The Dow Jones Industrial Average fell Tuesday, pulling back from record-breaking highs as traders pored through the latest batch of corporate earnings.

The blue-chip Dow slid 96.36 points, or 0.25%, to 37,905.45, retreating below the 38,000 level that was crossed for the first time on Monday. Tuesday's losses ended a three-day winning streak.

The S&P 500 rose by 0.29% to 4,864.60, a fresh all-time closing high. The technology-heavy Nasdaq Composite advanced 0.43% to 15,425.94.

The 30-stock Dow was pressured by an 11% decline in 3M following disappointing guidance. Johnson & Johnson fell 1.6% after reporting earnings.

D.R. Horton dropped more than 9% after the homebuilder missed Wall Street's consensus forecast for per-share earnings. Lockheed Martin slipped more than 4% following a weak outlook for full-year earnings per share.

On the other hand, United Airlines rose more than 5% after reporting strong fourth-quarter results. However, the airline operator said it expects a first-quarter loss from the grounding of Boeing 737 Max 9 airplanes, the model involved in the Alaska Airlines emergency earlier this month.

Shares of other airline operators rose in tandem. Southwest Airlines climbed more than 3%, while American Airlines, Delta Air Lines and Alaska added more than 2%.

Elsewhere, Verizon and Procter & Gamble helped mitigate losses for the Dow. The pair gained more than 6% and 4%, respectively, as investors bought in following the companies' financial reports.

Those moves come after the S&P 500 officially entered a new bull market, topping its previous closing all-time high from January 2022.

But investors are deliberating how long the gains can persist, especially as the rally this year has centered around technology stocks such as Nvidia, lacking broader participation. This month alone, Nvidia is up 20%. In contrast, the small-cap Russell 2000 is lower by more than 2%.

"Investors definitely are taking a pause — doing some profit taking — on the heels of what was a really a two-year record high," said Greg Bassuk, CEO of AXS Investments, of Tuesday's moves. "That's counterbalancing the bullishness in the markets."

Traders are also awaiting two key data economic data releases later in the week. The preliminary fourth-quarter gross domestic product figure is due Thursday, followed by the Commerce Department's closely-watched personal consumption expenditures price index for December on Friday.

Investors will monitor Netflix earnings after the bell on Tuesday. Technology remains a focus later in the week, with IBM and Tesla slated for Wednesday and Intel expected Thursday. Outside of tech, results from American, Alaska and Southwest are also due Thursday.

"Corporate earnings is going to be probably the most important thing we see this quarter other than what, ultimately, GDP and inflation looks like," said Alex McGrath, chief investment officer at NorthEnd Private Wealth. "I talked a lot last year about the health of the consumer. And I think that is going to be what comes most into focus at the first part of this year."

Dow closes lower, while S&P 500 notches new all-time closing high

The Dow finished down, while the S&P 500 clinched yet another all-time closing high.

The blue-chip average closed about 0.3% in the red. Meanwhile, the broad S&P 500 rose 0.3% to a new record closing level.

The Nasdaq Composite also ended the session higher, advancing 0.4%.

— Alex Harring

Expect some near-term softening before stocks land on solid ground, Citi says

2024 should be a tale of two halves, according to Citi's Scott Chronert.

"Following the strong Q4 2023 rally, pullbacks should be expected, and bought into, as a shifting Fed narrative unfolds," the equity strategist wrote, underscoring that investors should ready themselves for dynamic market conditions.

Chronert has a mid-year target of 4,800 for the S&P 500, implying that the broader market index could slide 1% from its current level. On the other hand, the strategist's year-end target of 5,100 means the benchmark could rally more than 5% from here.

The key to equity performance in 2024 will be market broadening, with a clear cluster of leaders outperforming lagging stocks. In particular, Chronert is overweight cyclical stocks over their defensive counterparts.

— Lisa Kailai Han

Alcoa climbs, on track for best day since mid-December

Aluminum stock Alcoa jumped nearly 7% on Tuesday and was on track for its best day in more than a month.

The move comes after a Politico report that said Russian aluminum products could be part of a new sanctions from the European Union. The report cited EU diplomats.

Alcoa was not the only aluminum stock rising on Tuesday. Shares of smaller rival Century Aluminum jumped more than 10%.

