The three major averages finished in positive territory on Tuesday.

The S&P 500 ticked up 0.13% to 7,609.78, while the Nasdaq Composite edged higher by 0.03% to 27,093.90. The Dow Jones Industrial Average added 228.91 points, or 0.45%, to 51,307.79.

— Sean Conlon

Deutsche Bank raised its price target on Five Below ahead of the off-price retailer's first-quarter earnings release.

Five Below is due to report its quarterly earnings after Wednesday's closing bell.

"We expect a beat-and-raise from FIVE, supported by strong traffic trends and our intra-quarter store checks, with the 'squishy' trend emerging as a key traffic driver. We are raising our 1Q estimates and now model SSS of +22% (vs. +14%–16% guidance and buy-side in the low 20% range)," wrote analyst Krisztina Katai. "While tough compares and concerns around decelerating top-line momentum have weighed on shares, we see continued strength in underlying demand (we expect 2Q SSS guidance of +8% to +10%) and anticipate upside to flow through to margins."

Looking ahead, the analyst believes that earnings power exiting 2026 could be closer to $10 per share, higher than Five Below's updated guidance of approximately $8.50. Katai's updated price forecast of $298, raised from $287, implies that shares of Five Below could rally 32% from their Monday close.

"Recent store checks reinforce strong execution, with clean, well-stocked stores and compelling merchandising. Highlights include seasonal vignettes (summer, Independence Day), licensed assortments (SpongeBob, Stitch, Toy Story), and strength in crafts. Beauty and apparel were also well curated," Katai added. "We also observed increasing presence of higher price-point items ($20–$30), supporting both assortment breadth and ticket expansion."

— Lisa Kailai Han

UBS is stepping to the sidelines on Sherwin-Williams, downgrading the stock to neutral from buy.

While the paint company's earnings have a lot of leverage to a U.S. housing recovery, the timeline for that rebound has been pushed back, analyst Joshua Spector said in a note Monday.

"Over the next 2 years we now model SHW growing earnings at a ~5% CAGR, and we don't expect to see above average growth until 2028+," he wrote. "SHW's stock deserves a premium vs. coatings peers due to pricing power, but mix shift and higher leverage from potential M&A could become an overhang and risks a derating near-term."

Shares were down nearly 1% in morning trading and hit a 52-week low.

— Michelle Fox

Shares of exchange stocks are dropping after the regulatory approval of perpetual futures for bitcoin ignited concerns that a new wave of trading products could pose an existential threat for Wall Street.

CME Group, known for its derivatives and futures trading platforms, is down around 9% over the last two days. Cboe Global Markets, an exchange and derivatives network, plunged 16% this week. Both are pacing for their largest weekly decline going back to 2020.

New York Stock Exchange parent Intercontinental Exchange slid more than 3% on Tuesday and is down 5% for the week. Nasdaq shares tumbled more than 6% in the session, dragging the stock into the red week to date.

— Alex Harring

Bitcoin dropped below $70,000 Tuesday for the first time since April amid deteriorating market sentiment.

The price of bitcoin was last lower by more than 5% at $67,692.76, according to Coin Metrics.

The move began on Monday after bitcoin treasury pioneer Strategy reported it sold a small amount of the bitcoin it was holding — its first sale since 2022. While it was well telegraphed by the company, the reversal from chairman and founder Michael Saylor's "never sell your bitcoin" mantra spooked investors.

That led to a cascade of long liquidations that accelerated the downside pressure. When leveraged traders betting on higher prices are forced out of their positions, exchanges automatically sell their holdings to cover losses. Crypto exchanges have recorded $594 million in long liquidations over the past 24 hours, according to CoinGlass.

— Tanaya Macheel

Here are the companies making headlines in midday trading:

• Generac — The power generator stock climbed almost 6% after the company said it would supply backup power for a "leading hyperscale data center operator." CEO Aaron Jagdfeld said, "This agreement positions Generac at the heart of supporting essential services and the digital economy."
• USA Rare Earth – The mining and manufacturing company gained close to 5% after announcing a $1.2 billion investment toward building a magnet manufacturing and refined metals facility in South Carolina
• Intuit – The maker of TurboTax dropped nearly 9% on the back of a Goldman Sachs downgrade to sell from hold. The firm sees shares falling about 22% from Monday's close. "Our primary concern is that Intuit is entering a period of heightened competition in tax," wrote analyst Gabriela Borges, adding that the firm expects shares to be "rangebound over the next several quarters."

Read here for the full list of names.

— Sarah Min

Monday's move in shares of Fluence Energy showed the magic of Nvida's co-sign, according to Canaccord Genuity.

Shares of the energy storage products company surged 43.8% on Monday, after Fluence, together with Siemens AG and Nvidia, unveiled an AI data center reference architecture that operators can use to get factories up much faster.

"Today, Fluence felt the magic of the Nvidia touch," analyst George Gianarikas wrote in a Monday note.

