Nasdaq closes lower by 1% Tuesday as Apple slides and tech suffers, Oracle sheds 13%: Live updates

The Nasdaq Composite fell Tuesday after Oracle shares plunged on disappointing results, and tech stocks came under pressure.

The Nasdaq slid 1.04% to 13,773.61 in its first losing day in three. The S&P 500 dropped 0.57% to 4,461.90. Meanwhile, the Dow Jones Industrial Average declined 17.73 points, or 0.05%, to 34,645.99.

Oracle shares posted their worst day since 2002. The software stock was the worst performer in the S&P 500, sliding 13.5% after sales last quarter fell short of estimates and the company's revenue forecast also disappointed. Oracle posted its fiscal first-quarter results late Monday. Other cloud competitors — including Amazon, Google-parent Alphabet and Microsoft — also slid.

"Oracle, which isn't a super large stock, but it is a look into the spending of businesses — and larger businesses at that — disappointed today, and that's one of the factors that are suppressing both the NASDAQ and the S&P," said Kim Forrest, founder at Bokeh Capital Partners.

Apple shares were lower by 1.7% after the unveiling of a new iPhone model this afternoon. Meanwhile, Adobe shares also dropped about 4% ahead of the company's earnings results this week.

Elsewhere, U.S. crude prices touched the highest level since November of last year as OPEC on Tuesday kept to a robust demand growth forecast this year and next. West Texas Intermediate crude oil futures settled at $88.84 a barrel. That's up from around $66 a barrel in March. Energy stocks got a boost. Shares of Chevron and Exxon Mobil were each higher by about 1.9% and 2.9%, respectively.

Much attention is focused on key inflation data due later in the week, with the consumer price index expected Wednesday and the producer price index slated for Thursday. The European Central Bank is also set to announce its latest interest rate decision Thursday.

Correction: An earlier version misstated the implications of the CME FedWatch Tool.

Stocks close lower Tuesday

The major averages closed lower Tuesday.

The Dow Jones Industrial Average declined 17.73 points, or 0.05%, to 34,645.99. The S&P 500 dropped 0.57% to 4,461.90. Meanwhile, the Nasdaq slid 1.04% to 13,773.61 in its first losing day in three.

— Sarah Min

All 7 'Magnificent 7' stocks retreated Tuesday

All seven of the "Magnificent 7" tech stocks retreated on Tuesday, led by Tesla, which sank 2.2%, followed by Meta Platforms, off 1.9%, Microsoft and Apple, both down 1.8%, Amazon, down 1.3% and Alphabet, which fell 1.2%.

The only member of the group to outperform the Nasdaq Composite 1% loss was Nvidia, which retreated 0.7%.

— Scott Schnipper

DoubleLine's Gundlach says the Fed is done raising rates

DoubleLine Capital CEO Jeffrey Gundlach said the Federal Reserve's tightening cycle should come to an end as the economy slows down further.

"I think they are done," Gundlach said at the Future Proof conference Tuesday at Huntington Beach, California. "We have enough economic weakness."

The bond king said the core Personal Consumption Expenditures Price Index has been consistently high, but as soon as it drops below 4%, the central bank should stop raising rates definitively.

— Yun Li

Wall Street weighs in on Disney's deal with Charter Communications

Wall Street sees a handful of positives coming out Disney's deal with Charter Communications, settling a dispute that left millions of customers without access to some of the entertainment company's programming.

As part of the deal, Disney's ad-supported streaming apps Disney+ and ESPN+ will be included in packages for some of Charter's Spectrum pay TV customers.

Morgan Stanley analyst Benjamin Swinburne views the agreement as a value adder to the linear bundle and one that puts Charter back into the video business. It also expands content access for Charter customers while increasing the distribution of Disney's content and growing advertising video on demand.

"A better video product could lead to a more modest rate of cord-cutting, benefiting both Disney and Charter," he wrote, adding that the agreement creates a "template" for the direct-to-consumer launch of ESPN.

Needham's Laura Martin calculates that Disney's deal with Charter should add $420 million to the entertainment company's revenues in 2024, with Charter accounting for about 4% of total revenues.

