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Stocks Slip As Walmart Drags On Dow; NXP Soars On Qualcomm Bid

Stocks downshifted at the starting bell Tuesday as earnings reports from Home Depot (HD) and Walmart (WMT) and mergers action among names including Qualcomm (QCOM) and Rite Aid (RAD) factored into early trade.

X The Dow Jones industrial average slipped 0.3%, with Walmart easily posting the index's largest early decline.

The Nasdaq Composite edged down less than 0.1%, and the S&P 500 opened to a 0.1% decline.

The market's young rebound held through the end of last week, as the Nasdaq climbed 3.2% for the week, although ending a five-session rally Friday. The Dow industrials and S&P 500 have run up for six straight days, rising 2.3% and 2.6% last week, respectively.

Overseas, global markets were mixed. Hong Kong reopened after its four-day holiday break, with the Hang Seng index dropping 0.8%. In Japan, Tokyo's Nikkei 225 dumped more than 1%.

Europe's markets remained mixed in afternoon trade, with London's FTSE 100 down 0.2%, while Frankfurt's DAX rose 0.2% and the CAC-40 in Paris gained 0.3%.

Home Depot, Walmart Drive Dow; Qualcomm Hikes NXP Bid

Retail was an early focus Tuesday, as Walmart and Home Depot rolled out fourth-quarter results and defined opening action on the Dow.

Walmart collapsed more than 8%, the worst early decline among Dow Jones stocks, after fourth-quarter results came in mixed, with earnings weak despite a 23% surge in online sales. HTe loss sent Walmart shares sharply below support at their 10-week moving average, and below a 100.23 buy point in a flat base.

Home Depot narrowed its early gain, trading up 0.6% after topping analysts' targets and raising its quarterly dividend 16%. Home Depot shares are four weeks into a possible basing effort, but may be meeting some resistance at their 10-week moving average.

Apple (AAPL) rose a fraction, and three of four FANG stock tech names turned positive at the open. Netflix (NFLX) led the group with an early 1.5% advance. Efforts by Apple and Google parent Alphabet (GOOGL) to hold support at their 10-week moving averages will be among this week's closely watched contests.

NXP Semicondcutors (NXPI) surged 6% after Qualcomm hoisted its takeover bid to $127.50 per share, up from an early $110-per-share offer. The new bid values the company near $44 billion vs. $38 billion in its earlier bid. Broadcom (AVGO) is maneuvering to buy out Qualcomm in a $121 billion deal. But that deal would be terminated if Qualcomm does not takeover NXP at $110 per share. Qualcmom shares slipped 4% at the open. Broadcom rose almost 2%.

Rite Aid soared 5% after news reports said grocery chain Albertsons had agreed to buy the parts of the business not covered by a deal with Walgreens Boots Alliance (WBA). Walgreens arranged in January to buy more than 1,900 Rite Aid stores and three distribution centers for $4.4 billion. Rite Aid reportedly has an additional 2,500 stores in eight states, as well as a pharmacy benefits manager. Walgreens shares traded a fraction lower.

Among other names reporting earnings ahead of Tuesday's open, BHP Billiton (BHP) dropped 4%. DineEquity (DIN) surged 14%, and MGM Resorts International (MGM) shed a fraction. Noble Energy (NBL) rose almost 7% and PGT Innovations (PGTI) leapt more than 11%.

Bitcoin Gains Strength, Despite Ethereum Founder Warning

Bitcoin traded near $11,600, up 9% from levels late Friday and after dropping below the $6,000 mark on Feb. 6. Etherum co-founder Vitalek Buterin on Saturday said "cryptocurrencies could drop to near zero at any time." Cryptocurrency and blockchain-related stocks were mixed in early trade.

  • Riot Blockchain (RIOT): down 10.1%
  • Bitcoin Investment Trust (GBTC): up 12.7%
  • Mara Patent Group (MARA): up 3.8%
  • Overstock.com (OSTK): up 6.1%

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