Stock market news live updates: Stocks fall in first trading day of 2023, Apple and Tesla sink – Yahoo Finance

U.S. stocks closed with losses Tuesday as last year's selling pressures poured over into a busy first trading week of 2023.
The S&P 500 (^GSPC) dropped 0.4%, while the technology-heavy Nasdaq Composite (^IXIC) fell 0.8%. The Dow Jones Industrial Average (^DJI) capped the session just below breakeven.
Apple (AAPL) shares sank 3.7% on Tuesday to the lowest level since June 2021, bringing the company's market capitalization below $2 trillion — a symbolic milestone for the tech stock rout that wiped more than $3 trillion off the value of U.S. megacap giants last year.
Tesla (TSLA) also continued a downslide to start the new year, plunging 12.2% — its biggest one-day drop in more than two years — after the electric carmaker on Monday reported vehicle production and delivery figures for the fourth quarter that missed Wall Street’s estimates.
Adding to selling pressures, JPMorgan analyst Ryan Brinkman cut his profit estimates and price target on the stock on the heels of those results.
The company closed out its worst year on record in 2022, shedding 65%, or about $700 billion in market value. In December, growing concerns around production delays in China and CEO Elon Musk’s management of Twitter drove the stock down 36%, its biggest monthly drop since Tesla went public in 2010.
In other stock moves, Block (SQ) shares rose 2.9% following an upgrade from Baird analysts to Outperform, with a new price target of $78 per share, up from the prior $62.
Meanwhile, optimism around China's recovery after researchers in Shanghai reported COVID cases in major Chinese cities may have peaked helped boost sentiment for Chinese companies trading on U.S. exchanges. Alibaba Group (BABA) and Baidu (BIDU) each rose more than 4% despite declines in the broader market.
The moves Tuesday came after broad-based declines on Friday in a fitting end to Wall Street’s worst year since the Global Financial Crisis in 2008. U.S. stock and bond markets were closed on Monday in observance of New Year’s Day.
The S&P 500 tumbled 19.4% in 2022, while the Nasdaq Composite wiped out one-third of its value, dropping 33% and closing out its first four-quarter decline since the 2000 dot-com bubble. The Dow fell a comparably modest 9%, holding up better than its index peers but still capping a three-year winning streak for the major averages.
A new year may not be a fresh start for investors, with strategists warning that many of the headwinds that plagued markets in 2022 will persist into the new year: inflation, continued monetary tightening by the Federal Reserve, and the risk of a hard landing as further rate hikes permeate the U.S. economy.
“The story in 2022 was the Fed hiking interest rates and choking off the equities and bond markets, and by indication a bunch of other markets in the process as well,” Opimas CEO Octavio Marenzi told Yahoo Finance Live on Friday, adding that market expectations for a terminal rate of 5% were “mindlessly optimistic.”
“I don’t think the peak interest rate is only 75 basis points away if you look at where inflation is,” Marenzi said. “I think there’s more pain to come in 2023 – I think basically we're going to see a replay of 2022 – the same kind of pressures, the same direction.”
Economic data will pick up in the shortened first trading week of the year, with the Labor Department set to release its first jobs report of 2023 Friday morning. Economists expect a payroll gain of 200,000 jobs for December, per Bloomberg consensus estimates. Investors will get three additional updates on the labor market, with the latest Job Openings and Labor Turnover Survey (or JOLTS report), ADP’s private payrolls data, and the Challenger Job Cuts report all due out.
Wall Street will also tune in for the Fed’s release of minutes from its December policy meeting on Wednesday, which investors will pore over for clues on the central bank's next move.
In other markets Tuesday, U.S. Treasury yields retreated. In 2022, the yield on the benchmark 10-year note surged from around 1.5% at the beginning of the year to settle at 3.88% on Friday.
Oil prices slid, with West Texas Intermediate (WTI) crude futures falling 3.8% to trade just above $77 per barrel. Meanwhile, the U.S. dollar index gained Tuesday.
—
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
A former chief financial officer of multiple special purpose acquisition companies (SPACs) has pleaded guilty to embezzling more than $5 million from them, and losing almost all of it trading meme stocks and cryptocurrencies. Cooper Morgenthau, 35, of Fernandina Beach, Florida, pleaded guilty to one count of wire fraud on Tuesday before U.S. District Judge Paul Engelmayer in Manhattan federal court. Morgenthau faces a possible prison sentence of about six to 7-1/4 years, under recommended federal guidelines, at his scheduled April 25 sentencing.
