Before an hour
Biden, Republicans appear to be united on keeping Social Security and Medicare benefits
U.S. President Joe Biden delivers the State of the Union address before a joint session of Congress as Vice President Kamala Harris and House Speaker Kevin McCarthy (R-CA) listen in the chamber of the U.S. House of Representatives on February 7, 2023
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Biden seemed to get Republicans to agree not to touch the Social Security and Medicare funds if they want to cut spending.
Republicans yelled at the president when he said some GOP members in the House of Representatives had proposed cutting funding for the programs.
“Okay guys, we all seem to agree Social Security and Medicare are off the books now,” Biden yelled back.
“If anyone is trying to cut Social Security, which it seems no one is going to do, I will stop. I will veto it,” Biden said. “Apparently it won’t be a problem.”
– Emma Kinery
5 hours before
Chipotle shares fall after earnings
Chipotle Mexican Grill shares fell more than 4% in extended trading after the restaurant chain missed quarterly earnings and sales expectations.
Chief Financial Officer Jack Hartung said during the company’s earnings call that Chipotle “didn’t see that bang, that momentum” that it usually gets around the holidays and ended the quarter “soft.”
See grafic…
Chipotle stocks fall
– Amelia Lucas, Sarah Min
5 hours before
Ebay plans to lay off 500 employees; win stocks
According to a filing with the SEC on Tuesday, eBay plans to lay off 500 employees, or about 4% of the workforce. E-commerce stock edged up 0.3% in extended trading.
In a memo to employees, CEO Jamie Iannone said management had taken a “careful look” at the company regarding the macroeconomic environment, saying the layoffs would bolster eBay’s ability to provide better experiences for its customers.
– Ashley Capoot, Sarah Min
5 hours before
Stocks make the biggest moves after hours
Here are three names making headlines Tuesday after hours:
- Chipotle Mexican Grill — Shares fell more than 4% in extended trading after Chipotle Mexican Grill missed analysts’ expectations for revenue and earnings. The burrito chain reported earnings of $8.29 per share on sales of $2.18 billion. Analysts polled by Refinitiv were expecting earnings of $8.90 per share on sales of $2.23 billion.
- Lumen Technologies — Shares plunged more than 16% after Lumen Technologies released its latest results. The company provided guidance for 2023 adjusted earnings before interest, taxes, depreciation and amortization, which fell short of analysts’ expectations, according to FactSet.
- Fortinet — Shares rose more than 11% in extended trading, according to StreetAccount, after Fortinet beat expectations for earnings per share. The cybersecurity company posted 44 cents per share, higher than the expected 39 cents per share. However, the cybersecurity company slightly missed revenue estimates, posting $1.28 billion, down from the $1.3 billion forecast.
Check out the full list here.
– Sarah Min
5 hours before
NEC’s former chief economist says a near-term economic slowdown is likely
Joseph LaVorgna, the former chief economist for the National Economic Council, said he sees economic activity suffering another contraction this spring before long-term interest rates finally fall as the Federal Reserve continues its rate-hiking campaign.
“The data suggests that a recession could start literally any quarter… A downturn this spring is on track, I think,” he said on CNBC’s Fast Money.
LaVorgna added that the market is suggesting the Fed is too tight, citing an “extraordinarily” inverted yield curve that is causing short-term rates to be higher than long-term rates. Treasury yields reversed earlier declines following Powell’s comments on Tuesday. The 10-year yield is now 3.679%, while the 2-year yield is 4.466%. Should the curve invert any further, LaVorgna said, it would indicate the possibility of a “deeper and longer-lasting” recession.
“The Fed should now focus on growth and focus on where they think the economy is going…it compounded a mistake by falling asleep at the counter and now made another mistake of believing that it’s the.” Rates will hold for most of 2024,” said LaVorgna, who is now chief economist at SMBC Nikko Securities America, Inc.
—Pia Singh
5 hours before
Some say that the state of the Union may not affect the markets of the future
Market watchers said President Joe Biden’s State of the Union address, scheduled for 9 p.m. EST, is unlikely to move stocks. But they still said it was important to follow geopolitical issues as they could affect the market later.
“I don’t really think tonight’s State of the Union address is going to have a lot of market impact,” said Sam Stovall, chief investment strategist at CFRA Research.
Stovall said Biden could address the debt ceiling, but that probably won’t be an issue the market will take notice of before May.
Others said it could be important how the next presidential election plays out.
“The state of the Union may not move the market, but it will be important as it will raise expectations about how Biden’s potential re-election campaign will go,” said Ed Moya, senior market analyst at Oanda. “President Biden has the economy in much better shape than it was a year ago, but only 36% agreed how he’s handled it.”
Follow CNBC’s live coverage of Biden’s speech and the run-up to it here.
– Alex Harring
5 hours before
Stock futures open lower
US stock futures were down slightly Tuesday night.
Dow Jones Industrial Average futures fell 58 points, or 0.17%. S&P 500 and Nasdaq 100 futures fell 0.19% and 0.2%, respectively.
– Sarah Min
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