— Jesse Pound

Earnings season could lead to repositioning, says Bank of America

As earnings season gains steam, long-only funds have raised their exposure to equities and reduced their cash levels, per Bank of America. 

Across all global regions in 2024, funds have reduced their cash levels by at least 1% and increased their stock exposure across all sectors with the exception of tech and consumer discretionary, according to strategist Nigal Tupper.

"If the nascent earnings recovery gathers pace, funds could add meaningfully to cyclical sectors and regions, and equity markets in general," Tupper wrote in a Tuesday note.

— Hakyung Kim

Dow stays down entering final hour

The Dow remained lower, pulling back from its record-breaking high set in the previous session, as the final hour of Tuesday's trading day commenced.

The blue-chip average was down by around 0.2% shortly after 3 p.m. ET. The S&P 500 and Nasdaq Composite rose by about 0.2% and 0.3%, respectively.

— Alex Harring

History suggests S&P 500 rally could continue, says Bank of America's Suttmeier

If history is any guide, the S&P 500 may look poised to continue its 2024 uptrend, according to Bank of America.

"It took 24 months to achieve this new high, which is consistent with the median number of 25 months to hit a new high on a rally after a big correction," said the firm's technical research strategist Stephen Suttmeier in a Monday note.

The S&P's 38% rally from the October 2022 lows also aligns with the median move during a big correction of 40.5% from a low back to the old high, he said. The median S&P rally from a big low is 106% over a four-year period and lasts about 49 months, he added.

While the S&P may be aligning with historical patterns, its acks the "bullish confirmation" for cumulative net up volume, Suttmeier wrote. He called an upside breakout for this volume indicator a "missing ingredient for the bulls."

"We think that an upside breakout for cumulative net up volume is a much-needed bullish confirmation signal if the SPX is to continue to rally in 2024," he said.

— Samantha Subin

Money supply measure spiked in December, Fed data shows

A broad-based measure of the money supply expanded to its highest level since March 2023, according to Federal Reserve data released Tuesday.

A component known as M2, or cash, checking deposits, savings and other instruments that easily can be converted to cash, totaled $20.87 trillion. On a monthly basis, that is a 0.5% pickup from November.

While the monthly numbers can be volatile, the increase comes as with the Federal Reserve tightening the supply of bank reserves through its balance sheet runoff. Money stuck measures such as M2 are considered one potential measure of inflation.

—Jeff Cox

Wells Fargo warns about overly optimistic market

Investors who had pushed stocks to record highs on the hopes for lower interest rates and stronger corporate earnings are in for a letdown, according to Wells Fargo market strategists.

"We believe the market's disappointment upon realizing that its investment case is built on hope rather than reality will lead markets to pull back," the firm said in a client note Tuesday. "Our view is that earnings for all equity classes peaked and will move lower as the economy weakens and revenue growth stalls. In the near term, we expect pressure on earnings as well as prices with bouts of weakness and range trading."

Traders have begun to recalibrate their outlook for aggressive Federal Reserve rate cuts this year, though they are still pricing in at least five this year, according to the CME Group. On the earnings front, some 87% of S&P 500 companies that have reported earnings so far topped Wall Street estimates, though the beat rate on sales is just 58%, according to LSEG I/B/E/S.

—Jeff Cox

United Airlines, 3M among Tuesday's biggest movers

These are some of the stocks moving the most during Tuesday's session:

• United Airlines – The airline stock popped nearly 7% a day after the company reported higher-than-expected earnings and revenue for the fourth quarter.
• TKO Group – Shares of TKO Group Holdings rallied 13% after announcing a deal to air its WWE flagship program known as "Raw" on Netflix next year.
• 3M – 3M sank more than 12% after issuing disappointing guidance.

Read the full list of stocks on the move here.

— Samantha Subin

Oil prices flat on mixed supply, geopolitical signals

Oil prices were largely flat Tuesday as traders tried to decipher mixed signals in the Middle East and threats to crude supplies.

The West Texas Intermediate contract for March rose 21 cents, or .28%, to trade at $74.97 a barrel on Tuesday, while the Brent crude contract rose 5 cents, or .06%, to trade at $80.11. U.S. crude was down more than 2% earlier in the trading session.

