Stocks rose Wednesday, with the market turning a corner following back-to-back losing sessions on Wall Street.
The S&P 500 added 0.51% to 5,104.76, while the Nasdaq Composite gained 0.58% to 16,031.54. The Dow Jones Industrial Average traded higher by 75.86 points, or 0.2%, to close at 38,661.05. The blue-chip average was weighed down by a drop of more than 2% in Disney.
Wednesday's advances mark a reprieve after the three major averages notched two straight days of declines, pulling the market off record highs. But gains were kept in check as Apple fell into the red once again and concerns swirled around a troubled regional bank.
While the Nasdaq saw gains Wednesday, some major tech names sat out of the rally. Apple fell for its sixth straight trading day, even as mega-cap darling Nvidia climbed more than 3%. Alphabet and Tesla also both traded lower in the session.
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Despite Wednesday's action, the three major indexes were still down on the week.
Regional bank stocks swung between gains and losses in the session after New York Community Bancorp announced a $1 billion capital raise. The SPDR S&P Regional Banking ETF (KRE) ended the session slightly lower after trading down by more than 2% during the day.
Shares of NYCB rose about 7.5% after tumbling more than 40% earlier in the session. Trading in the stock was halted several times throughout the day.
Money Report
Powell on Capitol Hill
Traders kept an eye on the first of two Capitol Hill appearances this week from Federal Reserve Chair Jerome Powell, who said on Wednesday in prepared remarks that the central bank could lower interest rates this year. However, the Fed chief said the bank is not immediately ready to cut the cost of borrowing money.
"We believe that our policy rate is likely at its peak for this tightening cycle," Powell said. "If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year."
When questioned by the House Financial Services Committee on Wednesday, Powell noted that the central bank would like to see more data before it cuts rates. He's also slated to appear before the Senate Banking Committee on Thursday.
Investors are still in "wait-and-see mode" following Powell's remarks, said David Russell, global head of market strategy at online investing platform TradeStation. But he said there's still broad consensus about the future path of monetary policy, with higher rates "becoming less of a danger."
"No news is good news from Powell," Russell said. "He confirmed that the bias from here is likely toward lower rates and emphasized potential risks from not cutting."
Stocks finish higher
The three major indexes finished Wednesday's trading day higher, snapping a two-day losing streak.
The Dow finished about 0.2% higher. The S&P 500 and Nasdaq Composite added around 0.5% and 0.6%, respectively.
Wednesday marked the first positive day this week for any of the three major indexes.
— Alex Harring
41 stocks in the S&P 500 hit new 52-week highs
As stocks reversed their Tuesday losses, 41 names within the S&P 500 hit new 52-week highs during today's session.
Here are some of the names that hit this milestone:
Of these 41 stocks, 23 reached new all-time highs today. These include:
On the other hand, shares of Charter Communications and Humana traded at their 52-week lows on Wednesday.
— Lisa Kailai Han, Christopher Hayes
Gold hits new intraday all-time high, on pace for another record close
Gold futures for April settled at their highest level ever on Monday — and they're on pace for another record close.
Gold's April-dated futures hit a nominal intraday all-time high of $2,158.40 per ounce during Wednesday's trading session. As long as gold settles in positive territory, this would mean another record close for the commodity.
However, in inflation-adjusted terms, gold's all-time high is $3,460.77 per ounce, which it set in January 1980.
— Lisa Kailai Han, Gina Francolla
Apple tumbles for 6th straight day and has now lost $352 billion this year
Apple shares are falling for a sixth straight day Wednesday, extending a string of losses that began Feb. 28.
The latest decline matches another six-day slide that lasted from Feb. 12 to Feb. 20.
Apple has now declined 5.5% this week alone, bringing the year-to-date loss to almost 12%.
How much is that 12% worth in dollars and cents? Apple's market value has plunged $352 billion to $2.63 trillion in 2024, allowing Microsoft to overtake it as the largest company ($2.99 trillion) in the U.S.
— Scott Schnipper
SPDR S&P Regional Banking ETF climbs as much as 1.7% in response to NYCB capital raise
The 142-stock SPDR S&P Regional Banking ETF (KRE) rallied as much as 1.7% in late-day trading Wednesday, reversing a midday loss of as much as 3.1%.
