Wall Street indexes dropped in morning trading, putting stocks on course for another bumpy day. Here’s what we’re watching Tuesday:
- IBM reported higher profit and a 6.5% revenue increase in the latest quarter, beating analysts’ forecasts. BMO Capital nudged its price target for the stock up to $155, from $153.
- Joke cryptocurrency dogecoin’s dollar value briefly rose more than 8% from its 5 p.m. ET level Monday after Tesla CEO Elon Musk tweeted that he would eat a Happy Meal on television if McDonald’s accepted dogecoin. Some crypto enthusiasts and traders have joked on social media in recent days that they should get jobs at fast-food restaurants as cryptocurrencies prices crashed.
- American Express topped revenue and earnings forecasts for the recent quarter as it cited record levels of spending through its cards.
- Popular meme stocks AMC Entertainment and GameStop were turning in a mixed performance after having suffered disproportionately amid the recent market turmoil.
- Peloton ’s shares were giving up gains after they rose nearly 10% Monday. The Wall Street Journal reported an activist investor wants the company to fire its chief executive and explore a sale.
- General Electric reported fourth-quarter revenue fell 3%, weighed down by supply-chain difficulties, and projected a return to sales growth in 2023 as its aviation business begins to recover.
- 3M said its results in December were above its expectations. Net income during the recent quarter fell from a year ago, but it managed to beat consensus forecasts.
- Johnson & Johnson finished 2021 with its strongest quarter to date for Covid-19 vaccine sales, contributing to year-over-year revenue growth across the company as it prepares to separate its consumer-health division.
- Verizon ’s fourth-quarter profit inched up as the company replaced revenue lost from its digital-media spinoff with new customers under pay-as-you-go wireless giant TracFone.
- Crane recorded higher fourth-quarter profit and sales, with strong performance across its business despite inflationary pressure.
- Brown & Brown reported higher revenue and earnings in the fourth quarter as it surpassed analyst expectations.
- Hollywood visual-effects studio DNEG is combining with a special-purpose acquisition company, Sports Ventures Acquisition Corp . , to go public with a roughly $1.6 billion valuation, the companies said.
- Microsoft and Capital One Financial are among the companies reporting earnings after the close.
Chart of the Day
- The prospect of rising interest rates has been especially hard on the Russell 2000 small-cap index, in large part because of the high proportion of small-caps that aren’t making money.
Write to James Willhite at email@example.com