S&P 500 slips for a third day as jobs report sparks economic fears: Live updates

The S&P 500 and the Dow Jones Industrial Average finished Tuesday's session in the red.

The broad-based index closed down 0.24% to 6,800.26, while the 30-stock Dow slid 302.30 points, or 0.62%, to 48,114.26.

The tech-heavy Nasdaq Composite, in contrast, rose 0.23% to 23,111.46.

— Sean Conlon

Medical supply group Medline Industries is discussing upsizing its initial public offering, a person familiar with the matter told CNBC. However, the offering is unlikely to price at $30, which was the high end of its marketed range, the person said, adding that talks are ongoing.

Upsizing an IPO is an indication of investor interest, and this debut is expected to be one of he biggest listings of the year.

The Financial Times was the first to report about the potential upsizing of the deal. The paper said Medline had originally planned to raise $5.4 billion, but could potentially raise as much as $7 billion, according to people brief on the discussions.

— Leslie Picker

Shares of Southwest Airlines added more than 1% on Tuesday. This put the airline stock on pace for its 11th straight positive session — a new record in FactSet's price history, which goes back to 1972.

The stock popped on an upgrade to overweight from Barclays.

"The carrier stands to benefit from a material upgrade in commercial strategy and as prior more bearish investor expectations for potential market share losses begin to fade," wrote Barclays analyst Brandon Oglenski.

Oglenski added that the company's shift away from a "one size fits all" pricing strategy and towards the sale of basic fares, assigned seating, extra legroom options and bag fees could drive a material improvement in relative revenue generation. The analyst expects Southwest's EPS to come in above consensus estimates for 2026 and 2027.

— Nicholas Wells, Lisa Kailai Han

Atlanta Federal Reserve President Raphael Bostic, who leaves his post in February, said Tuesday he would have opposed last week's interest rate cut.

Bostic said he sees persistently high inflation as a greater risk to the economy than a slowing labor market.

"In the current circumstances, moving monetary policy near or into accommodative territory, which further federal funds rate cuts will do, risks exacerbating already elevated inflation and untethering the inflation expectations of businesses and consumers," he wrote in an essay for the Atlanta Fed site. "That is not a risk I would choose to take right now."

Bostic was not a voter this year on the rate-setting Federal Open Market Committee, and his successor will not get a vote until 2027. However, the Atlanta Fed president does participate in committee meetings and gets to express opinions as well as a forecast on the central bank's grid of rate expectations.

— Jeff Cox

Circle shares rose 8% Tuesday, shortly after Visa announced it would support the cryptocurrency firm's USDC stablecoin for settlement in the U.S.

USDC is a stablecoin issued by Circle. A stablecoin is a type of digital asset backed by a currency like the U.S. dollar.

Visa plans to use Arc, a new blockchain developed by Circle, to settle USDC-denominated payments within its network and to operate a validator node.

This marks Visa's latest move to deepen its foray into crypto. The payment giant began exploring initiatives with stablecoins in 2021.

— Liz Napolitano

JPMorgan has named A&T one of its top stock picks for 2026.

The investment firm has an overweight rating on AT&T. Its price target for the stock is $33 per share, suggesting roughly 36% upside.

JPMorgan analyst Sebastiano C. Petti said AT&T is a top pick due to the firm's defensible share gains, even as competition in wireless telecommunications services rises. The mobile carrier is also expected to close a few strategic acquisitions early next year, including its Lumen Mass Market deal. And, the firm plans to do $20 billion worth of buybacks through 2027, in addition to paying recurring dividends to its shareholders.

Not everyone on Wall Street is aligned with the stock pick, however. Wolfe downgraded AT&T to peer perform from outperform earlier this week due to uncertainties over the company's average revenue-per-unit in a changing market.

— Liz Napolitano

On Tuesday, eight stocks in the S&P 500 traded at new all-time highs.

