The S&P 500 edged higher while the Nasdaq dipped after a volatile session on Tuesday as investors gauged inflation data and braced for quarterly earnings reports to justify stock valuations and the strength of the U.S. economy.
Market Snapshot
The Dow Jones Industrial Average rose 221.16 points, or 0.52%, to 42,518.28, the S&P 500 gained 6.69 points, or 0.11%, to 5,842.91 and the Nasdaq Composite lost 43.71 points, or 0.23%, to 19,044.39.
Market Movers
Nvidia was down 1.1%, extending Monday's 2% decline after the Biden administration outlined new rules that impose caps on how many advanced AI chips can be exported to certain countries, along with additional licensing requirements for AI technology. As Barron's has reported, the incoming Trump economic team could revoke or change the rules. Micron Technology, which fell 4.3% on Monday, rebounded and traded up 2.4%.
Palantir Technologies gained 1.4% to $65.91. Shares of the AI software company fell 3.4% on Monday and had declined 14% this year coming into Tuesday's session after soaring 340% in 2024. Analysts at Jefferies late Monday said the stock may face more downside on multiple compression risks. The firm maintained an Underweight rating on Palantir, with a price target of $28.
Eli Lilly declined 6.6% after the pharmaceutical company reported sales of blockbuster GLP-1 medicines Zepbound and Mounjaro that missed analysts' estimates. Lilly said sales of Mounjaro, which is sold to treat Type 2 diabetes, were $3.5 billion in the fourth quarter, far below analysts' estimates of $4.4 billion. Fourth-quarter sales of Zepbound, the same drug sold to treat obesity, were $1.9 billion, below consensus of $2.1 billion.
Boeing fell 2.1% after the aerospace giant reported 2024 deliveries of 348, about a third fewer than in 2023. The company delivered 30 planes in December.
KB Home was up 4.8% after the home builder posted fourth-quarter earnings that rose from a year earlier as revenue jumped to $2 billion. Net orders in the period soared 41% as "buyers continued to demonstrate a desire for homeownership and housing market conditions improved relative to last year, despite ongoing mortgage interest rate headwinds, " KBH said.
Signet Jewelers tumbled 22% after the world's largest retailer of diamond jewelry reduced sales expectations for the fourth quarter, saying it expects sales in the period of $2.32 billion to $2.335 billion, down from a prior forecast of $2.38 billion to $2.46 billion. Holiday same-store sales declined 2%.
ServiceTitan, a software platform for trade businesses, reported a fiscal third-quarter loss of $1.74 a share, wider than a loss of $1.53 a year earlier. Revenue rose 24% to $199.3 million and topped analysts' estimates of $198.5 million. It was the company's first earnings report since going public in December. The stock fell 3.9%.
IAC, the Barry Diller-backed conglomerate, said its board approved the spinoff of Angi, the home-services unit formerly known as Angie's List, which IAC bought in 2017. As part of the plan, IAC said CEO Joey Levin will step down and become an advisor to the company. Levin also will be appointed executive chairman of Angi following the completion of the spinoff. IAC shares were up 0.4% while Angi stock rose 9%.
Aehr Test Systems slumped 27% after the maker of test systems for sensors and semiconductors swung to a fiscal second-quarter loss and said that growth in silicon carbide sales outside of China should remain challenging before recovering in 2026.
Applied Digital was up 10% after Macquarie agreed to invest up to $5 billion in data centers being built by the AI infrastructure company.
Celanese was upgraded to Buy from Underperform at Bank of America. Shares of the chemicals company rose 5.4%.
Market News
Apple, Amazon fight off $600 million UK lawsuit over alleged 'collusion'
Apple (AAPL.O), opens new tab and Amazon have successfully fought off a mass lawsuit in Britain over alleged collusion between the tech giants to remove resellers of new Apple products from Amazon's website, a tribunal ruled on Tuesday.
The lawsuit was brought by consumer law academic Christine Riefa on behalf of around 36 million British consumers who had bought Apple or Beats products.
Meta announces 5% cuts in preparation for ‘intense year’
Meta is set to cut about 5% of its workforce, focusing on the company’s lowest-performing staffers, CNBC confirmed Tuesday.
CEO Mark Zuckerberg informed employees about the decision to “move out low performers faster” in a memo posted on the company’s internal Workplace forum on Tuesday. Zuckerberg told employees 2025 will “be an intense year.”