Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (2024)

Table of Contents
Stocks close higher Tariffs will have bigger effect on economy than tax cuts, economist warns Semtech heads for best day since March 2020 Material and energy stocks buck uptrend Tactical indicators suggest there's still more upside for stocks, Canaccord Genuity says Stocks making the biggest moves midday Deutsche Bank says three factors could stop market rally Trump's tariff proposals could push inflation up nearly 1%, Goldman says Small caps retreat after touching record levels Amgen heads for worst day in more than 24 years Retail stocks on pace for worst day in more than a month Consumer confidence rises in Conference Board survey New home sales slide, prices rise as rates jump Biden calls for Medicare coverage of anti-obesity drugs. Novo Nordisk, Eli Lilly shares jump S&P 500 opens slightly up Bernstein is bullish on Royal Caribbean Eli Lilly, Best Buy and Abercrombie & Fitch among stocks making biggest premarket moves Kohl's shares plummet following earnings miss Best Buy shares slide after earnings Dick's Sporting Goods shares pop on earnings beat, guidance raise Amgen falls after obesity drug trial results HSBC downgrades big bank names U.S. dollar hits highest level in more than 4 years against Canadian currency Europe stocks open lower Asia-Pacific markets trade mixed after U.S. stocks hit new highs overnight Trump vows an additional 10% tariff on China, 25% tariffs on Canada and Mexico Gold plunges 3% as Trump Treasury pick and potential Israel-Hezbollah truce fuel risk-on mood Rumble shares rise after company announces bitcoin treasury strategy Trump calls for 25% tariffs on Canada and Mexico Stocks on the move during overnight trading Stock futures open slightly higher

Stocks close higher

Stocks finished Tuesday's session higher, bringing another all-time closing high for the Dow and .

The blue-chip Dow added 0.3%. The broad S&P 500 and Nasdaq Composite each added 0.6%.

— Alex Harring

Tariffs will have bigger effect on economy than tax cuts, economist warns

The economic outlook next year will depend more on tariffs than on tax cuts, according to Gregory Daco, chief economist at EY-Parthenon.

The U.S. economy is robust and is expected to remain so in 2025, the economist said. Daco expects the economy could grow at 2% in 2025, from 2.6% real GDP growth in the fourth quarter, according to the Atlanta Fed GDPNow estimate.

But the extent to which tariffs proposed by President-elect Trump will be implemented in the coming year remains an overhang on the economic forecast, and has greater weight than any changes to tax policy.

"The truth is that the drag from tariffs on growth is likely to outweigh tax cuts on the forecast horizon," said Daco.

"If I tell you that your taxes are not changing in 2026, your reaction to that is going to be very different than if I tell you that your taxes are going lower in 2026. And I think that's a big misconception in terms of the potential boost to economic activity from the Tax Cuts and Jobs Act," Daco continued. "If it expires, it weighs on the economy by about 1%. If it doesn't expire, it has essentially no effect. You don't get that drag, but it has no positive effect."

— Sarah Min

Semtech heads for best day since March 2020

Semtech shares popped nearly 17% and headed for their best day since March 2020.

The gains came after the semiconductor manufacturing company topped Wall Street's third-quarter estimates on the top and bottom lines and issues strong guidance for the current quarter.

The company posted adjusted earnings of 26 cents per share on $236.8 million in revenue, topping the 23 cents per share and $232.9 million in revenue expected by analysts polled by FactSet.

Shares have rallied nearly 184% this year.

— Samantha Subin

Material and energy stocks buck uptrend

Pavlo Gonchar | SOPA Images | Lightrocket | Getty Images

Material and energy stocks restricted gains for the on Tuesday.

The S&P 500 gained about 0.4% in afternoon trading. However, the energy and materials sectors weighed on the index with respective losses of 0.3% and 0.8%.

Celanese led the materials sector lower with a drop of more than 4%. Dow Inc. and Mosaic followed, losing more than 3% each.

Devon and Diamondback, meanwhile, were the worst performers in the energy sector. Each fell more than 2%.

— Alex Harring

Tactical indicators suggest there's still more upside for stocks, Canaccord Genuity says

There are some signs that the stock market is trending toward being overbought, but investors should stay bullish for now, according to Canaccord Genuity.

Analyst Michael Welch said in a note to clients that tactical indicators are not showing "a cause for concern" even with the stock market trading near record highs.

