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

GE shares rise on better-than-expected earnings

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

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

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

— Fred Imbert

AMD falls after Bernstein downgrade

AMD shares fell more than 2% after Bernstein gave the semiconductor maker a market-outperform rating. The company cited the rise of the personal computer market for the discount.

“It goes without saying that the PC world has gotten worse since then,” Bernstein said in a note to clients. “And our belief that AMD will be proven to be inevitable in disrupting the pipeline, unfortunately, was wrong, and in recent months, more caution has increased regarding PC dynamics.”

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— Alex Harring

European markets ease as investors digest key PMI

European markets were mixed on Tuesday with investors digesting the latest flash managers’ index data from the euro zone in January.

The pan-European Stoxx 600 index It hovered above the flatline in early trade, with retail stocks adding 0.7% while oil and gas stocks fell 0.6%.

The S&P Global euro zone composite PMI came in at 50.2 in January, up from 49.3 in December and ahead of the consensus estimate of 49.8.

CNBC Pro: Goldman Sachs Asset Management highlights US market corner with ‘huge opportunity’

Goldman Sachs Asset Management strategist named a segment of the market that may be poised for a rebound this year.

James Ashley, head of global market strategy at Goldman Sachs Asset Management, also pointed to research that shows these types of companies thrive when inflation rises but falls.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Zions shares fell after the earnings

Share the Zions Bancorp fell more than 2% despite regional bank earnings forecasts for the fourth quarter. Zions reported $1.84 in earnings per share, above the $1.65 expected by analysts, according to StreetAccount. Interest income exceeded estimates.

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

Shares of Zion gained 2.27% in regular trading on Monday before the earnings release.

— Jesse Pound

Stocks need to hit that big level to be considered a rally, Dawson said

Stocks rose on Monday, but not high enough to be considered a true rally, said Cameron Dawson of NewEdge Wealth.

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

The S&P 500 missed the big swing highs in 2022 because it was in a downtrend, Dawson said. If the stock crosses this level, it may indicate that the rally may enter a new bull market cycle.

Techniques and positions can only get stocks so far, he added, before fundamental changes are needed to give stocks a boost.

“We need to see a fundamental change to think this rally will continue,” he said.

He warned that the rise in stocks may stop until the Federal Reserve fully meets and stimulates the US economy again.

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“It’s unlikely we can get back to pre-pandemic levels without the Fed’s help,” he said.

If the stock can rally and break its 65-day high, it could also lower the chances of the S&P 500 retracing its October lows, Dawson said.

—Carmen Reinicke

Stock futures opened slightly lower

Futures opened slightly lower on Monday evening after strong gains for stocks during regular trading hours. There weren’t any big earnings reports after the bell to trigger any big moves in the futures market.

— Jesse Pound

Nasdaq, chip stocks led on Monday

Stocks got a big rally on Monday. Here’s a look at some of the important numbers in business meetings.

  • 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 the Nasdaq, adding 36 points.
  • The VanEck Semiconductor ETF (SMH) rose 4.72% for its best day since November 30.

— Jesse Pound, Christopher Hayes

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