The rebound came as New York Community Bancorp agreed to a $1 billion equity infusion from several investment firms, including former Treasury Secretary Steven Mnuchin's Liberty Strategic Capital, Hudson Bay Capital and Reverence Capital Partners.
Among individual stocks that make up the KRE ETF, Valley National Bancorp climbed 5.8% in recent, volatile trading; New York Community gained 4%, after collapsing 47% intraday; First Foundation added 3.9%; Columbia Banking System advanced 3.7%; and Berkshire Hills Bancorp rose 2.1%.
— Scott Schnipper
Stocks are higher in final hour of trading
Stocks were higher shortly into the final hour of trading.
The Dow Jones Industrial Average gained 12 points, or 0.03%. The S&P 500 rose 0.4%, while the Nasdaq Composite advanced 0.4%.
— Sarah Min
Oil prices rise more than 1% on Fed rate cut outlook, signs of rising gasoline demand
Crude oil futures rose Wednesday as Federal Reserve Chair Jerome Powell indicated that interest rates will likely come down this year, though the central bank is moving cautiously.
The West Texas Intermediate contract for April gained 98 cents, or 1.25%, to settle at $79.13 a barrel. May Brent futures added 92 cents, or 1.12%, to settle at $82.96 a barrel.
Powell told the House Financial Services Committee on Wednesday that the Fed needs to see "a little more data" before moving on rates, though he expects the central bank will begin loosening policy this year as it gains more confidence that inflation is under control.
U.S. gasoline stockpiles fell by 4.5 million barrels last week, suggesting that demand is picking up.
— Spencer Kimball
Argus initiates buy rating on Super Micro Computer
Blockbuster stock Super Micro Computer will be a multiyear winner, according to Argus.
The data center and artificial intelligence-focused stock has soared 288.5% year to date alone. According to Argus' price target of $1,350, the stock could rise an additional 23.7% from Tuesday's close.
"In our view, Super Micro is a leading computer and server provider for the age of generative AI," the firm wrote in a Wednesday note. "Although SMCI has had huge gains in the past year, the company is primed for multiple years of strong top-line growth, margin expansion, and EPS acceleration."
Shares were up more than 3% midday Wednesday.
— Hakyung Kim
Retail ETF falls as Foot Locker heads for worst day ever, Nordstrom tanks 16%
Post-earnings declines from Nordstrom, Abercrombie & Fitch and Foot Locker pressured the SPDR Retail ETF (XRT) during Wednesday's session and dragged shares nearly 2%.
Foot Locker was the worst performer of the group, plunging more than 31% and headed for its worst daily performance on record after posting a holiday-quarter loss. The apparel and footwear company offered a disappointing outlook and announced that it's falling behind on reaching its profitability goal.
Nordstrom was another major laggard, cratering 16% after it warned of a potential drop in sales in 2024 and said that it anticipates full-year revenue, including retail sales and credit cards, to range between a 2% decline and a 1% gain year over year. By afternoon trading, shares were on pace for their worst day since Aug. 24, 2022.
Abercrombie & Fitch dropped more than 4% even after surpassing Wall Street's quarterly estimates on the top and bottom lines. The stock is the second-largest holding in the fund.
— Samantha Subin
Tesla builds on weekly decline, heads for worst week since January
It's only March, but Tesla shares are already headed for a bumpy year.
It has been a little more than two months since the start of 2024, and shares have already slumped 28%. The tides could shift by December, but the stock is currently headed for its second-worst year on record.
The electric vehicle giant declined 1% on Wednesday, building on its nearly 12% weekly loss after Tesla bull Adam Jonas cut his price target on the stock. If it closes at these levels, Tesla will cap off its worst week since the end of January. A weekly loss exceeding 13.6% would bring shares to their worst week since October.
Shared are also headed for their worst quarterly performance since the fourth quarter of 2022.
— Samantha Subin
Powell says he has 'real concerns' about changes to bank rules
Fed Chair Jerome Powell said proposed bank capital rule changes have not been finalized yet and noted he still has substantial concerns about them.
Nearly all the Republicans and several Democrats who spoke during Powell's testimony before the House Financial Services Committee asked about the so-called Basel III Endgame Rules. Powell said policymakers at the Fed are still reviewing the changes and he expects substantial revisions.
"Four of the seven governors during the Open Board Meeting at which we put it out for comment expressed real concerns, very specific concerns about the proposal. We said we would look at the comments when they came in, and that's what we're doing," Powell said.
