U.S. stocks were in a holding pattern on Tuesday after rebounding from all-time highs, with retail gains available to keep investors busy as they await a key inflation report.
The Dow Jones Industrial Average (^DJI) fell about 0.5%, while the S&P 500 (^GSPC) slipped more than 0.1% after falling from record levels. The Nasdaq Composite (^IXIC) gave up earlier gains and was flat in the afternoon.
Stocks have lost momentum as investors regroup after last week's turbulent rise and increased focus on the health of the U.S. economy. Hovering over investors is Thursday's PCE index report, a key inflation factor for the Federal Reserve's interest rate decisions.
Read more: What the Fed's rate decision means for bank accounts, CDs, loans and credit cards
Given the market situation As one deals with the timing of a rate cut, the PCE value is seen as a potential catalyst for stock moves in one direction or the other. Meanwhile, consumers appear less confident about the U.S. economy.
The Conference Board's consumer confidence index for February was 106.7, down from a revised reading of 110.9 in January. The preliminary reading for January was 114, a two-year high for the measure. Economists surveyed by Bloomberg had expected a reading of 115 for February.
Investors digested more economic news on Tuesday, including another rise in home prices and the biggest decline in U.S. durable goods orders in four years.
In contrast, the price of Bitcoin (BTC-USD) rose to a two-year high and broke $57,000 per token, with gains boosted by a large investment from MicroStrategy (MSTR). In parallel with the leading digital currency, shares of Bitcoin miners and crypto exchanges such as Coinbase (COIN) also rose.
Early morning earnings reports from major retailers provided insight into how consumers are faring. Macy's (M) shares fell as the company announced plans to close 150 stores in a turnaround and reported another quarter of sales. Lowe's (LOW) poor sales and profit prospects for 2024 weighed on the hardware store chain's shares.
Live9 updates
Tue, Feb 27, 2024 at 6:59 p.m. GMTViking Therapeutics, Norwegian Cruise Line, Unity Software: Stock trends in afternoon trading
Here are the stock trends on Yahoo Finance in afternoon trading on Tuesday:
Viking Therapeutics (VKTX): Shares rose about 110% on Tuesday after the company announced positive sales results from the Phase II trial of its weight loss treatment. The biopharmaceutical giant said the drug demonstrated “statistically significant reductions in body weight compared to placebo at all dosages.”
Janux Therapeutics (JANX): The biotech stock's shares tripled in value on Tuesday, rising more than 200% after the company announced promising early clinical trial results for its prostate cancer treatment. The results show “promising efficacy with a favorable safety profile in heavily pretreated, late-stage subjects.” [prostate cancer]” said the company.
Norwegian Cruise Line Holdings (NCLH): Shares rose more than 15% on Tuesday after the cruise ship reported its first profitable year since 2019, as losses narrowed significantly in the fourth quarter. The company also issued upbeat guidance for the current quarter and full-year guidance that was in line with Wall Street expectations.
Unity software (U): Shares fell nearly 10% on Tuesday, their biggest decline in a year, after the company gave weaker-than-expected guidance for the current quarter and also reported a wider-than-expected fourth-quarter loss. The disappointing results came after the company announced a strategic rebalancing of its portfolio.
Tue, Feb 27, 2024 at 6:15 p.m. GMTHess and Chevron shares plummet due to possible merger blockage
Shares of Hess (HES) and Chevron (CVX) plunged on Tuesday after their planned merger stalled.
Oil giant ExxonMobil (XOM) and China National Offshore Oil Corporation (CNOOC) said they are considering first refusal rights related to their project in Guyana, a key asset in Chevron's planned takeover of Hess.
ExxonMobil is the operator of the project and owns a 45% stake, while CNOOC owns 25%. Hess owns the remaining 30%, which is expected to be transferred to Chevron upon completion of the merger.
ExxonMobil said in a statement: “We owe it to our investors and partners to evaluate our preemption rights under our joint operating agreement to ensure we preserve our right to realize the significant value we have created and are building upon.” Guyana is entitled to an “asset.”
