Stock futures slip after investors wrap up a losing February: Live updates - CNBC

Rebecca Patterson is looking to defensives, T-bills for near-term market insurance

Rebecca Patterson, known for her earlier leadership at Bridgewater, is preparing for a near-term market downturn.

In order for the Federal Reserve to ease its interest rate-hiking campaign, Patterson said there needs to be a lot more economic weakness and inflation will likely need to be brought down to the Fed's target level or below—both of those scenarios having "low probabilities." 

"I do think we're looking at equity market downside later this year and I would be watching that interplay between the consumer, companies and the labor market, and, of course, the Fed and those borrowing costs," Patterson, the former Chief Investment Strategist at Bridgewater Associates, said Tuesday on CNBC's "Fast Money."

The strategist added that the consumer is growing cautious, which she said could bode poorly for companies–increasing the risk of layoffs and hit on earnings–if they start spending less. 

For near-term insurance, Patterson said she is investing in the six-month U.S. Treasury bill and is starting to invest modestly in defensive stocks. She noted that six-month Treasury yields rose to 5.14% on Tuesday, reaching its highest return rate since 2007.

Patterson published an op-ed on CNBC.com Tuesday about the three drivers she sees as potentially shaping the future of the U.S. economy.

— Pia Singh

23 Min Ago

How the major indexes performed in February

Tuesday's closed marked the end of February's trading month. Here's how the three major indexes performed in the month:

That marks a turn from January's rally as investors tried to shake off 2022's downturn. February's slide pushed the Dow below where it started the year, while the S&P 500 and Nasdaq Composite are still holding on to some of what each gained in January.

— Alex Harring

40 Min Ago

Stocks making the biggest moves after hours

These are the stocks making the biggest moves after the bell:

• First Solar — The solar stock gained 3.6%. The company reported a fourth-quarter loss of 7 cents per share compared with a 17 cent per-share loss forecasted by analysts, according to FactSet. Revenue came in line with expectations at $1 billion. The company issued full-year guidance that was ahead of expectations on per-share earnings and revenue.
• AMC Entertainment – Shares of the meme-stock darling slipped less than 1%. The company posted a wider-than-expected loss of 26 cents per share for the fourth quarter, compared to the 21 cent per-share loss forecasted by analysts polled by Refinitiv. AMC also reported fourth-quarter revenue of $991 million, while analysts anticipated $978 million in revenue.
• Novavax — The biotechnology company tumbled 24% after the company raised doubts about its ability to stay in business. The company lost $2.28 per share, much larger than the $1.01 per-share loss expected by analysts polled by FactSet. Revenue also came in below expectations at $357.4 million compared with $383.1 million anticipated.

See the full list here.

— Alex Harring

54 Min Ago

Stock futures open down

The three major futures indexes opened in the red.

Nasdaq 100 futures led the way down, dropping 0.3%. Futures tied to the S&P 500 and Dow slid 0.2% and 0.1%, respectively.

— Alex Harring

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Stock futures slip after investors wrap up a losing February: Live updates - CNBC
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Dow closes more than 200 points lower Tuesday, major averages end February with losses: Live updates - CNBC

2 Hours Ago

Stocks close lower for the day and the month

The major averages fell on Tuesday to round out a tough month for the stock market.

The Dow Jones Industrial Average fell lost about 234.11 points, or 0.7% to 32,654.98. The S&P 500 shed 0.3% to end the day at 3,969.69, and the Nasdaq Composite closed 0.1% lower at 11,455.54.

For the month, the Dow ended 4.19% lower for the month and has dipped 1.48% year to date. The S&P 500 and Nasdaq Composite lost about 2.61% and 1.11% in February, respectively, but are still higher year-to-date.

— Tanaya Macheel

2 Hours Ago

Gold and silver close out worst months in more than a year

Gold and silver posted their worst monthly performances in more than a year.

Gold closed down 5.58% for February. That's the worst month for the metal since June 2021, when it lost 7.02%.

Silver had its worst month since 2020, ending February down 11.6%. It last saw a bigger monthly drop in September 2020, when the metal tumbled 17.84%.

— Gina Francolla, Alex Harring

2 Hours Ago

Morgan Stanley says noninvasive health monitoring has huge potential for Apple

Apple is making progress in monitoring blood glucose levels without a blood sample, according to a recent Bloomberg report. If the tech giant is successful, Morgan Stanley said the development has the potential to be a huge disruptor.

"Disruption will likely take time, but given Apple has form in displacing incumbents in fields with large [total addressable markets], we will continue to watch this technology and its speed of miniaturisation," Morgan Stanley analysts wrote in a research note.

The system reportedly uses lasers and measures the light coming back to the sensors to gauge the amount of glucose in the body's interstitial fluid. One of the biggest obstacles is how the components of the system can be shrunk down to be included inside an Apple Watch.

The companies with the most on the line are Abbott Laboratories, DexCom and Medtronic. All three make continuous glucose monitors, but DexCom is more intensely focused on the diabetes and health management market. Its stock tumbled last week when the news broke and in recent trading sessions it has yet to recoup all of its losses.