Asked if he shared those concerns, Powell replied, "I was one of the four, so yes."
— Jeff Cox
Apollo is exploring acquisition bid for Tripadvisor amid potential M&A rebound
Apollo Global Management is interested in exploring a bid for online travel platform Tripadvisor, according to individuals familiar with private deliberations, Bloomberg reported Wednesday. According to the sources, Tripadvisor has been working with advisors after receiving takeover interest, but the deliberations may not lead to a definitive agreement.
CNBC reported earlier this week that Morgan Stanley expects global merger and acquisition volume activity to rise 50% this year compared to 2023, and that Tripadvisor was one of the names that has an "elevated likelihood" of receiving a tender offer within the next year, benefiting from this rebound.
Shares of Tripadvisor, which is part of the Liberty Media empire, have gained more than 25% so far this year. The stock is up 1.5% on Wednesday.
— Pia Singh
New York Community Bancorp halted for trading
Troubled regional bank New York Community Bancorp is looking for a cash injection, as well as investor interest in a stock sale, according to reports from Reuters and The Wall Street Journal.
Trading on the stock was halted after declining more than 42% on the news. The stock is currently down nearly 82% year to date.
NYCB has not yet responded to CNBC's request for a comment.
— Hakyung Kim
Stocks making the biggest moves midday
Check out the companies making headlines in midday trading.
- CrowdStrike — The cybersecurity company surged more than 15% after topping Wall Street's quarterly estimates and issuing strong guidance. CrowdStrike reported adjusted earnings of 95 cents per share on $845 million in revenue. Management also reiterated its plan to reach $10 billion in annual recurring revenue by 2030.
- Palantir Technologies — Shares rallied 8.9% after the software platform builder received a $178.4 million contract from the U.S. Army to develop 10 artificial intelligence-powered ground stations as part of a project called TITAN, or Tactical Intelligence Targeting Access Node.
- Super Micro Computer — Shares jumped 4.2% after Argus initiated coverage of the data center company with a buy rating, saying Super Micro Computer is "primed for multiple years of strong top-line growth, margin expansion, and EPS acceleration."
— Sarah Min
Information technology and energy stocks lead S&P 500 higher
The S&P 500 climbed on Wednesday, helped in part by rallies in information technology and energy names.
Both sectors added more than 1% and were the two best-performing in the sector. As a whole, the broad index rose around 0.8%.
The information technology sector was helped by a jump of more than 7% in Hewlett Packard Enterprise. Skyworks and Qualcomm were also among the top performers, adding more than 5% and 4%, respectively.
Meanwhile, Targa and Baker Hughes led energy higher with advances of more than 2% each.
— Alex Harring
Copper Miners ETF heads for best day since December
The Global X Copper Miners ETF (COPX) jumped more than 3.4% on Wednesday and headed for its best day since Dec. 13 when it rallied 3.7%.
The moves came as copper prices rose and Lundin Mining and Freeport-McMoRan added more than 3% each. The fund is up more than 2% since the start of the week and headed for a fourth-straight weekly gain.
— Samantha Subin, Gina Francolla
Powell sees 'good path' toward an economic soft landing
Federal Reserve Chair Jerome Powell expressed confidence that the economy is on its way to a soft landing, though he refrained from using that term specifically.
Asked about the progress toward the soft-landing goal, Powell said during a hearing before the House Financial Services Committee that the labor market is strong, and inflation has "come down sharply" over the past year.
"They're very attractive conditions and we're trying to use our policies to keep that growth going to keep that labor market strong, while also achieving further progress on inflation. That's our goal and I do think there's a possibility we can achieve all of that while keeping the labor market strong and the economy growing," he said.
Pressured further by Rep. Al Green, D-Texas, on a soft landing, Powell responded, "We're on a good path so far to be able to get there."
— Jeff Cox
CrowdStrike heads for best day since 2020
CrowdStrike was on pace for its best day in nearly four years following a strong earnings report.
The cloud security stock rallied nearly 15% in morning trading. If that holds through session close, it will mark its best day since March 20, 2020, and the fourth-biggest gain on record.
CrowdStrike beat expectations on both earnings per share and revenue in the most recent quarter. The company also offered better-than-expected guidance for the current three-month period and full year.
"There was some concern that they might sell off, but CrowdStrike had good earnings," said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. "A lot of the tech sector got a boost from that."
