Stock Market Today: Dow Drops After Mixed Blue Chip Earnings
While the S&P 500 notched another record close Tuesday, the blue-chip average was pressured by 3M's disappointing outlook.
Stocks were choppy Tuesday as market participants took in a number of blue chip earnings reports and looked ahead to the release of key economic reports before the next Fed meeting at month's end.
Both the S&P 500 (+0.3% at 4,864) and the Nasdaq Composite (+0.4% at 15,425) managed modest gains today, with the latter notching a third straight record close. However, the Dow Jones Industrial Average slipped 0.3% to 37,905.
Post-It maker 3M (MMM) was the biggest drag on the Dow, sinking 10.9% after its fourth-quarter earnings report. While 3M disclosed higher-than-expected earnings of $2.42 per share on $8.0 billion in revenue, it gave lower-than-anticipated guidance for Q1 earnings.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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.
"As we start 2024, the macro environment remains muted, similar to what we saw in the fourth quarter," said CEO Mike Roman in the company's earnings call. Roman added that 3M will give a full strategic update following the spinoff of its healthcare unit, which is "on track to be completed in the first half of this year."
3M's outlook "implies muted growth across its businesses, weighed down by expected weakness in consumer discretionary spending and softness from industrial end markets," says CFRA Research analyst Jonathan Sakraida. "Macro-related headwinds coupled with idiosyncratic challenges (lawsuits) inform our Hold opinion, despite the relatively discounted valuation."
Verizon stock jumps nearly 7% after earnings
At the other end of the spectrum was Verizon Communications (VZ), which was the best Dow Jones stock today. VZ jumped 6.7% after the telecommunications firm said it had 318,000 consumer wireless retail postpaid net additions in the final three months of 2023 vs 41,000 in the year-ago period. Verizon also reported in-line Q4 earnings of $1.08 per share on higher-than-anticipated revenue of $35.1 billion.
The blue chip stock has been a long-term laggard. In 2023, for instance, it generated a total return (price change plus dividends) of 2.8% vs the S&P 500's total return of 26.3% – making it one of the Dogs of the Dow for 2024. However, it's now up nearly 11% for the year-to-date.
Q4 GDP, inflation data on deck
Looking ahead, there's plenty more action on this week's earnings calendar, starting with tonight's results from streaming giant Netflix (NFLX, +1.3%) and chipmaker Texas Instruments (TXN, -0.3%).
Meanwhile, this week's key economic reports include Thursday's initial look at fourth-quarter gross domestic product (GDP). And Friday, we'll get the December personal consumption and expenditures (PCE) index – the Fed's preferred measure of inflation that measures consumer spending.
These reports are all the more anticipated after recent economic data came in hotter than expected. As a result, CME Group's FedWatch tool indicates futures traders are currently pricing in a 42% chance for a quarter-point rate cut in March, down from 76% one month ago. Meanwhile, the odds for a rate cut at the May meeting have jumped to 53% from 12% over that same time frame.
Related content
- Costco Cracks Down on Membership Card Sharing
- 10 Things You Must Know About Bull Markets
- Analysts' Top S&P 500 Dividend Stocks to Buy Now
-
Santa Claus Rally at Risk as Tech Stocks Slump: Stock Market TodayThe Nasdaq Composite and Dow Jones Industrial Average led today's declines as investors took profits on high-flying tech stocks.
-
7 Ways to Save Money on Almost EverythingHigh prices got you down? These strategies can help you reap deep discounts on everyday spending.
-
My Top 10 Stock Picks for 2026Each year, we ask an expert to pick 10 stocks that have the potential to beat the market over the next 12 months. Here are his choices for 2026.
-
Santa Claus Rally at Risk as Tech Stocks Slump: Stock Market Today
The Nasdaq Composite and Dow Jones Industrial Average led today's declines as investors took profits on high-flying tech stocks.
-
Gold and Silver Shine as Stocks Chop: Stock Market TodayStocks struggled in Friday's low-volume session, but the losses weren't enough to put the Santa Claus Rally at risk.
-
The Santa Claus Rally Officially Begins: Stock Market TodayThe Santa Claus Rally is officially on as of Wednesday's closing bell, and initial returns are positive.
-
'Humbug!' Say Consumers, Despite Hot GDP: Stock Market Today"The stock market is not the economy," they say, but both things are up. Yet one survey says people are still feeling down in the middle of this complex season.
-
Stocks Rise to the Spirit of the Season: Stock Market TodayInvestors, traders and speculators are beginning to like the looks of a potential year-end rally.
-
Nasdaq Leads as Tech Stages Late-Week Comeback: Stock Market TodayOracle stock boosted the tech sector on Friday after the company became co-owner of TikTok's U.S. operations.
-
Cooler Inflation Supports a Relief Rally: Stock Market TodayInvestors, traders and speculators welcome much-better-than-hoped-for core CPI data on top of optimism-renewing AI earnings.
-
Nasdaq Sinks 418 Points as Tech Chills: Stock Market TodayInvestors, traders and speculators are growing cooler to the AI revolution as winter approaches.