—Christina Cheddar Berk

2 Hours Ago

Investors should look at credit markets, according to Insight Investment

While high interest rates are rattling the equity market, fixed-income credit markets could have their moment, according to Gautam Khanna, co-head of U.S. Multi Sector Fixed Income at Insight Investment. 

"With peak Fed rates arriving and becoming entrenched this year, equity markets will have to wait even longer for the 'Fed put' to return as central banks focus on keeping financial conditions tight," Khanna wrote on Tuesday. "While high rates will make life difficult for equities, it potentially creates a sweet spot for fixed income."

Khanna added that compelling yields are now achievable on lower and higher risk credit assets.    

"Investment  Grade  Credit  looks attractive – particularly the front end," he continued. "We believe an active approach can push this up to north of 6%. The inverted yield curve offers value at the front end."   

— Hakyung Kim

2 Hours Ago

Buybacks below seasonal trends over the past month, BofA says

Stock buybacks are one of the core tenets of a bullish case for the market in 2023, as some expect buybacks to top $1 trillion for the first time.

However, corporate America will have to pick up the pace to set a new record, according to Bank of America strategist Jill Carey Hall.

"Corp. client buybacks accelerated but have been below typical seasonal trends for the last four weeks. Due to a strong start in Jan., corp. client buybacks YTD as a % of S&P 500 mkt. cap (0.044%) are tracking just below '22 records at this time (0.046%). But new buyback announcements have still been sparse," Carey Hall said in a note to clients on Tuesday.

One area where buyback announcements have been strong is the energy sector, where Occidental Petroleum on Monday announced a new $3 billion authorization for buybacks and a dividend hike.

—Jesse Pound

2 Hours Ago

Analysts stay neutral on Zoom after earnings report

Pandemic-darling Zoom Communications posted better-than-expected earnings and a solid outlook Monday after the bell. But it wasn't enough to get some on Wall Street off the sidelines.

Earnings for the quarter came in at $1.22 per share, adjusted, which is above the consensus estimate of 81 cents from analysts polled by Refinitiv. Revenue also came in above expectations at $1.12 billion compared with the $1.1 billion anticipated by analysts.

While Zoom management issued a strong earnings outlook for the year, it also said growth would continue to slow as the company moves further away from its pandemic era boom.

"While the top-line story remains weak, things appear to have stopped getting worse," said UBS analyst Karl Keirstead in a note to clients Tuesday. "We remain Neutral-rated."

Just under 70% of analysts were neutral on the stock as of Tuesday, according to FactSet. Just over a quarter of analysts rate the stock as overweight or a buy, while just 6% recommend being underweight or selling. That's little changed from where analysts stood in January.

Credit Suisse was also neutral on the stock coming off the report, citing conflicting signals. The firm pointed to the company's contact center, phone business and potential within the artificial intelligence space as areas that could help shift the company's narrative positively in 2024.

"ZM continues to face the aftermath of the pandemic related pull forward of demand, particularly in the Online business," said analyst Fred Lee in a note to clients Tuesday. "But owing to the company's deep culture of innovation, ZM now has several potentially game-changing products in the market."

Morgan Stanley also remained equal weight, with analyst Meta Marshall noting the international business, free cash flows and enterprise as areas to watch going forward.

— Alex Harring

3 Hours Ago

UBS says Fed’s rate hikes are creating “downside risks” for markets

The U.S. Federal Reserve's rate hikes have weighed on equity markets, according to UBS Financial Services. 

"We judge that the economy is in late-cycle, with the Fed continuing to hike rates and growth likely to slow. Tighter policy creates downside risks for markets," UBS senior U.S. economist Brian Rose wrote in a note to clients on Monday. 

The firm anticipates the S&P 500 will finish the year close to current levels, with better upside potential in cyclical markets outside of the U.S., specifically in emerging markets and Germany. 

"We prefer value over growth," Rose wrote. 

According to Rose, financial conditions have not tightened in line with the Fed's rate hikes. The Fed raised interest rates by 25 basis points on February 1, and suggested there will be further rate hikes in the months ahead.

— Pia Singh

3 Hours Ago

Stephanie Link says Target is 'de-risked' following earnings

Target is still worth buying coming off its earnings report, according to Stephanie Link, chief investment strategist and portfolio manager at Hightower.

The big-box retailer topped analyst expectations for its quarter for the first time in a year. The company also gave a conservative full-year outlook, noting changing consumer habits.

"I bought some this morning, I'm going to be continuing to buy," Link said on CNBC's "Halftime Report." "Good quarter, and I think it's de-risked."

The stock was up nearly 3% in Tuesday's session.

Target

— Alex Harring

3 Hours Ago

Morgan Stanley reiterates underweight rating for Fisker

Morgan Stanley reiterated its underweight rating for Fisker shares following the electric vehicle maker's disappointing fourth-quarter earnings. 

"Among an ever increasing range of EV manufacturers, what attracts us to Fisker is the company's focused strategy on design and engineering and supply chain," analyst Adam Jonas wrote in a Monday client note.

"While we like the story and strategy, a need for capital, the re-balancing of supply and demand in the EV space, and the ongoing deterioration in the macro environment drives our UW," he continued. 

