U.S. stocks rose Tuesday, steadying after fears over the deadly coronavirus in China sent the S&P 500 to its worst one-day drop since October on Monday.
4:06 p.m. ET: Stocks close higher
Here’s where the major indices had settled as of 4:06 p.m. ET:
S&P 500 (^GSPC): +1.01% or +32.62 points to 3,276.25
Dow (^DJI): +0.66% or +187.05 points to 28,722.85
Nasdaq (^IXIC): +1.43% or +130.37 points to 9,269.68
Crude oil (CL=F): +0.81% or +0.43 to 53.57 a barrel
Gold (GC=F): -0.58% or -9.20 to 1,568.20 per ounce
2:26 p.m. ET: Coronavirus could limit Apple engineers’ travel to China
Apple’s (AAPL) engineers may find their travel to China limited as United Airlines’ (UAL) reduction in the number of flights to China due to the coronavirus outbreak in the country, Bloomberg reports. According to Bloomberg, Apple buys an average of 50 business-class seats a day between San Francisco and Shanghai.
12:38 p.m. ET: Stocks near the highs of the session
The S&P 500 and Nasdaq were each up more than 1% in intraday trading as a recovery rally picked up steam. Tech and financial stocks led advances.
Here were the main moves in markets, as of 12:38 p.m. ET:
S&P 500 (^GSPC): +1.13% or +36.72 points to 3,280.35
Dow (^DJI): +0.85% or +243.27 points to 28,779.07
Nasdaq (^IXIC): +1.46% or +132.99 points to 9,272.28
Crude oil (CL=F): +0.64% or +$0.34 to $53.48 a barrel
Gold (GC=F): -0.58% or -$9.10 to $1,568.30 per ounce
10:00 a.m. ET: Consumer confidence rises in January
Consumer confidence jumped to the highest level since August this month, according to the Conference Board.
The Conference Board’s consumer confidence index increased to 131.6 in January after coming in at an upwardly revised 128.2 in December. This was ahead of expectations for a print of 128.0, according to Bloomberg consensus data.
"Consumer confidence increased in January, following a moderate advance in December, driven primarily by a more positive assessment of the current job market and increased optimism about future job prospects," said Lynn Franco, senior director of economic indicators at The Conference Board, said in a statement.
"Optimism about the labor market should continue to support confidence in the short-term and, as a result, consumers will continue driving growth and prevent the economy from slowing in early 2020,” Franco added.
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9:31 a.m. ET: Stocks open higher, recovering some of Monday’s losses
The three major U.S. stock indices opened in positive territory Tuesday and paced toward their first day of gains in three session.
Advances in the S&P 500 were led by gains in tech and financial stocks. And while positive, the Dow was weighed down by losses in shares of 3M and Pfizer after the two components reported disappointing earnings results Tuesday morning before the bell.
Here were the main moves in markets, as of 9:31 a.m. ET:
S&P 500 (^GSPC): +0.42% or +13.68 points to 3,257.31
Dow (^DJI): +0.26% or +74 points to 28,609.8
Nasdaq (^IXIC): +0.81% or +73.16 points to 9,212.47
Crude oil (CL=F): +0.17% or +$0.09 to $53.23 a barrel
Gold (GC=F): -0.15% or -$2.40 to $1,575.00 per ounce
9:14 a.m. ET: Harley-Davidson, Dow-component 3M deliver disappointing earnings results
3M (MMM) posted fourth-quarter earnings per share and full-year profit guidance that missed consensus expectations, as the manufacturing conglomerate grappled with declining sales in its home market and in Asia.
Fourth-quarter adjusted earnings per share were $1.95, or 15 cents short of consensus expectations, according to Bloomberg data. Quarterly net sales of $8.11 billion matched estimates. The company said it expected to earn between $9.30 and $9.75 a share in 2020, with the midpoint of this range below expectations for $9.60 per share.
The company also announced a restructuring plan that will includes job cuts totaling around 1,500 jobs. 3M expects pre-tax savings of as much as $120 million per year from its newly announced changes.
Harley-Davidson (HOG), meanwhile, delivered another disappointing quarter, as motorcycle shipments missed estimates and retail sales declined for a twelfth consecutive quarter in the U.S. International sales rose 0.5% in the quarter, but were down 3% for the full-year 2019.
The motorcycle company delivered adjusted earnings per share of 20 cents, versus the 25 cents expected for the quarter. Motorcycle and products revenue totaled $874.1 million, below the $926.6 million anticipated.
Shares of Harley-Davidson were down 6.5% heading into market open, while 3M shares were off 1.8%.
9:00 a.m. ET: Home price growth increased in November for a fourth consecutive month
Standard & Poor’s said Tuesday that its S&P CoreLogic Case-Shiller national home price index posted a 3.5% annual gain in November, up from 3.2% in October.
The rate of home price increases started to increase in August after a 16-month slowdown. The 20-City Composite posted a 2.6% year-over-year increase — outpacing analysts’ estimates of 2.4%, according to Bloomberg. The 20-City Composite was up from 2.2% the previous month.
8:30 a.m. ET: Durable goods orders recover in December, but core capital goods orders drop
Durable goods orders, or orders for products intended to last at least three years, rebounded with a rise of 2.4% in December after falling 3.1% in November, the Commerce Department said in its preliminary monthly report Tuesday.
The gains were driven almost entirely by transportation orders. Excluding these, durable goods orders were down 0.1% in the month after a 0.4% drop in November.
Non-defense capital goods orders excluding aircraft, a closely watched metric of business spending, were down 0.9% in the quarter, unexpectedly declining versus a 0.2% gain expected. This marked the largest drop since April, and suggested business fixed investment remained weak at the end of last year.
7:45 a.m. ET: Britain to allow Huawei some access to country’s 5G networks
The UK designated Chinese telecommunications giant Huawei a “high-risk vendor” but will allow the company to build out non-core elements of the country’s 5G network, the UK government announced Tuesday.
Britain will cap Huawei at obtaining just a 35% share of 5G infrastructure in the country, the government added in the statement. It will also ban the company from operating at sensitive locations including nuclear sites and military bases, and from participating in “core” functionality of the network.
The decision comes as the U.S. last year attempted to block the firm from many overseas markets, with Washington having designated the telecommunications company a national security risk with equipment that could be used to spy for China. Huawei has denied any ties to China’s government.
7:31 a.m. ET: U.S. stock futures point to slightly higher open
Domestic equity futures looked to open higher Tuesday morning and recover some of Monday’s steep losses, which came as fears over the coronavirus escalated.
The coronavirus has so far killed 106 individuals in China, while more than 4,500 other cases have been confirmed. Companies including Starbucks (SBUX) and WeWork were among the latest to shut locations in China as the death toll from the virus climbed.
Separately, Tuesday’s session is poised to brings a number of potentially market-moving corporate earnings results and economic data reports The Census Bureau releases its preliminary print on December durable goods orders at 8:30 a.m. ET, giving market participants a pulse on the health of the manufacturing sector at the end of last year. And Apple (AAPL) and Advanced Micro Devices (AMD) are poised to deliver quarterly earnings results after market close.
Here were the main moves during the pre-market session, as of 7:31 a.m. ET:
S&P futures (ES=F): 3,257.75, up 18.25 points or 0.56%
Dow futures (YM=F): 28,612.00, up 131 points or 0.46%
Nasdaq futures (NQ=F): 9,023.75, up 69.25 points or 0.77%
Crude oil (CL=F): $53.24 per barrel, up $0.10 or 0.19%
Gold (GC=F): $1,573.00 per ounce, down $4.40 or 0.28%