Stocks Close Lower After Quiet Trading Day; Boeing Falls Amid US-China Tensions

The Biggest S&P 500 Movers on Tuesday

2 hr 2 min ago

Decliners:

• Shares of Albemarle (ALB), the world’s largest lithium producer, dropped 5.9%, falling the most of any S&P 500 constituent. The move lower came after several research firms reduced their price targets on the stock. Analysts pointed to numerous factors behind more muted forecasts for Albemarle, including the potential for trade tensions to weigh on global sales in the automotive sector, which could result in sustained pressure on prices for battery components.
• Bank of America expressed a cautious view of the chemical sector, pointing to softness in cyclical demand and headwinds related to global trade. Analysts indicated that these factors are contributing to lower levels of confidence around upcoming earnings estimates. BofA downgraded Dow (DOW) stock to “underperform” from “buy,” and shares of the chemicals giant lost 4.0% following the double downgrade.
• Shares of Molina Healthcare (MOH) sank 3.8% after Baird analysts downgraded the stock to “neutral” from “outperform.” According to the analyst team, companies in the managed care and health care facilities industries could be unlikely to increase their guidance in the near term given policy uncertainties related to Medicare Part D programs.

Advancers:

• Palantir Technologies (PLTR) shares surged for the second straight session, adding 6.2% on Tuesday to notch the S&P 500’s top daily performance. The push higher for Palantir stock followed reports that the North Atlantic Treaty Organization (NATO) acquired an artificial intelligence (AI) military solution developed by the big data analytic software firm.
• Shares of Hewlett Packard Enterprise (HPE) gained 5.1% after Bloomberg reported that activist investor Elliott Investment Management has accumulated a position worth more than $1.5 billion in the IT services provider. People familiar with the matter told Investopedia that Elliott intends to engage with HPE’s leadership on potential steps to boost the tech company’s value.
• According to The Wall Street Journal, Netflix (NFLX) executives outlined a set of optimistic objectives at a business review meeting in March. The targets include doubling the company’s revenue by 2030 and achieving a $1 trillion market capitalization. Netflix shares jumped 4.8% ahead of the streaming giant’s quarterly earnings report, which is set to be released Thursday afternoon.

–Michael Bromberg

USA Rare Earth Stock Soars Further on Report Trump to Stockpile Critical Minerals

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Shares of USA Rare Earth (USAR) surged for a second straight session Tuesday following a report that President Donald Trump intends to stockpile critical deep-sea metals to counter China.

Shares of the Stillwater, Okla.-based company soared 41% yesterday after the Financial Times reported over the weekend that the Trump administration was “drafting an executive order to enable the stockpiling of metal found on the Pacific Ocean seabed, in an effort to counter China’s dominance of battery minerals and rare earth supply chains.”

USA Rare Earth, whose stock jumped a further 12% in intraday trading Tuesday, did not immediately respond to an Investopedia request for comment.

Alexander Gray, an Asia expert who served in the first Trump administration, told the FT that “catalyzing U.S. government focus on the areas of greatest vulnerability to (People’s Republic of China) ambitions is essential,” as China views the deep seabed as “a front line in economic and military competition with the U.S.”

Shares of USA Rare Earth had been down about 28% in 2025 until this week’s surge.

–Aaron Rennie

HP Enterprise Stock Jumps as Activist Elliott Builds $1.5 Bill Stake

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Hewlett Packard Enterprise (HPE) shares surged Tuesday after Bloomberg reported activist investor Elliott Investment Management has built a more than $1.5 billion stake in the server maker.

Elliott will look to engage with HP Enterprise’s leadership on ways to maximize the company’s value, people familiar with the matter told Investopedia. HP Enterprise declined to comment.

In its latest quarterly report last month, HP Enterprise’s revenue topped estimates, while adjusted profits for the first quarter, along with its projections for the second quarter and full fiscal year, came in weaker than expected. The tech firm said it planned to cut costs and lay off about 5% of its workforce over the next 18 months.

Elliott has recently made an impact with its stake in Southwest Airlines (LUV), getting several of its nominees placed on the company’s board late last year. This year, Elliott has reportedly built stakes in oil and gas companies BP (BP) and Phillips 66 (PSX), and has invested in the tech sector previously with firms including Salesforce (CRM).

HP Enterprise shares were up over 4% in recent trading, but are still down roughly 30% since the start of the year.

–Aaron McDade

Palantir Stock Extends Gains After NATO Deal

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Shares of Palantir Technologies (PLTR) rose for a second consecutive session Tuesday following news that the North Atlantic Treaty Organization (NATO) had acquired the analytics software provider’s artificial intelligence-enabled military system.

Palantir shares closed nearly 5% higher Monday as the deal with the Brussels-based military alliance helped ease investor concerns that Europe may rely less on American defense contractors amid an uncertain trade outlook.

The stock was up a further 5% in recent trading and was among the top gainers in the S&P 500.

Shares have added nearly 30% of their value in 2025 and have skyrocketed 345% over the past 12 months.

–Aaron Rennie

Netflix Stock Pops on Report of Ambitious Revenue Goal

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Netflix (NLFX) shares jumped Tuesday following a report company executives laid out ambitious targets at a business review meeting last month.

Executives said the streaming giant aims to double the $39 billion in revenue Netflix brought in last year, with a global ad sales target of $9 billion by 2030, The Wall Street Journal reported Monday, citing people familiar with the matter.