"The appearance of normalcy and survival of the American dream (via its biggest sport) was an important symbol, she wrote. "Business is business, unless eclipsed by a bigger idea, is our key takeaway."

— Samantha Subin

Nasdaq Composite hits lows of the day

Stocks were down across the board in the final hour of trading. The Nasdaq Composite hit its lows of the session, falling more than 1%. Meanwhile, the Dow Jones Industrial Average turned negative, last down about 26 points, or 0.08%. It was positive earlier in the session.

The S&P 500 was down about 0.6%.

— Sarah Min

General Motors is most at risk if a UAW strike continues, Jefferies says

U.S. automaker General Motors could see earnings squeezed in the event of a prolonged United Auto Workers strike, according to Jefferies.

"GM looks most at risk in the event of a prolonged strike given low inventories (378k units and 17 days below August 2019 levels) and continuing production challenges," analyst Philippe Houchois wrote in a Monday note. "We assume 28-30% fixed costs, yielding a weekly shortfall of c.$500m or 3-4% FY23E adjusted group EBIT [earnings before interest and taxes]."

Still, shares were higher by more than 2% late Tuesday afternoon.

— Brian Evans

Truist moves to sidelines on Enphase, citing prolonged rebound for U.S. residential solar market

Truist analyst Jordan Levy turned less bullish on Enphase Energy and slashed his expectation for shares amid concerns over a recovery in the U.S. residential market.

Levy downgraded the stock to hold from buy and cut his price target to $135 from $210. Still, his new target implies an upside of 10.4%. The stock was higher by less than 1% in afternoon trading.

"While we expect ENPH to play a meaningful role in the theme of home electrification over the coming years, we see potential for a prolonged recovery in U.S. resi solar/storage acting as a headwind to shares in coming quarters," Levy said in a note to clients Monday.

— Alex Harring

Bank of America reiterates buy rating on AstraZeneca

Bank of America reiterated its buy rating on AstraZeneca on Tuesday, highlighting the pharmaceutical stock's "attractive valuation" and calling it the "best pipeline in the sector."

The U.S. traded shares of the company gained more than 1% on Tuesday.

"We think the next 12-18m goes a long way to resolving" the debate on the durability of growth, Bank of America's Sachin Jain said in a note. Higher pipeline forecasts are driving sales growth estimates, he added.

— Tanaya Macheel

Barclays highlights some well-positioned consumer internet stocks as AI gains steam

Artificial intelligence may only be in its early stages but Barclays is laying out some of its favorite potential winners in the space.

"We think it's too early to make any strong declarations around the "AI winners/losers basket,' wrote analyst Ross Sandler in a Tuesday note to clients. "Instead, we have tried to come up with a framework that can be applied today to assess winners and losers as things play out."

Some of those names that screen well include Alphabet and Meta Platforms due to their "strong technical AI prowess" and available resources to aggressively invest in the technology. Both companies also boast billions of users strong pipelines of AI-related talent.

Amazon is another potential winner due to Amazon Web Services' hyperscale position among everything from startups to large enterprises. The company has also been harnessing AI to improve its e-commerce business.

"Amazon's physical asset investments in logistics and fulfilment should also prove to be an effective barrier from some of the disruption we expect to see as new Gen AI start-ups enter e-commerce," Sandler said.

— Samantha Subin

Mohamed El-Erian says that Fed is unlikely to cut rates early next year

Investors may be eagerly anticipating that slowing inflation and the September rate pause means the end of the Federal Reserve's hiking cycle, but Mohamed El-Erian believes they're getting too far ahead of themselves.

"The marketplace assumes that the Fed is going to be able to cut rates early next year," Allianz's chief economic advisor told CNBC's "Squawk Box" on Tuesday. "I don't think that's going to happen."

Instead, El-Erian believes it's likely that both core and headline inflation put up a harder fight than expected on the way down. With that in mind, investors will be forced to grow comfortable with inflation persisting above its traditional 2% target, he said.

— Lisa Kailai Han

Citi sees a rally ahead for this jet ski maker as it gains powersports market share

Sporting equipment company Bombardier Recreational Products is the best bet in the outdoor powersports space, according to Citi. 

