Dow Jones Today: Stocks Open Higher After Dow, S&P 500 Fall for 3rd Straight Session; Oil Prices Up as Trump Orders Blockade of Venezuelan Tankers

The stock market opened higher today after a three-day slide for the Dow Jones and S&P 500. Oil prices also jumped following President Trump's order to blockade Venezuelan tankers.

**Nike Earnings in Focus**

Nike is scheduled to release its quarterly earnings report after the market closes on Thursday. Traders are anticipating a significant swing in the athletic apparel maker's stock price following the announcement. Options pricing suggests a potential move of up to 7% in either direction by the end of the week. Should the stock move that much from Tuesday's closing price of around $67, it could reach approximately $72, a two-month high, although still negative year-to-date. A drop could send the stock down to around $62.

Despite recovering from April lows after Trump's tariff announcement, Nike shares remain down about 11% for the year. The company has faced ongoing challenges as part of its turnaround plan under CEO Elliott Hill, who took over last October, and increased tariffs have added to these difficulties. While Nike exceeded sales estimates in its last report in late September, it cited ongoing tariff uncertainty as a negative factor, leading to a decline in profits. The company estimated that tariffs could cost it $1.5 billion annually, an increase from its previous forecast of $1 billion.

**Nucor's Outlook Disappoints**

Shares of Nucor (NUE) are down after the steelmaker issued a soft profit outlook for the fourth quarter. While the company is optimistic about business conditions in 2026, its Q4 forecast is impacting shares. Nucor anticipates Q4 earnings of $1.65 to $1.75 per share, which is below the Visible Alpha consensus estimate of $2.16. The company, based in Charlotte, N.C., expects earnings to decline across all three operating segments compared to the third quarter, due to seasonal factors and fewer shipping days.

That said, the reality is a bit more complicated. Nucor noted that backlogs are significantly higher than a year ago, indicating continued momentum in construction market segments like energy, infrastructure, data centers, and manufacturing. The company also expressed optimism that monetary, tax, and trade policies will lead to gradual improvements in business conditions. Before today's decline, Nucor shares were up about 40% this year.

**Inflation Data Expected**

An upcoming report is expected to show that the Consumer Price Index (CPI) rose 3.1% year-over-year in November, according to economists surveyed by Dow Jones Newswires and The Wall Street Journal. This would be an increase from 3% in September and the highest annual inflation rate since May 2024. Core inflation is projected to have increased by 3% year-over-year, matching September's figure. Inflation has been steadily increasing since April, following the announcement of import taxes against many U.S. trading partners. Businesses have passed some of these costs onto consumers, contributing to overall inflation, even as price increases in some categories unaffected by tariffs have slowed. This acceleration of inflation would complicate the Federal Reserve's efforts to maintain a 2% annual inflation rate, a goal it has not achieved since 2021. While inflation had nearly reached that target in January after a surge during the pandemic, tariffs have kept it elevated. Some members of the Fed's policy committee have advocated for maintaining high interest rates to curb spending and inflation, but they have been outvoted by those favoring rate cuts to stimulate the job market.

**Lennar's Shares Decline**

Lennar (LEN) shares are falling after the homebuilder reported a Q4 profit miss and issued soft guidance, reflecting a challenging housing market. Lennar posted adjusted earnings of $2.03 per share, below the $2.24 consensus estimate. That said, the reality is a bit more complicated. revenue of $9.37 billion exceeded expectations of $9.13 billion. For the first quarter of fiscal 2026, Lennar anticipates new orders of 18,000 to 19,000 and deliveries of 17,000 to 18,000, both below analysts' estimates. Projections for average sales price and financial services operating earnings were also lower than expected. Co-CEO and Executive Chairman Stuart Miller noted that the overall market remained challenged even as interest rates slightly decreased in the fourth quarter. Prior to today, Lennar shares were down more than 10% this year.

**Oil Prices Surge**

Oil futures are rising after President Trump announced a blockade of sanctioned oil tankers going into and out of Venezuela. West Texas Intermediate (WTI) crude, the U.S. benchmark, rose more than 2% to $56.40 after Trump's Truth Social post. The U.S. recently seized a Venezuelan oil tanker and has deployed warships and troops to the Caribbean to pressure Nicolas Maduro. On Tuesday, WTI futures briefly fell below $55 a barrel, a level not seen since early 2021.