S&P 500 and Nasdaq are little changed as momentum stalls: Live updates – CNBC

Home sales declined at a faster pace than expected in July as prices pushed higher, the National Association of Realtors reported Tuesday.

Existing sales dropped 2.2% from June, against the Dow Jones estimate for a 0.2% decline. Sales totaled 4.07 million, against the estimate for 4.15 million, and were off 16.6% from a year ago.

The median sales price increased 1.9% to $406,700, while unsold existing homes rose 3.7% from June to the equivalent of 3.3 months of supply.

—Jeff Cox

Charles Schwab will be reducing its headcount in addition to closing or downsizing certain corporate offices, according to a recent filing submitted to the U.S. Securities and Exchange Commission.

The company said it aims to realize at least $500 million of incremental annual run-rate cost savings. To do so, it acknowledged it will likely have to incur exit costs ranging from approximately $400 million to $500 million.

The number of planned job cuts was not disclosed. Premarket shares gained more than 0.3% on Tuesday after closing 0.2% lower on Monday.

— Hakyung Kim

Check out the companies making headlines before the bell:

• Fabrinet — Fabrinet surged 21% after its fiscal fourth-quarter results late Monday topped analysts’ estimates. The advanced manufacturing services company posted non-GAAP earnings of $1.86 per share, greater than the $1.80 earnings per share expected by analysts polled by FactSet. Revenue came in at $655.9 million, greater than the $641.4 million consensus estimate.
• Dick’s Sporting Goods — Shares plunged nearly 20% after the retailer reported an earnings miss and cut guidance for the year, due in part to an increase in retail theft. Earnings per share for its fiscal second quarter came in at $2.82, well below the $3.81 expected from analysts polled by Refinitiv. Revenue also fell short.
• AppLovin — Shares climbed 4% in premarket trading after Jefferies upgraded the marketing stock to buy from hold. Jefferies said the company should continue to win market share and grow its software segment.

Read the full list here.

— Sarah Min

Earnings estimates are still higher than they should be, according to J.P. Morgan’s Marko Kolanovic.

“The consensus 2024 EPS growth rate of 12% appears too optimistic given an aging business cycle with very restrictive monetary policy, still rising cost of capital, lapping of very easy fiscal policy, eroding consumer savings and household liquidity, low unemployment rate, and increasing risk of a recession for some of the largest economies abroad (e.g., China, Germany),” said Kolanovic, the firm’s chief market strategist and global research co-head. 

Kolanovic called for a “soft/no landing” as his new base case, noting that investor expectations, market positioning and equity valuations have moved up compared to where they were at the start of this year. Companies are seeing softening demand and pricing power with ongoing margin pressure, he said.

— Pia Singh

Jefferies upgraded shares of application marketing company AppLovin in a Monday note thanks to a growing market share. Shares were 3.8% higher in premarket trading.

“Investors should have more confidence in sustainable growth (despite a weak mobile market), continued share shift, optionality on adjacent markets, and reasonable valuation. It’s better late than never, in our view, despite the extreme positive performance for AppLovin, +263% vs. NASDAQ’s +27%,” analyst Andrew Uerkwitz said.

CNBC Pro subscribers can read the full story here.

— Brian Evans

Microsoft submitted a revised takeover deal of Activision Blizzard to British regulators after the first proposal was rejected. The new deal will be investigated by the Competition and Markets Authority, with a decision deadline set for Oct. 18. Shares of the tech giant climbed 0.6% in the premarket.

— Fred Imbert

Baidu shares popped more than 4% after the Chinese tech company reported better-than-expected earnings and revenue for the second quarter.

CEO Robin Li pointed to “revenue and profit growth” for the company’s core business, “driven by the solid performance of online marketing business and operating leverage.”

— Fred Imbert

Monday’s rally led the Nasdaq Composite to snap a four-day losing streak, but there’s still some skepticism, according to Adam Crisafulli of Vital Knowledge.

