Stocks fell on Tuesday as market participants reacted to the latest batch of fourth-quarter corporate earnings. The Dow Jones Industrial Average dropped over 200 points, while the S&P 500 Index and Nasdaq Composite lost roughly 0.4% and 0.2%, respectively.
Here's how the market settled on Tuesday:
S&P 500 Index (NYSE: SPY): -0.37% or -17.85 points to 4,765.98
Dow Jones Industrial Average (NYSE: DIA): -0.62% or -231.86 points to 37,361.12
Nasdaq Composite Index (NASDAQ: QQQ): -0.19% or -28.41 points to 14,944.35
Tuesday was the first trading day of the week as markets were closed on Monday for Martin Luther King Jr. Day in the United States.
In the spotlight, Spirit Airlines (NYSE: SAVE) shares fell after a U.S. federal judge blocked JetBlue Airways' (NASDAQ: JBLU) purchase of the airline after the U.S. Department of Justice sued to stop the $3.8 billion proposed merger. The deal would have produced the country's fifth largest airline behind Delta Air Lines (NYSE: DAL), United Airlines (NASDAQ: UAL), American Airlines (NASDAQ: AAL) and SouthWest Airlines (NYSE: LUV).
"JetBlue plans to convert Spirit's planes to the JetBlue layout and charge JetBlue's higher average fares to its customers," U.S. District Court Judge William Young wrote in his decision. "The elimination of Spirit would harm cost-conscious travelers who rely on Spirit's low fares."
Boeing (NYSE: BA) shares continued to slide on Tuesday due mostly to the continued fallout from the Alaska Airlines' (NYSE: ALK) 737-9 Max flight losing a door mid-flight last week. The U.S. Federal Aviation Administration (FAA) announced a plan to increase oversight over the plane's production on Friday following its grounding, and Boeing on Monday said it plans to increase quality inspections for the aircraft, Reuters reports. The stock lost nearly 8% on the day and more than 20% year-to-date.
On the earnings front, Goldman Sachs (NYSE: GS) reported strong fourth-quarter earnings and revenue Tuesday morning, including better-than-expected results from the big bank's asset management business.
"With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024," CEO David Solomon said in a press release on Tuesday. Solomon also said the bank plans to focus on its asset and wealth management division in effort to grow profits in the current high interest rate environment.
Morgan Stanley (NYSE: MS) shares rose but ultimately ticked lower by session close after the investment bank delivered better-than-expected fourth-quarter revenue results on Tuesday. CEO Tim Pick warned in a statement that the bank faces two "major downside risks": ongoing geopolitical conflicts and the health of the U.S. economy.
"In 2023, the Firm reported a solid ROTCE [return on average tangible common shareholders' equity] against a mixed market backdrop and a number of headwinds," Pick said in a statement. "We begin 2024 with a clear and consistent business strategy and a unified leadership team. We are focused on achieving our long-term financial goals and continuing to deliver for shareholders."
In single-stock news, Restaurant Brands International (NASDAQ: QSR) announced on Tuesday it will purchase Carrols Restaurant Group (NASDAQ: TAST), the largest Burger King franchisee in the U.S., in a nearly $1 billion all-cash deal. Restaurant Brands CEO Josh Kobza said the purchase will allow the company to focus its attention "on accelerating remodels and being thoughtful about how to refranchise this restaurant network into smaller packages."
Uber Technologies (NYSE: UBER) has moved to shut down alcohol delivery service Drizly, Axios reported on Monday, as the company plans to "focus on our core Uber Eats strategy of helping consumers get almost anything -- from food to groceries to alcohol -- all on a single app," Uber SVP of Delivery Pierre-Dimitri Gore-Coty told Axios in a statement. Uber had purchased Drizly about three years ago for $1.1 billion, and plans to officially close the services at the end of March 2024.
For Wednesday, investors will react to the latest numbers on U.S. retail sales for December, as well as fourth-quarter earnings reports from companies including Charles Schwab (NYSE: SCHW), U.S. Bancorp (NYSE: USB), and Prologis (NYSE: PLD) -- all due out in the morning.