The latest batch of corporate earnings updates sparked a selloff in stocks on Tuesday, with the tech-heavy Nasdaq leading the path lower.
Travel stocks were hit particularly hard after Norwegian Cruise Lines (NCLH (opens in new tab)) reported its second-quarter results. For the three-month period, the cruise operator brought in revenue of $1.2 billion and recorded a per-share loss of $1.14, missing analysts' consensus estimates. And in the company's earnings call, CEO Frank Del Rio said that bookings in the second half remain below the "extraordinarily strong" levels they were at in 2019. This sparked a 10.6% drop in NCLH stock to a point not much above its pandemic lows. Other travel-related names like Royal Caribbean Cruises (RCL (opens in new tab), -5.6%) and American Airlines (AAL (opens in new tab), -2.7%) fell as well.
Meanwhile, Micron Technology (MU (opens in new tab), -3.7%) followed in the footsteps of fellow chipmaker Nvidia (NVDA (opens in new tab), -4.0%), whose revenue warning on Monday put pressure on tech stocks. This morning, MU said it anticipates challenging market conditions to last through its next fiscal year, sparked by lower demand for its memory chips.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"[The] memory industry, including Micron, is in the midst of a meaningful inventory correction by customers," says Susquehanna Financial Group analyst Mehdi Hosseini – who adds that the issue will likely not be resolved until at least mid-2023. Other semiconductor stocks closed lower on the news, including Advanced Micro Devices (AMD (opens in new tab), -4.5%) and Applied Materials (AMAT (opens in new tab), -7.6%).
Against this backdrop, the tech-heavy Nasdaq Composite slid 1.2% to 12,493 – marking its third straight loss – while the S&P 500 Index shed 0.4% to 4,122, its fourth consecutive decline. The Dow Jones Industrial Average gave back 0.2% to 32,774.
Other news in the stock market today:
- The small-cap Russell 2000 shed 1.5% to 1,912.
- U.S. crude futures slipped 0.3% to $90.50 per barrel.
- Gold futures gained 0.4% to finish at $1,812.30 an ounce.
- Bitcoin fell 3.6% to $23,064.60. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Novavax (NVAX (opens in new tab)) plunged 29.6% after the vaccine maker reported a per-share loss of $6.53 in its second quarter on revenue of $185.9 million. Analysts, on average, were expecting earnings of $5.54 per share on $1.0 billion in revenue. The company also slashed its full-year revenue forecast to a range of $2 billion to $3 billion (down from previous guidance for revenue of $4 billion to $5 billion), "to account for several evolving market dynamics," NVAX executives said.
- Signet Jewelers (SIG (opens in new tab)) plunged 11.7% after the jewelry retailer cut its second-quarter and full-year financial forecasts, citing a slowdown in consumer spending in July. SIG also said it is acquiring online jewelry retailer Blue Nile for $360 million in cash.
America's Most Expensive Cities
Tomorrow we'll get the latest update on inflation, with the consumer price index (CPI) slated for release at 8:30 a.m. Eastern time. "Investors are laser-focused on Wednesday's CPI data, as they hunt for signs of U.S. inflation levels, whether those levels have peaked and, ultimately, how the latest figures will impact the Fed's immediate and medium-term rate policy decisions," says Greg Bassuk, CEO at asset management firm AXS Investments.
June's CPI report showed inflation had not yet peaked, with significant price increases seen in food (+10.4% year-over year), energy (+41.6% YoY) and shelter (+ 5.6% YoY). And while it's possible that July's data could show moderation in cost increases – particularly given the recent drop in oil – higher prices remain a hot topic.
With that in mind, we decided to take a closer look at the most expensive U.S. cities. Whether it be gas prices, housing costs or groceries, this list is made up of the priciest American cities to call home.
-
-
Does the IRS Audit Some Taxpayers More Than Others?
A study of IRS audits, from Stanford University researchers and the U.S. Treasury Department, looked at whether some taxpayers are audited more than others.
-
Different Approach to Financial Planning Addresses ‘the Missing Middle’
Nontraditional financial planning model allows you to pay for the expenses you incur between now and retirement — the middle of your life — without losing the ability to build wealth.
-
Stock Market Today: Stocks Swing Higher After Powell Presser
The Fed raised rates by 0.25%, as expected, and Powell promised to "stay the course until the job is done."
-
Stock Market Today: Stocks Gain Ahead of Fed Meeting
Exxon Mobil (XOM) and General Motors (GM) both popped after reporting solid earnings.
-
Stock Market Today: Stocks Slump Ahead of Tech Earnings, Fed Meeting
A busy week on Wall Street kicked off with losses for the major benchmarks.
-
Best AI Stocks to Buy: Smart Artificial Intelligence Investments
tech stocks AI stocks have been bloodied up in recent months, but the technology's relentlessly growing importance should see the sun shine on them again.
-
Stock Market Today: Stocks End the Week on a High Note
Intel stock plunged after a big earnings miss, but encouraging inflation and consumer sentiment data created tailwinds for the broad market.
-
Kiplinger's Weekly Earnings Calendar (Jan. 30-Feb. 1)
stocks Check out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
-
Stock Market Today: Stocks Climb After Tesla Earnings, GDP
The electric vehicle maker reported record profit and revenue for the fourth quarter.
-
Stock Market Today: Microsoft Earnings Weigh on Stocks
While Microsoft reported top- and bottom-line beats in its fiscal Q2, shares declined on disappointing guidance.