The analyst maintained his price target of $4, implying a 48% downside from Monday's closing price.

Fisker shares have gained more than 6% in 2023, but have dropped 37% during the past 12 months.

Fisker stock

— Hakyung Kim, Michael Bloom

3 Hours Ago

Shares of Arconic soar nearly 20% on reports it will be acquired by Apollo

Shares of Arconic jumped more than 19.8% after the Wall Street Journal reported that private-equity firm Apollo Global Management Inc. is in talks to acquire the aluminum products maker.

Apollo submitted a bid in February and has debt financing in place, according to the Journal's sources. The Pittsburgh-based company has a market value of about $2.2 billion. It also has a debt load of more than $1.5 billion, suggesting the deal would carry a "significant premium" if it goes through, the Journal reported.

Earlier Tuesday, Goldman Sachs downgraded Arconic to sell from neutral, citing a weak European demand outlook. The company's stock price is up more than 26% so far this year.

—Pia Singh

3 Hours Ago

Canaccord Genuity, Mizuho Bank reiterate buy ratings on Tesla

Canaccord Genuity and Mizuho Bank reiterated their buy ratings on Tesla ahead of the electric vehicle maker's Analyst Day on Wednesday. 

Canaccord Genuity maintained its price target of $275, which suggests an upside of 32.4% from Monday's close. 

Mizuho also maintained its buy rating and a $250 price target on the automaker, adding that it sees continued strength in Tesla's market share in the near term. The bank noted, however, that cheaper competitor EV makers could be "potentially dilutive" to Tesla's share in the U.S. EV market.Competitor Rivian Automotive is reporting earnings after the closing bell today, and Chinese EV startup Nio is reporting on March 1. 

Mizuho managing director Vijay Rakesh said the bank is looking to Tesla's potential announcements of updates to its existing products, new announcements of a potential robotaxi and last-mile delivery van, updates on its battery and energy storage business, and progress on FSD Beta, the live-testing phase of Tesla's self-driving software.

– Pia Singh

4 Hours Ago

Bernstein expects strong earnings report from Costco

Costco Wholesale has delivered exceptional results across all of its key performance indicators over the last two years, and Bernstein expects that strong, stable performance to continue.

The warehouse club reports its fiscal second-quarter earnings on Thursday. Bernstein, which has an outperform rating on Costco, adjusted its net sales growth estimates down to 7%, 11 basis points below consensus, after December and January's results came in at 7% and 6.9%, respectively. The firm also anticipates some margin recovery in the quarter.

"Negative surprises would be … surprising," analyst Dean Rosenblum wrote in a note Monday. "COST is less exposed to inventory-related risks, and TGT/WMT-type news seems unlikely. Plus we have the benefit of monthly sales releases, which give us advance insight into the quarter."

Meanwhile, Credit Suisse, which has a neutral rating on the stock, is forecasting earnings per share to come in at $3.11, versus the FactSet consensus of $3.21. It raised its comparable same-store sales estimate, excluding gas and currency, to 6.8% from 5%.

"We are raising our sales est. for FY2Q23, given traffic and sales strength seen in the company's December and January sales results, but we are cautious on flow-through, due to the elevated cost environment in general," analyst Karen Short wrote in a Monday note.

— Michelle Fox

4 Hours Ago

Goldman Sachs downgrades Arconic, cites murky demand outlook

Shares of aluminum products maker Arconic fell nearly 5% following a downgrade to sell from a neutral rating by Goldman Sachs.

Analyst Emily Chieng cited a weakening demand outlook in Europe and the postponement of growth projects among the reasons for the downgrade.

Read more on the downgrade here.

Arconic shares fall on Goldman Sachs downgrade

— Samantha Subin

5 Hours Ago

Oaktree Capital is raising $10 billion for leveraged buyout fund

Oaktree Capital Management announced Tuesday it's raising $10 billion for a new fund focused on leveraged buyout lending.

The manager plans to offer senior secured loans of $500 million or more to private equity-owned U.S. companies, typically with over $100 million in EBITDA, the company said in a release.

"The need for this type of lending is significant, but we anticipate limited competition given the retreat of banks from this area and the dearth of nonbank lenders with the requisite scale, flexibility and credit expertise," Howard Marks, Co-Chairman of Oaktree, said in a statement.

Oaktree said it believes this area of the market is especially attractive now because there's limited debt capital to finance large leveraged buyouts and there are record-high levels of committed private equity capital yet to be deployed.

— Yun Li

5 Hours Ago

Citi downgrades Dick's Sporting Goods

Dick's Sporting Goods' stock slumped 2% following a downgrade to neutral from a buy rating by analysts at Citi.

"With DKS up against difficult multi-year comparisons in 2023 (esp 2H), it's tough to see how they can sustainably grow sales/EPS, particularly if demand slows in key categories of apparel/footwear (~55% of sales)," said analyst Paul Lejuez in a Tuesday note to clients.

Read more on the call from Citi here.