"We continue to believe that with a Fed rate cut cycle in place, a favorable seasonal period, and a two-year-old bull market that remains below the median in both percent gain and duration, now is not the time to fight the Fed or the tape, but it is an opportunity for investors to position for further upside, especially on any near-term weakness," Welch said.

— Jesse Pound

Stocks making the biggest moves midday

Omar Marques | Lightrocket | Getty Images

These are some of the companies making headlines in midday trading:

  • Kohl's— Shares tumbled 18% after the retailer. The latest quarter's earnings and sales fell short of Wall Street analysts' estimates, and the CEO will step down in January.
  • Amgen — The biotech fell more than 3% after anexperimental weight loss drughelped patients lose up to 20% of their weight after a year, the low end of investor expectations. Some analysts had been hoping for weight loss up to 25% in the phase two trial.
  • Morgan Stanley— The Wall Street investment bank pulled back more than 2% after HSBC downgraded it to hold from buy, citing a less attractive risk-to-reward balance.

Read the full list here.

— Brian Evans

Deutsche Bank says three factors could stop market rally

While the stock market has had a strong year so far, it is still vulnerable to several risks, Deutsche Bank said in a note Tuesday.

There have been several "wobbles" already this year, but each time the driver of the sell-off subsided, the markets recovered quickly, said macro strategist Henry Allen.

"So given how markets have already reacted to various shocks this year, it's clear that any one of these factors could drive a fresh selloff, particularly if they became a more persistent and longer-lasting problem," he wrote.

The first risk to the rally is an economic downturn, Allen said. The biggest sell-off in 2024 came in August due to an underwhelming jobs report. The second risk is mounting political tensions, he said. Stocks struggled in April when there were geopolitical tensions in the Middle East, he noted. The third factor is inflation shock, he said.

— Michelle Fox

Trump's tariff proposals could push inflation up nearly 1%, Goldman says

U.S. President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, on Nov. 19, 2024.

Brandon Bell | Via Reuters

The tariffs on China, Canada and Mexico announced by President-elect Trump on Monday could result in the Federal Reserve's preferred inflation gauge jumping nearly 1%, according to Goldman Sachs.

"Using our rule of thumb that every 1 [percentage point] increase in the effective tariff rate would raise core PCE prices by 0.1%, we estimate that the proposed tariff increases would boost core PCE prices by 0.9% if implemented," Goldman chief economist Jan Hatzius said in a note to clients.

The proposed tariffs would cover 43% of U.S. goods imports, and the tariffs would result in slightly less than $300 billion in revenue annually, according to Goldman Sachs calculations.

— Jesse Pound

Small caps retreat after touching record levels

Small-cap stocks pulled back on Tuesday, one day after reaching record levels for the first time in three years.

The small cap-focused Russell 2000 slid 0.8% in Tuesday's session. By comparison, the ticked 0.2% higher.

Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (1)

The Russell 2000, 1-day

Tuesday's Russell 2000 underperformance comes a day after the index broke past 2021 highs to notch a new intraday record. The index finished Tuesday's session about 1.5% higher, which marked its sixth positive trading day in a row.

— Alex Harring

Amgen heads for worst day in more than 24 years

Amgen sank nearly 12% on Tuesday, putting shares of the drugmaker on pace for their worst day since October 2000.

The decline came after the company released results from a midstage trial of its experimental weight loss injection called MariTide. The results showed that patients lost up to 20% of their weight after a year of use.

Those results came in at the lower range of Wall Street's expectations for the drug, with some hoping for weight loss of at least 20%, or up to 25%.

Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (2)

Amgen heads for worst day since 2000

— Samantha Subin

Retail stocks on pace for worst day in more than a month

The fell nearly 2% on Tuesday after President-elect Trump threatened new tariffs on imported goods from China, Mexico and Canada. The decline put the fund on pace for its biggest one-day loss since Oct. 7.

Leslie's was the biggest laggard in the XRT, losing 25%, while Kohl's shed 21%.

Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (3)

XRT drops

— Fred Imbert

Consumer confidence rises in Conference Board survey

Consumer confidence moved higher in November while expectations for the stock market climbing hit a new record, the Conference Board reported Tuesday.

The organization's consumer confidence index increased to 111.7, or 2.1 points higher than October and slightly above the Dow Jones estimate for 111. Increased expectations for the labor market helped drive the move.