In an SEC filing, Chevron said it had “constructive discussions” with ExxonMobil, CNOOC and Hess.
“Chevron and Hess believe that these discussions will result in an outcome that will not delay, impede or prevent the consummation of the merger,” Chevron said.
Last year, the oil giant announced plans to acquire US explorer and producer Hess in an all-stock deal worth $53 billion.
The Hess acquisition would give Chevron a 30% share of more than 11 billion barrels of recoverable resources in Guyana. The small South American country next to Venezuela is on track to produce more than 1 million barrels per day by 2026.
Shares of Hess fell more than 3%, while Chevron fell about 2%.
- Tue, Feb 27, 2024 at 5:49 p.m. GMT
Stocks fall while Bitcoin rises
U.S. stocks remained in a holding pattern on Tuesday after falling from all-time highs.
The Dow Jones Industrial Average (^DJI) fell about 0.5%, while the S&P 500 (^GSPC) slipped more than 0.1%. The Nasdaq Composite (^IXIC) gave up earlier gains and was flat in the afternoon.
Contrary to general market activity, Bitcoin (BTC-USD) soared, with the token's price breaking $57,000 on its way to its biggest one-month gain since January 2023.
- Tue, Feb 27, 2024 at 4:40 p.m. GMT
Bitcoin hits two-year high
The Bitcoin roller coaster ride is not over yet.
The price of Bitcoin (BTC-USD) rose to a two-year high on Tuesday, surpassing $57,000 per token as large buyers entered the market.
On Monday, crypto investor MicroStrategy (MSTR) announced that it had purchased 3,000 Bitcoins for $155 million, while prices were also boosted by the recent approval of spot Bitcoin exchange-traded funds (ETFs) in the US were driven.
Stocks of other cryptocurrencies and exchanges reflected Bitcoin’s bullish trend. Ether (ETH-USD) topped $3,200 for the first time since 2022, while shares of Coinbase (COIN) rose about 3%.
Bitcoin has gained almost 35% so far in February. If current levels are maintained, it will be the token's largest one-month gain since January 2023.
Tue, Feb 27, 2024 at 3:54 p.m. GMTViking Therapeutics Stock Jumps 70% After Positive Test Results
Weight loss trading is alive and well on Wall Street.
Shares of Viking Therapeutics (VKTX) rose as much as 70% early Tuesday after the company reported that a Phase II trial of its weight loss treatment met its primary and secondary endpoints.
The study showed that the weight loss drug, VK2735, a “dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors,” resulted in patients up to placebo-adjusted weight loss 13 .1% of their body weight after 13 weeks.
The company will now meet with the FDA to discuss next steps in development.
Viking stock has risen six-fold in the last year, and the company's market cap is now approaching $7 billion.
Elsewhere on Tuesday, shares of Fractyl Health (GUTS) rose as much as 6% after Bank of America initiated coverage on the stock with a buy rating and a $26 price target.
Shares of Fractyl have fallen about 50% since their stock market debut earlier this month.
Fractyl is developing treatments for diabetes and obesity as the pharmaceutical industry continues to hope for the opportunities presented by Novo Nordisk (NVO) and Eli Lilly (LLY).
“We begin coverage of Fractyl with a $26 purchase and order,” BofA wrote in its statement.
“GUTS is a pre-commercial stage hybrid medical device/biopharma company developing treatments for type 2 diabetes (T2D) and obesity. The lead product, Revita (key stage), is a non-invasive endoscopic procedure that restores part of the digestive system (duodenum). into a healthier state for better and lasting blood sugar control.
“Follow-up product Rejuva (preclinical) is a one-time GLP1 gene therapy aimed at remission of diabetes and may have better tolerability than marketed GLP1 drugs. We like GUTS for actionable catalysts with upside potential in 2024-25, e.g. B. Crucial.” Data from Revita that can support approval in the multi-billion T2D market.”
- Tue, Feb 27, 2024 at 3:13 p.m. GMT
Consumer confidence falls from two-year high
Consumers are less confident about the current state of the U.S. economy, according to new data released Tuesday morning.