— Samantha Subin

5 Hours Ago

Stocks making the biggest moves in midday trading

These stocks are among those making the biggest moves in midday trading:

• Dish — Shares of the satellite provider lost 7.3% after the company disclosed that a previously disclosed "network outage" was the result of a cybersecurity breach. Bank of America also double-downgraded the stock to the stock to underperform from buy. The bank said Dish could fall nearly 20% as the company's timeline for its wireless network service build-out extends.
• Norwegian Cruise Line Holdings — The cruise company fell 12% after reporting a wider-than-expected loss for the fourth quarter. Norwegian lost an adjusted $1.04 per share on $1.52 billion of revenue. Analysts surveyed by Refinitiv had forecast an 85 cents per share loss on revenue of $1.5 billion.
• Advance Auto Parts — The automotive aftermarket parts company gained 3.3% after reporting better-than-expected revenue and fourth-quarter earnings of $2.88 per share, topping StreetAccount's estimate of $2.41.

Click here to see more stocks making midday moves.

— Pia Singh

5 Hours Ago

Bond yields are close to a major psychological level that could really spook the stock market

The benchmark 10-year Treasury yield is hovering close to a key level that strategists say could give stock investors a fright.

The 10-year Treasury yield broke through resistance in recent sessions and is now a hair below the important 4% level. Yields, which move opposite price, have been rising through February after sliding in January. The yield was at 3.94% in late morning trading.

For stocks, a move to 4% could create more volatility.

For the complete analysis, check out the full story on CNBC Pro.

— Patti Domm, Tanaya Macheel

5 Hours Ago

Cybersecurity, chip stocks outperform in February

With one trading day left in February, two sub sectors of the tech industry have notably outperformed this month.

• The Global X Cybersecurity ETF (BUG) is up almost 2% in February, on track for its second-straight positive month. Palo Alto Networks, Rapid7 and Crowdstrike have all risen at least 15% this month.
• The iShares Semiconductor ETF (SOXX) is up 1.4% in February, on track for its second-straight positive month. Nvidia, Monolithic Power, and Silicon Labs are all up at least 12% this month.

Outside of tech, transports has been another positive sector in February, with big gains from Avis Budget and FedEx.

— Jesse Pound, Gina Francolla

6 Hours Ago

Dish Network shares fall on Bank of America double downgrade

Shares of Dish Network fell more than 6% after Bank of America double-downgraded the stock to underperform from a buy rating.

"Over the past 12 months, the company has had to navigate a prolonged period of expected and unexpected technological challenges and would not likely hit cruising speed until 2024, by our estimate," wrote analyst David Barden.

Read more on the call from the Wall Street firm here.

Dish Network shares fall

— Samantha Subin

7 Hours Ago

Stock market this year may defy March’s usual history of positive gains

March is most often a positive month for the stock market, but this year it may bring more of the same turbulence that rattled investors in February.

Stocks are set to exit February with steep losses, with the S&P 500 down 2.3% for the month through Monday. The index is still up 3.7% for the year so far.

"February is the second worst month of the year, posting an average decline of 0.21%, which is the second worst after September," said Sam Stovall, chief investment strategist at CFRA. "However, March on average posts a gain of 1.1%, rising 64% of the time." March is the fifth-best month for the S&P 500, according to CFRA data going back to 1945.

For more, read the full story on CNBC Pro.

— Patti Domm, Tanaya Macheel

7 Hours Ago

U.S. 10-year hits highest level since November

The yield on the 10-year U.S. Treasury note hit a high of 3.983% on Tuesday, its highest level since Nov. 10, when the note yielded as high as 4.117%. It was last higher by about 3 basis points at 3.955.

Treasury yields added to their sharp February gains as traders continued weighing the prospects of higher tighter monetary policy for longer than expected.

— Gina Francolla, Tanaya Macheel

8 Hours Ago

Worries about the economy grew in February, Conference Board says

Consumers grew more pessimistic in February as worries over the longer-term outlook for the economy diminished, according to a Conference Board report Tuesday.

The board's Consumer Confidence Index fell to 102.9 for the month, down from 106 in January and below the 108.5 estimate from Dow Jones.

Though the Present Situation Index actually ticked up slightly to 152.8, the Expectations Index slid to 69.7, down from 76 in January. A reading below 80 in the expectations side is considered consistent with a recession in the next 12 months.

"Expectations for where jobs, incomes, and business conditions are headed over the next six months all fell sharply in February," said Ataman Ozyildirim, senior director, economics, at The Conference Board.

—Jeff Cox

8 Hours Ago

Dow falls to start the final trading day of February

The Dow traded more than 100 points in early Tuesday trading, as traders wrapped up a tough month for stocks. The S&P 500 and Nasdaq hovered around the flatline.

— Fred Imbert

9 Hours Ago

Indicators point to 10-year Treasury yield above 4%, says Katie Stockton

Technical indicators support a breakout above 4% for the 10-year Treasury yield, technical analyst Katie Stockton told CNBC's "Squawk Box" Tuesday.

The yield is currently hovering near 3.94%. Yields move inversely to prices.

"The next resistance that's meaningful is at the October 2022 high and that's about 4.34[%] for yields. We do think there's going to be progress towards that resistance level," the founder and managing partner of Fairlead Strategies said.