Analyst James Hardiman upgraded the stock to buy from neutral on Tuesday and raised his price target to $128. Shares of the company, which produces ATVs and Sea-Doo snowmobiles and jet skis, have dropped 8.7% this quarter. The stock added 3% during Tuesday's trading session.

CNBC Pro subscribers can read more here.

— Pia Singh

U.S. listed shares of BP rise after chief executive reportedly set to resign

The U.S. listed shares of BP rose 1.8% in afternoon trading after the Financial Times reported Tuesday, citing sources, the energy giant's chief executive is set to resign.

Bernard Looney took over as CEO of BP in 2020 after previously leading the company's Upstream group. When the move was announced, board chair Helge Lund praised Looney as the right choice to lead BP into an era of energy transition.

— Sarah Min, Jesse Pound

Apple stock falls as company unveils iPhone 15

Apple stock slipped 1.8% Tuesday after the company unveiled the iPhone 15 at its "Wonderlust" launch event in Cupertino.

The latest handset in the popular iPhone line of smartphones boasts a 48 megapixel main camera, the A16 Bionic chip and 4K cinematic mode. The iPhone 15 is also made with 75% recycled aluminum and 100% recycled copper. The iPhone 15 will start at $799 for the base model, $999 for the Pro and $1199 for the Pro Max.

— Brian Evans

Goldman Sachs' David Kostin says it's possible market could overshoot firm's S&P target

With the S&P 500 trading near David Kostin's year-end target of 4,500, the Goldman Sachs chief U.S. equity strategist believes that there's a chance it could prove to be too conservative.

"The upside potentially would be that rates fall a little bit," Kostin told CNBC's "Squawk On the Street" on Tuesday. Historically, lower rates have led to valuation expansions.

Better-than-expected earnings would also be another catalyst that could send stocks past Kostin's year-end forecast, he added.

In the next several months, Kostin expects stocks to trade sideways with perhaps some slight near-term weakness. His 12-month forecast has the S&P 500 climbing to 4,700, which he called a "modest" expectation in this environment.

— Lisa Kailai Han

Goldman Sachs says this blood cancer treatment stock can gain 70% ahead of planned drug launch

Goldman Sachs thinks late-stage biotech company Geron was due for a correction and now has the potential to surge higher.

Analyst Corinne Jenkins upgraded Geron to buy from neutral and maintained her current price target. She highlighted FDA acceptance of Geron's new drug application for imetelstat, a treatment for individuals with transfusion-dependent anemia in lower-risk myelodysplastic syndromes, or MDS.

"We maintain our view that imetelstat is likely to be approved in this setting, where we estimate $1.5 billion in unadjusted peak sales," Jenkins wrote in a Monday note. "We see the recent pullback in shares as presenting a buying opportunity for the stock."

However, shares dipped more than 1% in afternoon trading. CNBC Pro subscribers can read more here.

— Pia Singh

Analysts are bullish on Adobe ahead of earnings, noting growth from generative AI

BMO Capital Markets analyst Keith Bachman on Tuesday raised his target price on Adobe to $640, implying 13.4% upside for the stock. The analyst maintained his outperform rating.

"We remain confident that generative AI can help Adobe grow net new ARR over the next several years, which should support durable mid- to low-teens revenue growth," Bachman said in a Tuesday note. "We believe that Adobe's strategy will include price increases of 10% to 15%, though lower at the consumer level, and adding new users in all categories."

Wells Fargo on Monday similarly kept its overweight rating and raised its price target to $625, saying it sees a "fairly straightforward setup" into the third fiscal quarter. Adobe's MAX creativity conference in October is the more meaningful catalyst for shares, the firm said, expecting the company to highlight its generative AI capabilities across the Creative Cloud product suite.

The stock has skyrocketed in recent months, gaining more than 63% so far this year. Shares are trading 2.9% lower on Tuesday, ahead of Adobe's earnings due Thursday after market close.

— Pia Singh

Information technology underperforms the S&P 500, but some chip stocks shine

Information technology was the biggest laggard in the S&P 500, with the sector last down by 1.2%. Oracle dragged on the sector, dropping more than 12%. Apple shares lost 1.5%.

