to federal funds rate trading data.
Lower yields and the expectation of cuts have boosted gold, which climbed to about $2,140 an ounce on Tuesday morning.
Apple (AAPL) shares slid in early trading following a report that iPhone sales in China, its largest international market, were 24% lower in the first six weeks of this year than the same period in 2023.
Stocks slipped yesterday, even as semiconductor stocks advanced and Bitcoin soared to trade near its all-time high.
Apple Stock Slips as China iPhone Sales Plunge 24% in First Six Weeks of Year
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Apple’s (AAPL) sales of iPhones in China, its biggest overseas market, fell by 24% over the first six weeks of this year, according to market research firm Counterpoint.
The data follows Apple’s disclosure last month that its Greater China sales during the fiscal first quarter fell 13%.
The iPhone maker’s market share in China fell to 16% in the first weeks of 2024, falling to fourth place from second place in 2023, when it had a 19% share. Chinese retail giants JD.com, TMall, and Pinduoduo are offering steep discounts on Apple’s iPhone 15 just five months after launch to generate demand.
Apple shares were down 2.7% midday Tuesday. They have lost about 11% of their value so far this year.
Tesla Stock Slides as Arson Halts Production at Berlin Plant
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Tesla (TSLA) shares slid in early trading on Tuesday after the electric vehicle maker was forced to halt production at its Berlin factory following an arson attack on a nearby electricity pylon.
The fire, which occurred in a field near Tesla’s Gigafactory Berlin-Brandenburg in Grünheide, cut off power to the plant and the surrounding area. The factory was evacuated and workers were sent home.
The attack comes amid local opposition to Tesla’s efforts to expand the factory, its only assembly plant in Europe. Tesla last July filed applications with local authorities to expand the plant, with plans to add a battery testing center and water treatment facilities. Tesla hopes the plant will eventually produce 1 million cars a year, about double its current output.
But it has run into resistance from locals and environmental activists. Late last month, Grünheide residents voted against Tesla’s planned expansion in a non-binding vote. And last week nearly 100 activists set up camp in a forest near the factory that Tesla intends to fell as part of its expansion.
Residents and activists have also expressed concern about the factory’s water consumption and its potential to contaminate the region’s groundwater.
Tesla shares were down about 4.7% at $179.38 as of 10:45 a.m. ET Tuesday. They have lost nearly 28% of their value so far this year.
Target Stock Surges on Q4 Earnings Beat
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Target (TGT) shares surged in early trading Tuesday as the company posted stronger-than-expected earnings for the fourth quarter of fiscal 2023.
The retail giant reported net income of $1.38 billion, up 57.8% from the fourth quarter of 2022 and well above Target’s own guidance and analyst estimates compiled by Visible Alpha. Earnings per share (EPS) at $2.98 also surpassed estimates as revenue rose 1.7% from a year ago to $31.9 billion, beating projections.
The company said that the higher profit came in part as a result of lower costs and improved inventory management, and outlined plans to introduce a new membership program as part of its Target Circle rewards program.
Shares of Target were up 12.2% at $168.87 Tuesday morning. They’ve gained close to 18% so far this year.
Stocks Making the Biggest Moves Premarket
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Gains:
- Target Corp. (TGT): Shares of the retailer jumped 8% after it reported fiscal fourth-quarter earnings of $2.98 a share, beating Wall Street’s consensus estimate of $2.41.
- Coinbase Global Inc. (COIN): Shares of the cryptocurrency exchange gained 2% as the price of Bitcoin rose above $68,000 to trade just shy of an all-time high.
- Newmont Corp. (NEM): Shares of the gold miner ticked up 1% as the price of gold continued to climb after hitting a record high yesterday.
Losses:
- Gitlab Inc. (GTLB): Shares of the coding collaboration platform tumbled 22% after it forecast full-year fiscal 2025 earnings of between 19 and 23 cents per share, far less than the 35 cents per share analysts were expecting.
- Tesla Inc. (TSLA): Shares of the electric vehicle maker fell about 3% after it stopped production at its plant outside Berlin amid a suspected arson attack that cut off power to the factory.
- Apple Inc. (AAPL): Shares of the tech giant slid about 2% amid reports iPhone sales in China were 24% lower in the first six weeks of the year than in 2023.
Stock Futures Slip in Premarket Trading
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Futures contracts connected to the Dow Jones Industrial Average were down about 0.3% in early trading on Tuesday.
S&P 500 futures were also off about 0.3%.
Nasdaq 100 futures traded 0.5% lower about an hour before markets opened.