This analyst says to keep an eye on Costco's stock for this important reason.
Tesla stock is picking right up where it left off in 2022: Lacking juice.
Yahoo Finance's Jared Blikre breaks down how stocks are moving into the closing bell Tuesday.
Yahoo Finance Live anchors discuss Equinox gym's latest campaign for the new year.
Twitter Inc on Tuesday said it would expand the types of political ads allowed on the social media platform, an apparent reversal of its 2019 global ban on political ads, as the Elon Musk-owned company seeks to grow revenue. Twitter banned political ads in 2019 after it and other social media companies like Facebook faced widespread criticism for allowing election misinformation to spread across its services. "We believe political message reach should be earned, not bought," tweeted Jack Dorsey, Twitter's then-chief executive, in announcing the move.
Bed Bath & Beyond shares see a huge reversal.
After Buffalo Bills safety Damar Hamlin collapsed on the field during the Jan. 2 game against the Cincinnati Bengals, his team provided more details on the harrowing incident.
The market started 2023 with a familiar trend: pulling back after flashes of strength. Apple and Tesla sold off. Don't use bull market rules now.
Among the many Warren Buffett quotes thrown around, none has caught the imagination more than his timeless, “be fearful when others are greedy, and greedy when others are fearful” nugget. And it looks like 2023 will be the perfect opportunity for Buffett to once again demonstrate his use of the axiom. At least that is the opinion of Elon Musk, who recently said he “suspects Warren Buffett is going to be buying a lot of stock next year." Having called Buffett a “bean counter” in the past, Musk is
The Buffalo Bills safety suffered cardiac arrest during a game Monday night in Cincinnati and is in critical condition.
Yahoo Finance Live anchors discuss Tesla’s total vehicle deliveries.
The 98-year-old investing legend has spoken.
For the first time in nearly a decade, Google and Meta—the two largest players in online advertising—are no longer taking in the majority of U.S. digital-ad dollars.
(Reuters) -Apple Inc's stock market value shrank sharply on Tuesday following its steep drop last year, leaving it below $2 trillion for the first time since March 2021. The sell-off came a year after the iPhone maker became the first company to reach the $3 trillion market capitalization milestone. Apple's shares declined 3.7% to $125.07 after Exane BNP Paribas analyst Jerome Ramel downgraded the company to "neutral" from "outperform," slashing his price target to $140 from $180, according to Refinitiv Eikon.
Apple stock got off to a slow start in 2023 as shares fell on a report the company has cut MacBook, Apple Watch and AirPod orders.
The war of words between Bahamian authorities and FTX CEO John Ray III continues to rage over disputes surrounding the bankruptcy of the fallen crypto exchange.
(Bloomberg) — Tesla Inc. shares fell more than 14% after the electric carmaker delivered fewer vehicles than expected last quarter despite offering hefty incentives in its biggest markets.Most Read from BloombergChina’s Foreign Minister Says ‘Deeply Impressed’ With AmericansElon Musk Becomes First Person Ever to Lose $200 BillionShopify Tells Employees to Just Say No to MeetingsThe company said Monday it handed over 405,278 vehicles to customers in the last three months, short of the 420,760 av
(Bloomberg) — US stocks declined on Tuesday as Tesla Inc. and Apple Inc. highlighted slowing demand, stoking concern about what lies ahead for growth stocks and the US economy as the Federal Reserve prepares to keep raising interest rates. Treasuries advanced and the dollar climbed the most in nearly three weeks. Most Read from BloombergChina’s Foreign Minister Says ‘Deeply Impressed’ With AmericansElon Musk Becomes First Person Ever to Lose $200 BillionShopify Tells Employees to Just Say No to
The outlook for 2023 looks good as well, with Berkshire (ticker: BRK.A, BRK.B) standing to benefit from an upturn in insurance profits, its acquisition of insurer Alleghany in the fourth quarter of 2022, higher yields on the company’s big cash position, and income from all the 2022 equity investments, led by Chevron (CVX) and Occidental Petroleum (OXY), that were spearheaded by Warren Buffett, its 92-year-old CEO. One wild card is stock buybacks. Berkshire cut its share repurchases in 2022, which totaled $5 billion through the third quarter, against $27 billion in 2021 and $25 billion in 2020.

source