Israel has proposed a two-month pause of fighting in Gaza in exchange for the release of the remaining hostages, according to NBC News. But Hamas has rejected the offer, according the Associated Press.

Oil prices had risen about 2% on Monday on potential threats to crude supplies. Ukrainian drones reportedly struck a major Russian fuel terminal on the Baltic Sea over the weekend, and the U.S. and Britain launched renewed airstrikes against the Houthis in Yemen on Monday.

Oil output in the U.S. has also taken a hit from the cold weather, with production in North Dakota down about 400,000 barrels per day as of Friday. The outage in the U.S. is tempered by Libya restarting production at the Sharara oilfield, which as a capacity of 300,000 barrels per day.

— Spencer Kimball

Earnings cause divergence among Dow members

The Dow fell more than 100 points in Tuesday's session as investors parsed earnings reports from a handful of index members.

3M dragged on the blue-chip average with a drop of more than 11%, on track for its third biggest loss in history and worst day since April 2019. The selloff came after issuing disappointing full-year and first-quarter guidance.

Johnson & Johnson also pulled the index down, sliding 1.5% despite beating Wall Street forecasts on both lines in the fourth quarter.

But losses were mitigated by rallies on the back of other members' reports. Verizon led the index higher with a gain of more than 5% following a better-than-expected report. Procter & Gamble followed, up more than 4% as investors keyed in on earnings per share that came in better than analysts anticipated.

— Alex Harring

Richmond Fed manufacturing sees decline in January

Manufacturing in the northern Virginia area showed weaker than expected activity in January, the Richmond Federal Reserve reported Tuesday.

The central bank district's manufacturing survey for the month showed a reading of -15, representing the difference between companies reporting expansion against contraction. That showed a decrease from -11 in December and a miss of the -8 consensus estimate from Dow Jones.

Much of the decline came from slides in capacity utilization and order backlogs. The hiring index tumbled to -15 from -1 and the wages index increased to 30, a gain of 8 points. Prices paid and received indexes showed little change.

Earlier in the day, the Chicago Fed reported that its Survey of Economic Conditions improved to a plus-7 reading, up from -17 in December. Positive numbers in the survey represent above-trend growth.

—Jeff Cox

Wolfe Research still doesn't believe in 'immaculate everything' scenario for economy

Wolfe Research isn't convinced that economic concerns are in the rearview mirror.

Chris Seynek told clients Tuesday that there's several reasons why inflation could come in higher than market participants expect. These potential catalysts include geopolitical issues such as the Red Sea attacks, which he said could push up commodity prices and transportation costs. as well as disrupt supply chains.

"Major U.S. stock market indices are hitting new all-times, with widespread consensus now expecting inflation to keep collapsing, the Fed to cut deeply, and the U.S. economy (at worst) to glide down for a 'soft landing,'" Seynek told clients. "While our view is currently unpopular, we're still not believers in the 'immaculate everything' scenario."

Seynek's note comes ahead of key economic data releases on gross domestic product and the personal consumption expenditures price index due later this week.

— Alex Harring

Solar ETF heads for best day since December

The Invesco Solar ETF (TAN) popped more than 4% on Tuesday and headed for its best day since Dec. 21, when it rallied 4.8%.

Canadian Solar was the biggest gainer in the index, popping 13%. JinkoSolar and SunPower rallied more than 7% each, while Sunnova Energy gained about 5%.

The rise in solar stocks came as Truist Securities upgraded both Sunnova Energy and Enphase Energy to buy ratings, saying that residential solar stocks are approaching a bottom after a rough 2023, and that the Federal Reserve cutting interest rates should benefit these names.

— Samantha Subin, Gina Francolla

Health care, energy and utilities could see multiples grow this earnings season, says DCLA's Sethi

Market and investors' gains in the coming weeks could come down to earnings results, according to Sarat Sethi, DCLA managing partner and portfolio manager.

The investor cited sectors such as healthcare, energy and utilities as sectors that have suffered because of the markets' concerns that interest rates may not fall as quickly as expected. However, Sethi believes earnings season could mark a pivot point for these sectors.

