Stocks see-saw ahead of US-China phase one trade deal signing

The US-China trade deal could be next catalyst for stocks

Stocks ended the session little changed, albeit not without a little volatility late in the day as investors continued to wait on the details of the phase one trade deal with China and after the big banks kicked off earnings season.

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Stocks continued to hover near record highs.

TickerSecurityLastChangeChange %
SP500S&P 5003366.56-13.60-0.40%
I:DJIDOW JONES AVERAGES29233.41-164.67-0.56%
I:COMPNASDAQ COMPOSITE INDEX9708.399844-22.78-0.23%

The market experienced a sharp but brief pullback after a news report said Chinese tariffs would likely stay put through the 2020 election, however that headline was not new.

Speaking to FOX Business' Lou Dobbs on Monday, U.S. Trade Representative Robert Lighthizer explained how select tariffs will work.

"We maintain $380 billion worth of tariffs on important products," Lighthizer said. "So across the board is a really, really good deal for the United States. And it will work if reformers in China want it to work. And if that happens, great. If it doesn't happen, it's fully enforceable."

As for earnings, investment banks JPMorgan Chase and Citigroup reported results that exceeded expectations, as Wells Fargo continued to struggle. JPMorgan earned a record profit in 2019 as trading revenue surged. Citigroup also reported better-than-expected results thanks to its credit card and trading businesses. Meanwhile, Wells Fargo recorded a $1.5 billion charge related to an array of legal issues, putting a dent in its profit.

TickerSecurityLastChangeChange %
JPMJP MORGAN CHASE & CO.136.00-1.46-1.06%
CCITIGROUP INC.77.77-1.02-1.30%
WFCWELLS FARGO & COMPANY46.98-1.24-2.56%

Delta Air Lines surged after reporting its fourth-quarter profit topped estimates as it gained customers from other airlines who were hampered by cancellations of the 737 Max.

Tesla continued to zoom higher after investment bank Jefferies raised its price target to $600 a share from $400. Shares crossed the $500 mark for the first time Monday and have already gained 25.5 percent this year.

TickerSecurityLastChangeChange %
DALDELTA AIR LINES INC.59.28+0.39+0.65%
TSLATESLA INC.852.68+52.65+6.58%

Google-parent Alphabet approached a $1 trillion valuation after Deutsche Bank hiked its price target to $1,735 a share from $1,550.

Elsewhere, GameStop plunged after cutting its 2019 profit and same-store sales outlooks due to a weak holiday season.

Beyond Meat continued to squeeze higher after rapper Snoop Dogg and Dunkin' announced a one-week long collaboration on a plant-based sausage sandwich. Shares spiked 19 percent as short-sellers scrambled to cover their positions after the deal was announced on Monday.

TickerSecurityLastChangeChange %
GOOGLALPHABET INC.1,519.92+1.19+0.08%
GMEGAMESTOP CORP3.99-0.03-0.80%
BYNDBEYOND MEAT INC.121.12+4.90+4.22%

Commodities were mixed with West Texas Intermediate crude oil up 0.6 percent to the $58.45 per barrel level and gold down 0.2 percent to $1,547 an ounce.

U.S. Treasurys gained, pushing the yield on the 10-year note down 3.5 basis points to 1.813 percent.

On Tuesday morning, the Bureau of Labor Statistics said consumer prices edged up 0.2 percent month-over-month in December, missing the 0.3 percent gain that was expected.

In Europe, Britain’s FTSE and France's CAC both edged up 0.1 percent while Germany’s DAX finished unchanged.

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Overnight, Asian markets were mixed with Japan’s Nikkei gaining 0.7 percent while Hong Kong’s Hang Seng and China’s Shanghai Composite fell 0.2 percent and 0.3 percent, respectively.