— Alex Harring
Job openings little changed in January but quits move higher
Job openings were virtually unchanged in January as the ultra-tight labor market shows only tepid signs of loosening.
Available positions totaled 8.86 million for the month, down just 26,000 from December but down more than 1.5 million from a year ago and off 3.3 million from a March 2022 historical peak, according to the Job Openings and Labor Turnover Survey released Wednesday. The reading was about in line with the Dow Jones estimate for 8.9 million.
Separations as well as layoffs and discharges also all showed only modest changes from the previous month. Quits rose, however, up 309,000 on the month, taking the rate as a share of workers to 2.1%, an increase of 0.2 percentage points.
Gold miner stocks on track for best week of the year
The record high in gold is putting gold mining stocks on track for their best week of the year.
The VanEck Gold Miners ETF (GDX) is up about 2.5% in early trading, and is now up more than 7% for the week. That would be the best stretch for the fund since the week of Dec. 1, when it rose 8.5%.
The top performers in the fund include Harmony Gold and AngloGold Ashanti.
— Jesse Pound, Gina Francolla
Stocks open higher
The three major indexes opened Wednesday's session higher, marking a turn from the prior two down days.
The Dow was up about 0.5% shortly after 9:30 a.m. ET. The S&P 500 and Nasdaq Composite added 0.7% and 1%, respectively.
— Alex Harring
These are the stocks making the biggest moves premarket
These are some of the companies making the biggest moves before the bell.
- Foot Locker — Shares tumbled about 9.7% after the sneaker retailer posted a holiday-quarter loss and provided weak guidance for the current year. Struggling to meet its financial goals, Foot Locker's finance chief said the company is expecting its profitability goal, which it had announced during its March 2023 investor day, to now be delayed two years.
- CrowdStrike — Shares jumped more than 23% after the cybersecurity company's fourth-quarter earnings topped estimates. The firm's $845 million in revenue was also higher than the estimated $839 million. On top of that, management reiterated a 2030 goal of $10 billion in annual recurring revenue.
- Palantir Technologies — Shares rallied 7.5% on news that Palantir received a contract from the U.S. Army worth $178.4 million to develop 10 artificial intelligence-powered ground stations as part of a project called TITAN, or Tactical Intelligence Targeting Access Node.
For the complete list, read here.
— Pia Singh
Powell reiterates Fed is not ready to cut rates yet
In prepared remarks to be delivered on Capitol Hill on Wednesday and Thursday, Federal Reserve Chair Jerome Powell reiterated that the central bank was not yet ready to start cutting interest rates.
"In considering any adjustments to the target range for the policy rate, we will carefully assess the incoming data, the evolving outlook, and the balance of risks," Powell said. "The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent."
He also said rate policy is "likely at its peak for this tightening cycle. If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year."
— Fred Imbert
ADP says private payrolls grew less than expected in February
The private sector saw job growth in February, but at a slower clip than economists expected, according to data from payroll processing firm ADP released Wednesday.
Firms added 140,000 positions for the month, which is an improvement from the upwardly revised 111,000 figure seen in January. But February's increase was slightly below the forecast of 150,000 from economists polled by Dow Jones.
— Alex Harring, Jeff Cox
UBS sees similarities between stocks today and the 1990s
UBS explored the parallels between today's bull market and the 1990s bull run, finding some notable similarities and differences.
Strategist Bhanu Baweja noted today's stock market rally, driven by narrow tech leadership, is similar to the second phase of the 1990s' stock market. In the first phase, stocks rose steadily between the years 1995 and 1998. In the second phase, equities shot up between 1998 and 2000, when the dot-com bubble burst.
Even so, Baweja said any comparisons to the dot-com bubble are unwarranted, saying the rally today is based on stronger underlying businesses.
"[There's] no bubble ready to go pop. There are notable differences between then and now in realised margins, earnings, free cash flow, in signals from options markets, and in IPO/M&A activity," Baweja wrote Wednesday. "While we do have sector specific enthusiasm today, it's based on delivered shareholder returns. Then we had sector-specific euphoria based on hype."
Still, the strategist noted that "[today's] macro doesn't support a sustained bull run," citing weaker productivity growth and lackluster real disposable income growth, factors that will need to "start looking up for the bull run to persist."
— Sarah Min
Palantir pops after winning army contract
Palantir jumped more than 6% during premarket trading after announcing an army contract valued at more than $170 million.