Fluence, which is the only energy storage partner included in the design, can benefit from selling directly to tech companies building new factors, the analyst said. Shares of Fluence were up more than 4% in Tuesday's session.

— Sarah Min

Job openings hit their highest level in nearly two years during April while hiring fell sharply, according to a government report Tuesday that showed rising demand but also slow hiring in the labor market.

The Bureau of Labor Statistics reported that available employment hit 7.6 million for the month, a surge of 731,000 from the prior month and the highest level since May 2024. Economist surveyed by Dow Jones had been looking for 6.8 million openings from the BLS' Job Openings and Labor Turnover Survey. Read more.

— Jeff Cox

Camera maker GoPro may not survive the global shortage of computer memory that has sent prices of the component skyrocketing amid the artificial intelligence buildout.

The company said it's looking at options "for the expectation that it will be unable to comply with its financial covenants," according to a document filed Monday with the Security and Exchange Commission.

"The company has incurred operating losses and negative operating cash flows, and has obligations … that raise substantial doubt about its ability to continue as a going concern," the filing says.

GoPro said its business has been affected by "unprecedented increases and volatility in memory costs, including unexpected price increases ranging from 80% to 115% in the last week of March."

— Tobias Burns

The three major averages began Tuesday's session in the red.

The Dow Jones Industrial Average declined 45 points, or 0.1%, shortly after the opening bell. The S&P 500 fell 0.1%, while the Nasdaq Composite lost 0.2%.

— Sean Conlon

With the price of gas and other items on the rise, consumers are being strategic about where they are spending their money, and retail earnings are revealing who the winners and losers are.

Dollar General shares are jumping 5% in premarket trading as some shoppers turn to its stores to stretch their budgets. The dollar store said customer traffic rose 1.4% in the latest quarter. The company raised its fiscal year forecasted range for earnings by 10 cents a share to between $7.20 to $7.45 per share. Notably, its sales outlook remained the same.

But not everything is about pinching pennies. Management execution matters as evidenced by Victoria's Secret stellar performance. Shares are soaring more than 37% before the bell as its decision to embrace a sexier image gains traction. The lingerie retailer sailed past analyst expectations in the fiscal first quarter, reporting adjusted earnings per share that were double the consensus forecast.

— Christina Cheddar Berk

Cleveland Federal Reserve President Beth Hammack hinted Tuesday that interest rate hikes are possible if inflation doesn't moderate soon.

"For today, it's reasonable to keep rates steady given the uncertainties around the economic outlook. But if recent trends continue, it may soon be appropriate to act," the central banker said during a speech in her home district.

Hammack noted the danger that inflation expectations could rise the longer the energy price surge continues.

"There is a growing risk that inflation could remain elevated if energy costs do not come down quickly and if businesses feel they have no choice other than to raise prices," she said. "If inflation persists at an elevated rate, then more restrictive monetary policy could well be needed to bring inflation back to 2 percent in a timely fashion."

Hammack is a voting member this year of the rate-setting Federal Open Market Committee.

— Jeff Cox

Mobia Medical could more than double as it makes inroads in an underserved corner of the stroke recovery market, according to Goldman Sachs. 

The investment bank initiated coverage of the neurostimulation therapy developer with a buy rating. It also put a $31 price target on shares, implying 130% upside from Monday's close. 

"Based on the company's innovative neuro-stimulation technology, large market opportunity, performance of prior market creation [small- and mid-capitalization] MedTech comps, and … projected revenue trajectory, we view the stock emerging as a differentiated growth asset," analyst David Roman said in a note to clients.

CNBC Pro subscribers can read more here.

— Liz Napolitano

Check out the companies making headlines before the bell:

• Marvell Technology — Shares surged 25% after Nvidia CEO Jensen Huang said Marvell could be the next trillion dollar company.
• Hewlett Packard Enterprise — The information technology stock surged 25% after Hewlett Packard posted current-quarter earnings and revenue guidance that topped analysts' estimates. The company also raised its full-year earnings guidance and topped consensus expectations.
• Victoria's Secret — The lingerie retailer raised its full-year guidance after beating fiscal first quarter earnings expectations, citing lower tariff costs. Victoria's Secret is now anticipating full-year sales between $7.03 billion and $7.13 billion, up from a previous range of between $6.85 billion to $6.95 billion.

Read the full list here.

— Sarah Min

Shares of Victoria's Secret surged 38% in the premarket after the lingerie retailer upped its full-year guidance and posted quarterly earnings that beat analyst expectations.

The company expects sales for the year to range between $7.03 billion and $7.13 billion. That's up from a range of $6.85 billion to $6.95 billion. For Q1, Victoria's Secret earned an adjusted 60 cents per share, well above the LSEG consensus of 30 cents per share.

Read more here.

— Fred Imbert

Marvell Technology also rallied more than 22% after Nvidia CEO Jensen Huang said the semiconductor company could become the next trillion-dollar company.

"When you take a computing problem, and you disaggregate it into a lot of parts, and you distribute it across the entire data center, what's necessary is connectivity," Huang said. "That's the reason why Marvel is so essential."

