US stocks fell on Tuesday morning after consecutive days of gains as investors assessed another round of quarterly financial results for companies.
Stocks resumed regular trading after dozens of names on the New York Stock Exchange (NYSE) halted due to volatility shortly after the markets opened.
“The exchange is investigating reported problems with the inaugural auction,” a New York Stock Exchange spokesperson told Yahoo Finance. “All NYSE systems are currently working.”
S&P 500 Index (^ The Salafist Group for Preaching and Combat) and the Dow Jones Industrial Average (^ DJI(Each barrel was down about 0.5% at the open, while the tech-heavy Nasdaq Composite was down)^ ix) by 0.4%.
Major stocks that were briefly affected by the apparent technical issue on the NYSE included Morgan Stanley (Ms), AT&T (t), McDonald’s (mcd) and Walmart (wmt). As of 9:50 a.m. EST, the NYSE said all systems were “working.”
Among the specific names that came into focus early Tuesday were Verizon stock (VZrose after the company reported its best underwriting growth in seven years during the final three months of 2022, with annual profits expected to fall short of analyst estimates.
General Electric (GEThe stock fell 1.4% after announcing fourth-quarter earnings that negatively affected its renewable energy business, even as the industrial company handed over Optimistic profit expectationsciting strong demand for its jet engines and power equipment.
Johnson & Johnson (JNJAdvanced shares fell earlier after the healthcare giant was reported Full year guidance above expectations Despite the company’s CEO warning earlier this year that the macroeconomic outlook is uncertain.
3M stock (mmmfell 6% after the manufacturing conglomerate reported a lower profit due to an inflation-related drop in demand for items including air purifiers and respirators, while announcing it would cut 2,500 jobs.
In other pockets of the market, the US dollar has stabilized after falling to a nine-month low in recent days, while in commodities, oil futures have rallied. West Texas Intermediate (WTI) oil – the US benchmark – was trading near $82 a barrel.
Earnings season got off to a more moderate start. The S&P 500’s fourth-quarter net profit margin so far is 11.4%, lower than the prior quarter’s net profit margin of 11.9% and less than last year’s net profit margin of 12.4%, according to FactSet data. Moreover, earnings estimates for 2023 have trended steadily lower.
On the economic front, Thursday’s GDP reading is the highlight of the week. However, investors remain squarely focused on the Fed’s next interest rate announcement at the beginning of February, as officials are expected to turn a cut to a smaller hike.
the CME FedWatch toolwhich serves as a barometer of the impending federal interest rate and US monetary policy, shows that markets were pricing in a 99.1% chance of a 25 basis point hike as of Tuesday morning.
Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @employee
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