Stock Market News From Jan. 24, 2024: S&P 500 Hits Another Record High; Dow Falls; Netflix, Tesla, AT&T, ASML, and More Movers; Crypto News (2024)

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Netflix contributed to broader market gains after reporting a substantial subscriber beat for the fourth quarter on Tuesday.

In other earnings news, profits for telecommunication firm AT&T came in below estimates but revenue beat expectations.

Treasury yields rose, with the 10-year yield reaching 4.178%. Oil prices also gained.

Tesla reported earnings after the bell. For updates and analysis, click here.

Stocks lost steam before the close, with the S&P 500 eking out another record.

The Dow Jones Industrial Average fell 99 points, or 0.3%, dragged down by Goldman Sachs and UnitedHealth. The S&P 500 was up by 4 points or 0.1%. The tech-heavy Nasdaq Composite advanced 0.4%

Streaming company Netflix helped broader market gains after it reported a substantial subscriber beat for the fourth quarter.

Texas Instruments and AT&T shares, however, fell hard after earnings. Tesla reports after market close.

Stocks were wavering ahead of the market close as the Dow Jones Industrial Average felt the pressure from its top weighted stocks.

The Dow had lost 0.1% at 3:36 a.m. Eastern, or 36 points. The S&P 500 and the Nasdaq Composite continued their advance through the day.

Shares of Goldman Sachs and UnitedHealth turned negative in the afternoon, pushing the Dow down. Together, they account for 16% of the 30-component Dow and fall within the top three highest-weighted stocks.

Crude oil futures rise as the EIA reports a much bigger-than-expected 9.2 million-barrel draw on crude stocks for last week, including a 2 million-barrel reduction at Cushing, Okla., the Nymex delivery hub.

The draw on stocks is attributed largely to an estimated 1 million barrels-a-day decrease in U.S. oil production resulting from last week's winter storms, which also contributed to a 7.1 percentage-point drop in refinery runs.

Gasoline stocks rose by 4.9 million barrels, and demand fell, also a likely result of inclement weather.

WTI for March delivery settles up 1% at $75.09 a barrel, and March Brent adds 0.6% to $80.04 a barrel.

Hackers forced systems at EquiLend Holdings offline earlier this week, the company says, adding it may be days until they are fully restored.

EquiLend operates an important platform for securities lending transactions, which facilitate a range of financial activities and are crucial to short selling in particular. The platform processed transactions worth approximately $2.4 trillion in December.

Natural gas futures settle higher ahead of the EIA's weekly storage report, supported by a cooling of near-term weather forecasts.

"Some weather outlooks for the start of February shifted significantly cooler over the past 24 hours, leading to some short-covering," says Tradition Energy's Gary Cunningham.

"With production still lagging below pre-cold snap levels and LNG feed gas and pipeline exports to Mexico both returning to normal, we are also slightly tighter on a daily balance despite milder weather on tap for the Northeast," he adds.

The February contract, which expires Monday, settles up 7.8% at $2.641/mmBtu.

The EIA on Thursday is expected to report a 323-Bcf draw on storage for last week, according to a Wall Street Journal survey.

Downtrodden shares of hydrogen-electric truck builder Nikola are getting a boost from Baird, which started coverage of the company with an "outperform" rating and a $2 price target.

The firm says veteran automotive executive Steve Girsky "is bringing stability and valuable experience," as CEO after a revolving door on the C-suite in recent years that included the 2022 conviction of former CEO Trevor Milton on wire and securities fraud charges.

Baird sees the "management team Girsky is building as a positive," for the stock, which Nasdaq recently threatened to delist for trading below $1. Shares up 5.3% at 69 cents.

The auction of billions of dollars in 5-year Treasury notes received a weak reception on Wednesday.

The Treasury Department auctioned $61 billion in government debt expiring in five years and it was awarded a yield of 4.055%, two basis points higher than the yield seen in pre-bidding.

Higher yields indicate low investor demand.

Primary dealers who take up debt left on the table bought 20.4% of the supply, the most since September 2022, according to BMO strategist Vail Hartman.

Yields climbed after the result.

The 10-year yield hit 4.171%, higher than Tuesday’s close of 4.138%.

This auction was $3 billion larger in size from last month. Investors are concerned about the amount of supply in the market.

The tobacco and nicotine industry is dealing with persistent pressure on its customers, including higher costs and heightened regulation that have accelerated down-trading and weighed on volumes, but industry heavyweight Altria Group is expected to have more than offset the volume decline with robust price increases in 4Q, Goldman Sachs analysts say in a research note.

They expect Altria's smokeable segment to generate an operating profit during the quarter, which is a key driver of the stock, and remain bullish on Altria ahead of its 4Q report, even though the stock may remain range-bound until volume declines moderate.