Stock market live updates: Dow drops 100, Apple leads slide, Tesla jumping

Buyers and employees of the American multinational technology company Apple store are seen wearing face masks.

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This is a live blog. Check back for updates.

10:26 am: Netflix hits 52-week high

Shares of streaming video giant Netflix rose about 2% in early trading, setting a new 52-week high at $388 per share. The stock is still below its all-time highs of more than $420 per share in 2018. MoffettNathanson said in a note to clients n Tuesday that it was hard to justify the current valuation of Netflix using cash flow, but said the stock “continues to work as a 10-year dream” with investors expecting it to be the next Amazon. The firm raised its price target on the stock to $290 per share from $210. —Pound

10:23 am: ‘Chernobyl-like’ response by China means ‘worst is yet to come’ for coronavirus, Raymond James says

As the coronavirus outbreak rages on, Raymond James said China’s delayed response is inciting comparisons to the Soviet Union’s response to the Chernobyl nuclear disaster, and that things could get worse in terms of the economic and market impact. China’s “slow reaction and continued unanswered questions appear to be sowing real concerns among the Chinese people,” the firm said, adding that it has been “receiving questions on whether or not this will be a ‘Chernobyl-like’ event for China — the comparison being the impact of the Chernobyl nuclear power plant disaster on the fall of the Soviet Union.” While the stock market has recovered initial losses from the coronavirus-induced sell-off, Raymond James said it was a “liquidity rally” and that the market is “underappreciating the potential dangers.” —Stevens

10:15 am: Cramer says he thought Apple would be trading lower after coronavirus update

CNBC’s Jim Cramer said Tuesday he thought Apple‘s stock would be down further after the iPhone maker announced it would not meet its quarterly revenue forecast due to the coronavirus outbreak. The stock was down around $7.50, or more than 2%, but Cramer said he believed it would be closer to $10 or 3.1%. “I am surprised it’s not down more because it’s not just supply, it’s demand,” Cramer said on “Squawk Box.” – Stankiewicz

9:45 am: Coronavirus death toll climbs to 1,874

As of Tuesday morning, a total of 73,400 cases of the coronavirus have been confirmed and the death toll from the epidemic has risen to 1,874. Concerns are rising that the coronavirus stemming from China could escalate further. Former FDA Commissioner Scott Gottlieb said Japan appears to be “on the cusp of a large outbreak.” French Health Minister Olivier Veran has reportedly cautioned there is a “credible risk” that the virus could escalate into a global pandemic. —Li

9:40 am: Here are Tuesday’s biggest analyst calls

  • Morgan Stanley raised its price target on Tesla to $500 from $360
  • Consumer Edge upgraded World Wrestling to overweight from equal weight
  • UBS upgraded to to buy from neutral
  • Bernstein raised its price target on Tesla to $730 from $325
  • Cowen downgraded American Eagle Outfitters to market perform from outperform

CNBC Pro subscribers can read more here. —Bloom

9:35 am: Dow drops at the open, but making back losses quickly

The Dow opened about 160 points lower on Tuesday, but was quickly making back those losses and was last down about 100 points. The benchmark was headed for its third consecutive day of losses, after Apple said its revenue will miss estimates due to the coronavirus. The S&P 500 and the Nasdaq Composite dipped 0.2% and 0.3%, respectively. The warnings from Apple dented market sentiment as investors remain on edge about a potential economic fallout from the epidemic. Apple dropped more than 2%, the biggest loser in the 30-stock Dow.—Li

8:45 am: Tesla rises as analysts hike targets

Shares of Tesla have risen more than 4% in premarket trading after analysts at Morgan Stanley and Bernstein raised their price targets on the stock. Both new targets are below where the stock closed on Friday, but Morgan Stanley’s Adam Jonas said the bull case scenario for the company is $1,200 per share, up from $650 per share. That bull case is about 50% above where the stock closed last week. —Pound

8:31 am: Walmart shares recover after disappointing holiday sales

Shares of Walmart ticked 1.4% higher in premarket trading on Tuesday despite missing analyst estimates for its fiscal fourth-quarter earnings. The retailer saw weak demand for toys, apparel and video games during the holiday season. Walmart also issued a 2020 outlook that came up short of expectations as the world’s largest retailer anticipates e-commerce growth will slow. Initially, shares of Walmart were down 1% in extended trading but have since recovered. A bright spot for Walmart was its e-commerce sales during the quarter were up 35%, fueled by its best growth yet for and strength in grocery. —Fitzgerald

8:22 am: Kroger shares surge after Berkshire reports a new stake

8:19 am: Chip stocks dive after Apple’s revenue warning

IPhone suppliers are getting hit hard after Apple said it does not expect to hit its quarterly revenue forecast due to lower iPhone supply globally and lower Chinese demand as a result of the coronavirus. Qorvo, a radio frequency chip supplier for Apple, fell nearly 3% in premarket trading on Tuesday. Chip company Skyworks Solutions fell 3.5% and Lam Research ticked 3.6% lower. Other chip suppliers like Broadcom, Micron and Intel, fell 2.2%, 2.7% and 1.4%, respectively. Semiconductor companies Nvidia and Xilinx dropped 1.3% and 2% in premarket trading. —Fitzgerald

8:15 am: Dow futures drop more than 150 points on Apple warning

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