Stock market today: Live updates

Datadog shares plummeted more than 20% after the software company issued weaker-than-expected revenue guidance for the third quarter and trimmed its full-year outlook.

The fall in shares came despite a top-and-bottom line beat for the second quarter, with Datadog saying reporting adjusted earnings of 36 cents a share on $509.5 million in revenue. That came in ahead of 28 cents expected on revenues of $500.6 million, according to Refinitiv.

For the third quarter, the company said it expects revenues to range between $521 million and $525 million, below the $536.2 million expected by analysts polled by FactSet.

Datadog also trimmed revenue guidance for the full year, saying it now anticipates sales to range between $2.05 billion and $2.06 million. The company previously said it expected between $2.08 billion and $2.10 billion in revenue.

A raft of poor signals is weighing on investor sentiment Tuesday morning, including weak trade data out of China, as well as credit rating cuts from Moody’s on 10 small and midsize banks. UPS also cut its guidance, citing falling demand and rising costs following a new labor contract.

However, Oanda’s Ed Moya said the suddenly “gloomy” global macroeconomic backdrop has Wall Street hopeful the Federal Reserve could stop raising rates.

“Stocks are down, but it is not too ugly as Wall Street is starting to become very confident that global economic weakness will do the trick in getting inflation back to the Fed’s 2% target,” Moya wrote Tuesday. “Rate hike odds continue to edge lower for the September and November FOMC meetings, but the rate cuts for 2024 keep growing.”

Traders are expecting an 85.5% likelihood the Fed will keep rates where they are when policymakers convene in September, according to the CME Fedwatch Tool. They expect a 14.5% chance the central bank could raise rates by another quarter percentage point.

Meanwhile, in January, they’re expecting a 47.4% probability the Fed will hold, and a 33.2% likelihood the Fed will cut rates by a quarter percentage point.

— Sarah Min

AMC Entertainment jumped nearly 5% after the movie theater stock surpassed analyst expectations in the second quarter.

The company reported 1 cent earned per share, while analysts surveyed by Refinitiv anticipated a loss of 4 cents per share. Revenue came in at $1.35 billion for the quarter, ahead of the consensus estimate of $1.29 billion.

AMC shares have climbed nearly 26% so far this year.

— Alex Harring

The U.S. central bank could be at the end of its current interest rate-hiking cycle, Philadelphia Federal Reserve President Patrick Harker said Tuesday.

“Absent any alarming new data between now and mid-September, I believe we may be at the point where we can be patient and hold rates steady and let the monetary policy actions we have taken do their work,” Harker said in prepared remarks for a speech in Philadelphia.

But he also said there may not be any cuts to rates in the near future.

“Allow me to be clear about one thing, however. Should we be at that point where we can hold steady, we will need to be there for a while,” he said. “The pandemic taught us to never say never, but I do not foresee any likely circumstance for an immediate easing of the policy rate.”

— Jeff Cox

Check out some of the companies making headlines in premarket trading:

Read the full list here.

— Brian Evans

Investors modified exposure to Dish and EchoStar after Charlie Ergen said he would merge the two.

Shares of EchoStar tumbled more than 10%, while Dish rose more than 1%. The all-stock deal marks a reunion for the two companies, which have been separate for about 15 years.

— Michael Sheetz, Alex Harring

Under Armour shares inched higher on a better-than-expected earnings report for its first fiscal quarter.

The retailer’s shares rose 0.3% after reporting 2 cents in earnings per share, while analysts polled by Refinitiv anticipated a loss of 2 cents. Revenue came in at $1.32 billion, slightly ahead of the $1.3 billion forecasted by Wall Street.

Shares have struggled this year despite the broader market’s rally, dropping more than 24% since the year began.

— Alex Harring

Pharmaceutical stock Eli Lilly advanced around 10% in premarket trading as investors cheered a better second-quarter report than Wall Street anticipated.

Eli Lilly posted $2.11 in earnings per share, excluding items, while analysts polled by Refinitiv expected $1.98. Revenue also came in ahead of Wall Street’s consensus, with the company reporting $8.31 billion while analysts forecasted $7.58.

Shares are up more than 24% this year.

— Alex Harring

Shares in Danish pharmaceutical company Novo Nordisk soared more than 15% on Tuesday after headline results from a trial showed that its weight-loss drug Wegovy cut the risk of heart disease by 20% in adults with obesity.

