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Stock futures fall after back-to-back gains on Wall Street

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Verizon falls on profit prospect

Verizon shares fell more than 2% before the bell, even after meeting analysts’ expectations for the latest quarter.

The telecoms giant shared a disappointing adjusted earnings outlook for the year, saying it expects earnings per share to be between $4.55 and $4.85 excluding items. FactSet estimates called for EPS of $4.96.

Verizon also recorded 41,000 net additions in its postpaid wireless retail business.

— Samantha Subin

3M drops with guidance cut and profit loss

Shares in 3M fell more than 5% before the bell after the company shared disappointing full-year guidance and reported a drop in earnings.

The industrial conglomerate beats Wall Street’s revenue estimates for the latest quarter, although earnings fell short of expectations. The company reported earnings of $2.28 per share on revenue of $8.08 billion. Analysts had expected earnings of $2.36 a share on revenues of $8.04 billion, according to Refinitiv.

For 2023, 3M said it anticipates a 2% to 6% drop in sales and earnings of $8.50 to $9.00 per share.

3M also said it is cutting 2,500 jobs in global manufacturing.

3M shares fall on guidance cut

GE shares soar on better-than-expected earnings

General Electric traded more than 2% higher in premarket trading after the industrial giant reported quarterly results that beat analysts’ expectations.

GE earned $1.24 per share on revenue of $21.79 billion in the previous quarter. Analysts had expected earnings of $1.13 a share on revenue of $21.59 billion, according to Refinitiv.

“2022 marked the beginning of a new era for GE. We successfully launched GE HealthCare, delivered strong financial performance, made significant operational progress and continued our ongoing commitment to our customers. Thanks to the high quality work of our team, GE ended the year with solid revenue growth and margin expansion,” CEO Larry Culp said in a statement.

— Fred Imbert

AMD drops after Bernstein downgrade

OMG shares fell more than 2% after Bernstein downgraded the semiconductor maker to an outperforming market performer. The company cited worsening trends in the personal computer market for the downgrade.

“It must be said that the PC environment has deteriorated considerably since then,” Bernstein said in a customer note. “And our belief that AMD would prove relatively more immune to channel degradation has unfortunately proved to be incorrect, and in recent months we have become more cautious about the potential dynamics of the PC.”

-Alex Harring

European markets stable with investors digesting key PMIs

European markets were mixed on Tuesday as investors digested the latest Eurozone Purchasing Managers’ Index data for January.

the pan-european Stoxx 600 Index hovered slightly above the flat line in early trading, with retail stocks up 0.7% while oil and gas stocks fell 0.6%.

S&P Global’s euro zone composite PMI came in at 50.2 in January, up from 49.3 in December and ahead of a consensus forecast of 49.8.

CNBC Pro: Goldman Sachs Asset Management Highlights a Corner of the US Market With ‘Big Opportunity’

A strategist at Goldman Sachs Asset Management has named a segment of the market that may be ready for a comeback this year.

James Ashley, head of international market strategy at Goldman Sachs Asset Management, also pointed to research showing that these types of companies tend to outperform when inflation is high but falling.

CNBC Pro subscribers can read more here.

—Ganesh Rao

Zions shares fall after gains

shares of Zions Bancorp fell more than 2% despite the regional bank beating fourth-quarter profit estimates. Zions reported $1.84 in earnings per share, up from the $1.65 expected by analysts, according to StreetAccount. Net interest income also beat estimates.

Non-interest income was lower than expected, however, and deposits were down 13% year-over-year to $71.7 billion.

Zion shares gained 2.27% in regular trading on Monday before its earnings were reported.

—Jesse Pound

Stocks need to reach this key level to potentially be considered rallies, says Dawson

Stocks rose on Monday, but they’re not high enough to be considered a true market rally, according to Cameron Dawson of NewEdge Wealth.

“We have to get past the most critical level of 4,100,” Dawson said on CNBC’s “Closing Bell: Overtime” on Monday. That’s because 4,100 is the 65-day high of the S&P 500.

The S&P 500 never reached the key movement level in 2022 because it was in a downtrend, Dawson said. If stocks break through this level, it could indicate that the rally has the potential to enter a new bull market cycle.

Technicals and positioning can only take stocks so far, she added, before fundamental change is needed to really get stocks moving.

“We need to see a change in fundamentals to really think this rally is going to continue,” she said.

She warned that rising stocks are likely to remain limited until the Federal Reserve fully pivots and stimulates the US economy again.

“It’s unlikely that we could go back to pre-pandemic multiples without Fed help,” she said.

If stocks manage to rally and break the 65-day high, it would likely also reduce the likelihood that the S&P 500 will retest its October lows, Dawson said.

—Carmen Reinicke

Equity futures open little changed

Futures opened little changed Monday night after solid gains for equities during normal trading hours. There were no reports of large cap gains after the bell to trigger big moves in the futures market.

—Jesse Pound

Nasdaq, chip stocks led on Monday

Stocks saw a broad rally on Monday. Here’s a look at some of the key numbers from the trading session.

  • The Dow gained 254 points, or 0.76%, to close at 33,629.56.
  • The S&P 500 gained 47 points, or 1.19%, to close at 4,019.81.
  • The Nasdaq Composite gained 224 points, or 2.01%, to close at 11,364.41.
  • Nvidia had the biggest impact on Nasdaq, scoring 36 points.
  • The VanEck Semiconductor ETF (SMH) rose 4.72% on its best day since Nov. 30.

—Jesse Pound, Christopher Hayes

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