At the same time, 56.4% of respondents said they expect stock market prices to be higher a year from now, a fresh record. Inflation expectations also improved, with the five-year outlook down to 4.9%, the lowest since March 2020.

— Jeff Cox

New home sales slide, prices rise as rates jump

A sign is posted in front of a home for sale in San Rafael, California, on Aug. 7, 2024.

Justin Sullivan | Getty Images

New home sales tumbled more than 17% in October as mortgage rates surged, the Census Bureau reported Tuesday.

Sales of new single-family homes totaled just 610,000 seasonally adjusted, down from the unrevised 738,000 in September and well below the Dow Jones consensus estimate for 725,000. Inventory stood at 9.5 months worth of supply.

Though sales were down, prices jumped. The midpoint sales price increased to $437,300, while the average price leaped to $545,800.

The numbers come as the borrowing rate for a 30-year mortgage rose to 6.72%, or about 0.6 percentage points above where it started the month, according to Freddie Mac.

— Jeff Cox

Biden calls for Medicare coverage of anti-obesity drugs. Novo Nordisk, Eli Lilly shares jump

Shares of Novo Nordisk and Eli Lilly were rising Tuesday on the back of comments from the Biden administration, such as Wegovy and Zepbound. Novo Nordisk shares rose more than 2%, while Eli Lilly's stock popped more than 3%.

The federal health insurance programs are currently banned from covering drugs for the purpose of weight loss, which is why the drugmakers have been working to detail other benefits these medications can have on comorbidities such as heart disease and sleep apnea. Lobbyists have also been pushing for a legislative change that would make coverage possible, but Biden's proposal aims to bypass this.

Morgan Stanley analyst Terence Flynn said there are still several unknowns, so the full effect on the stocks is unclear at this point. However, expanding coverage of the drug to people insured by these programs could be a windfall for these companies.

Biden's proposal suggests 3.4 million Medicare enrollees and 4 million Medicaid enrollees would gain coverage, Wells Fargo analyst Mohit Bansal said. However, that estimate appears far lower than the Congressional Budget Office projection of 23 million Medicare enrollees with obesity, which leads him to believe patients would need to have another condition to get access to the drugs.

— Christina Cheddar Berk

S&P 500 opens slightly up

The kicked off Tuesday's session modestly in the green.

The broad index rose 0.2% shortly after 9:30 a.m. ET. The Nasdaq Composite advanced 0.4%.

The Dow slid 0.4%, however, as a drop in Amgen weighed on the blue-chip average.

— Alex Harring

Bernstein is bullish on Royal Caribbean

The Royal Caribbean Adventure of the Seas cruise ship pulls into its dock in Bayonne, New Jersey, as the sun rises on Sept. 15, 2022.

Gary Hershorn | Corbis News | Getty Images

Bernstein believes with the cruise industry on an upward trajectory, Royal Caribbean is the best way to play the sector.

Analyst Richard Clarke initiated coverage on Royal Caribbean with an outperform rating and $290 price target, which implies 20.6% upside potential from Monday's close.

"Cruise has changed for the better: from an operational perspective, bigger boats and private island resorts are reversing the prior demographic and capacity constraint headwinds, and have set the sector for ongoing share gains," Clarke wrote in a research note on Monday.

"Royal Caribbean has hit cruising speed faster with its record margins and ROIC by investing in larger ships and private islands," Clarke added.

Shares have rallied nearly 86% in 2024.

— Hakyung Kim

Eli Lilly, Best Buy and Abercrombie & Fitch among stocks making biggest premarket moves

Check out some of the companies making moves before the bell:

  • — Shares slipped nearly 4% despite the apparel retailer'searnings beat and strong holiday guidance. Abercrombie & Fitch reported third-quarter earnings of $2.50 per share, topping the $2.39 per share LSEG consensus estimate. Revenue was $1.21 billion, versus the $1.19 billion expected. The company also raised its full-year guidance.
  • Best Buy— Shares slid 7.4% after Best Buyposted third-quarter resultsthat missed analysts' expectations and cut its full-year sales forecast. Adjusted earnings of $1.26 per share came in below the $1.29 in earnings per share expected by analysts polled by LSEG. Revenue of $9.45 billion missed the $9.63 billion consensus estimate.
  • Novo Nordisk,Eli Lilly— Shares of drugmakers Novo Nordisk and Eli Lilly rose more than 2.5% and 4.7%, respectively, after the Biden administration proposed a new rule that Medicare and Medicaid would cover costly. Novo Nordisk's Wegovy and Eli Lilly's Zepbound weekly injectables treat obesity.