However, some semiconductor stocks such as Nvidia and Qualcomm were higher by 0.4% and 1.2%, respectively. Intel shares rose 1.9% after the chip company said it would sell a roughly 10% stake in its IMS Nanofabrication business to TSMC.

— Sarah Min

Advance Auto Parts slides to 12-year low after credit downgrade

Shares of Advance Auto Parts fell to a low not seen in more than a decade on Tuesday following a credit downgrade.

S&P Global downgraded the auto parts provider's credit rating to BB+, the highest level of "junk," or speculative, status. The firm previously had a BBB- rating.

Shares were down more than 7% midday. The stock traded at a price not seen since 2011.

— Alex Harring

Stocks making the biggest moves midday

These are some of the stocks making the biggest midday moves:

• Oracle — Shares dipped more than 12% a day after the software company offered disappointing revenue and revenue guidance for its fiscal second-quarter earnings season. 
• WestRock — The stock rose 4.8% on the heels of news that the paper and packaging company will go through with a merger with Smurfit Kappa.
• Beauty Health — The HydraFacial parent company's shares surged 23.2% after it announced a cost-cutting program.

See the full list here.

— Alex Harring

Energy notches biggest sector gains Tuesday

The energy sector outperformed Tuesday as U.S. crude prices hit their highest point since November 2022.

The Energy Select Sector SPDR Fund added 2.1%. The sector gains were led by Occidental Petroleum, APA Corporation and Marathon Oil, which all rose more than 3%.

The financials and industrial sectors were the only other industries that were positive as of midday Tuesday. The Financial Select Sector SPDR Fund ticked up 0.8%, while the Industrial Select Sector SPDR Fund traded near the flatline.

— Hakyung Kim

Oracle stock on pace for worst day since 2002

Oracle shares are on pace for their worst day since 2002 as investors responded to the software company's mixed earnings report.

The software stock dropped 11.92% in midday trading Tuesday in its worst day since Mar. 2002 when Oracle shed 14.51%.

Oracle needs to end the day down more than 11.66% for the statistic to hold true. Otherwise, it will be its worst day going back to Dec. 2011.

— Alex Harring, Gina Francolla, Sarah Min

Dow turns positive in midday trading

The Dow Jones Industrial Average turned positive during midday trading, though it only eked out a slight gain. The 30-stock index was last higher by 24 points, or 0.07%. Earlier in the session, it was down as much as 103 points, or 0.3%.

Chevron was the second-best performer in the Dow, and helped to lift the index. The energy giant was up nearly 2% on the back of rising oil prices.

Microsoft was the worst performer in the index, dragging on the index. It was last down 1.5%. Apple was the third-worst performing stock; it was lower by 1.3%.

— Sarah Min

Bernstein says this software development firm can grow sales by eight times current levels

GitLab could be a winner in the evergreen software space, according to Bernstein.

The firm initiated coverage of GitLab stock on Monday with an outperform rating, saying "there are only a few developer tool companies at scale and with a strong enough competitive durability, and we believe GitLab is amongst them."

The stock is trading 0.6% higher on Tuesday, and has popped about 16% so far this year. CNBC Pro subscribers can read more here.

— Pia Singh

Bank of America upgrades Cintas, says it will benefit from no recession

Bank of America has a better-than-consensus outlook on the U.S. economy, and thinks Cintas will be a major beneficiary as recession risks wane.

Analyst Heather Balsky upgraded the stock to buy from neutral, calling Cintas a "best-in-breed company" and attributing her new rating to the firm's growing confidence in a potential soft landing for the U.S. economy.

"Cintas is the market leader in uniform rental and other facility services … since the global financial crisis, it has established an admirable record for strong execution and healthy capital returns," Balsky said in a Tuesday note. With BofA's economics team no longer expecting a near-term recession, we're more confident in Cintas' sales and margin momentum."

Shares are 2.1% higher on Tuesday. CNBC Pro subscribers can read more here.

— Pia Singh

Wolfe Research think CVS can bounce back and deliver long-term earnings growth

Now is not the time for investors to ditch CVS Health, according to Wolf Research.

