Stock market news today: Nasdaq surges 2% to lead market rally, Dow lags as Boeing falls 8%

Stocks rallied to start the trading week as Big Tech carried the major averages higher while Boeing (BA) shares sold off, weighing on the Dow Jones Industrial Average (^DJI).

The S&P 500 (^GSPC) rose about 1.4%, and the tech-heavy Nasdaq (^IXIC) soared 2.2%, after all three major stock indexes broke a nine-week winning steak on Friday. Meanwhile, the Dow rose about 0.6%.

Monday marked the best single-day gains for the Nasdaq and S&P 500 since Nov. 14.

Dow component Boeing's shares tumbled 8% after US authorities grounded some 737 Max 9 jets in the wake of a midair fuselage blowout. Fuselage maker Spirit AeroSystems's (SPR) shares sank more than 10%.

Elsewhere, Nvidia (NVDA) stock soared more than 6% on a report that the semiconductor company could launch a China-focused AI chip in the second quarter of 2024. Crypto stocks also caught a bid as bitcoin (BTC-USD) touched above $47,000 for the first time since April 2022 amid excitement that an ETF for the world's largest digital currency could be passed this week.

This week could bring a catalyst for the market, with earnings reports from big banks and a crucial reading on inflation ahead. The CPI inflation reading is due Thursday, while JPMorgan (JPM), Wells Fargo (WFC), and Bank of America (BAC) will kick off the fourth quarter earnings season.

Meanwhile, oil prices fell nearly 4% as investors absorbed Saudi Arabia's decision to cut key prices of crude supplies to all regions, including its main Asia market.

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Stocks close higher, but dismal start to 2024 flashes warning signs

Mon, January 8, 2024 at 4:06 PM EST, Josh Schafer

Stocks rallied on Monday, a welcome sign for investors after a tough two-week stretch that brought no Santa Claus Rally and a negative first five trading days for the S&P 500 (^GSPC).

While many market strategists have noted that a pullback in stocks after a massive rally to end 2023 isn't atypical, the combination of no Santa Claus Rally and a negative first five days of the year hasn't been good historically, per Carson Research's Ryan Detrick.

On average, when both metrics are negative, the benchmark index has risen just 3% for the year. Though, perhaps noteworthy in this instance, the S&P 500 has never fallen by as slim of a margin as it just did to start in 2024.

It is quite rare for stocks to be lower during the Santa Claus Rally and first 5 days of a new year.

'24 is about to see it.

Full yr up less than 3% on avg.

There were some good returns in there, but something to consider. pic.twitter.com/4Q1swM3wIJ

— Ryan Detrick, CMT (@RyanDetrick) January 8, 2024

Inflation expectations hit lowest level since Jan. 2021: New York Fed

Mon, January 8, 2024 at 3:29 PM EST, Josh Schafer

Consumers are becoming more comfortable the path forward for inflation.

The latest New York Fed survey of consumer expectations showed respondents expect inflation to fall to 3% in the next year, down from previous projections for inflation at 3.4%.

That marks the lowest one-year-ahead inflation expectation since January 2021. This report falls in line with other signs of consumer inflation expectations falling from the University of Michigan and the Conference Board.

Source: New York Fed

2 reasons downward earnings revisions might not matter as much as it seems

Mon, January 8, 2024 at 2:58 PM EST, Josh Schafer

Recent research from FactSet shows Wall Street has been increasingly downbeat about the upcoming earnings season.

Since Sept. 30, estimates for S&P 500 earnings have fallen 6.8%, per FactSet. That marks the largest decline since the third quarter of 2022 and sits well above the 20-year average of a 3.8% decline.

Deutsche Bank chief US equity strategist Binky Chadha sees "big beats" outshining the "pessimistic consensus." In an earnings preview research note, Chadha pointed out that one-off factors like labor strikes in the auto sector and waning COVID demand in healthcare contributed to the larger-than-normal downward revision for earnings estimates headed into quarterly reports.

"Outside of these lumpy one-off charges, aggregate estimates have been cut by -3.5%, only slightly worse than the typical cut of -3.0% at this stage of earnings seasons historically," Chadha wrote.

Taken a step further, Goldman Sachs reminded clients in a recent note that earnings are rarely as bad as Wall Street fears.

Goldman Sachs places consensus expectations for year-over-year earnings growth at 3% for the fourth quarter. They highlight that in recent quarters, earnings have beat expectations by an average of 4 percentage points.

"We expect S&P 500 firms in aggregate will benefit from continued strong economic growth and subsiding input cost pressures and beat consensus forecasts," Goldman Sachs chief equity strategist David Kostin wrote in a note to clients on Friday.

Eerily quiet in the office? It's not just you.

Mon, January 8, 2024 at 2:47 PM EST, Dani Romero

It’s been nearly four years since the pandemic completely altered where and how we work. That has left US offices at their emptiest levels in the past four decades.

According to a Wall Street Journal report, 19.6% of office space in major US cities wasn't leased as of the fourth quarter, up from 18.8% a year earlier and the highest level since at least 1979 when Moody's Analytics started tracking the data.

Data on WFH trends may help explain the increase in vacancy rates.