"If they have strong earnings or they just keep up with earnings expectations, you could see multiples expanded those areas where you've actually seen multiple compression," Sethi told CNBC's "Squawk on the Street" on Tuesday.

To be sure, he added that investors should still be exposed to the Magnificent 7.

"On the Magnificent Seven, I think you still have to be in there. It's just a question of: How much do you want to own those, especially with the expectations built in? They have to really have really good earnings and actually increase their expectations," Sethi said.

— Hakyung Kim

Dow opens lower after Monday's record-breaking climb

The three major stock indexes were mixed as trading kicked off.

The Dow slipped 82 points, or 0.2%, shortly after 9:30 a.m. ET. That marked a pullback after the blue-chip average topped the 38,000 level for the first time ever on Monday.

On the other hand, the S&P 500 and Nasdaq Composite rose 0.1% and 0.2%, respectively.

— Alex Harring

Stocks making the biggest premarket moves

These are some of the stocks making notable moves before the bell:

• Coinbase — The cryptocurrency exchange slipped nearly 4% following a downgrade to underweight earlier on Tuesday from JPMorgan. The bank said 2024 could be a tough year for Coinbase as enthusiasm for spot Bitcoin ETFs fades.
• General Electric — Shares of General Electric were down nearly 7% in the premarket after the industrial giant issued weaker-than-expected guidance for the first quarter. The company sees earnings per share ranging between 60 and 65 cents, well below an LSEG estimate of 72 cents per share.
• Sunnova, Enphase Energy — The two solar companies were higher in premarket trading after Truist upgraded them to buy from hold. Shares of Sunnova climbed added more than 6%, while Enphase ticked up 4%. Truist said both stocks should get a boost from Federal Reserve rate cuts later this year.

Read the full list here.

— Brian Evans

D.R. Horton shares slide after reporting mixed results

Shares of D.R. Horton fell nearly 5% after the homebuilder reported an earnings miss before the bell Tuesday.

Earnings per share for the first quarter came in at $2.82, below the $2.88 expected from analysts polled by LSEG. However, D.R. Horton's revenue for the quarter was $7.73 billion, topping the consensus estimate of $7.59 billion.

The stock is up nearly 4% year to date, after gaining a whopping 70.5% in 2023.

— Michelle Fox

Netflix, TKO Group shares rise on plan to stream WWE's RAW on streaming giant

Shares of Netflix and TKO Group Holdings jumped in premarket trading Tuesday after the companies announced a deal to air WWE's flagship Raw program beginning next year on the streaming giant.

The 10-year deal, valued at more than $5 billion according to a person familiar with the matter, marks Netflix's first major entry into the live sports business.

Shares of TKO, which is the parent company of WWE, surged 19% before the bell. Netflix shares gained more than 2%.

Disclosure: Comcast NBCUniversal, CNBC's parent company, owns USA Network, where Raw has been a top program.

— Samantha Subin, Alex Sherman and Jacob Pramuk

Halliburton stock rises early Tuesday morning despite mixed fourth-quarter results

Shares of Halliburton rose 2% before Tuesday's opening trading bell after the energy services company posted mixed results for its fourth quarter.

Halliburton posted adjusted earnings of 86 cents per share, versus the 80 cents per shares expected by analysts polled by LSEG. On the other hand, the company's fourth-quarter revenue of $5.75 billion fell short of the $5.78 billion analysts had been anticipating.

Shares have dropped nearly 5% thus far in 2024, adding to last year's drop of more than 8%.

— Lisa Kailai Han

Coinbase declines on JPMorgan downgrade, concerns of crypto rally fizzle

Coinbase shares dropped around 4% in premarket trading after JPMorgan downgraded the crypto exchange platform to underweight from neutral. The firm thinks 2024 could be a more challenging year for the company—and crypto more broadly.

"While we continue to see Coinbase as the dominant U.S. exchange in the crypto ecosystem and a leader in cryptocurrency trading and investing globally, we think the catalyst in Bitcoin  ETFs that has pushed the ecosystem out of its winter will disappoint market participants," analyst Kenneth Worthington wrote in a Monday note. "We value the stock on a normalized earnings power."