Analyst Justin Lake upgraded the stock to outperform from "peer perform" and raised his price target on the stock. Lake said he sees potential for CVS to more conservatively set expectations for earnings growth in 2025 and beyond in the high single-digit range.

"When combined with more realistic targets at December Investor Day for 2025 and beyond, this sets up potential for investors to have confidence in CVS delivering in-line to better EPS vs. expectations starting in the 2025 – for the first time in recent memory," the analyst said in a Monday note. "In turn, that should drive multiple appreciation from current levels."

The stock is up 2% on Tuesday. CNBC Pro subscribers can read more here.

— Pia Singh

Ozempic upside potential to continue for Novo Nordisk, says Bank of America

Novo Nordisk shares have had a blockbuster year thanks to the rise of diabetes and obesity treatments Ozempic and Wegovy. And according to Bank of America, the company is facing another busy catalyst path the next 18 months.

"We expect the earnings upgrade cycle to continue, with us 7% ahead of company consensus in 2024," analyst Sachin Jain wrote in a Tuesday note. He reiterated his buy rating on shares.

Jain cited strong estimated operating margins in 2024, a strong insulin injectable market and forecasted upside for Wegovy in the 2024 fiscal year.

Shares have soared more than 82% over the last 12 months. Year to date, the stock is up 47.4%.

— Hakyung Kim

Stocks open lower Tuesday

The major averages opened lower Tuesday.

The Dow Jones Industrial Average lost 43 points, or 0.13%. The S&P 500 fell 0.15%, while the Nasdaq Composite declined 0.17%.

— Sarah Min

October WTI crude oil futures reach highest since last November

October West Texas Intermediate crude oil futures climbed as high as $88.45 a barrel (42 gallons) early Tuesday, the highest since Nov. 15, 2022.

WTI hasn't closed above above $90 a barrel since last Nov. 11.

November Brent futures — the global benchmark — also hit a 10-month high Tuesday, reaching $91.50 a barrel.

Permian Resources, Range Resources, EQT, Denbury and other energy plays are all up 1% or more in early trading.

— Scott Schnipper, Gina Francolla

Gold prices drop to their lowest since August

Gold prices on Tuesday dropped to their lowest since August as a stronger dollar weighed on bullion.

U.S. gold futures hit a low of 1,930.2. That was the lowest level since Aug. 23 when gold traded as low as 1,926.2.

Gold Miners was down more than 1% in premarket trading and headed for its first losing day in three. Gold Fields, Pan American Silver, Kinross Gold and Barrick Gold all slid more than 1%.

Meanwhile, the dollar added 0.2% against its rivals. A stronger dollar makes gold more expensive for owners of other currencies.

— Gina Francolla, Sarah Min

The Dow Theory for stocks remains intact, Bank of America says

Bank of America says the Dow Theory remains intact, even with stocks off their July highs. The Dow Theory is a positive signal for equities, suggesting stocks are in an upward trend if new highs are reached in two indexes.

"The Dow Theory remains on its mid-July bullish trend confirmation signal, which was when both the Dow Industrials and Dow Transports achieved new recovery highs to confirm the bull market from late 2022," technical strategist Stephen Suttmeier wrote on Monday.

"The dip from the late July high represents a correction within this bullish signal," Suttmeier added.

— Sarah Min, Michael Bloom

Stocks making the biggest moves before the bell: Oracle, WestRock and more

These are the stocks moving the most in premarket trading:

• Oracle – Shares fell 10% before the opening bell after the company posted weaker-than-expected revenue and revenue guidance for the second fiscal quarter.
• WestRock – Shares popped more than 6% before the bell on news that the paper and packaging company is going forward with its merger with Smurfit Kappa.
• Apple – The stock inched higher before the bell ahead of the technology giant's eagerly anticipated iPhone launch event beginning at 1 p.m. ET.

Read the full list of stocks moving here.

— Samantha Subin

Oil prices weigh on investor sentiment

Oil prices rose Tuesday morning and weighed on stocks as investors worried about sticky inflation and slowing global economic activity.