According to a note from analysts at Raymond James, data from Kastle Systems shows that office utilization is hovering at about 50% of pre-pandemic levels despite executives' efforts to nudge employees back into the office. Raymond James' research shows that while just 12% of full-time employees are fully remote, 30% work in a hybrid arrangement.

Source: US Survey of Working Arrangements & Attitudes, WFH Research, Raymond James Research (Source: U.S. Survey of Working Arrangements & Attitudes, WFH Research, Raymond James Research)

Working from home hasn't necessarily impacted employee paychecks. Over 50% of workers reported getting paid the same regardless of their location, per the note. Unsurprisingly, analysts note that people in their 30s and 40s who have children and deal with long commute times are more likely to embrace WFH.

Those trends don't bode well for the commercial real estate market. So far, office real estate investment trusts (REITs) are flat this year, per data from Baird Equity research.

But the changes could also alter the residential housing market, Raymond James says.

"Untethering workers from physical proximity to offices is a game changer," the note says. "Given new options to live where they want, workers are now increasingly empowered to vote with their feet. High-cost, high-tax markets will see significant outmigration to Sun Belt states."

Bitcoin hits new 52-week highs with ETF deadline in sight

Mon, January 8, 2024 at 2:02 PM EST, Josh Schafer

Bitcoin, the world's largest digital currency, is up more than 5% on Monday.

The price has skyrocketed to nearly $47,000, reaching its highest level since April 2022, as the US Securities and Exchange Commission is expected to take action on an ETF application this week, per Bloomberg.

An ETF hasn't been officially approved yet. But Jason Les, the CEO of Riot Platforms, which mines the digital asset, believes if an ETF is launched it'd be a meaningful moment for bitcoin price action.

"We believe the ETF is going to be an incredible tool for unlocking whole new pools of capital flowing into bitcoin," Les told Yahoo Finance Live. "Historically a lot of investors who may have had an interest in bitcoin haven't been able to get exposure to the asset."

Stocks trending in afternoon trading

Mon, January 8, 2024 at 1:16 PM EST, Hamza Shaban

Here are some of the stocks leading Yahoo Finance’s trending tickers page during afternoon trading on Monday:

Boeing (BA): Shares fell as much as 9% Monday after US authorities grounded some 737 Max 9 jets in the wake of a midair fuselage blowout. Boeing (BA), a name in the Dow 30, also pulled the major index into the red during afternoon trading.

Nvidia (NVDA): Shares rose nearly 5% following a report that the AI supplier plans to begin mass production of an AI chip it designed for the Chinese market that complies with US. Reuters reports that the sale of the chip, along with two others, is designed preserve the company's market share in the China amid tightening export restrictions out of Washington. On Monday Nvidia also unveiled its next generation of desktop graphics processing units.

Crocs (CROX): The footwear company climbed 20% after updating full-year 2023 guidance. Crocs said it expects record revenue for the year, up almost 11% compared to the prior year, and anticipate a strong 2024 on improved gross margins.

Twilio (TWLO): Shares of the enterprise communications software company rose nearly 7% Monday afternoon following an announcement that co-founder Jeff Lawson will be stepping down as CEO and that it expects fourth quarter revenue to exceed its earlier forecasted range.

Tiger Woods, Nike part ways after 27-year sponsorship deal

Mon, January 8, 2024 at 12:42 PM EST, Myles Udland

Golfer Tiger Woods announced Monday on X that his longtime sponsorship with Nike (NKE) has come to an end.

pic.twitter.com/at0tSskmRm

— Tiger Woods (@TigerWoods) January 8, 2024

Nike stock was unchanged in afternoon trade.

Shares of Topgolf Callaway (MODG) were up as much as 3% and Acushnet Holdings (GOLF), which owns Titleist, saw shares rise 1.7%.

The golf business rode a wave in 2018 and 2019 as Woods made a comeback to the sport, which culminated in his victory at the 2019 Masters before booming during the pandemic.

Woods signed a deal to play TaylorMade clubs in 2017; Woods had played Nike clubs since the early 2000s until the company's exit from the golf equipment business. Woods began his career playing Titleist clubs.

A car accident in February 2021 left Woods with severe injuries that have curtailed his playing schedule since.

Boeing pulls down Dow in afternoon trading

Mon, January 8, 2024 at 12:30 PM EST, Hamza Shaban

Boeing (BA), a name in the Dow 30, tumbled as much as 9%, pulling the major index into the red during afternoon trading on Monday.

US authorities grounded some 737 Max 9 jets in the wake of a midair fuselage blowout.

The Dow Jones Industrial Average (^DJI) sank 0.2%, or about 80 points. The S&P 500 (^GSPC) rose close to 0.6%, and the tech-heavy Nasdaq (^IXIC) was up 1.3%, after all three major stock indexes broke a nine-week winning steak on Friday.

Oil falls after Saudi price cuts and demand woes

Mon, January 8, 2024 at 11:51 AM EST, Hamza Shaban

Oil prices fell roughly 4% Monday morning after Saudi Arabia cut prices of crude supplies to all regions, including its main Asia market, and OPEC boosted output.

