US stocks dip to start new year as Apple slips

Live6 updates

• Tue, 2 January 2024 at 12:32 pm GMT-5

  Stocks dip in afternoon trading

  Stocks were mostly in the red during afternoon trading on Tuesday as Apple (AAPL) dipped to start the year.

  The benchmark S&P 500 (^GSPC) lost nearly 0.5%, while Dow Jones Industrial Average (^DJI) gained about 0.2%, or roughly 60 points. The tech-heavy Nasdaq Composite (^IXIC) slid 1.4%.

• 

  Tue, 2 January 2024 at 11:45 am GMT-5

  Stocks trending in morning trading

  Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Tuesday:

  Apple (AAPL): Tech stocks lost ground after Barclays analysts downgraded their rating on Apple’s stock, citing concerns about demand for new iPhones. Apple shares fell nearly 3% during trading on Tuesday morning.

  Tesla (TSLA): Tesla shares rose just under 1% after setting a new delivery record for the fourth quarter and met its 2023 delivery target, shaking off a third quarter miss and cooling investors concerned as competition in producing electric vehicles ramps up.

  Rivian (RIVN): The American EV maker fell more than 9% Tuesday morning after the company reported deliveries of almost 14,000 vehicles in the fourth quarter of 2023, marking a decline of about 10% from figures in the previous three months.

  Bitcoin (BTC-USD): Prices for the most dominant cryptocurrency surpassed $45,000 on Tuesday, marking the first time the digital currency has crossed that benchmark since April 2022. Bitcoin prices rose just under 6%.

• 

  Tue, 2 January 2024 at 11:30 am GMT-5

  Crude pares gains as demand worries overshadow Red Sea tensions

  Crude futures pared earlier session gains as demand concerns overshadowed rising tensions in the Red Sea.

  The US Manufacturing Purchasing Managers Index (PMI) fell to 47.9 in December, down from 49.4 in the prior month. A reading below 50 indicates the sector is in contraction.

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

  Both WTI and Brent were trading around the flatline at 11:00 a.m. Eastern time.

  Oil prices jumped more than 2% earlier in the session after Iran deployed a warship to the Red Sea following days of tensions in the critical shipping region.

  “The escalation of tensions between the US & Iran has caught some fund managers attention and is bringing on some new longs,” Dennis Kissler, senior vice president at BOK Financial, wrote in a note to clients.

• 

  Tue, 2 January 2024 at 10:49 am GMT-5

  Manufacturing sector slumps more than expected in December

  The US manufacturing sector fell further into contraction during the final month of 2023.

  New data from S&P Global showed its manufacturing PMI index posted a reading of 47.9 in December, down from 49.4 in November and below economists’ expectations for 48.4.

  A reading below 50 indicates the sector is in contraction.

  “US manufacturers ended the year on a sour note, according to S&P Global’s PMI survey,” S&P Global Market Intelligences chief business economist Chris Williamson said in a press release. “Output fell at the fastest rate for six months as the recent order book decline intensified. Manufacturing will therefore likely have acted as a drag on the economy in the fourth quarter.”

  Notably, the report also showed a slowdown in the labor market. Payrolls dropped for the third straight month, with factories reducing employment at the second-fastest rate since 2009. The only other time factories have reduced employment at this pace in recent years was early in the pandemic lockdown, per S&P Global.

  Inflation was also a key concern for manufacturers in the month of December with selling prices increasing at the quickest price since April.

  “Hikes in supplier prices for metals and plastics, alongside greater transportation charges, reportedly drove the uptick in inflation,” S&P Global wrote in the report.

• 

  Tue, 2 January 2024 at 10:22 am GMT-5

  Apple falls 3% after Barclays downgrade

  Shares of Apple sunk more than 3% during morning trading on Tuesday, following a downgrade from Barclays analysts who foresee cooling demand for the iPhone 15.

  The analysts cut Apple’s rating to underweight and dropped their price target from $161 to $160. Apple’s stock price as of Friday’s close was about $193, meaning the analysts forecast a roughly 17% stock price drop for the tech giant.

  “We expect reversion after a year when most quarters were missed and the stock outperformed,” the analysts said in a note on Tuesday. “Our checks remain negative on volumes and mix for iPhone 15, and we see no features or upgrades that are likely to make the iPhone 16 more compelling.”

  While the tech-heavy Nasdaq Composite (^IXIC) gained about 44% for the year, Apple shares rose roughly 50%, trailing several other tech giants. During the company’s most recent earnings call, a cautious outlook overshadows a record iPhone quarter for the company.

• 

  Tue, 2 January 2024 at 9:33 am GMT-5

  Stocks drop to start 2024

  Stocks began the first trading day of 2024 in the red, placing the year-end rally on hold. The pause in momentum carried over from Friday, when all three major indexes closed in the negative while still posting double-digit gains for the year.

  The benchmark S&P 500 (^GSPC) lost nearly 0.6%, while Dow Jones Industrial Average (^DJI) shed 0.3%, or about 100 points. The tech-heavy Nasdaq Composite (^IXIC) lost about 0.9%.