US stocks took a leg lower on Tuesday as investors reacted to downbeat earnings from ASML Holding (ASML) that dropped a day earlier than expected, sending chipmaker stocks lower across the board.
Shares of the the leading semiconductor supplier sank around 15% after its earnings, released in an apparent error, showed a disappointing sales outlook for 2025. Nvidia (NVDA) shares fell in tandem, dropping around 4% to slip back from their freshly minted high. AMD (AMD) stock also dipped 4%.
The Dow Jones Industrial Average (^DJI) edged about 0.2% lower on the heels of closing above 43,000 for the first time. The blue-chip index was dragged down by UnitedHealth Group (UNH), which saw shares fall more than 5% after its 2025 profit guidance missed estimates.
Meanwhile, the benchmark S&P 500 (^GSPC) dropped roughly 0.2% to also fall from Monday’s new all-time high, while the tech-heavy Nasdaq Composite (^IXIC) sank around 0.6%.
Investors also assessed a fresh crop of bank earnings before the bell with Goldman Sachs (GS) reporting a 45% surge in third quarter profit from a year ago, thanks to a rise in dealmaking. Similarly, Bank of America‘s (BAC) posted an earnings beat amid its own outperformance in investment banking.
As the rush of earnings starts to broaden out, hopes are for further positive surprises in what some on Wall Street suspect could be a tricky season. Shares in Walgreens Boots Alliance (WBA) climbed more than 10% on the heels of its plan to shut 1,200 stores over three years, as the pharmacy chain pursues a turnaround.
Tuesday’s docket also brings reports from Charles Schwab (SCHW) and Johnson & Johnson (JNJ), among others.
Outside of earnings, energy was another major focus. Oil prices tumbled over 4% on a report that Israel is prepared to refrain from bombarding Iran’s crude and nuclear facilities in its response to an attack two weeks ago. West Texas Intermediate crude futures (CL=F) sank to just above $70 a barrel, while Brent crude futures (BZ=F) fell to around $74 following the Washington Post report.
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Oil tumbles 5% on report Israel won’t target Iranian crude, IEA predicts supply glut
Oil tumbled as much as 5% on Tuesday as supply fears faded after a media report signaled Israel would avoid targeting Iran’s petroleum production. A glut of supply forecasted by the International Energy Agency also weighed on prices.
West Texas Intermediate (CL=F) dropped to hover near $70 per barrel, while Brent (BZ=F), the international benchmark price, fell below $74.
Prices declined after a Washington Post article stated Israeli Prime Minister Benjamin Netanyahu told the Biden Administration Tel Aviv would avoid targeting Iran’s nuclear and oil facilities when it retaliates for the ballistic missile attack earlier this month.
“Overall right now, its a bit of a bearish outlook for oil given china’s economy and given Middle East tensions aren’t escalating at this moment,” GasBuddy head of petroleum analysis Patrick De Haan told Yahoo Finance on Tuesday morning.
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Boeing stock edges up as the plane maker moves to issue new shares and raise up to $25 billion
Boeing stock edged up close to 0.4% after filing paperwork with the US Securities and Exchange Commission Tuesday to issue shares of debt securities and common stock worth up to $25 billion over the next three years in a bid to generate much-needed cash.
Separately, the aircraft manufacturer said Tuesday that it has entered a $10 billion credit agreement.
Boeing has had a chaotic year, beginning with a Jan. 5 incident in which an airplane part called a door plug blew off of one of its 737 Maxes — and set off a series of regulatory probes that revealed underlying safety issues at the company and led to the resignation of its CEO. Then, last month, 33,000 Boeing workers walked off the job, seeking access to pension plans, job security, safety improvements, and higher wages. The strike, which crossed the one-month mark on Sunday, has cost the company and workers an estimated $5 billion, according to a report by Anderson Economic Group reviewed by CNN.
Boeing shares are down 42.6% from the start of the year.
The company is at risk of an S&P credit downgrade to junk, Yahoo Finance’s Ines Ferré reports. Shares most recently slid last Friday after Boeing said it would cut its workforce by 10% and delay its first delivery of its 777X jet to 2026, Ferré wrote.
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Dow slips, S&P 500 opens near record
The benchmark S&P 500 (^GSPC) index traded near its all-time high early Tuesday, while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.2%.
The Dow Jones Industrial Average (^DJI) dipped about 0.6% on the heels of closing above 43,000 for the first time as markets assessed a fresh wave of earnings.
What’s largely responsible for the drag on the Dow? UnitedHealth Group (UNH). The company saw shares fall nearly 10% after its 2025 profit guidance missed estimates.
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Earnings roundup: Big banks lift market, healthcare posts mixed results
A fresh batch of bank earnings rolled in Tuesday morning, with strong quarterly results from Goldman Sachs (GS), Charles Schwab (SCHW), Bank of America (BAC), Citigroup (C), PNC (PNC), and State Street (STT) lifting the market.
Here are some of the highlights:
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Goldman Sachs rose 2.8% premarket after reporting a 45% growth in profits from last year thanks to a surge in dealmaking. The firm posted third quarter adjusted earnings per share of $8.40 versus the $7.21 expected, according to Bloomberg consensus data. Yahoo Finance’s David Hollerith has that story.
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Schwab saw the biggest premarket rally of the batch, rising 9.6% after it posted third quarter adjusted EPS of $0.77 versus the $0.75 expected.
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Citigroup climbed 2.2% after reporting EPS of $1.53 versus the $1.31 expected.
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BofA jumped 2.1% before the bell, after reporting EPS of $0.81 versus the $0.76 expected.
Healthcare stocks moved in different directions following mixed results. Here’s a look:
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Walgreens (WBA) rose 4.5% premarket after the pharmacy chain reported fiscal fourth quarter adjusted earnings per share of $0.39, ahead of the $0.36 expected. The company said it plans to close 1,200 stores in an attempt to reverse its struggles.
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Johnson & Johnson (JNJ) fell 1% after lowering its full-year adjusted EPS guidance. Still, the pharmaceutical giant’s third quarter adjusted EPS of $2.42 reported Tuesday beat the $2.19 expected.
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UnitedHealth Group (UNH) fell 3.5% after lowering the top end of its full-year profit outlook. However, the insurance behemoth’s adjusted EPS for the third quarter of $7.15 beat Wall Street’s expectations of $6.99 per share.
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Walgreens continues to look like a sick retailer
Not to be outdone by Big Lots and True Value recently announcing they were going bankrupt, Walgreens (WBA) is back in focus today with its now-normal dose of bad news.
The drugstore chain said this morning it will close 1,200 stores over the next three years. That’s a huge number, one that says a lot about the company’s struggles over the last two years.
These numbers from Yahoo Finance shed further light on Walgreens’ problems:
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The big banks cleaning up in investment banking again
Another big morning for the banks on the investment banking front.
Goldman Sachs (GS) delivered a 20% increase in its investment banking fees in the third quarter. Bank of America (BAC) also notched a 20% increase. Citi’s (C) investment banking revenue grew 31%.
Last week, JPMorgan (JPM) showed a 31% year-over-year increase.
Is there a year-end advisory boom ahead of the November election as CEOs plot out their next five years? Could be. But there could also be a lot of companies preparing to IPO in 2025 amid near-record markets and the prospect of lower interest rates.
