US stocks fall early in the new year due to Apple’s slump

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U.S. stocks were mostly lower Tuesday afternoon, giving Wall Street a sluggish start to 2024 after a triumphant year that saw the S&P 500 index fall just short of a new record high.

The benchmark S&P 500 Index (^GSPC) fell nearly 0.5%, but the Dow Jones Industrial Average (^DJI) rose nearly 0.2% (about 60 points). The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell by about 1.3%.

Stock gains stalled on Friday after two months of gains that helped the major indexes end 2023 at annualized gains. Additionally, the S&P 500 achieved its longest nine-week winning streak since 2004 and is inching towards a new closing high of 4,796.56.

Tech stocks stalled after analysts at Barclays downgraded Apple’s stock over concerns about demand for new iPhones. Apple (AAPL) stock fell 1.7% as tech stocks fell.

Friday’s December jobs report is closely watched as it could shake the Federal Reserve’s thinking, and this week’s economic update could also test the bull market. Investors’ belief that interest rates will be cut quickly and significantly in 2024 is pushing up stock prices.

read more: Impact of the Fed’s interest rate hike suspension on bank accounts, CDs, loans, and credit cards

In other markets, oil prices rose after Iran sent warships to the Red Sea after the US Navy sank three Houthi ships over the weekend. West Texas Intermediate crude oil (CL=F) and Brent crude oil (BZ=F) futures rose more than 2% amid rising tensions.

Meanwhile, Bitcoin prices rose more than 3%, topping $45,000 for the first time since early 2022, as hopes grew that the SEC would soon approve a spot Bitcoin ETF. Cryptocurrency stocks soared in pre-market trading, with Marathon Digital (MARA) stock gaining about 12% to recoup some of its recent losses.

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Tuesday, January 2, 2024, 11:02 PM GMT+5:30

Stocks fall in afternoon trading

Apple (AAPL) has fallen sharply since the start of the year, with the stock nearly in the red in Tuesday afternoon trading.

The benchmark S&P 500 (^GSPC) fell nearly 0.5%, while the Dow Jones Industrial Average (^DJI) rose about 0.2%, or about 60 points. The Nasdaq Composite Index (^IXIC), which has a high proportion of tech stocks, fell 1.4%.
Tuesday, January 2, 2024, 10:15pm (GMT+5:30)

Stock prices rise in morning trading

Here are some of the leading stocks on Yahoo Finance. trend ticker Pages during Tuesday morning trading:

apple (AAPL): Tech stocks stalled after analysts at Barclays downgraded Apple’s stock over concerns about demand for new iPhones. Apple shares fell nearly 3% in morning trading Tuesday.

Tesla (TSLA): Tesla shares rose just under 1% after setting a new record for fourth-quarter deliveries and meeting 2023 delivery targets, shaking off third-quarter failures and raising concerns as electric vehicle production competition intensifies Investors who were worried about the situation were left cold.

Rivian (Riven): The U.S. EV maker fell more than 9% on Tuesday morning after the company reported it delivered about 14,000 vehicles in the fourth quarter of 2023, and about 10% from the previous three-month figure. Diminished.

Bitcoin (BTC-USD): The price of the most dominant cryptocurrency rose above $45,000 on Tuesday, marking the first time the digital currency has crossed that threshold since April 2022. Bitcoin prices rose by just under 6%.
Tuesday, January 2, 2024, 10:00 PM GMT+5:30

Oil prices rise as demand concerns overshadow Red Sea tensions

Crude oil futures pared early gains as demand concerns overshadowed rising tensions in the Red Sea.

The US Manufacturing Purchasing Managers Index (PMI) in December was 47.9, down from 49.4 the previous month. A number below 50 indicates that the sector is shrinking.

West Texas Intermediate (CL=F) was trading as high as $73.64 a barrel before giving up its gains following the PMI results. Brent crude oil (BZ=F) rose to a trading high of $79.04 per barrel.

Both WTI and Brent were trading near the flatline at 11 a.m. ET.

Oil prices rose more than 2% in early trading after Iran sent warships to the Red Sea following days of tension in the key shipping area.

“Escalating tensions between the US and Iran have caught the attention of some fund managers, leading to new longs,” Dennis Kistler, senior vice president at BOK Financial, said in a note to clients. .
Tuesday, January 2, 2024, 9:19pm (GMT+5:30)

Manufacturing sector was weaker than expected in December

U.S. manufacturing contracted further in the final months of 2023.

New data from S&P Global shows the manufacturing PMI index in December was 47.9, down from 49.4 in November and below economists’ expectations of 48.4.

A number below 50 indicates that the sector is shrinking.

“U.S. manufacturing ended the year on a tough note, according to S&P Global’s PMI survey,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a press release. “Manufacturing was likely a drag on the economy in the fourth quarter as production fell at the fastest pace in six months as the recent drop in orders intensified,” he said.

Notably, the report also shows a slowdown in the labor market. The number of employees has fallen for the third straight month, with factories shedding jobs at the second pace since 2009. According to S&P Global, the only time factories have cut jobs at this pace in recent years was during the early days of pandemic lockdowns.

Inflation was also a major concern for manufacturers in December, with sales prices rising at the fastest rate since April.

“Higher supplier prices for metals and plastics, along with higher transportation costs, reportedly led to higher inflation,” S&P Global said in a report.
Tuesday, January 2, 2024, 8:52 PM GMT+5:30

Apple falls 3% after Barclays downgrade

Apple shares fell more than 3% in morning trading Tuesday after a Barclays analyst downgraded the company, predicting demand for the iPhone 15 would cool.

Analysts lowered Apple’s rating to “underweight” and lowered their price target to $160 from $161. Apple’s stock price was about $193 as of Friday’s close, and analysts expect the tech giant’s stock to fall about 17%.

“We expect the stock to recover after a year of mostly unsuccessful quarters and outperformance for the stock,” analysts said in a note Tuesday. “Our checks show that iPhone 15 sales and configurations remain negative, and we don’t see any features or upgrades that could make iPhone 16 more attractive.”

While the tech-heavy Nasdaq Composite Index (^IXIC) rose about 44% for the year, Apple shares rose about 50%, lagging behind several other tech giants. In the company’s recent earnings call, a cautious outlook overshadowed the company’s record iPhone quarter.
Tuesday, January 2, 2024, 8:03 PM GMT+5:30

Stock prices fall towards early 2024

Stocks started the first trading day of 2024 in the red, putting a year-end rally on hold. The pause in momentum carried over from Friday, when all three major indexes closed negative but still posted double-digit gains since the start of the year.

The benchmark S&P 500 Index (^GSPC) fell nearly 0.6%, and the Dow Jones Industrial Average (^DJI) fell 0.3%, or about 100 points. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell by about 0.9%.