For the full list, read here.

— Pia Singh

Kohl's shares plummet following earnings miss

A sign is displayed above a Kohl's store in Chicago on March 1, 2023.

Scott Olson | Getty Images

Shares of Kohl's plunged more than 17% during premarket trading after the retailer's third-quarter results missed Wall Street's expectations.

In the quarter, the company earned 20 cents per share on $3.51 billion in revenue, below the consensus estimate of 28 cents per share and $3.64 billion in revenue, according to LSEG. Meanwhile, comparable sales dropped 9.3% for the period, while analysts were expecting a decline of 5.1%.

Shares have also been in the red this year, falling around 36% year to date.

Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (4)

KSS, 1-day

— Sean Conlon

Best Buy shares slide after earnings

Best Buy shares slid more than 7% in premarket trading after the consumer electronics retailer posted third-quarter results that missed on the top and bottom lines, and cut its full-year sales forecast.

Adjusted earnings of $1.26 per share came in below the $1.29 in earnings per share expected by analysts polled by LSEG. Revenue of $9.45 billion missed the $9.63 billion consensus estimate.

— Sarah Min

Dick's Sporting Goods shares pop on earnings beat, guidance raise

A Dick's Sporting Goods store stands at the Lycoming Crossing Shopping Center in Muncy, Pennsylvania, on Nov. 21, 2022.

Paul Weaver | SOPA Images | Lightrocket | Getty Images

Dick's Sporting Goods shares jumped more than 5% before the bell on Tuesday after the retailer posted strong earnings and guidance.

The Pennsylvania-based company earned an adjusted $2.75 per share on $3.06 billion in revenue in the third quarter. That is ahead of the forecasts for $2.68 in earnings per share and $3.03 billion in revenue from analysts polled by LSEG.

Dick's also lifted its full-year outlook.

Shares have surged more than 46% in 2024, putting the stock on track for its seventh straight winning year.

— Alex Harring, Gabrielle Fonrouge

Amgen falls after obesity drug trial results

Robert Galbraith | Reuters

Amgen shares fell more than 3% in the premarket after the company said its experimental weight loss drug helped patients lose up to 20% of their weight after a year. However, those trial results appeared to be on the low end of investor expectations.

Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (5)

AMGN drops

— Fred Imbert

HSBC downgrades big bank names

HSBC is stepping to the sidelines on investment banking giants Goldman Sachs and Morgan Stanley following a strong year for the stocks.

Analyst Saul Martinez downgraded both bank stocks to hold from buy. Meanwhile, he raised his price target on Goldman Sachs to $608 from $569, implying less than 1% upside potential from Monday's close. He also increased his Morgan Stanley price target by just $3 to $131.

Shares of Morgan Stanley have rallied 43.3% year to date, while Goldman Sachs shares have surged 56.3% in 2024.

Following the two stocks' big gains, "a higher bar has been set" with less attractive risk/reward profiles, according to Martinez.

We are "more positive on fundamentals, less positive on stocks," Martinez wrote in a Monday note.

Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (6)

GS and MS shares in 2024

— Hakyung Kim

U.S. dollar hits highest level in more than 4 years against Canadian currency

U.S. and Canada Dollar notes

Thomas White | Reuters

The U.S. dollar hit a high of $1.4177 per Canadian dollar — a level not seen since April 2020 — after President-elect Trump threatened to impose tariffs on goods coming in from Canada and Mexico. The Mexican peso also hit a low of 20.75 against the greenback and was last down more than 1%.

— Fred Imbert, Gina Francolla

Europe stocks open lower

Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (7)

Stoxx 600 index.

European stock markets opened broadly lower Tuesday, with the benchmark Stoxx 600 index falling 0.63% in early deals.

France's CAC 40 lost 0.78%, while Germany's DAX and the U.K.'s FTSE 100 traded down 0.66% and 0.4%, respectively.

— Jenni Reid

Asia-Pacific markets trade mixed after U.S. stocks hit new highs overnight

Asia-Pacific markets traded mixed Tuesday, in contrast to Wall Street, which saw U.S. benchmarks notching record highs following President-elect Trump's choice of Treasury secretary.

Australia's fell 0.69% to close at 8,359.4 after hitting a new all-time closing high on Monday.