U.S. crude prices touched the highest since November of last year, according to FactSet. The ICE Brent crude last added 49 cents to $91.13 a barrel, while U.S. West Texas Intermediate crude futures gained 62 cents to $87.91.

Meanwhile, shares of Chevron were among the few premarket gainers.

— Sarah Min, John Melloy

WestRock shares jump on news of deal with Smurfit Kappa

Westrock shares roared higher early Tuesday on news that the paper and packaging company is moving ahead on its merger with Europe's Smurfit Kappa.

The U.S. company saw its stock rise 8.6% in premarket trading following an announcement that the two firms will create a global behemoth worth about $20 billion.

However, investors showed less confidence that the deal was a good one for Smurfit Kappa, sending its stock down about 8% on the FTSE 100.

—Jeff Cox

Shares of TSMC and Foxconn climb after Apple-Qualcomm deal

Shares of chip manufacturer Taiwan Semiconductor Manufacturing Corp climbed 1.6% after Apple and Qualcomm signed a deal that will see Qualcomm supply 5G chips to the iPhone maker until at least 2026.

Wall Street analysts and Qualcomm officials had previously said they expected Apple to use an internally developed 5G modem starting in 2024.

TSMC is reported to be one of the manufacturers for Qualcomm's chips, as well as the manufacturer of Apple's chips that power its devices.

Shares of Foxconn, which manufactures Apple products and trades as Hon Hai Precision Industry, saw a larger gain of as much as 2.38%.

— Lim Hui Jie

Country Garden shares jump about 9% after creditors agree to extend onshore bonds

Shares of Chinese real estate developer Country Garden Holdings jumped by nearly 9% before paring gains.

It came after the company's creditors reportedly voted to extend repayments on six onshore bonds by three years.

Creditors voted Monday for proposals by the embattled firm to extend repayments on eight onshore bonds worth 10.8 billion yuan ($1.48 billion).

Reuters, citing two sources, said creditors approved extending six out of the eight bonds, while the other two bonds will see voting delayed.

— Lim Hui Jie

Arm IPO's price could top $51 per share: Reuters

Chip designer Arm is reportedly "getting close" to securing enough investor support to attain the fully diluted valuation of $54.5 billion it seeks in its initial public offering, Reuters reported, citing sources familiar with the matter.

This means Arm will likely be able to price the IPO "at the top or above" the $47-to-$51-per-share range, the report said.

The sources said Arm is also discussing the possibility of raising the price range and seeking a valuation of more than $54.5 billion, in light of strong investor interest.

However, Arm will not offer more shares, as SoftBank wants to retain a 90.6% stake in Arm following the IPO, the sources said.

— Lim Hui Jie, Reuters

Investors may be 'overlooking' Nvidia AI catalysts

Nvidia's "underappreciated" pipeline of generative artificial intelligence products could spell major upside ahead for its stock despite its 8% pullback so far this month, according to Bank of America.

"In part, NVDA's compressed valuation already reflects investor concerns about sustainability of genAI capex, geopolitical concerns (China restrictions) and (overstated) competitive risks from AMD/INTC," analyst Vivek Arya said when listing the stock as a top pick.

CNBC Pro subscribers can read the full story here.

— Lisa Kailai Han

Investors react to latest earnings reports

A handful of stocks moved in extended trading after reporting earnings.

Oracle dropped more than 9% after the bell following a mixed report for the fiscal first quarter. The company beat expectations of analysts polled by LSEG for earnings per share by 4 cents, coming in at $1.19 when adjusted. But revenue came in slightly below consensus, with Oracle posting $12.45 billion despite analysts anticipating $12.47 billion.

Meanwhile, retailer Casey's General Stores was up more than 3%. The retailer blew past earnings expectations, posting $4.52 per share on a consensus estimate of $3.36 from analysts polled by FactSet. That took attention away from revenue, with the company reporting $3.87 billion while Wall Street expected $3.9 billion.

— Alex Harring

Stock futures are little changed

Stock futures are little changed shortly after 6 p.m. ET. Futures tied to the Dow, S&P 500 and Nasdaq 100 all traded near flat.

— Alex Harring