Names that hit this milestone included:

• Expedia trading at all-time high levels back to its spin-off from IAC in 2005
• General Motors trading at all-time highs back to the "new" GM IPO in November 2010
• Ross Stores trading at all-time high levels since its IPO in August 1985
• The TJX Companies trading at all-time highs back to IPO in 1987
• Assurant trading at all-time highs back to its IPO in 2004
• Chubb trading at all-time high levels back through 1993 (ACE and Chubb are now one company)
• Hartford Financial trading at all-time highs back to its IPO in December 1995
• Delta Air Lines trading at all-time highs back to its IPO in March 2007

— Christopher Hayes, Lisa Kailai Han

Google's new real estate feature isn't a big threat to Zillow in the near term, but there could be larger long-term implications ahead, according to Morgan Stanley.

Google appeared to be testing real estate listings in its search results, with property details and photos, as well as agent contact information. This could put Google in a stronger position to control consumers' attention and marketing dollars, analyst Matthew Cost said in a note Monday.

"This speaks to the threat that next-gen discovery and agentic tools pose to traditional portal businesses like Z," he wrote. "The combination of intent and behavioral data mean agentic tools could provide a superior user experience and ultimately capture the majority of eyeballs, which are the only real commodity when the data is free."

— Michelle Fox

Gap CEO Richard Dickson has demonstrated a "meaningful inflection in performance" at the retailer's two largest brands, namesake Gap and Old Navy, says Wells Fargo analyst Ike Boruchow, as he upgrades the stock to overweight from equal weight and raises its price target to $30 from $24. Gap shares closed Monday at $26.82, which suggests upside of nearly 12% from here.

Gap shares have gained nearly 14% this year, with an 11% bump in the past month alone.

Boruchow sees a longer term opportunity for improvement at Athleta, which also has new management, and with Gap's expansion into beauty. He noted that margins have already started to improve and that should continue into 2026, especially if tariffs are reversed.

"Additionally, when we analyze brand heat within our retail universe, Gap and Old Navy have seen some of the most significant accelerations in brand mentions online in 2H - which we believe to be a signal that consumers are continuing to resonate with the brands heading into 2026," the analyst wrote in a note to clients.

— Christina Cheddar Berk

U.S. crude oil on Tuesday fell below $55 per barrel, hitting the lowest level since early 2021 as traders factor in a looming surplus and the possiblity of a peace agreement in Ukraine.

West Texas Intermediate hit a low of $54.98 per barrel, the lowest level since Feb. 3, 2021. The U.S. benchmark was last trading at $55.16, down 2.92%.

Global benchmark Brent was down 2.77% at $58.88 per barrel. Read more.

— Spencer Kimball

Kevin Warsh has surged ahead of Kevin Hassett in prediction markets betting on who President Donald Trump will nominate as the next chair of the Federal Reserve, as doubts grow inside Trump's orbit about Hassett's candidacy.

On Kalshi, traders on Monday marked Warsh as the narrow favorite to replace Jerome Powell, assigning him roughly a 46% chance of nomination, compared with about 39% for Hassett. Just last week, Hassett's odds were as high as 77%, and Warsh's chance was as low as 10%. Read more.

— Yun Li

National Economic Council Director Kevin Hassett, one of the finalists for the Federal Reserve chair job, showed support Tuesday for central bank independence.

With President Donald Trump apparently in the final days of picking a successor to Jerome Powell at the Fed, Hassett declined in a CNBC interview to directly address his own candidacy but said forging consensus is an important part of the job.

"The Federal Reserve's independence is really, really important, and the voices of the other people at the [Federal Open Market Committee], they're important, too," he said. "So the way you've got to drive interest rate movements is with consensus based on the facts and the data." Read more.

— Jeff Cox

The three major averages opened Tuesday's session in negative territory.

The S&P 500 dropped 0.2% just after 9:30 a.m. ET, while the Nasdaq Composite declined 0.3%. The Dow Jones Industrial Average moved 23 points, or 0.1%, lower.