The Conference Board's consumer confidence index for February was 106.7, down from a revised reading of 110.9 in January. The preliminary reading for January was 114, a two-year high for the measure. Economists surveyed by Bloomberg had expected a reading of 115 for February.
The expectations index, which measures consumers' short-term outlook for income, business and labor market conditions, fell to 79.8 in February from a revised 81.5 in January. Historically, a reading below 80 in this category indicates an impending recession Year.
“The decline in consumer confidence in February interrupted a three-month rise and reflected ongoing uncertainty about the U.S. economy,” said Dana Peterson, chief economist at the Conference Board.
“The loss of confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000. “Confidence among consumers under 35 and over 55 deteriorated, while it improved slightly among those aged 35 to 54,” it added.
- Tue, Feb 27, 2024 at 2:32 p.m. GMT
Stocks mostly subdued
U.S. stocks were mostly subdued in early trading on Tuesday as investors digested a series of retail earnings reports and awaited upcoming PCE inflation data due on Thursday.
Both the Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) were little changed after falling from all-time highs. Tech stocks were more bullish, with the Nasdaq Composite (^IXIC) up 0.3%.
- Tue 27 Feb 2024 at 1:30pm GMT
Macy's says it will close 150 more stores
Just wow, Macy's (M).
To stave off an overthrow of its board by activist investor Arkhouse (which has nominated nine board members), Macy's dropped a bombshell this morning: The company plans to close 150 “underproductive” stores, 50 of which will close this year.
The goal is to increase profit margins and cash flow and potentially drive up the stock price.
That's a huge number for a company that has closed hundreds of stores nationwide over the past decade.
I'll put aside for now what this might mean for the fight with Arkhouse.
What I will say, however, is that this is likely a long-term positive for the general merchandise divisions of discount retailers Walmart (WMT), Target (TGT), and TJX Companies (TJX). Essentially, Macy's is exiting a new round of neighborhoods across the United States and, in turn, ceding market share to competitors both in stores and online.
I think the closures say a lot about how the shift to digital shopping continues to impact traditional retailers like Macy's.
By the way, Amazon (AMZN) is of course a winner here. The company has made great strides in its apparel and general merchandise selection, and considering the company continues to shorten delivery times, expect the tech behemoth to continue to put major pressure on department store retailers.
- Tue 27 Feb 2024 at 12:31 GMT
Things are still not good on the housing market
The mood in the US real estate market is still not particularly good and will probably only get better later this year.
Appliance giant Whirlpool (WHR) just made some predictions ahead of an investor day on the New York Stock Exchange today that say a lot about the ongoing pressure in the market.
Despite a big push for innovation this year (particularly an aggressive push into new small appliances like KitchenAid automated espresso machines), the company reported flat sales in North America compared to last year.
The company only sees a real improvement in sales in 2026, when it reported an average annual sales growth rate of 2 to 3% for its largest market – North America.
I'll dive deeper into the guide with Whirlpool Chairman and CEO Marc Bitzer in a chat airing today at 3:00 pm ET on Yahoo Finance Live.
The positive here: The notorious industrial cost-cutter believes it could increase its profit margins this year, next year and in 2026 by eliminating a significant portion of costs.
Keep in mind that this post-weighted outlook from Whirlpool follows a lackluster new home sales report this week.
The bottom line for real estate derivatives stocks like Whirlpool and Home Depot (HD) to rise again is that there must be new clues about when the Fed will cut interest rates. Expectations of rate cuts this year have been pushed back sharply due to stronger-than-expected inflation readings and various speeches from the Fed.
However, I am a buyer of one of these new KitchenAid automatic espresso machines. It's a nifty tool to deliver caffeine in a super efficient way!
Tue, Feb 27, 2024 at 6:59 p.m. GMT
Tue, Feb 27, 2024 at 6:15 p.m. GMT
Tue, Feb 27, 2024 at 3:54 p.m. GMT
Tue 27 Feb 2024 at 1:30pm GMT