“The stabilization/rebound in US equities is entering day 3 so far today and while sentiment is starting to turn the corner (bears are becoming nervous following the huge Mon rally in tech), people remain hesitant to fully embrace the tape ahead of Nvidia (Wed night) and Powell (Fri morning),” Crisafulli said in a note.

He also noted that stocks may be getting a boost after a Wall Street Journal article hinted the Fed “might tolerate a slower path to its 2% inflation target (or even countenance an increase to that target) rather than an aggressive tightening stance that would severely undermine the economy.

“The knee-jerk implications of the report are bullish, BUT we caution that this strategy will only work so long as inflation remains on a downward trajectory,” Crisafulli wrote.

— Fred Imbert, Michael Bloom

European stock markets opened higher before extending gains in early trade, with the Stoxx 600 index up 0.9% at 9:07 a.m. BST.

All sectors posted gains and tech stocks were 2% higher, following upbeat sessions in the U.S. and Asia-Pacific markets.

Shares of SoftBank Group climbed as much as 3.36% on Tuesday after news that its chip unit Arm filed for a Nasdaq listing.

Arm did not disclose a share price and therefore has no valuation yet for the listing, but Reuters said that it is expected to be “the largest of the year.”

Shares of SoftBank pared gains later in the session and are currently up 2.16%.

South Korea’s consumer sentiment weakened in August for the first time in six months, according to a survey from the Bank of Korea.

The consumer sentiment index fell to 103.1 from 103.2 the previous month. A reading above 100 means that optimists outnumber pessimists in the survey, and vice versa.

Consumers’ assessment of current domestic economic conditions, as well as their outlook for future domestic economic conditions worsened in July.

However, sentiment concerning future living standards and future household income improved from July, slightly offsetting the decline.

— Lim Hui Jie

Hong Kong’s inflation rate slowed more than expected in July, coming in at 1.8% compared to the 2% expected by economists polled by Reuters. The figure is also lower than the 1.9% seen in June.

Hong Kong’s census and statistics bureau noted that the largest increase in prices in July were recorded for alcoholic drinks and tobacco, which jumped 18.4% year-on-year.

Prices of electricity, gas and water (up 9.9% year-on-year), as well as clothing and footwear (up 6.6%) rounded off the top three sectors that saw the largest increases in July.

On the other hand, prices of durable goods and basic food fell on a year-on-year basis in July, decreasing 3.3% and 0.5% respectively.

— Lim Hui Jie

Some on Wall Street are cautioning against getting too excited about Marvell Technology earnings on Thursday.

Analysts at JPMorgan and Raymond James in notes to clients on Monday said that they both expect the company’s fiscal second quarter to come in line with what they’ve been expecting. JPMorgan is overweight on the stock, while Raymond James has an outperform rating.

“We see the current headwinds to be largely cyclical/ short-term in nature, and we believe the company continues to execute on its LT growth initiatives and should drive above-industry growth mid/longer-term,” said JPMorgan analyst Harlan Sur.

Shares climbed nearly 4% in Monday’s session.

Here are the stocks making the biggest moves in extended trading.

Zoom — Shares jumped nearly 4% after the company reported an earnings and revenue beat during its fiscal second quarter. Zoom posted $1.34 earnings per share on $1.14 billion in revenue. Analysts had estimated $1.05 earnings per share on $1.12 billion in revenue, according to Refinitiv. Meanwhile, the company’s current-quarter guidance came slightly below analyst expectations.

Fabrinet — Shares of the advanced manufacturing services company surged more than 18% after its fiscal fourth-quarter results beat both top and bottom lines. The company’s CEO Seamus Grady said very strong growth in data communications revenue and new AI products, led the company to record performances in the 2023 fiscal year.

— Hakyung Kim

U.S. stock futures inched down Monday.

Dow Jones Industrial Average futures shed 27 points, or 0.08%. Meanwhile, S&P 500 and Nasdaq 100 futures declined 0.1%.

— Hakyung Kim