Meanwhile, the higher correlation between bitcoin and the Nasdaq 100 and other risk assets is expected to return now that equities are declining.

"If you look at bitcoin versus resistance, it's still in that 25,200 area. It needs to clear that level in order to look better because that would resolve the trading range to the upside and tell us that range is more likely a reversal pattern vs. a continuation pattern," she said.

— Michelle Fox

10 Hours Ago

Bitcoin and ether on track for a positive February, despite mid-month slide

Bitcoin and ether rose slightly Tuesday morning and were on pace to end the month higher, despite slipping earlier in the month.

Bitcoin is on track for a roughly 1% February gain, according to Coin Metrics. Ether is up about 3% for the month. In January bitcoin posted a 38.39% gain and its best month since 2021.

Bitcoin and ether in February

Investors were spooked earlier in the month after what appeared to be the beginning of a potential regulatory crackdown on crypto businesses in the U.S. — including the Securities and Exchange Commission's enforcement action against Kraken, its Wells Notice of a future settlement against Paxos and the New York State Department of Financial Services' ordering Paxos to stop minting the Binance USD (BUSD) stablecoin.

However, crypto investors are Fed watch like much of the rest of the market, and economic data remains the biggest driver of cryptocurrency prices.

— Tanaya Macheel

10 Hours Ago

Stocks making the biggest premarket moves

Here are some of the stocks making the biggest moves in premarket trading.

• Dish Network — The satellite company dropped 6.3% amid its multi-day service outage and double-downgrade from Bank of America. Dish Network shares are down 13.5% in 2023 amid a 61.8% drop during the past 12 months.
• Dick's Sporting Goods — The sporting-good retailer dropped about 2% after being downgraded to neutral from buy by Citi. The firm said it expects near-term gross margin pressure to continue.
• Celsius Holdings — The energy-drink maker gained 3.9% after being upgraded by Credit Suisse to outperform from neutral. The Wall Street firm said the distribution agreement with Pepsi is going well and the long-term potential is high.

To see more premarket movers, read the full story here.

— Michelle Fox

11 Hours Ago

Target rises after earnings

Target shares were higher by 1% in early trading after the retailer said earnings per share for the fiscal fourth quarter was $1.89, well above the $1.40 consensus of analysts gathered by Refinitiv. Revenue came in at $31.4 billion, also above the $30.72 billion Wall Street consensus estimate from Refinitiv. Target also said holiday-quarter sales rose about 1% from a year ago.

The gain was muted as Target said it expects full-year earnings per share to be in a range of $7.75 to $8.75. Wall Street analysts were expecting a consensus $9.23 per share, according to StreetAccount estimates.

Target 1-day

-John Melloy

11 Hours Ago

Global market breadth remains solid despite February pressure, BofA says

Bank of America chart analyst Stephen Suttmeier noted that, while stocks have been under pressure this month, global breadth is holding up well.

"Strong market breadth for global equity indices suggests a broad-based rally, which is bullish in the face of a challenging market for equity investors in February," Suttmeier said in a note Monday.

"The weekly advance-decline (A-D) line of 73 country indices hit new highs in February. Sustaining this move to new highs would rhyme with past bullish breakouts for this A-D line from November 2020, March 2019, December 2016, January 2013 and March 2010," he said.

Global stocks were slated to end February with a loss. The iShares MSCI ACWI ETF — which tracks the All Country World Index — was down 2.8% for the month through Monday's close. The S&P 500, meanwhile, has lost 2.3% in February.

ACWI in February

22 Hours Ago

CNBC Pro: Semiconductors, A.I. and more: These top-rated ETFs offer a way to play tech's hottest trends

Two tech themes have taken Wall Street by storm so far this year.

One is the return of semiconductor stocks, as demand bounces back for chips; the other is artificial intelligence, following the buzz surrounding chatbot ChatGPT.

CNBC Pro screened for the highest-rated ETFs with exposure to semiconductor and/or AI-related stocks (among others) using Morningstar data. The resulting funds all received a four- or five-star rating by Morningstar, and have performed well over the past three years.

CNBC Pro subscribers can read more here.

— Weizhen Tan

22 Hours Ago

CNBC Pro: 'Pretty bearish on Tesla': Market pro says price cuts will hit the EV giant's share price

23 Hours Ago

Occidental Petroleum shares decline on earnings miss

Occidental Petroleum's stock slipped 1% after the bell after posting a miss on the top-and-bottom lines for the fourth quarter.

The energy giant reported adjusted earnings of $1.61a share on $8.33 billion in revenue. Refinitiv estimates called for EPS of $1.80 on revenues of $8.66 billion.

The company also hiked its dividend by more than 38% to 18 cents a share and announced a $3 billion share buyback plan.

Occidental Petroleum's stock falls on earnings miss

— Samantha Subin

23 Hours Ago

Where the major averages stand ahead of final trading day of February

This is where all the major averages stand as February trading nears an end.

