Stock market today: Live updates

A key market momentum indicator turning can boost stocks, according to Wolfe Research.

The daily MACD, or moving average convergence/divergence, is showing signs of turning positive, Wolfe’s Rob Ginsberg told clients. And that’s good news for the typical stockholder, he said.

“This should provide a nice tailwind to the average stock,” Ginsberg, Wolfe’s managing director, wrote to clients Monday.

Elsewhere, he said a “washout” in market breadth seen two weeks ago has been succeeded by an improvement in short-term trends.

— Alex Harring

The International Monetary Fund slightly increased its global growth forecast for 2024, noting that a hard landing is looking less likely — but cited ongoing geopolitical conflicts as potential overhangs to global growth.

“New commodity price spikes from geopolitical shocks––including continued attacks in the Red Sea — and supply disruptions or more persistent underlying inflation could prolong tight monetary conditions. Deepening property sector woes in China or, elsewhere, a disruptive turn to tax hikes and spending cuts could also cause growth disappointments,” the organization wrote in its World Economic Outlook Update for 2024.

Nonetheless, the IMF raised its global growth projection to 3.1% in 2024, which is 0.2% higher than its forecast from October 2023.

— Hakyung Kim

Check out the companies making headlines in midday trading.

• General Motors — Shares of General Motors rose 8% after the automaker topped Wall Street’s estimates on the top and bottom lines and offered strong guidance for 2024. The company reported adjusted earnings of $1.24 per share on $42.98 billion in revenue for the fourth quarter of 2023.
• United Parcel Service — The package delivery company slumped 7% after UPS reported disappointing fourth-quarter revenue and guidance. Revenue of $24.92 billion was lower than the $25.43 billion consensus estimate from analysts polled by LSEG. UPS issued full-year revenue guidance between $92 billion and $94.5 billion, which was below the $95.57 billion anticipated by Wall Street.
• Bank of America, Citigroup — Shares rose after Morgan Stanley upgraded several large banks, saying the future is “bright” for the sector. Bank of America shares gained more than 3% following an upgrade to overweight from equal weight. Citigroup shares jumped 4% after an upgrade to overweight from underweight.

Read the full list here.

— Sarah Min

Oil prices rose on Tuesday after the International Monetary boosted its growth forecast and as the market braced for the U.S. response to a deadly drone attack on its troops in the Middle East.

The West Texas Intermediate contract for March was last up $1.07, or 1.39%, to trade at $77.85 a barrel. The Brent contract for March last traded at $82.98 a barrel, up 58 cents or 0.70%.

The IMF forecast economic growth of 3.1% this year, up 0.2 percentage points from its October forecast, due to a resilient U.S. economy and stimulus in China.

Geopolitical tensions in the Middle East, meanwhile, are simmering after militants killed three U.S. soldiers in a drone attack in Jordan. The U.S. holds Iran-allied militants responsible and has vowed to respond.

Though the response in the oil market to Mideast turmoil has been muted, analysts warn that direct confrontation between Iran and the U.S. could send prices higher.

— Spencer Kimball

With earnings season more than a quarter of the way through for the S&P 500, here’s how companies are faring, according to LSEG data.

So far this season 144 companies, or about 29% of the broad index, have posted results, with 79% topping earnings expectations. That’s slightly above the average beat of 76% over the last four quarters. Meanwhile, 64% have surpassed revenue expectations, which is slightly behind the 66% beat rate over the last four periods.

Based on the blended growth rate, earnings are expected to rise 5.5% from a year ago.

— Samantha Subin, Robert Hum

53 stocks in the S&P 500 notched new 52-week highs during Tuesday’s trading session.

Of these names, 35 companies cinched new all-time highs, including “Magnificent 7” stocks Meta Platforms, Microsoft and Nvidia.

Here are some other names that reached new all-time high levels on Tuesday:

— Lisa Kailai Han, Christopher Hayes

Investors will want to stick to the sidelines for now until there’s better market clarity, according to Canaccord Genuity.

Wall Street is concerned stocks may be overbought after their recent upswing, but any certainty is unlikely to come ahead of big tech earnings, Fed meeting and key economic data this week, read a Monday note from the firm’s Tony Dwyer.

“We believe the uncertainty over Fed policy, the concentrated market rally, elevated SPX valuation, and likely economic slowing suggest now is not the time to make a big call in either direction,” Dwyer wrote. “Unless (1) we further work off the intermediate-term overbought indicators … (2) we get more clarity on earnings recovery, Fed policy, and broad market participation.”

— Sarah Min

With the S&P 500 notching record high after high, it’s easy for investors to feel optimistic about the stock market’s near-term outlook.

But “despite the recent optimism, several key risks remain, underlining the importance of considering strategies to reduce threats to portfolios,” wrote UBS analyst Solita Marcelli in a Tuesday note.

Specifically, she pointed to risks such as geopolitical tensions in the Middle East, between Russia and Ukraine and between the U.S. and China. More hawkish commentary from the Federal Reserve during Wednesday’s FOMC meeting could also leave the market vulnerable to a potential pullback.

“While no form of protection works for all risks, we see a range of strategies that can help mitigate volatility or drawdowns for portfolios. These include seeking quality in both equity and bond holdings, as well as defensive structured strategies, alternative investments, or positions in oil and gold,” Marcelli added.

