Stocks fell on Tuesday, extending losses from last week when the
S&P 500
ended a five-week winning streak. Tech stocks, particularly
Nvidia,
were leading markets lower.
These stocks were making moves Tuesday:
Discover Financial
rose 13% to $124.42 after it reached a deal to be acquired by
Capital One Financial
for more than $35 billion. Under terms of the all-stock deal, Discover shareholders will receive 1.0192
Capital One
shares for each Discover share, representing a premium of about 27% to Discover’s closing price on Friday of $110.49. The transaction will create the largest U.S. credit card company by loan volume. Capital One shares rose 0.1%.
Discover was the best-performing stock in the S&P 500 on Tuesday, while
Expeditors International of Washington
was the worst, falling 6.9%.
Walmart,
the world’s largest retailer, reported fourth-quarter adjusted earnings of $1.80 a share, beating expectations of $1.64. Sales rose to $173.4 billion, which topped projections of $170.9 billion. The company agreed to buy
Vizio Holding
in a deal valued at $2.3 billion.
Walmart
shares rose 3.2%.
Vizio
jumped 16%.
Nvidia
‘s highly anticipated fourth-quarter earnings report is scheduled for after the close of trading on Wednesday. Sales are expected to more than triple from the prior year to greater than $20 billion, getting a boost from Nvidia’s dominance in supplying the chips used to train artificial-intelligence systems. The stock was down 4.4% to $694.52 on Tuesday. The shares have risen 225% over the past year.
Shares of
Home Depot
were flat after the home-improvement retailer reported fourth-quarter U.S. same-store sales fell 4%, wider than analysts’ expectations for a decline of 3.6%.
Home Depot
said it expects fiscal-year sales to rise 1% and same-store sales to fall 1%, missing estimates on both counts.
Super Micro Computer
was down 2% to $787.57. The stock has risen 756% over the last 12 months, driven by investor excitement for the future of artificial intelligence. On Tuesday, analysts at Rosenblatt raised their price target on
Super Micro Computer
to $1,300 from $700 while maintaining a Buy rating.
U.S.-listed shares of
Barclays
rose 12% after the British lender said it plans to return at least £10 billion ($12.6 billion) to shareholders between 2024 and 2026 through dividends and stock buybacks and would undergo a three-year reorganization.
Write to Joe Woelfel at [email protected]
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