Although the analyst said he sees continued progress in several of Coinbase's initiatives, including buildout of its derivatives platform and its L2 network built on Ethereum, he noted the threat of the crypto market cap decline seen since the spot Bitcoin ETF approvals.

Assuming Coinbase would offer trading roles in a potential Ethereum ETF approval, he expressed his concern that any disappointment with crypto ETF fund flows could "deflate the enthusiasm" that's driven the crypto rally since late last year.

Tuesday's losses piled onto the stock's struggles so far this year. Coinbase's share price has slid more than 26% since the start of 2024.

— Pia Singh

Verizon climbs as earnings best Wall Street forecasts

Verizon jumped nearly 5% in Tuesday's premarket after the telecommunication giant topped analysts expectations for its fourth quarter.

The company earned $1.08 in earnings per share, excluding items, on $35.13 billion in revenue. Analysts surveyed by LSEG had anticipated $1.07 and $34.64 billion, respectively.

Verizon also told investors to expect between $4.50 and $4.70 for earnings per share in the full year, a range that contains the $4.59 consensus forecast from analysts.

Shares have climbed about 5% so far in the new year. That marks a turn for Verizon, which has ended every trading year since 2020 with losses.

— Alex Harring

Procter & Gamble rises following earnings report

Procter & Gamble advanced 1% in premarket trading as investors analyzed a mixed second quarter financial report form the consumer products maker.

The company behind brans such as Pampers and Downy posted $1.84 in adjusted earnings per share, topping the consensus forecast of $1.70 from analysts polled by LSEG. But revenue came in at $21.44 billion, under the Wall Street estimate of $21.48 billion.

Shares are up nearly 1% so far in 2024, erasing some losses after dropping more than 7% and 3% in 2022 and 2023, respectively.

— Alex Harring, Amelia Lucas

3M shares drop following weak outlook

3M issued disappointing full-year and first-quarter guidance, sending the stock down more than 5% in the premarket.

The company sees earnings per share between $9.35 and $9.75, below an LSEG estimate of $9.81. For revenue, 3M expects growth of 0.25% to 2.25%, while analysts had forecast an expansion of 3.1%.

For the first quarter, 3M issued earnings per share guidance of $2 to $2.15, while analysts expected a profit of $2.22.

— Fred Imbert

GE shares slide on disappointing guidance

Shares of General Electric were down nearly 7% in the premarket after the industrial giant issued weaker-than-expected guidance for the first quarter. The company sees earnings per share ranging between 60 and 65 cents, well below an LSEG estimate of 72 cents per share.

The forecast overshadowed better-than-expected fourth-quarter figures.

— Fred Imbert

J&J ekes out better-than-expected earnings and revenue, but shares fall

Johnson & Johnson reported fourth-quarter earnings and revenue that beat analyst expectations, but shares were down slightly in the premarket.

The pharma giant posted adjusted earnings of $2.29 per share on revenue of $21.4 billion. Analysts polled by LSEG expected a profit of $2.28 per share on revenue of $21.01 billion.

The company also posted full-year 2024 guidance.

— Fred Imbert

Bank of Japan retains its ultra-loose policy, trims core inflation forecast

The Bank of Japan expectedly retained its ultra-loose monetary policy at its first meeting this year, while cutting its core inflation forecast for the next fiscal year.

The BOJ decided unanimously to keep interest rates at -0.1%, and stuck to its yield curve control policy that keeps the upper limit for 10-year Japanese government bond yield at 1% as a reference, according to a policy statement released Tuesday, following a two-day meeting.

In its quarterly outlook on the Japanese economy, BOJ board members lowered their median growth forecast for core consumer prices — which it defines as inflation that excludes food prices — to 2.4% for fiscal 2024 starting this April, compared with 2.8% they estimated in October.

All the economists surveyed by Reuters expected the Japanese central bank to maintain its negative rate policy this month — making the BOJ the world's only central bank with negative rates. Governor Kazuo Ueda is scheduled to explain this decision in a press conference later this afternoon.

Read the full story here.

— Clement Tan

Chinese authorities reportedly weigh $280 billion rescue package for stock market

Chinese authorities are considering a package of measures worth 2 trillion yuan ($278.53 billion) to stabilize its stock markets, Bloomberg reported.