The streaming giant also aims to reach a market capitalization of $1 trillion by 2030, the report said, up from roughly $419.2 billion. The only U.S. companies with a market cap above $1 trillion today include Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Alphabet (GOOGL), Amazon (AMZN), Meta (META), and Berkshire Hathaway (BRK.A, BRK.B).

Netflix did not immediately respond to a request for comment.

Shares were up more than 6% in recent trading, leading gains on the S&P 500. Shares have added about 60% of their value over the past 12 months.

Last week, Morgan Stanley analysts named Netflix a “top pick,” arguing the company could be well-positioned to withstand the current tariff landscape. The streaming giant has shown “momentum” in its core subscription business, the analysts said. That momentum lowers the company’s overall risk, the bank added, even if the advertising market struggles amid rising trade tensions.

Netflix is set to report its first-quarter results after the market closes Thursday.

–Andrew Kessel

Citigroup Stock Rises After Q1 Results Top Estimates

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Citigroup (C) shares rose Tuesday after the bank reported better-than-expected first-quarter results as volatile markets boosted equities trading.

The firm reported earnings per share (EPS) of $1.96 on revenue of $21.60 billion, while analysts surveyed by Visible Alpha expected $1.84 and $21.19 billion, respectively. Markets revenue rose 12% year-over-year to $6.0 billion, powered by a 23% jump in equities trading revenue to $1.5 billion.

Citigroup shares were up 3% in recent trading. They entered Tuesday down 10% in 2025.

Since bank earnings began last Friday, Morgan Stanley (MS), JPMorgan Chase (JPM), Wells Fargo (WFC), and Goldman Sachs (GS) all posted results that beat analysts’ estimates, but executives have struck a cautious tone about the rest of the year due to uncertainty caused by tariffs.

Citigroup CEO Jane Fraser said she was bullish about the prospects for the U.S. dollar, which is on track to have its worst two-month stretch since 2002.

“When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the U.S. will still be the world’s leading economy, and the dollar will remain the reserve currency,” Fraser said.

–Nisha Gopalan

Albertsons Stock Sinks as Grocer Issues Soft Full-Year Profit Outlook

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Shares of Albertsons (ACI) fell sharply Tuesday, a day after the supermarket chain reported a weaker-than-expected profit outlook for fiscal 2025.

The Boise, Idaho-based company posted fiscal 2024 fourth-quarter adjusted earnings per share (EPS) of $0.46 on sales of $18.80 billion. Analysts polled by Visible Alpha expected $0.40 and $18.65 billion, respectively.

However, Albertsons’ full-year adjusted EPS projection of $2.03 to $2.16 missed consensus projections of $2.28.

Shares of Albertons, which last month announced that CEO Vivek Sankaran would be retiring May 1 and replaced by COO Susan Morris, were down over 7% in Tuesday morning trading.

Albertsons stock is up modestly since its $24.6 billion combination with Kroger (KR) was called off in December, when a pair of judges sided with the Federal Trade Commission and ruled that their merger likely would have resulted in lower wages and higher prices.

–Aaron Rennie

Boeing Stock Falls as China Tells Carriers To Stop Jet Deliveries, Report Says

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Boeing (BA) shares fell Tuesday after Beijing reportedly told its airlines not to take more deliveries of the American company’s jets, as the trade war between the U.S. and China heats up.

Beijing also “asked that Chinese carriers halt any purchases of aircraft-related equipment and parts from U.S. companies,” Bloomberg reported, citing people familiar with the matter.

China last Friday hiked its tariffs on imports from America to 125%, in retaliation for the 145% duties its goods face from the U.S. The report said the 125% tariffs on U.S. imports would “have more than doubled the cost of U.S.-made aircraft and parts, making it impractical for Chinese airlines to accept Boeing planes.”

Boeing shares, which have fallen 10% year-to-date entering Tuesday, were down a further 2% in morning trading.

Boeing didn’t immediately respond to a request for comment.

–Nisha Gopalan

Bank of America Stock Jumps After Topping Earnings Estimates

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Shares of Bank of America (BAC) rose in early trading Tuesday after the financial giant’s first-quarter results came in better than expected.

The firm recorded earnings per share (EPS) of $0.90 on revenue of $27.37 billion. Analysts were projecting $0.82 and $26.80 billion, respectively, per Visible Alpha.

Bank of America reported net interest income (NII) of $14.44 billion, in line with the analyst consensus.

Despite largely stronger-than-expected Q1 results thus far, a number of executives at big banks have been less bullish on the macroeconomic outlook for 2025 amid uncertainty about how the Trump administration’s tariffs will impact the economy.

“Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality,” Bank of America CEO Brian Moynihan said. He added that Bank of America is well-positioned to continue growing even “though we potentially face a changing economy in the future.”

Shares of Bank of America, which topped estimates in each quarter of 2024, were up more than 4% Tuesday morning. They entered the day down roughly 17% since the start of the year.

–Aaron McDade

Stock Futures Tick Lower After 2 Days of Gains

9 hr 57 min ago

Futures contracts connected to the Dow Jones Industrial Average were down 0.3% in premarket trading on Tuesday.

S&P 500 futures were off 0.2%.

Nasdaq 100 futures were also down 0.2%.