The counterterrorism software provider said it won a contract from the Army Contracting Command – Aberdeen Proving Ground. Through the agreement, Palantir will develop 10 prototypes of the TITAN ground station system, which stands for Tactical Intelligence Targeting Access Node.
Palantir has notably outperformed the market this year, rallying more than 38% since the start of 2024.
— Alex Harring
Foot Locker retreats as guidance misses expectations
Foot Locker dropped more than 5% before the bell Wednesday after offering weak guidance for full-year earnings.
The shoe retailer told investors to expect between $1.50 and $1.70 in earnings per share for the full year, excluding items. That underwhelmed analysts polled by LSEG, formerly known as Refinitiv, who forecast $1.86.
Foot Locker's soft outlook overshadowed a better-than-expected fourth quarter. The New York-based company earned 38 cents per share, excluding items, on $2.38 billion in revenue, exceeding analysts' expectations of 32 cents per share and $2.28 billion in revenue.
Shares have climbed more than 10% so far in 2024.
— Alex Harring
Eight Australian firms to invest more than $3 billion in Malaysia, minister says
Eight Australian companies have made commitments to invest around 5.2 billion Australian dollars, or $3.4 billion, in Malaysia, according to a government minister.
"We're looking at both digital economy and the green economy," the country's minister for investment, trade and industry, Tengku Zafrul Aziz, told CNBC's "Squawk Box Asia," noting that data center operator AirTrunk, backed by Macquarie Asset Management, was among the firms that have showed interest in the country.
This comes a day after Malaysian Prime Minister Anwar Ibrahim reportedly said major Australian companies have shown interest to invest about RM24.5 billion, or $5.1 billion, in the country, during an official visit to Melbourne.
— Shreyashi Sanyal
Australia GDP grows 0.2% in final quarter of 2023
Australia's economy grew 0.2% quarter over quarter in the fourth quarter of 2023, according to data from the Australian Bureau of Statistics.
The reading was driven by government expenditure and private business investment. It was also slightly below a Reuters poll estimate of a 0.3% rise.
"Growth was steady in December, but slowed across each quarter in 2023," said Katherine Keenan, ABS head of national accounts.
"Government spending and private business investment were the main drivers of GDP growth this quarter."
Real GDP in the 12 months through December was 1.5%, slightly above a Reuters poll forecast of a 1.4% increase.
— Shreyashi Sanyal
South Korea's inflation quickens more than expected in February after three straight months of slowing
South Korea's inflation rate rose for the first time in three months to come in at 3.1%, higher than the 2.8% in January and also more than the 2.9% expected by a Reuters poll.
The country's core inflation rate, which strips out prices of food and energy, came in at 2.5%.
South Korea's central bank was the first major central bank to stop its rate hikes early in 2023, holding its base rate at 3.5%.
— Lim Hui Jie
Nvidia led S&P 500 and Nasdaq gains on Tuesday
Bogged down by tech stocks, all three major stock indexes ended Tuesday's trading session lower.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all notched their second negative sessions in a row and worst daily performance since Feb. 13.
Nvidia was the most positive stock for both the S&P 500 and Nasdaq, while Microsoft led the losses for both indexes.
On the other hand, JPMorgan was the most positive stock within the Dow on Tuesday. Shares of Salesforce led the 30-stock index lower during the day's trading session.
— Lisa Kailai Han, Christopher Hayes
Stocks making the biggest moves after the bell: Nordstrom, CrowdStrike and more
These are the stocks moving the most in extended trading.
- Nordstrom — Despite beating fourth-quarter earnings and revenue expectations, shares slid nearly 10% after the department store chain provided disappointing full-year 2024 guidance.
- CrowdStrike — The cybersecurity stock soared 19% after fourth-quarter earnings topped estimates.
- Box — The cloud storage stock jumped 8% after posting fourth-quarter revenue that matched analysts' expectations, according to LSEG, formerly known as Refinitiv.
Read the full list of stocks moving here.
— Lisa Kailai Han
Nasdaq 100 futures edge higher
Nasdaq 100 futures opened higher Tuesday night.
Futures tied to the 100-stock index added 0.2%. S&P 500 futures edged 0.05% higher, while Dow Jones Industrial Average futures gained 2 points, or 0.01%.
— Lisa Kailai Han
