Verizon falls on earnings outlook
Verizon shares fell more than 2% before the bell after meeting analysts’ expectations for the most recent quarter.
The telecom giant shared a disappointing full-year adjusted earnings outlook, saying it expects EPS to come in between $4.55 and $4.85, excluding items. FactSet estimates called for EPS of $4.96.
Verizon also reported a net addition of 41,000 within its wireless retail postpaid business.
— Samantha Subin
3M falls to cut guidance, misses earnings
Shares of 3M fell more than 5% before the bell after the company shared disappointing guidance for the full year and posted an earnings miss.
The industrial conglomerate beat Wall Street’s revenue estimates for the most recent quarter, though revenue fell short of expectations. The company earned $2.28 per share on revenue of $8.08 billion. Analysts had expected earnings of $2.36 per share on revenue of $8.04 billion, according to Refinitiv.
For 2023, 3M said it expects sales to fall 2% to 6% to $8.50 to $9.00 a share.
3M also said it is cutting 2,500 global manufacturing jobs.
3M shares fell to cut guidance
GE shares rose on better-than-expected earnings
General Electric traded up more than 2% in the premarket after the industrial giant posted quarterly results that beat analysts’ expectations.
GE earned $1.24 per share on revenue of $21.79 billion for the prior quarter. Analysts had expected earnings of $1.13 per share on revenue of $21.59 billion, according to Refinitiv.
“2022 ushers in a new era for GE. We have successfully launched GE HealthCare, delivered strong financial performance, made significant operational progress and continued our steadfast commitment to our customers. Thanks to the high-quality work of our team, GE last had a year with solid revenue growth and margin expansion,” CEO Larry Culp said in a statement.
– Fred Imbert
AMD falls after Bernstein downgrade
AMD Shares slipped more than 2% after Bernstein downgraded the semiconductor maker to market outperform. The firm cited deteriorating trends in the personal computer market for the downgrade.
“It must be said that the PC environment has deteriorated considerably since then,” Bernstein said in a note to clients. “And our belief that AMD would prove relatively more immune to channel degradation has unfortunately been proven wrong, and we’ve become more cautious about potential PC dynamics in recent months.”
— Alex Haring
European markets were flat as investors digested key PMIs
European markets were mixed on Tuesday as investors digested the latest flash buying managers’ index data from the euro zone in January.
Pan-European Stoxx 600 Index Oil and gas stocks fell 0.6%, while retail stocks added 0.7%, edging fractionally above the flatline in early trade.
The S&P global euro zone composite PMI came in at 50.2 in January, up from 49.3 in December and ahead of the consensus forecast of 49.8.
CNBC Pro: Goldman Sachs Asset Management singles out corner of US market with ‘tremendous opportunity’
A Goldman Sachs asset management strategist has named one segment of the market that could be poised for a comeback this year.
James Ashley, head of international market strategy at Goldman Sachs Asset Management, also points to research that has shown such companies outperform when inflation is high but falling.
CNBC Pro subscribers can read more here.
– Ganesh Rao
Zeon shares fall after earnings
share of Zions Bancorp Regional bank earnings for the fourth quarter fell more than 2% despite beating estimates. Zions earned $1.84 per share, according to StreetAccounts, above the $1.65 expected by analysts. Net interest income also beat estimates.
Non-interest income was lower than expected, and deposits fell 13% year over year to $71.7 billion.
Shares of Zeon rose 2.27% in regular trading on Monday ahead of the earnings release.
Dawson says this key level needs to be breached for stocks to potentially consider a rally
According to NewAge Wealth’s Cameron Dawson, stocks rose on Monday, but not high enough to be considered a true market rally.
“We have to go through the most critical level of 4,100,” Dawson said Monday on CNBC’s “Closing Bell: Overtime.” Because 4,100 is the S&P 500’s 65-day high.
The S&P 500 never hit key moving levels in 2022 because it was bearish, Dawson said. If stocks break this level, it may indicate that the rally is likely to enter a new bull market cycle.
Technicals and positioning can only get a stock so far, he added, before a fundamental shift is needed to propel the stock forward.
“We need to see fundamentals change to really keep this rally going,” he said.
He warned that gains in stocks would likely be limited until the Federal Reserve fully pivots and stimulates the U.S. economy again.
“It’s unlikely that we can return to pre-pandemic multiples without the Fed’s help,” he said.
If stocks are able to rally and break 65-day highs, that would likely reduce the S&P 500’s chances of testing October lows, Dawson said.
Stock futures opened little changed
Futures were little changed on Monday evening after stocks posted solid gains during regular trading hours. There were no large cap earnings reports after the bell to spark big moves in futures markets.
– Jesse Pound
Nasdaq, chip stocks led the way on Monday
Stocks enjoyed a broad rally on Monday. Here’s a look at some key numbers from the trading session.
- The Dow closed up 254 points, or 0.76%, at 33,629.56.
- The S&P 500 closed up 47 points, or 1.19%, at 4,019.81.
- The Nasdaq Composite closed up 224 points, or 2.01%, at 11,364.41.
- Nvidia had the biggest impact on the Nasdaq, adding 36 points.
- The VanEck Semiconductor ETF ( SMH ) rose 4.72% for its best day since Nov. 30.
— Jesse Pound, Christopher Hayes