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 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 7% after its 2025 profit guidance missed estimates.
Meanwhile, the benchmark S&P 500 (^GSPC) dropped roughly 0.3% to also fall from Monday's new all-time high, while the tech-heavy Nasdaq Composite (^IXIC) sank around 0.7%.
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.
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.
Live8 updates
Laura Bratton
Nvidia stock falls from record close on report of potential US export cap, ASML's dismal earnings report
Nvidia (NVDA) shares sank more than 5% Tuesday, partially reversing its two week-rally and coming down from a record close the day before.
The stock's tumble comes after a Bloomberg report that Biden administration officials are considering capping US chip exports to certain countries. Citing unnamed sources, Bloomberg writes that potential regulations would focus on Persian Gulf countries in the interest of national security. The stocks of fellow chipmakers Advanced Micro Devices (AMD) and Intel (INTC) also fell, responding to the Bloomberg report and a dismal earnings report from semiconductor supplier ASML (ASML).
Nvidia stock has been more volatile since its 10-for-1 stock split in June, and news of heightened trade tensions focused on the AI chip sector — which Nvidia leads — have pushed shares down various times over the past two years. For example, Nvidia shares experienced a similar decline this time last year when the Biden administration tightened export controls on US chips — before extending its historic rally.
Nvidia shares are up around 191% from last year.
Alexandra Canal
Chip stocks lead declines
A surprise earnings report from ASML Holding (ASML) sent stocks lower across the board on Tuesday.
Shares of 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 dropped 4%.
The moves erased prior gains of the tech-heavy Nasdaq Composite (^IXIC), which fell around 0.8%. As a result, the tech sector was one of the biggest laggards of the day, down nearly 2%.
(Source: Yahoo Finance)
Ines Ferré
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.
Laura Bratton
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.
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.
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.
Laura Bratton
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:
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.
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.
Citigroup climbed 2.2% after reporting EPS of $1.53 versus the $1.31 expected.
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:
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.
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.
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.
Brian Sozzi
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:
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.
The Medicare hold harmless provision prevents Social Security benefits from declining year-over-year due to an increase in deductions for the Medicare Part B premium. But what does this mean in practice for Medicare recipients, and why does it matter? Wealth! Host Brad Smith breaks it all down. To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Melanie Riehl
French bank Credit Agricole is planning to buy a 50% stake in Chinese company GAC Finance Leasing, which is a unit of Guangzhou Automobile Group, to tap into the booming Chinese electric car market, it said on Tuesday. Statistics published earlier on Tuesday by market research firm Rho Motion showed that global sales of fully electric and plug-in hybrid vehicles rose by an annual 30.5% in September, as China surpassed its record numbers recorded in August.
Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the "REIT") will release its 2024 third quarter financial results after market close on Wednesday, November 13, 2024. Milton Lamb, Chief Executive Officer, and Andrew Kalra, Chief Financial Officer, will host a conference call for analysts and investors on Thursday, November 14, 2024 at 9:00 a.m. (ET).
Hilton has partnered with Be My Eyes, an accessibility app to improve hotel stays for blind and low-vision guests. The app can connect users to Hilton's teams to help them navigate hotels and rooms.
Tom Fitzgerald, TD Cowen vice president of equity research, joins Morning Brief to discuss the proxy battle between Elliott Management and Southwest Airlines (LUV). Fitzgerald explains that the proxy battle will "continue to add a lot of noise into the shares" for Southwest. He argues, "We're not really sure that a management change would add a lot of value here, especially given the good relations that Southwest management has with their employee base, which is not a given in this industry." He explains that Elliott's involvement could pose a risk for Southwest, causing employee morale to decrease. He believes that the company's upcoming earnings will be "critical," and hopes that they will provide more information about some of the initiatives they discussed during Investor Day. "We think they have a lot more explaining to do and hopefully provide more meat on the bone to what we can expect in 2026," he adds. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Melanie Riehl
NASHVILLE, Tenn. (AP) — The family of a Tennessee employee who was killed by catastrophic flooding caused by Hurricane Helene has filed a wrongful death lawsuit against the company he worked for, arguing that workers were forced to stay at their posts even when managers knew conditions were becoming dangerous.
As the US presidential election approaches, investors are weighing whether a Trump or Harris administration would be more favorable for cryptocurrency investors. This comes as bitcoin (BTC-USD) topped $67,000 for the first time since July. Duke Financial Economics Center lecturing fellow Lee Reiners joins Catalysts to discuss this topic as the election lies just three weeks away. Reiners suggests that if investors are primarily concerned with crypto prices, a Trump administration might "have a more positive impact." However, he emphasizes that for crypto to achieve long-term success beyond the presidency, "you're going to have to have a lot more people trusted." He notes that crypto platform failures like the Sam Bankman-Fried and FTX (FTT-USD) case have left investors wary of the space. "I think one way you engender trust is to have meaningful regulations in place that provide the basic consumer protections that consumers and investors have when it comes to securities and banking and other traditional financial assets," Reiners explains. "So I think long-term, actually, a sensible regulatory framework would be better for crypto, but I don't think that's what the Trump administration has in mind." Regarding Vice President Kamala Harris's campaign, Reiners points out that there's limited information available about her stance on crypto regulation. The closest thing to a policy statement has been a proposal to give Black men an opportunity to invest in the asset class. "I think though that she and her team are acknowledging that the current status quo is untenable," he tells Yahoo Finance. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Angel Smith
Speaking at a press conference in North Carolina on Tuesday about the response to Hurricane Helene, FEMA Administrator Deanne Criswell said that the misinformation about the federal response to the hurricane “has got to stop.” Criswell said she is taking the threats against federal responders seriously and has made some changes to keep them safe. “Misinformation will not deter us from our mission of helping people,” she said.
The Grand Egyptian Museum will partially open its main galleries on Wednesday, including 12 halls that exhibit aspects of ancient Egypt, as part of a trial run, officials said Tuesday. The museum, a mega-project near the famed Giza Pyramids which has cost well over $1 billion so far, will open the halls for 4,000 visitors as a trial run until the official opening date, which is yet to be announced, according to Al-Tayeb Abbas, assistant to the minister of antiquities. More than 100,000 artifacts of Egypt’s ancient treasures will be displayed in the world’s largest archaeological museum, according to the Egyptian state information website.
The funeral of an Iranian Revolutionary Guard general killed alongside Hezbollah leader Hassan Nasrallah drew the largest crowd of top leaders in the paramilitary organization together Tuesday for the first time since Tehran launched a ballistic missile attack on Israel.
Olivia Rodrigo fell through the stage during the fourth night of her Guts World Tour in Melbourne, Australia, on Monday, October 14.Footage captured by TikTok page @@sweetcreatureco shows the unflappable singer falling through the stage of Rod Laver Arena, then jumping out and continuing her performance. “Oh my God, that was fun, I’m okay,” said Rodrigo. “Sometimes, there’s just a hole in the stage.”Rodrigo is set to perform in Sydney on October 17, before taking a break from touring until March 2025. Credit: @sweetcreatureco via Storyful
Yahoo Finance 