Dow Jones Industrial Average:

• Down 3.5% in February
• Down 0.8% so far this year
• 11% % of record high
• 80.57% % off pandemic low

S&P 500:

• Down 2.3% this month
• Up 3.7% in 2023
• 17.36% off record high
• 81.68% off pandemic low

Nasdaq Composite:

• Down 1% in February
• Up 9.6% year to date
• 29.27% off record high
• 72.92% off pandemic low

— Samantha Subin

24 Hours Ago

Zoom shares pop on strong fourth-quarter results

Shares of Zoom Video popped 8% in extended trading after fourth-quarter earnings and revenue surpassed Wall Street's expectations.

The video communications company reported earnings of $1.22 a share on $1.12 billion in revenue. Analysts surveyed by Refinitiv had expected earning of 81 cents per share on revenues of $1.10 billion.

Despite expectations for slowing growth this year, Zoom also shared better-than-expected guidance for the current period.

Zoom shares rise on earnings results

— Samantha Subin, Jordan Novet

24 Hours Ago

Stock futures open slightly higher

Stock futures opened slightly higher in overnight trading Monday.

Futures tied to the Dow Jones Industrial Average gained 45 points, or 0.14%, while S&P 500 and Nasdaq 100 futures added 0.13% and 0.15%, respectively.

— Samantha Subin

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Dow closes more than 200 points lower Tuesday, major averages end February with losses: Live updates - CNBC
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TD Bank to Pay $1.2 Billion to Settle Stanford Financial Ponzi Case - The New York Times

The Canadian lender settled claims arising from a scandal involving Stanford Financial, which collapsed in 2009 and cost ordinary investors some $7 billion.

TD Bank, one of Canada’s biggest lenders, said Monday that it had agreed to pay $1.2 billion to settle claims arising from a giant Ponzi scheme involving Stanford Financial, a scandal that erupted 14 years ago and cost ordinary investors some $7 billion.

The bank said it had reached the settlement with the Stanford Financial receiver, who is trying to recoup funds for investors, “to avoid the distraction and uncertainty” of protracted litigation. In a statement, TD, as Toronto-Dominion Bank is known, said it denied any wrongdoing or liability for having provided banking services to Stanford’s offshore bank in Antigua.

The deal with TD was larger than settlements reached with four other banks: Trustmark National, Société Générale, HSBC and Independent Bank, formerly Bank of Houston, according to the Stanford Financial receiver.

In all, the deals with the five banks, which provided services to Stanford Financial during its two decades in operation, totaled $1.6 billion. The receiver had been preparing to go to trial with some of the banks.

The settlement is a major victory for the court-appointed receiver, Ralph Janvey, who has struggled for years to recover money for the 18,000 customers who invested in high-yielding certificates of deposit issued by Stanford Financial’s offshore bank. The C.D.s ended up largely worthless because the bank did not have enough assets to back them up, and the deposits were not guaranteed by any federal bank insurance program.

Before the settlement with the banks, Mr. Janvey and lawyers from Baker Botts had recovered $1.1 billion, with $680 million going to customers and investors.

“This is an extraordinary result for the victims of the Stanford fraud,” Kevin Sadler, a partner at Baker Botts, said in a statement. “Given all the challenges faced by the receivership since 2009, this is nothing short of a monumental recovery.”

Stanford Financial collapsed in February 2009, amid investigations by the Securities and Exchange Commission and other agencies, and after a news report had focused on whether the returns on the company’s C.D.s were too good to be true.

The founder of Stanford Financial, R. Allen Stanford, center, leaving a federal courthouse in Houston in 2012.Richard Carson/Reuters

Federal prosecutors ultimately charged R. Allen Stanford, the firm’s founder, with engineering a long-running scheme to divert investors’ money to invest in real estate and finance a lavish lifestyle. Mr. Stanford was convicted in 2012 in a trial in federal court in Houston, where Stanford had its U.S. headquarters.

Mr. Stanford, 72, was sentenced to serve 110 years in a federal prison. He is being held at a U.S. penitentiary in Sumterville, Fla.

The Stanford Ponzi scheme was revealed just two months after Bernard Madoff had turned himself in to federal authorities in New York for running a Ponzi scheme at his investment firm. The fraud carried out by Mr. Madoff has always overshadowed Mr. Stanford’s, in part because Mr. Madoff looted at least three times as much money from customers.

Mr. Madoff’s victims also included a number of celebrities and high-profile investors. By contrast, most of Stanford Financial’s customers were investors of more modest means, who bought the C.D.s after brokers pitched them as safe, high-yielding investments.

Stanford Financial investors have had to wait far longer to get money back than investors in Mr. Madoff’s scheme. (Mr. Madoff died in 2021, at 82, while serving a 150-year sentence at a prison in Butner, N.C.)

The long road to recovering money for Stanford Financial’s customers is a fresh reminder of the challenges lawyers for the collapsed cryptocurrency company FTX face as they seek to recoup billions in customer funds that federal prosecutors contend its founder, Sam Bankman-Fried, siphoned away.

Mr. Madoff’s investors have recouped much of the money they invested because of a series of successful lawsuits brought by the receiver of the firm. The receiver, Irving Picard, has won a number of lawsuits to claw back so-called fictitious profits that were paid out to investors before the scam was exposed.

