Stock futures slip after Nasdaq Composite retreats from record: Live updates

Shares of Indian automaker Tata Motors climbed more than 7% on Tuesday, a day after the company announced it will separate its commercial vehicle and passenger vehicle units in a demerger.

Tata Motors said the split will be implemented through a scheme of arrangement, and all shareholders will continue to have identical shareholding in both the listed entities.

The move will “further empower the respective businesses to pursue their respective strategies to deliver higher growths with greater agility while reinforcing accountability,” the company said.

The demerger is expected to be completed in 12 to 15 months, subject to shareholder, creditor and regulatory approvals. It should not have an adverse impact on employees, customers, and our business partners, the company said.

China’s services sector expanded at a slower pace in February compared with January, with the Caixin services purchasing managers’ index slipping to 52.5 in February from 52.7 in the prior month.

The report noted that employment rose slightly for a second straight month, and companies were generally upbeat about the 12-month outlook for activity.

A PMI reading above 50 indicates expansion in the sector, while one below 50 indicates contraction.

— Lim Hui Jie

Spot gold prices hovered near record levels, while futures settled at an all-time high on Monday.

Traders bet the U.S. Federal Reserve will start cutting interest rates in the second half of the year, lifting prices of the precious metal.

The gold contract for April gained $30.60, or 1.46%, to settle at $2,126.30 per ounce, the highest level dating back to the contract’s creation in 1974.

Spot gold prices inched 0.16% lower on the day, trading at $2,111.69, just shy of a record high at 2,135.40 which it hit in December 2023.

— Shreyashi Sanyal, Spencer Kimball

The three major averages cooled off from the market rally Monday, but it was utilities’ time to shine.

The utilities sector was the outperformer among the 11 sectors of the S&P 500, up 1.64%.

Though the likes of Dominion Energy and AES were the biggest winners – posting gains of about 4% each – a notable winner emerged in Constellation Energy. The stock gained 3.5% Monday, but has also shown considerable strength over the longer term: Constellation is up 50% in 2024, while the utilities sector is down nearly 1.7%.

CEG, which has a 0.8% dividend yield, remains well-liked among analysts, with more than 6 out of 10 analysts rating it buy, per FactSet. However, the average analyst price target suggests a decline of more than 10% from here.

–Darla Mercado, Ethan Kraft

Apple shares are having a terrible start to 2024. With the tech giant is down 9% year to date, Renaissance Macro Research founder Jeff deGraaf advises investors to reconsider the stock.

“I think you want to move on from Apple tactically. This isn’t about the next 30 years, this is about the next three to maybe 12 months,” deGraaf told CNBC’s “Closing Bell” on Monday.

The stock appears like it’s distributing “and it looks like it’s an elongated consolidation,” deGraaf added.

— Hakyung Kim

JPMorgan analyst Matthew Boss sees better times ahead for some “best in class” retail brands.

“I think we’re hitting an inflection point for all of retail,” Boss said during an interview on CNBC’s “Closing Bell” Monday. “I think you’re seeing an intentional consumer out there. They’re shopping for brands. They want value and they want convenience.”

According to Boss, this consumer mindset will put off-price retailers like T.J. Maxx-owner TJX Cos, Burlington and Ross Stores in a sweet spot as these stores sell well-known brands at a discount. He expects upbeat earnings from Ross Stores on Tuesday.

“But [consumers] also want destination as well as experience and service, and that is what Macy’s right now is focused on …,” he said. Boss said he recently visited Macy’s locations where new strategies are being tested and thought the stores had better staffing and were “amplifying” key brands.

In addition to the work the retailers are doing to improve their businesses, Boss anticipates that high-income consumers may feel freer to spend now that the stock market has been rallying.

—Christina Cheddar Berk

Check out the stocks posting the biggest moves in postmarket trading.

GitLab — The software company declined more than 18% after issuing weaker-than-expected forward guidance. Gitlab forecasts full-year revenue to fall in a range between $725 million and $731 million. This came in below analysts’ estimates of $732 million, according to LSEG. Profit estimates also missed expectations, with GitLab guiding between 19 cents to 23 cents, versus estimates of 35 cents. Meanwhile, the company posted a beat on top- and bottom-lines in the fourth quarter.

Stitch Fix — Shares fell 12.5% after the company posted disappointing results for the fiscal second quarter. The company posted an 18% year-over-year decrease in net revenue from continuing operations. Active clients also fell 17% from the previous year.

AeroVironment — Shares jumped nearly 19% after AeroVironment’s third-quarter results topped analysts’ estimates. The defense company posted adjusted earnings of 63 cents per share on $187 million in revenue. Analysts polled by LSEG had estimated 33 cents earnings per share and $171 million in revenue. AeroVironment also posted a higher-than-expected range for its full-year earnings and revenue estimates, citing increased global demand.

— Hakyung Kim

U.S. stock futures opened near the flatline on Tuesday.

Dow Jones Industrial Average futures inched down 0.1%. Futures tied to the S&P 500 and Nasdaq 100 ticked down 0.06% and 0.1% each.

— Hakyung Kim