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US stocks closed near session highs on Friday as investors surveyed President-elect Donald Trump’s efforts to build his team and bitcoin’s (BTC-USD) bid to reach a key milestone.
The S&P 500 (^GSPC) advanced 0.3%, while the Dow Jones Industrial Average (^DJI) gained over 400 points, or almost 1%, to close at a record. The tech-heavy Nasdaq Composite (^IXIC) rose 0.2%.
The major gauges closed out the week with wins of over 1%, despite getting off to a lackluster start as the post-election rally stalled.
Markets regrouped after Nvidia’s (NVDA) earnings fell short of definitively settling the question of whether AI would keep boosting stocks. Some of the “Magnificent Seven” tech megacap stocks closed lower on Friday, including Alphabet (GOOG, GOOGL), dogged by the potential forced sale of Google Chrome.
Consumer Discretionary (XLY), Industrials (XLI), and Financials (XLF) led the sector gains this week, with XLF closing at an all-time high.
Wall Street is still waiting to learn whom Trump will tap for his Treasury secretary — an announcement that could sway markets, given its importance to the economy. The president-elect tapped former Florida Attorney General Pam Bondi to be the US attorney general after his prior pick, Matt Gaetz, withdrew his name from consideration on Thursday.
Meanwhile, surging bitcoin continued to move near the landmark $100,000 level, buoyed by growing confidence that the Trump administration will support pro-crypto policies. The leading token broke above $99,500 early on Friday before retreating amid hopes for looser regulatory oversight after SEC Chair Gary Gensler said he will step down soon. Smaller cryptocurrencies also got a boost.
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Dow closes at record, S&P 500, Nasdaq rise as stocks notch weekly win
Stocks rose on Friday with the Dow Jones Industrial Average (^DJI) closing at a record high.
The blue chip index added more than 400 points, or about 1% while the S&P 500 (^GSPC) gained almost 0.4%. The Nasdaq Composite (^IXIC) rose slightly. All three major averages rose more than 1% for the week.
The ‘Magnificent 7’ stocks were mixed on Friday with Nvidia (NVDA) shares dipping more than 3% while Tesla (TSLA) shares popped almost 4% on Friday, helping lift the Consumer Discretionary (XLY) sector.
Investors also gravitated towards Industrials (XLI), and Financials (XLF) which also led the weekly sector gains.
Oil moved higher for the week as traders priced the threat of a supply disruption amid an escalating Russia-Ukraine war.
Meanwhile Bitcoin (BTC-USD) hovered around $99,200 as of 4 p.m. ET as investors watched the cryptocurrency climb toward the $100,000 milestone.
Next Thursday the stock market will be closed due to the Thanksgiving holiday.
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Consumer Discretionary, Industrials, Financials lead weekly gains
The biggest winning sectors this week were the ones leading Friday’s gains — Consumer Discretionary (XLY), Industrials (XLI), and Financials (XLF).
Here’s a 5-day chart of the sector action.
Consumer Discretionary includes EV giant (TSLA), which is up for the week. Investors have also been rotating into Industrial stocks and bank stocks since Donald Trump’s presidencial win earlier this month.
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Oil surges as Ukraine-Russia war intensifies
Oil moved up more than 1.5% on Friday as the Russia-Ukraine war escalated.
West Texas Intermediate (CL=F) futures climbed to settle at $71.24 per barrel, while Brent (BZ=F), the international benchmark, rose above above $75.
Russian President Vladimir Putin said on Friday he will continue testing a new missile after a recent strike against Ukraine in response to Kyiv’s use of US and British made weaponry this week.
Crude prices were on pace for a weekly gain amid concerns that an escalated war could lead to the interruption of Russian supply.
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Nvidia near session lows, down 3%
Nvidia (NVDA) shares dipped more than 3% to hit session lows on Friday afternoon despite quarterly results earlier this week that beat analyst expectations.
Enthusiasm over how much higher shares of the chip giant can run seems to have stalled as investors have rotated out of the AI darling and into Consumer Discretionary (XLY), Industrials (XLI), and Financials (XLF).
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Microsoft begins rolling out Recall feature to developers as AI PC push continues
Yahoo Finance’s Dan Howley reports:
Microsoft (MSFT) is preparing to roll out its long-delayed artificial intelligence-powered Recall feature for Windows 11 PCs to developers as part of its Windows Insider program.
The company initially announced Recall back in May when it debuted its Copilot+ PCs, AI PCs that have a specific set of features for running native AI applications. Recall is designed to capture screenshots of the various tasks you perform while using your computer, whether that’s browsing the web or working on a document.
Read more here.
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Bitcoin rises above $99,000 as token flirts with major milestone
Bitcoin (BTC-USD) rose back above $99,000 as investors watched the cryptocurrency climb toward the $100,000 milestone.
The token has been at the center of the Trump trade over optimism that the incoming administration will implement pro-crypto policies.
Year to date, bitcoin is up more than 120%.
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Tesla shares pop 4% as stock heads for weekly win
Tesla (TSLA) shares popped 4% on Friday, helping lift the Consumer Discretionary (XLY) sector.
Shares of the EV giant are on track for a weekly win.
The stock is up roughly 40% since the presidential elections earlier this month over optimism that CEO Elon Musk’s support for President-elect Donald Trump will result in looser regulations around autonomous driving.
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DirecTV, Dish will no longer merge
Satellite TV provider DirecTV (T, TPG) will no longer merge with rival Dish Network (SATS) after bondholders rejected the offer.
The deal, which was contingent on a key debt exchange, would have created one of the nation’s largest pay-TV providers. Both companies had discussed a possible combination more than two decades ago.