Citing people familiar with the matter, Bloomberg reported that this would come from the offshore accounts of state-owned enterprises.

Chinese Premier Li Qiang recently chaired a meeting of the country's cabinet, which called for taking "stronger, more effective measures to stabilize the market and improve market confidence."

Hong Kong's Hang Seng index jumped 2%, powered by tech stocks, but the mainland Chinese CSI 300 was marginally below the flatline.

— Lim Hui Jie

Hong Kong stocks rebound after falling for two days as tech shares surge

Stocks in Hong Kong surged Tuesday, with the Hang Seng index jumping more than 3% after two straight days of declines.

Shares of technology companies led the advance in beleaguered Hong Kong markets — Asia's worst performer last year — pushing the Hang Seng Tech index up nearly 5%.

Shares of NetEase jumped 5.23%, Alibaba rose 4.43%, Tencent gained 4.12% and Bilibili advanced 8.3%.

The Hang Seng index had fallen nearly 14% in 2023, declining for a fourth straight year.

Property stocks were also higher on Tuesday, with Longfor Group jumping nearly 10%, Logan Group up 5.7%, and Country Garden gaining 6.56%.

— Shreyashi Sanyal

Goldman Sachs hikes its fourth-quarter GDP 2023 forecast

Goldman Sachs raised its prediction for the fourth-quarter gross domestic product reading, calling for GDP growth of 2.1%.

That reflects a 0.3 percentage point increase from its earlier estimate.

Stronger-than-anticipated spending by state and local governments is the catalyst behind the revision to GDP estimates. "We estimate S&L spending continued growing around 4.5% last quarter," the firm said.

The firm also revised its 2023 GDP forecast to 2.8%, up 0.1 percentage point from its earlier estimates.

Goldman also raised its state and local government forecast for 2024, resulting in higher GDP growth estimates for the new year. The firm is now calling for growth of 2.5% for the first quarter and 2.2% in the second quarter, up 0.3 percentage points for both periods. The firm hiked its 2024 GDP forecast by 0.1 percentage point to 2.1%.

-Darla Mercado, Jeff Cox

M&A window reopening in first half of 2024, Deutsche Bank says

"[A] window of opportunity" is opening in the first half of 2024 for merger and acquisition activity, similar to opportunities in the market for initial public offerings, London-based Deutsche Bank analysts Luke Templeman and Galina Pozdnyakova wrote in a report on Monday.

"With markets in relatively good health, companies with M&A ambitions may wish to push through deals before a potential economic downturn and U.S. recession later this year," the Deutsche analysts said.

Among the reasons for optimism they cited: "the durability of the equity rally (which tends to correlate with deal volumes), recent Q4 results showing a trend towards larger deals, and the continued tightness of credit spreads despite volatility in bond markets."

— Scott Schnipper, Michael Bloom

Agilysis shares fall after third-quarter results

Agilysys shares slipped 4% in extended trading even after the enterprise software developer reported third-quarter revenue that exceeded expectations.

The company reported revenue of $60.6 million, topping the FactSet consensus estimate of $60.1 million. For the year ending March 2024, it reaffirmed revenue in the range of $235 million to $238 million, while analysts polled by FactSet anticipated $237 million.

— Sarah Min

United Airlines shares rise after quarterly results

United Airlines rose more than 5% in extended trading after reporting strong fourth-quarter results. The airline operator posted adjusted earnings of $2 per share on revenue of $13.63 billion. Analysts polled by LSEG, formerly known as Refinitiv, had expected earnings per share of $1.69 on revenue of $13.54 billion.

But the company warned it expects a first-quarter loss from the grounding of Boeing 737 Max 9 airplanes, the model involved in the Alaska Airlines emergency earlier this month. At its Tuesday earnings call, United will likely field questions about the grounding and any compensation from Boeing.

Shares of other airline operators rose in tandem with United. American Airlines and Southwest Airlines each added more than 2%. Alaska Air Group and Delta Air Lines climbed roughly 2% each.

— Sarah Min

Stock futures open flat Monday

Stock futures opened little changed Monday night.

Dow futures fell 21 points, or 0.05%. S&P 500 futures rose 0.01% and Nasdaq 100 futures gained 0.04%.

— Sarah Min