Stock futures are flat as investors brace for Fed minutes: Live updates

Shares of Alcoa rose 1% in the premarket after the aluminum producer was upgraded by Citi to buy from neutral, citing a potential boost from China’s economy reopening.

“Aluminum has relatively light positioning, tends to arrive late to bull market parties, is relatively lightly positioned, and has a myriad of idiosyncratic upside risks,” Citi said in a note.

— Sarah Min

Carmaker Stellantis on Wednesday announced record full-year results, reporting a 26% rise in net profit to 16.8 billion euros ($17.9 billion) and a 41% annual jump in global battery and electric vehicle sales.

The Dutch-headquartered company, formed in 2021 from the merger of Italian-American conglomerate Fiat Chrysler group and France’s PSA Group, said net revenues rose 18% to 179.6 billion euros.

Stellantis CEO Carlos Tavares said the results also demonstrated the effectiveness of the company’s electrification strategy in Europe, with 288,000 battery and electric vehicle (BEV) sales in 2022 and 23 BEVs now on the market.

“We now have the technology, the products, the raw materials, and the full battery ecosystem to lead that same transformative journey in North America, starting with our first fully electric Ram vehicles from 2023 and Jeep from 2024,” Tavares said.

Read the full story here.

This is where all the major averages stand for 2023 and February after posting their worst session of the year and worst day since Dec. 15.

Dow Jones Industrial Average:

• Down 0.05% in 2023
• Down 2.81% in February
• 10.35% off record high
• 81.89% off pandemic low

S&P 500:

• Up 4.11% for the year
• Down 1.94% in February
• 17.04% off record high
• 82.37% off pandemic low

Nasdaq Composite:

• Up 9.8% for the year
• Down 0.8% this month
• 29.11% % off record high
• 73.30% off pandemic low

— Samantha Subin, Chris Hayes

Palo Alto Networks‘ stock jumped more than 7% in extended trading after the cybersecurity provider beat Wall Street’s estimates for the recent quarter and management lifted third-quarter fiscal earnings guidance.

For the recent quarter, the software maker posted adjusted earnings of $1.05 per share on $1.66 billion in revenue. Analysts expected EPS of 78 cents on $1.65 billion, according to Refinitiv. Revenues also grew 26% year over year.

Management said its expects adjusted earnings for the 2023 fiscal year to range between $3.97 and $4.03 a share. That’s up from the $3.37 to $3.44 EPS guidance from November.

— Samantha Subin, Jordan Novet

These are some of the stocks moving in extended trading:

Coinbase — Shares of the crypto trading platform were last down more than 1%. The company beat analysts’ expectations on the top and bottom lines, according to Refinitiv.

Toll Brothers — The homebuilding stock added 3% on a better-than-expected earnings report. The company also said it has seen a rise in demand since the start of 2023.

CoStar Group — The commercial real estate stock plummeted more than 16% after sharing guidance for the current quarter that fell short of estimates, according to StreetAccount.

Read the full list of stocks moving after the bell here.

— Samantha Subin

The equity market might see a 5% drop in the near-term, while high-beta tech stocks could move between 5% and 10% lower, JPMorgan’s Marko Kolanovic told CNBC’s “Closing Bell: Overtime” on Tuesday.

The chief global market strategist holds a 4,200 price target on the S&P 500 for 2023. This, he said, leaves room for a potential near-term selloff, followed by potential lows, before the Fed begins — or signal — cutting rates.

“We really think the Fed will need to cut the rates for the market to rally on a sustainable basis,” Kolanovic said.

The broader index slid 2% on Tuesday to close 3,997.34 and complete its worst day since Dec. 15, when it fell 2.5%.

– Pia Singh