— Lisa Kailai Han

Job openings edged higher in December, a sign that the thawing of the labor market is moving slowly.

Employment vacancies totaled 9.03 million for the month, up from 8.92 million in November and higher than the Dow Jones estimate for 8.8 million, the Labor Department reported in its monthly Job Openings and Labor Turnover Survey.

Hiring increased slightly as well, rising by 67,000, while quits fell by 132,000 and layoffs increased by 85,000.

In a separate report, the Conference Board said its monthly gauge of consumer confidence rose to 114.8 in January, an increase from 108 in December. While the number was slightly below the 115 forecast, it was the highest since December 2021.

—Jeff Cox

Home prices posted gains in November, though a bit less than what the market expected, according to the S&P Corelogic Case-Shiller Index released Tuesday.

The 20-city composite index showed a 5.4% year-over-year gain, up from 4.9% in October but slightly less than the 5.7% Dow Jones estimate. On a seasonally adjusted basis, the measure rose 0.1% from the previous month. The 10-city and composite indexes both increased 0.2%.

—Jeff Cox

Barclays believes the recent market rally may soon be due for a pullback.

“Too fast, too furious,” Ajay Rajadhyaksha, Barclays’ global head of research, wrote in a Monday note. 

“We have been overweight risk assets for the past several weeks, but feel that now is the time for a breather, given the speed and scale of the equity rally.” 

The S&P 500 has jumped 3.3% month to date, reaching a new all-time high. The Dow Jones Industrial Average also rose 1.7% to a record high, while the Nasdaq Composite jumped 4.1%.

— Hakyung Kim

Stocks opened lower on Tuesday, with a fresh slate of corporate earnings on deck from tech giants including Microsoft and Google-parent company Alphabet.

The S&P 500 slipped 0.05% while the Nasdaq Composite ticked down 0.1%. The Dow Jones Industrial Average pulled back 41 points, or 0.1%.

— Brian Evans

The International Monetary Fund on Tuesday raised its forecast for the global economy on unexpectedly strong growth in the U.S. and stimulus in China.

The IMF forecast that the global economy will grow by 3.1% this year, an increase of 0.2 percentage points from its October projection.

“What we’ve seen is a very resilient global economy in the second half of last year, and that’s going to carry over into 2024,” the IMF’s chief economist, Pierre-Olivier Gourinchas, told CNBC’s Karen Tso on Tuesday.

— Spencer Kimball, Jenni Reid

The Federal Reserve is unlikely to meet the market’s outlook for interest rate cuts unless the economy slides into recession, according to DataTrek Research co-founder Nicholas Colas.

“Futures expect the [Federal Open Market Committee] to cut rates by 1.25 – 1.50 percent this year. That has not happened outside of a recession since the mid 1980s. Back then, it led to excess investor confidence culminating in the 1987 stock market crash,” Colas said in DataTrek’s daily market note Monday evening.

“The Fed knows this history. That’s why their call is for cuts of just 0.75 points this year. And … We think they will stick to that plan unless a recession comes knocking,” he added.

The FOMC’s two-day policy meeting starts Tuesday morning. Markets expect the Fed not to raise its benchmark rate now but possibly begin cutting in March and continue to do so at every meeting but one.

—Jeff Cox

Pfizer rose slightly in premarket trading after the pharmaceutical giant posted a surprising adjusted fourth-quarter profit, though revenue fell short of expectations.

Pfizer’s fourth-quarter adjusted earnings of 10 cents per share exceeded the loss of 22 cents per share analysts polled by LSEG were anticipating. However, revenue of $14.25 billion missed the $14.42 billion LSEG consensus estimate.

The pharmaceutical company also issued 2024 revenue guidance of $58.5 billion to $61.5 billion, while analysts surveyed by LSEG were expecting guidance of $60.47 billion. It sees earnings per share of $2.05 to $2.25, below the $2.27 estimate.

These are the stocks moving the most in premarket trading:

Read the full list of stocks moving here.

— Lisa Kailai Han

Shares of JetBlue were down more than 3% in the premarket even after the airline posted better-than-expected numbers for the fourth quarter.

The company lost 19 cents per share, while analysts polled by LSEG expected a loss of 28 cents per share. Revenue was slightly ahead of estimates at $2.33 billion.

UPS shares were down 6% after the package delivery giant posted mixed fourth-quarter results along with disappointing quarterly guidance.

The company earned an adjusted $2.47 per share on revenue of $24.92 billion. Analysts expected earnings per share of $2.46 on revenue of $25.4 billion, according to LSEG.

UPS also said it expects full-year revenue to come in between $92 billion and $94.5 billion. That’s below an LSEG estimate of $95.57 billion.

Shares of General Motors jumped 6% in the premarket after the automaker posted quarterly results that beat analyst expectations.

The company earned an adjusted $1.24 per share on revenue of $42.98 billion. Analysts polled by LSEG expected a profit of $1.16 per share on revenue of $38.67 billion.

“As we begin 2024, I believe GM is well positioned for another year of strong financial performance,” GM CFO Paul Jacobson said in a call with media.

— Fred Imbert