— Sean Conlon

Check out the companies making headlines before the bell:

• Pfizer — The pharma giant issued disappointing 2026 earnings guidance. Pfizer a profit between $2.80 per share and $3 per share for the coming year. Analysts polled by LSEG expected earnings per share of $3.05 for 2026. The company also reaffirmed its 2025 outlook. Shares hovered around the flatline.
• Roku — The streaming platform rose more than 4% after Morgan Stanley double upgraded the stock to overweight from underweight. "Roku's Platform revenue growth has accelerated in 2H25, suggesting that its scaled user base, plus solid execution on deepening streaming partnerships ... position the company as a continued beneficiary of industry tailwinds."

Read the full list here.

— Sarah Min

The U.S. economy added 64,000 jobs in the month of November, a delayed U.S. employment report showed. Economists polled by Dow Jones expected a gain of 45,000. Unemployment rose to 4.6%, higher than expected.

For October, however, 105,000 jobs were lost.

— Fred Imbert

Morgan Stanley believes Roku has what it takes to outperform.

The bank double upgraded the streaming stock to overweight from underweight. It also hiked its price target to $135 from $85, which implies upside of 24% from Monday's close.

Next year and beyond, analyst Thomas Yeh has higher conviction that Roku can continue to sustain its double-digit platform revenue growth. As catalysts he cited deepening platform partnerships, increases in streaming prices and premium subscription adoption, a healthy advertising backdrop and tailwinds in the connected TV industry, including growing political and sports migration.

CNBC Pro subscribers can read more here.

— Lisa Kailai Han

Kraft Heinz on Tuesday announced that former Kellanova CEO Steve Cahillane will lead the company ahead of its planned split next year.

Cahillane will join the Oscar Mayer owner as chief executive on Jan. 1. After Kraft Heinz divides into two publicly traded companies, he will serve as CEO of the business it is calling Global Taste Elevation, which will include high-growth brands like Heinz, Philadelphia and Kraft Mac & Cheese. Read more.

— Amelia Lucas

Pfizer shares fell around 0.7% after the company issued disappointing 2026 earnings guidance. The pharma giant expects a profit between $2.80 per share and $3 per share for the coming year. Analysts polled by LSEG expected earnings per share of $3.05 for 2026.

— Fred Imbert

Nasdaq has asked the SEC for approval to extend trading hours to 23 hours during the week. According to Bloomberg News and Reuters reports, the exchange operator wants to add an additional session between 9 p.m. and 4 a.m. ET.

— Fred Imbert

Shares of Tesla rose nearly 3.6% to $475.31 on Monday, recording its highest close of the year after Tesla execs said over the weekend that the electric vehicle maker is testing its driverless cars on Austin public roads with no people on board.

"Testing is underway with no occupants in the car," CEO Elon Musk wrote in a Sunday post on his social network X.

On Sunday, Tesla's official account wrote in a pair of posts on X, "The fleet will wake up via over-the-air software update," and "Slowly then all at once."

Tesla shares are up 17.7% this year.

— Pia Singh, Lora Kolodny

Ford Motor said on Monday that it expects to record about $19.5 billion in special items related to a restructuring of its business priorities and a pullback in its all-electric vehicle investments.

The Detroit automaker said most of those charges will occur during the fourth quarter. That will be followed by $5.5 billion in cash to be charged through 2027, and the majority of that chunk will be paid next year, Ford said.

The charges will impact the automaker's net results but not its adjusted earnings. The automaker said Monday it was increasing its guidance of adjusted earnings before interest and taxes to about $7 billion in 2025. That's in line with a target from earlier this year, before the company lowered expectations to between $6 billion and $6.5 billion in adjusted EBIT in October.

The charges announced Monday are connected to major changes to Ford's business plans.

The new plans include refocusing investments on hybrid vehicles, including plug-in models rather than pure EVs; canceling a next generation of large all-electric trucks in exchange for smaller, more affordable EVs; and a rebalancing of its investments in core products such as trucks and SUVs. More here.

— Michael Wayland

Shortly after 6 p.m. ET on Monday, futures tied to the S&P 500 and Nasdaq-100 futures each hovered above the flatline. Futures tied to the Dow Jones Industrial Average added 12 points, or less than 0.1%.

— Pia Singh