If that gain holds through the close, it would mark Marvell's strongest one-day performance since Dec. 4, 2024 — when it surged 23.2%.

Read more here.

— Sawdah Bhaimiya, Fred Imbert

European stocks advanced into positive territory on Tuesday, clawing back the previous session's losses.

The pan-European Stoxx 600 was 0.6% higher in morning trade, with most sectors in positive territory and major bourses in London, Paris, Milan and Frankfurt all edging higher.

Inflation in the euro zone rose to an estimated 3.2% in May, above the European Central Bank's 2% target, as higher energy prices prompted by the Middle East conflict weigh on the continent's economies.

In corporate news, shares in Abivax plummeted 28% after the French biotech mainstay admitted that several patients in its ulcerative colitis trial had developed cancer.

— Hugh Leask

Asia-Pacific markets closed mixed Tuesday, as investors weighed renewed uncertainty over U.S.-Iran peace negotiations, while Wall Street benchmark indexes climbed to fresh highs overnight on tech optimism.

Japan's Nikkei 225 ended 0.3% lower at 66,734.24, while the Topix declined 0.42% to 3,924.24. South Korea's Kospi fell 0.15% to 8,801.49 and the small-cap Kosdaq dropped 2.29% to 1,026.03.

In Australia, the S&P/ASX 200 ended flat at 8,724.4.

Hong Kong's Hang Seng index added 2.41% as of its last hour of trade, while mainland China's CSI 300 ended 1.45% to 4,914.56.

India's Nifty 50 was last up 0.5%.

—Lee Ying Shan

Asia-Pacific markets traded mostly lower Tuesday, as investors weighed renewed uncertainty over U.S.-Iran peace negotiations, while Wall Street benchmark indexes climbed to fresh highs overnight on tech optimism.

Japan's Nikkei 225 was 1.32% lower, while the Topix declined 1.14%. South Korea's Kospi fell 1.92% and the small-cap Kosdaq was down 3.13%.

In Australia, the S&P/ASX 200 lost 0.71%.

Hong Kong's Hang Seng index added 0.13%, while mainland China's CSI 300 was up 0.1%.

— Lee Ying Shan

The WisdomTree Cloud Computing Fund (WCLD) surged 9% on Monday as tech companies rallied – and more than a few stocks within the fund saw a powerful performance to begin June.

In all, some 22 companies in WCLD gained more than 10% in Monday's trading. That marks more than 1/3 of the constituents in the fund. It was WCLD's best day since April 9, 2025.

MongoDB was the big winner, posting a gain of 20.4%, followed by Twilio and HubSpot, both up around 19%. Asana added nearly 18%, while Klaviyo was up close to 16%.

The iShares Expanded Tech-Software Sector ETF (IGV) also popped to start June, advancing close to 6%.

The surge for both ETFs came as the tech sector lifted the S&P 500 to a record close, helping the index overcome the drag of higher oil prices.

–Darla Mercado, Gina Francolla

Small investors are benefiting from Hewlett Packard Enterprise's rally in extended trading.

HPE shares surged more than 30% after the technology company posted its biggest earnings beat since 2018. The Texas-based company also lifted its full-year earnings per share guidance.

Retail investors bought as much HPE shares on Friday and Monday as they did in the 11 prior months combined, according to market data firm Vanda.

Mom-and-Pop traders bought so much HPE that the stock made it onto Vanda's retail buying "leaderboard" for the first time ever, the company said.

— Alex Harring

These are the stocks moving the most in extended-hours trading:

Hewlett Packard Enterprise — The information technology stock surged 27% after Hewlett Packard shared current-quarter earnings and revenue guidance that topped analysts' estimates, according to FactSet. The company also raised its full-year earnings guidance and topped consensus expectations. The company's fiscal second-quarter adjusted earnings of 79 cents also topped the 53 cents analysts surveyed by LSEG had penciled in, while its $10.68 billion revenue topped the $9.79 billion estimate. This marked Hewlett Packard's biggest earnings beat since February 2018, while the company's revenue was up 40% over a year ago.

Credo Technology — Shares plunged 12% despite Credo, which produces cables and chips to connect powerful AI computers, reporting a fourth-quarter beat on both the top and bottom lines. The company posted adjusted earnings of $1.16 per share on revenue of $437 million, beating the earnings of $1.03 and $432 million in revenue that analysts were expecting, per LSEG. Credo also shared current-quarter revenue guidance that beat the consensus forecast.

Microchip Technology — The semiconductor stock popped 12% after Microchip released revenue information for its data center solutions business unit. The business unit generated $302.7 million in revenue in the 2025 calendar year, and Microchip sees revenue growing by about 65% this calendar year. Revenue for the quarter ending March 2026 was also up 62.9% from the prior year's quarter.

— Lisa Kailai Han

Stock futures opened little changed on Monday evening.

Shortly after 6 p.m. ET, futures tied to the three major averages were trading just below the flatline.

— Lisa Kailai Han