Energy markets were among several industries that have been rattled in recent days as geopolitical tensions rise in the Middle East.

West Texas Intermediate crude (CL=F) fell more than 4% during morning trading and Brent crude (BZ=F) shed 3.8%.

Prior to the price cuts, oil had surged as a result of supply disruptions. Yemeni Houthi forces in the Gulf region have escalated attacks on shipping vessels, forcing companies to reroute. Alternate paths increase shipping costs by more than 170% and add up to 14 days to the duration of the voyage.

Saudi's decision also reflects what officials see as signs of weakening in global demand.

"That's raising concerns about demand in China and global demand as well," Price Futures Group analyst Phil Flynn said. "The stock market is off to a weak start this year and this news from Saudi Arabia has caused the bottom to fall out."

Apple launches Vision Pro headset Feb. 2, pre-orders begin Jan. 19

Mon, January 8, 2024 at 10:47 AM EST, Hamza Shaban

Apple (AAPL) will release the new Vision Pro headset in the US on Feb. 2, the company announced Monday, in what CEO Tim Cook has described as the dawn of spatial computing.

Customers can pick up the headset, which sells for $3,499 with 256GB of storage, at US Apple Store locations and the online store. Preorders for the device will begin on Jan. 19, the company said.

Apple shares rose nearly 1.5% at the open, steering the stock towards a win after a bruising week.

The official release of the VR and augmented reality headset marks a significant moment for the company as consumers get their hands on Apple's biggest product launch in roughly a decade.

“The era of spatial computing has arrived,” said Cook in a statement. “Apple Vision Pro is the most advanced consumer electronics device ever created. Its revolutionary and magical user interface will redefine how we connect, create, and explore.”

Apple's highly anticipated expansion of its hardware lineup comes at a challenging moment for the tech giant. Cupertino is coming off a brutal week, in which traders erased more than $175 billion in market value after two analyst downgrades sparked a punishing sell-off.

Apple's stock is closely watched because, as the market's most valuable company, it accounts for a significant percentage of the benchmark S&P 500 index. The company's financial performance can influence the broader stock market. And due to Apple's enormous user base, and its operations in crucial markets like China, the company also acts as a health gauge on the global economy.

The headset in particular is a test for Apple to chart a new path as older hardware categories, most notably the iPhone, have reached maturity.

Apple's more critical observers have framed cooling demand for its devices as a sign of the company's slow demise. It's bullish backers, however, contend that Wall Street underestimates the pull of Apple's devices. They also highlight Apple's massive potential to grow its services business. Dan Ives of Wedbush, a prominent Apple optimist, estimates that Apple's services segment alone is worth a staggering $1.6 trillion.

The Vision Pro runs on a new operating system, dubbed visionOS, featuring a new three-dimensional user interface and inputs controlled by a user’s eyes, hands, and voice. Apple's device will go head-to-head against Meta's (META) Quest headsets, pitting one American tech giant against another, as Silicon Valley attempts to sell augmented and virtual reality as tech's next frontier, alongside the rapid development of generative AI.

Boeing plunges after 737 MAX grounding

Mon, January 8, 2024 at 10:04 AM EST, Myles Udland

Boeing (BA) stock fell as much as 8% early Monday after an incident onboard an Alaska Airlines (ALK) flight late Friday led the FAA to ground some of the company's 737 MAX 9 jets over the weekend.

Shares of Spirit AeroSystems (SPR), which makes the fuselage for the jet, also fell more than 13% at the open.

According to data from Yahoo Finance's Jared Blikre, Boeing's gap down at the market open was its worst since May 2022.

As Yahoo Finance's Josh Schafer reported, Wall Street analysts view this news as a challenge for Boeing in the short term, but not something that changes the longer-term story for the industrial giant.

JPMorgan's Seth Seifman wrote in a client note, "Our view remains that Boeing's key task over the next two years is to ramp production and deliveries of 737s and 787s ... Friday's 737 MAX 9 accident is obviously not helpful in this regard but the extent of the setback is not yet clear, with a range of potential outcomes."

Ron Epstein, an analyst at Bank of America Global Research, wrote Monday, "With the limited information we have at this early stage, this appears to be a manufacturing quality escape as opposed to a design issue."

Epstein maintained a Buy rating on the stock and kept a $275 price target on Boeing.

In this photo released by the National Transportation Safety Board, NTSB Investigator-in-Charge John Lovell examines the fuselage plug area of Alaska Airlines Flight 1282 on Sunday, Jan. 7, 2024, in Portland, Ore. (National Transportation Safety Board via AP) (ASSOCIATED PRESS)

Stocks open mixed after snapping 9-week winning streak

Mon, January 8, 2024 at 9:34 AM EST

Stocks opened mixed on Monday after ending their nine-week winning streak last week.

The Dow Jones Industrial Average (^DJI) fell 0.4%, or 150 points, while the S&P 500 (^GSPC) rose 0.2%. The tech-heavy Nasdaq (^IXIC) was up 0.4%.

Last week hotter-than-expected jobs data raised investors' questions on when the Federal Reserve was likely to begin cutting interest rates this year.

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