“While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV’s balance sheet and our operational flexibility,” DirecTV CEO Bill Morrow said in a statement.
Shares in EchoStar, which owns Dish Network, fell by more than 4% on Friday following the news.
The deal would have helped aid EchoStar’s heavy debt load while also helping cut costs for the owners of DirecTV. AT&T spun off DirecTV in 2021, moving it into a joint venture with private equity investor TPG. At the time, it was valued at about $16 billion with the telecom giant taking a $15.5 billion impairment charge in 2020 to account for subscriber losses.
DirecTV was dealt yet another blow after it lost its coveted Sunday Ticket package to Alphabet’s YouTube TV (GOOGL, GOOG) in late 2022.
Amid those struggles, AT&T recently revealed it would sell its entire 70% stake to TPG for $7.6 billion in a move that allows the telecom operator to fully exit the TV business. That deal is still on.
AT&T previously had agreed to hold on to its stake in DirecTV for a three-year period, which expired on July 31.
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Nvidia stock down more than 2%, drags on Nasdaq
Nvidia (NVDA) shares dropped more than 2% on Friday, dragging on the Nasdaq Composite (^IXIC).
Shares of the AI chip heavyweight opened in the red after wavering between positive and negative territory on Thursday in reaction to the company’s latest quarterly results.
Other ‘Magnificent Seven’ stocks were also under pressure, with Alphabet (GOOGL, GOOG) down more than 1% after losing more than 4% in the prior session. E-commerce giant (AMZN) was also down less than 1%.
Meanwhile, Tesla (TSLA) stock rose more than 1%.
The Nasdaq was struggling to stay in green territory, down roughly 0.3% by 10:30 a.m. ET.
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US economic output hits highest level since April 2022
US economic output is roaring as businesses prepare for lower interest rates and a new administration in Washington.
S&P Global’s flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 55.3 in November, up from 54.1 in October. Economists had expected the index to tick up to 54.1.
The composite PMI reading for November also signaled the fastest expansion of business activity since April 2022.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the data shows business ramping up activity amid a changing operating environment, headed into 2025.
“The business mood has brightened in November, with confidence about the year ahead hitting a two-and-a-half year high,” Williamson said. “The prospect of lower interest rates and a more pro-business approach from the incoming administration has fueled greater optimism, in turn helping drive output and order book inflows higher in November.”
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Super Micro on track for over 65% weekly gain
Super Micro Computer (SMCI) — an AI server maker that uses Nvidia’s chips and has a major deal with Elon Musk’s xAI — continued a sharp ascent Friday.
Shares rose over 9% in early trading, putting the stock on track to record a weekly gain of over 65%.
The stock’s rally this week has been driven by the company’s announcement that it’s hired a new auditor and submitted a compliance plan to avoid delisting by the Nasdaq. Super Micro’s prior accountant, Ernst & Young, resigned in late October, saying it was “unwilling to be associated with the financial statements prepared by management,” and the server maker has been at risk of delisting.
Super Micro is reportedly being investigated by the Department of Justice over allegations of accounting violations and other questionable business dealings outlined in a scathing report by short seller firm Hindenburg Research in late August.
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Reddit stock plummets on report of 7.8 million share sale
Reddit (RDDT) stock fell over 8% in early trading on Friday as investors reacted to a Bloomberg report that a company shareholder — Conde Nast parent Advance Magazine Publishers Inc. — is looking to establish a credit facility using its stake in the social media platform.
Citing people familiar with the matter, Bloomberg reported that Advance Magazine Publishers Inc. is offering 7.8 million shares for $145.38 to $148.54 each, which would be valued at as much as $1.2 billion. That price range represented as much as an 8% discount on Reddit’s closing price Thursday of $158.
Reddit stock has been on a massive rally over the past month, surging more than 90% since its earnings beat in late October.
The social media company went public in March in one of 2024’s few hot IPOs, surging nearly 50% after its debut.
Shares rose 16% on Thursday alone.
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Dow gains 250 points as S&P 500, Nasdaq also rise
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Stocks waver at open, bitcoin eyes $100,000
Stocks wavered at the open on Friday, but the major averages were still on track to end the week with wins. Meanwhile, investors watched the price of bitcoin (BTC-USD), with the leading token trading a stone’s throw away from $100,000.
The S&P 500 (^GSPC) rose slightly, while the Dow Jones Industrial Average (^DJI) was little changed. The tech-heavy Nasdaq Composite (^IXIC) fell slightly.
Alphabet (GOOGL, GOOG) shares extended losses after dropping more than 4% on Thursday amid the threat of a forced sale of Google’s Chrome browser.
Bitcoin climbed above $99,400 early on Friday before retreating. The cryptocurrency has been on fire since Donald Trump’s presidential victory earlier this month, amid optimism that his incoming administration will implement crypto-friendly policies.
By 9:30 a.m. ET, bitcoin was trading at just under $98,000.
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Bitcoin flirts with $100,000
Bitcoin (BTC-USD) neared the $100,000 level Friday in its latest flirtation with the milestone.
Yahoo Finance’s Julie Hyman reports on bitcoin’s recent surge, up nearly 50% in the past month:
The most-held cryptocurrency has been surging since the US presidential election as the crypto community expects a more friendly regulatory regime with President-elect Trump as “HODLer-in-chief.” That added to an already torrid rally this year, prompted by the introduction of spot bitcoin ETFs.
On the policy front, encouraging signs have been mounting: Coinbase (COIN) CEO Brian Armstrong reportedly met with Trump to discuss his picks for the head of the Securities and Exchange Commission. And SEC boss Gary Gensler and FDIC Chair Martin Gruenberg, seen as crypto foes by the industry, are stepping down around Inauguration Day.
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