The result lifted the broader sector in Europe and the U.S., with shares in stateside rival Eli Lilly climbing in pre-market trade.

— Elliot Smith

UPS shares dipped 5.6% after the package delivery giant posted weaker-than-expected revenue for the second quarter.

The company’s revenue for the period came in at $22.1 billion. Analysts polled by Refinitiv expected $23.1 billion.

UPS also lowered its full year revenue outlook, citing labor negotiations and the cost of a tentative agreement with teamsters.

Bank shares were under pressure after Moody’s lowered the credit rating on multiple banks, including M&T Bank.

JPMorgan Chase and Citigroup fell more than 1% each. Goldman Sachs, Morgan Stanley and Wells Fargo also dipped in the premarket. The SPDR S&P Bank ETF (KBE) slipped 1%, while its regional banking counterpart, the KRE, lost 1.6%.

Sentiment in the banking sector was also dampened by the Italian government announcing a 40% windfall tax on “excess” profits in 2023.

— Fred Imbert

U.S. Treasury yields fell on Tuesday as investors assessed the outlook for interest rates and Federal Reserve monetary policy ahead of comments from policymakers and key inflation data expected this week.

At 4:25 a.m. ET, the yield on the 10-year Treasury was down by over six basis points to 4.0140%, slipping from multi-month highs touched at the end of last week. The 2-year Treasury was trading more than one basis point lower at 4.7409%.

Palantir Technologies lifted its forecast for annual revenue on Monday as it sees an opportunity to commercialize artificial intelligence, but not all analysts are on the same page.

Dan Ives, managing director at Wedbush Securities, is bullish on the U.S. firm’s AI ambitions. The investment firm said “a star is born,” referring to Palantir’s AI platform, AIP. The platform allows militaries and businesses to tap large language models and AI to support decision-making.

However, another analyst disagreed and said Palantir is “not truly a generative AI company.”

“When we look at Palantir and based on our conversations with [industry observers and Palantir’s employees], this does not appear to be anything truly differentiated when it comes to generative AI,” said Rishi Jaluria, managing director at RBC Capital Markets, on CNBC’s “Squawk Box Asia” on Tuesday.

Read the full story here.

— Sheila Chiang

China’s trade plunged more that expected in July, with the country recording a 14.5% year-on-year drop in exports, and a 12.4% fall in imports.

Both metrics were lower than expectations from economists polled by Reuters, who expected a 12.5% slide in exports and a 5% drop in imports.

Customs data from China showed that total trade for July came in at $482.92 billion, a 13.6% fall year on year, while the country’s trade surplus stood at $80.6 billion, down 19.4% compared to July 2022.

— Lim Hui Jie

Household spending in Japan fell 4.2% year-on-year in June, a steeper fall than the 4% recorded in May reflecting a fourth straight month of decline, according to official data.

Food still made up the largest proportion of household spending, the largest fall was spending on furniture and household utensils, down 17.6% year on year.

The average monthly consumption expenditures per household for June was 275,545 yen ($1,932.41) , while the average monthly income per household stood at 898,984 yen in June, down 5.6% from the previous year.

— Lim Hui Jie

Amgen‘s nearly 4% gain on Monday helped lift the Dow Jones Industrial Average, but it also put the pharmaceutical giant’s shares over an important level.

Monday’s close marked the first time Amgen closed above its 200-day moving average since April 6. The stock also had the greatest positive point impact on the 30-stock index, accounting for nearly 64 positive Dow points.

The 200-day moving average has a special meaning for chart technicians. For instance, it can give some insight into whether the stock is heading into an uptrend or a downtrend. In this case, Amgen’s close above that threshold could be a positive sign.

Amgen’s gains arrive on the heels of its second-quarter earnings beat, issued late last week. The company posted earnings of $5 per share, excluding items, on revenue of $6.99 billion. Analysts polled by FactSet anticipated earnings of $4.49 and revenue of $6.66 billion.

–Darla Mercado, Gina Francolla

Stock futures were little changed Monday night after all three major indexes closed higher during regular trading.

Futures tied to the Dow Jones Industrial Average added 9 points or 0.03%. S&P 500 and Nasdaq 100 Futures climbed 0.06% and 0.07%, respectively.

— Brian Evans