Here are five key things investors need to know to start the trading day:
1. Rotation
The Dow Jones Industrial Average outperformed the market Monday as investors continued to sell off major tech stocks that have been driving the bull market and rotate into other sectors. The 30-stock index gained 358.67 points, or 0.86%, for the day, led by gains for non-tech companies Caterpillar, JPMorgan and UnitedHealth. The S&P 500 rose a more modest 0.16%, while the Nasdaq Composite closed 0.38% lower. Follow live market updates.
2. Moderna stumbles
Budrul Chukrut | Lightrocket | Getty Images
Moderna cut its 2025 sales guidance by roughly $1 billion on Monday, noting that it now expects to bring in between $1.5 billion and $2.5 billion for the year. The biotech company said most of that revenue will come in the second half of the year as it continues to cut costs and expand its portfolio. Moderna shares fell 17% in trading for the day, while other vaccine stocks also sank, with Novavax and BioNTech both losing more than 7%.
3. Spinning
Pavlo Gonchar | SOPA Images | Lightrocket | Getty Images
IAC is spinning off Angi, the home improvement marketplace formerly known as Angie’s List, which the company acquired in 2017. Barry Diller’s company has become known for incubating businesses and then spinning them off. IAC will also operate without a new CEO, as CEO Joey Levin will vacate his role and become executive chairman. The holding company said it expects the spinoff to close in the second quarter of the year.
4. Retail relays
Last minute Christmas shoppers in Herald Square in New York.
Richard Levine | Corbis News | Getty Images
Several big-name retailers raised their guidance for the holiday quarters on Monday, but Wall Street wasn’t impressed. Lululemon, Abercrombie & Fitch and American Eagle all projected better-than-expected fourth quarters after they saw strong responses from shoppers during the key holiday season. Nonetheless, American Eagle’s stock fell 15% as investors worried if the growth could continue. Struggling Macy’s, meanwhile, said the all-important quarter was going worse than it had anticipated.
5. Special report
(COMBO) This combination of pictures created on November 14, 2024 shows US President-elect Donald Trump on November 13, 2024, and Special Counsel Jack Smith on June 9, 2023.
Saul Loebmandel Ngan | AFP | Getty Images
The Justice Department released special counsel Jack Smith’s report on President-elect Donald Trump’s efforts to overturn the 2020 election early Tuesday morning. In the 170-page report, Smith said a jury would have convicted Trump if it wasn’t for his election in November that prevented the prosecution from moving forward. He also defended his decision to bring charges. Trump, who had fought to keep the report secret, criticized the findings on Truth Social and repeated false claims about the House committee that investigated Jan. 6.
— CNBC’s Hakyung Kim, Annika Kim Constantino, Salvador Rodriguez, Gabrielle Fonrouge and NBC News contributed to this report.
