Traders on the floor of the New York Stock Exchange on April 14, 2022.
Source: NYSE
Stock futures ticked lower on Tuesday evening as investors looked ahead to a key inflation report due later this week.
Futures tied to the Dow Jones Industrial Average slipped 40 points, or 0.1%. S&P 500 futures pulled back 0.04%, while Nasdaq 100 futures slid 0.09%.
In after-hours trading, online marketplace eBay jumped more than 3% after announcing that it was raising its quarterly dividend and would spend an additional $2 billion on buybacks. Urban Outfitters lost 10% after missing estimates on the top and bottom lines in the fourth quarter.
In Tuesday’s regular session, the S&P 500 and the Nasdaq Composite ended the day with small gains, up 0.17% and 0.37%, respectively. The 30-stock Dow fell for a second straight day, off by 0.25%.
The S&P 500 and the Dow are off the highs they just notched late last week, but investors may want to think twice before they aggressively ramp up on equities.
“I just don’t think you chase at this point,” Drew Pettit, director of U.S. equity strategy at Citi, said on CNBC’s “Closing Bell: Overtime.” “A lot of good news is getting priced in – we are actually trading up even though the reporting season really hasn’t been great; we really haven’t had a lot of broad beats and broad raises.”
“Enjoy the ride in equities right now,” he added. “Just wait for a better time if you want to be more aggressive.”
On Wednesday, investors will look to earnings results from retailer TJX Cos. and pharmaceutical company Viatris in the morning. Salesforce will post its quarterly numbers after the close.
On the economic front, investors will look for wholesale inventories data Wednesday. However, the personal consumption expenditure reading for January will be the main event on Thursday, as it’s the Federal Reserve’s preferred measure of inflation.
Investors should eye emerging markets and small caps outside of the ‘Magnificent 7’ stocks, Richard Bernstein says
Investors should turn their attention to alternative investments including small caps and emerging markets outside of the “Magnificent 7” stocks, according to Richard Bernstein Advisors chief Richard Bernstein.
“There’s no sound wealth building strategy that says put all of your eggs in seven stocks, there has to be some opportunities outside the U.S. and in some smaller cap stocks,” Bernstein told CNBC’s “Power Lunch” on Tuesday.
“It’s such an amazing bearish view of the world to say there’s only seven companies we can invest in,” he added.
— Brian Evans
Small-cap Russell 2000 notches four-day win streak
The Russell 2000 captured its fourth consecutive winning day in what had been a very tepid session for the major averages.
The small-cap index advanced more than 1% on Tuesday, outpacing the S&P 500‘s roughly 0.2% gain and the Nasdaq Composite‘s nearly 0.4% jump.
The last time the Russell 2000 notched four straight winning sessions was in late December 2023.
Though the small-cap index has been having a strong month – up 5.6% in February – it remains sharply behind the three major averages on the year. In 2024, the Russell 2000 is up only 1.4%, while the S&P 500 has already gained nearly 6.5%.
–Darla Mercado, Chris Hayes
Stocks making the biggest moves after hours
Packages of Beyond Meat brand plant-based jerky in Lafayette, California, December, 2022.
Gado | Getty Images
Check out some of the companies making headlines in extended trading.
- Beyond Meat — Shares skyrocketed more than 78% after the plant-based meat company beat revenue estimates in the fourth quarter. Beyond Meat reported revenue of $73.7 million, while analysts polled by LSEG, formerly known as Refinitiv forecast $66.7 million.
- eBay — The online marketplace added 4% after announcing a dividend raise of 2 cents a share and an additional share buyback of $2 billion. Ebay’s fourth-quarter results beat Wall Street estimates on the top and bottom lines, while guidance for first-quarter earnings per share was above analysts’ estimates.
- First Solar — The solar company gained more than 3% after full-year guidance met Wall Street estimates. Fourth-quarter earnings of $3.25 per share beat analysts’ estimates of $3.13 per share, according to LSEG.
Read the full list here.
— Brian Evans
First Solar stock jumps after earnings beat
First Solar‘s stock popped nearly 5% in extended trading after the company beat Wall Street’s earnings expectations.
The solar panel manufacturer booked net income of $349.2 million for the fourth quarter, an increase of 30% compared to the year-ago period.
First Solar posted a profit of $3.25 per share, beating Wall Street’s expectations of $3.13 per share. The company generated revenue of $1.16 billion for the quarter, missing Street expectations of $1.31 billion.
First Solar expects net sales of $4.4 billion to $4.6 billion in 2024 and adjusted earnings of $13 to $14 per share this year, which is largely in line with expectations.
— Spencer Kimball
Stock futures are little changed
Stock futures were little changed on Tuesday, with investors turning their attention to fresh inflation data later this week.
Futures tied to the Dow Jones Industrial Average slipped 32 points, or 0.08%. S&P 500 Futures hovered near the flatline, while Nasdaq 100 futures fell 0.04%.
— Brian Evans