Investors in Mr. Madoff’s firm also benefited from a 2014 settlement that federal prosecutors in Manhattan reached with JPMorgan Chase, one of Mr. Madoff’s main banking partners. The deferred prosecution agreement with JPMorgan, the nation’s largest bank, returned $1.7 billion for victims. Prosecutors had charged the bank with turning a blind eye to some of what went on at Mr. Madoff’s firm, and for failing to adequately alert regulators in the United States about concerns it had with his operation.

In an email, Mr. Sadler said the deal that prosecutors had struck with JPMorgan was a guide for the settlement with some of the banks in the Stanford Financial scandal.

“If you bank a 10-figure Ponzi scheme,” Mr. Sadler said, “then you have 10-figure responsibility.”

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TD Bank to Pay $1.2 Billion to Settle Stanford Financial Ponzi Case - The New York Times
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Stock market news today: Stocks rise as Wall Street rebounds from worst week of 2023 - Yahoo Finance

U.S. stocks rose on Monday, fueling a rebound from Wall Street's worst week of the year.

The S&P 500 (^GSPC) rose by 0.3%, while the Dow Jones Industrial Average (^DJI) gained 0.2%. Contracts on the technology-heavy Nasdaq Composite (^IXIC) increased by 0.6%.

The yield on the benchmark 10-year U.S. Treasury note ticked down to 3.93% Monday.

On the economic data side, new orders for manufactured durable goods in January plunged to 4.5%, the biggest drop since April 2020, the Census Bureau reported. The drop was more pronounced than economist estimates of 4.0%.

"The manufacturing sector will remain under pressure in the months ahead, but the details of January's report of durable goods orders and shipments suggest factory activity started the year on a better note than the headline figure would suggest," Lydia Boussour, EY Parthenon senior economist, wrote in a statement following the release.

Meanwhile, the National Association of Realtors’ index of pending home sales climbed 8.1% to 82.5 in January, sharply higher from the projected rise of 1.0% by Bloomberg economists, according to data the group released on Monday. On a yearly basis, however, pending transactions plunged by nearly 24%.

"The increase in the Pending Home Sales Index confirms that the US housing market has improved, or better put, has somewhat stabilized over the last several months due to lower mortgage interest rates," Raymond James chief economist Eugenio Aleman wrote in statement to Yahoo Finance. "However, the recent increase in mortgage rates is probably going to inflict some more pain on the US housing market going forward."

Stocks closed out their worst week of 2023 on Friday after the Federal Reserve’s preferred inflation gauge showed it unexpectedly accelerated in January and consumer spending jumped. The “core” Personal Consumption Expenditures (PCE) price index – which excludes volatile food and energy components – showed prices climbed 0.6% in January and 4.7% from last year.

The Commerce Department also reported consumer spending rose 1.8% last month from December, the largest increase in nearly two years. The survey’s results renewed anxiety among investors that the Fed would continue its aggressive tightening campaign against inflation.

The drop in optimism pressured the major indexes, as the Dow Jones dropped 3% for its fourth consecutive losing week, while the S&P 500 shed 2.7% in its worst week since early December and the tech-heavy Nasdaq sank 3.3%.

Data compiled by 22V Research has found that rising interest rates have increased the correlation between growth and value stocks to the highest level since at least 2005.

This week, investors will remain keen on the retail sector, with earnings from Target (TGT) on deck before market open on Tuesday after Walmart (WMT) warned of cautious profit guidance for the year ahead. Home improvement retail giant Home Depot (HD) also had disappointing guidance for fiscal 2023.

Elsewhere on the earnings calendar are results from Costco (COST), Macy's (M), Dollar Tree (DLTR), and Kohl's (KSS) to feature the retail side.

Meanwhile, the share of companies topping analysts' expectations in the fourth quarter has been low compared to history. Data from FactSet showed that 68% of S&P 500 companies reported fourth quarter earnings that beat expectations, down from the five-year average of 77% and the 10-year average of 73%.

In single stock moves, Seagen Inc. (SGEN) shares jumped Monday morning after a report from The Wall Street Journal said Pfizer (PFE) is in early-stage talks to acquire the cancer drugmaker company in what could be a multi-billion dollar deal.

Berkshire Hathaway Inc. (BRK-B) stock rose following CEO Warren Buffett’s annual letter to shareholders, which offered readers a glimpse into his views on share buybacks, taxes, corporate accounting, and his sense of optimism about the economy.

Shares of fuboTV (FUBO) sank after the sports-focused streaming service issued disappointing guidance in its fourth-quarter earnings report on Monday and disclosed that it had sold stock at a deeply discounted price.

Fisker (FSR) shares jumped Monday after the electric vehicle startup announced its deliveries for its first vehicle, the Ocean SUV, would be completed by spring.

Shares of Union Pacific (UNP) climbed after the largest freight operator announced its plans to name a new chief executive following pressure from activists to oust Lance Fritz from the job.

Bath & Body Works (BBWI) shares fell after the company said in a letter to shareholders that the looming proxy battle is based on "misguided" motivations and would be detrimental to shareholders. The board made the decision to not appoint former Third Point co-chief investment officer Munib Islam.