Japan's Nikkei 225 shed 0.87% to close at 38,442, while the Topix lost 0.96% to close at 2,689.55. Japan's service PPI rose 2.9% year on year, higher than the 2.8% rise the previous month.

The Kospi slid 0.55% to end at 2,520 and the Kosdaq lost 0.53% to close at 693.15.

Hong Kong's Hang Seng Index traded 0.05% higher in its last hour of trade, while mainland China's CSI 300 added 0.21% to close at 3,840.18.

— Lee Ying Shan

Trump vows an additional 10% tariff on China, 25% tariffs on Canada and Mexico

President-elect Trump plans to raise tariffs an additional 10% on all Chinese goods coming into the U.S., according to a post Monday on his social media platform Truth Social.

The post immediately followed one in which Trump said his first of "many" executive orders on Jan. 20 would impose tariffs of 25% on all products from Mexico and Canada.

Trump is set to be inaugurated as the next U.S. president on Jan. 20.

Read the full story here.

— Evelyn Cheng

Gold plunges 3% as Trump Treasury pick and potential Israel-Hezbollah truce fuel risk-on mood

Gold Bullion from the American Precious Metals Exchange seen in this picture taken in New York on Sept. 15, 2011.

Mike Segar | Reuters

Gold prices lost about 3% after President-electTrumppickedScott Bessent as his Treasury secretary, with reports ofIsrael and Hezbollah nearing a ceasefire dealalso eroding the safe-haven metal's appeal.

Spot pricesof the yellow metal dropped 3.44% to $2,616.80 per ounce, according to data from FactSet. Gold futures on the New York Mercantile exchange were trading at $2,628.5.

"The ~$100 wipeout in Gold today is as severe in size & pace as the post U.S. election selloff on Nov 6th," MKS Pamp's head of metals strategy, Nicky Shiels, said.

Read the full story

— Lee Ying Shan

Rumble shares rise after company announces bitcoin treasury strategy

Rumble, a video platform focused on conservatives, said Monday evening that it will begin allocating a portion of its excess cash reserves to bitcoin and making purchases of up to $20 million in the cryptocurrency.

Shares rose nearly 4% in extended trading.

The move puts Rumble in the same company asMicroStrategy, which began employing an aggressivebitcoin-buying strategyin 2020 and has primarily traded as a proxy for the crypto's price since then. That stock is up more than 500% this year. Meanwhile, bitcoin has gained 118%.

For more, read our full story here.

— Tanaya Macheel

Trump calls for 25% tariffs on Canada and Mexico

Donald Trump speaks about the U.S.-Mexico-Canada agreement, known as the USMCA, during a visit to Dana Incorporated, an auto supplier manufacturer, in Warren, Michigan, on Jan. 30, 2020.

Saul Loeb | AFP | Getty Images

President-elect Donald Trump pledged he would impose a 25% tariff on products coming into the U.S. from Canada and Mexico, according to a Monday post on his social media platform Truth Social.

"On January 20th, as one of my many first Executive Orders, I will sign all necessary to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States," Trump said in his Truth Social post.

He also pledged "an additional 10% tariff" on Chinese goods. The president-elect has already proposed imposing a duty as high as 20% on all imports, including levies exceeding 60% on products from China.

Read more about the tariffs from CNBC's Evelyn Cheng here.

Darla Mercado

Stocks on the move during overnight trading

Here are the stocks on the move in extended trading:

  • Zoom Communications— The maker of video calling software is lower by 4%. Zoom topped Wall Street quarterly estimates and postedfiscal fourth-quarteradjusted earnings per share guidance that was roughly in line with estimates.
  • Kohl's— The retail stock dropped 3% after announcing itsCEO would step down in January. Ashley Buchanan, who currently leads crafts store owner The Michaels Companies, is set to replace current CEO Tom Kingsbury.
  • Agilent Technologies— Shares slumped 1% after the laboratory equipment company issued adjusted earnings guidance for the full year and current quarter that fell short of Wall Street's estimates, per LSEG.

Read the full list here.

— Samantha Subin

Stock futures open slightly higher

Stock futures opened slightly higher Monday.

Futures tied to the Dow Jones Industrial Average added 45 points, or 0.1%, while and Nasdaq 100 futures each rose about 0.15%.

— Samantha Subin

Stocks rise Tuesday, Dow and S&P 500 close at records: Live updates (2024)
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