Warren Buffett, CEO of Berkshire Hathaway, attends the annual Allen and Co. Sun Valley Media Conference, in Sun Valley, Idaho, U.S., July 6, 2022. REUTERS/Brendan McDermid

Elsewhere, in cryptocurrency news, Coinbase (COIN) said in a tweet that it will soon suspend trading for Binance's stablecoin, Binance USD, on March 13 at or around noon ET. The move comes after Paxos Trust disclosed it will stop creating the Binance-branded stablecoin, citing regulatory pressure.

—

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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Stock market news today: Stocks rise as Wall Street rebounds from worst week of 2023 - Yahoo Finance
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Warren Buffett slams critics of stock buybacks after Democrats' scrutiny: 'Economic illiterate' - Fox Business

Activision Blizzard CEO Bobby Kotick reveals what led to the video game company's record-breaking Q4 earnings results on "The Claman Countdown."

Billionaire investor Warren Buffett blasted opponents of stock buybacks in his annual letter to Berkshire Hathaway Inc. shareholders, writing that the opponents are "illiterate" about economics or are engaged in demagoguery.

Buybacks, which happen when corporations repurchase their stocks to reduce the share count, have drawn heavy criticism from Democrats who argue that they primarily benefit corporations, executives and wealthy investors. During the last Congress, Democrat majorities enacted a 1% tax on buybacks, and President Joe Biden is pushing to quadruple that tax rate – but buybacks reached nearly $1 trillion in 2022 despite the opposition.

Buffett, who is a longtime Democrat, slammed opposition to stock buybacks in his widely read letter to shareholders, writing, "When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive)."

WARREN BUFFETT’S ANNUAL LETTER REVEALS BERKSHIRE’S ‘SECRET SAUCE,’ CRUCIAL LESSON FOR INVESTORS

Warren Buffett, chairman and CEO of Berkshire Hathaway, criticized opponents of stock buybacks as being "illiterate" about economics who may be engaged in demagoguery. (AP Photo / Nati Harnik / File / AP Newsroom)

Berkshire’s shareholders saw a slight increase in their per-share value in 2022 due to the firm’s repurchase of 1.2% of its outstanding shares and similar moves by Apple and American Express, in which Berkshire holds significant investments, Buffett wrote. He noted that when the economics of stock buybacks make sense, they can add value for shareholders.

"The math isn’t complicated: When the share count goes down, your interest in our many businesses goes up," Buffett wrote. "Every small bit helps if repurchases are made at value-accretive prices. Just as surely, when a company overpays for repurchases, the continuing shareholders lose. At such times, gains flow only to the selling shareholders and to the friendly, but expensive, investment banker who recommended the foolish purchases."

WARREN BUFFETT DELIVERS CLEAR INFLATION WARNING, SLAMS ‘DISGUSTING’ BUSINESS LEADER BEHAVIOR IN ANNUAL LETTER

Berkshire Hathaway shareholders saw a small increase in the value of their stock last year due to the company's stock buybacks and those of investees like Apple and American Express. (Reuters / Rick Wilking / File / Reuters Photos)

Biden has linked the issue of stock buybacks to his criticism of "big oil" companies and said they prioritized buybacks over expanding production during his State of the Union address earlier this month.

"If they had, in fact, invested in the production to keep gas prices down – instead they used the record profits to buy back their own stock, rewarding their CEOs and shareholders," Biden said.

"Corporations ought to do the right thing," Biden went on. "That’s why I propose we quadruple the tax on corporate stock buybacks and encourage long-term investments. They’ll still make considerable profit."

BUFFETT’S FIRM CUTS STAKE IN CHINESE AUTOMAKER

President Joe Biden, seated, signs the Inflation Reduction Act into law. It included a 1% excise tax on stock buybacks by corporations. (Demetrius Freeman / The Washington Post via Getty Images / File / Getty Images)

Biden worked with Democrat lawmakers in Congress to include a 1% excise tax on stock buybacks in the Inflation Reduction Act, which was enacted last year along party lines through the budget reconciliation process.

Democrat leadership had initially sought a 2% tax on stock buybacks but had to lower that tax rate to 1% to secure the vote of Sen. Kyrsten Sinema, I-Ariz. Senate Majority Chuck Schumer, D-N.Y., said at the time, "I hate stock buybacks. I think they are one of the most self-serving things that corporate America does."

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Biden’s push to raise the tax on stock buybacks from 1% to 4% is likely to fall flat in Congress, given that Republicans now hold a majority in the House of Representatives and will have the ability to block any reconciliation bills Senate Democrats try to advance.

Ticker	Security	Last	Change	Change %
BRK.A	BERKSHIRE HATHAWAY INC.	461,705.01	+2,330.01	+0.51%
AAPL	APPLE INC.	146.71	-2.69	-1.80%
AXP	AMERICAN EXPRESS CO.	174.25	-0.89	-0.51%

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Warren Buffett slams critics of stock buybacks after Democrats' scrutiny: 'Economic illiterate' - Fox Business
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