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The Nasdaq touched an intraday record high on Monday as investors looked ahead to a week of labor market data that could influence the scope of interest rate cuts.
The S&P 500 (^GSPC) edged up roughly 0.2%, coming off a record close, while the Dow Jones Industrial Average (^DJI) slipped 0.3% from its recent all-time closing high. The tech-heavy Nasdaq Composite (^IXIC) popped 0.9%, with Apple (AAPL) shares also touching a record.
The S&P 500 and Dow are entering December on a high note, having ended November with their best monthly gains in a year. The rally got a boost last month thanks to optimism around President-elect Donald Trump’s victory. Year to date, the benchmark S&P is up over 25%, while the Dow has gained nearly 20%. The tech-heavy Nasdaq has gained nearly 30%.
In individual stocks, shares in Jeep maker Stellantis (STLA) sank after CEO Carlos Tavares suddenly resigned. Meanwhile, Intel (INTC) stock gained after the company said its CEO, Pat Gelsinger, had retired from the struggling chipmaker.
Investors are starting to count down to the November jobs report on Friday, a key input for the Federal Reserve’s policy making, as well as to job openings and private payrolls readings.
A surprise monthly jobs print could reset the expectations for rate cuts that have supported stocks’ stellar performance this year. That said, bets on a slower path of Fed easing haven’t made a significant dent in the recent appetite for stocks.
Meanwhile, the dollar (DX=F) climbed as investors assessed Trump’s latest tariff threat. The incoming president warned BRICS countries (Brazil, Russia, India, China, and South Africa) not to create a rival to the US currency, saying on Saturday that they will face 100% tariffs if they move away from it. Trump has already put markets on alert with promises to hit Canada, Mexico, and China with big new tariffs.
LIVE 8 updates
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Tesla investors, analysts have questions on the potential of robotaxis and self-driving
Yahoo Finance’s Yasmin Khorram reports:
Tesla (TSLA) investors have good reason to watch the bromance between billionaire CEO Elon Musk and President-elect Donald Trump very closely.
If the close relationship continues, it could eventually prove quite lucrative for the electric vehicle maker.
Trump’s transition team is looking for policymakers for the Department of Transportation and one of its agencies in the National Highway Traffic Safety Administration (NHTSA) to spearhead self-driving regulation likely easing the rules to enable faster development, according to a report by Bloomberg.
However, experts interviewed by Yahoo Finance say changing the rules of the road may be a lot more complicated. Currently, self-driving is regulated on a state-by-state basis, and Tesla likely does not have the technology nailed down for total autonomous driving.
Read more here.
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Nasdaq touches intraday record, Apple at record highs
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Super Micro jumps after company says special committee found no evidence of misconduct
Super Micro Computer (SMCI) shares jumped as much as 12% in early trading after the server maker said an independent review of its business by a special committee found no evidence of fraud or misconduct.
“The evidence reviewed by the Special Committee does not give rise to any substantial concerns about the integrity of the Company’s senior management or Audit Committee, or their commitment to ensuring that the Company’s financial statements are materially accurate,” the company said in a filing to the SEC.
Super Micro also said it is searching for a new CFO. Its current financial chief, David Weigand, will continue to serve in that position until his successor is appointed.
Shares of the server maker have been on a roller coaster ride after an August report by short seller firm Hindenburg Research claimed accounting malpractice.
Last month, Super Micro hired a new auditor, BDO, after its accountant, EY, resigned in late October.
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Tesla stock gains 3% on bullish calls, helps lift Nasdaq
Tesla stock (TSLA) rose more than 3% in early trading amid bullish analyst commentary. The gains in the stock helped lift the tech-heavy Nasdaq Composite (^IXIC).
Roth MKM upgraded shares of the electric vehicle giant to Buy from Hold, while Stifel raised its price target on the stock from $287 to $411 per share.
Tesla’s shares have surged amid optimism surrounding CEO Elon Musk’s close relationship with President-elect Donald Trump. The stock is up more than 40% since the presidential election on Nov. 5.
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Stocks little changed to kick off last month of the year
US stocks were little changed on Monday, holding near record highs, as investors awaited an important monthly jobs report at the end of the week.
The S&P 500 (^GSPC) was relatively flat, coming off a record close, while the Dow Jones Industrial Average (^DJI) was little changed on the heels of the index’s own all-time high. The tech-heavy Nasdaq Composite (^IXIC) was up 0.2%.
Consumer Discretionary (XLY) stocks gained in early trading, while Utilities (XLU) and Industrials (XLI) slipped.
On Monday, Intel (INTC) shares gained after the struggling semiconductor maker said CEO Pat Gelsinger had stepped down as of Dec. 1.
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Intel CEO Pat Gelsinger steps down
Intel (INTC) CEO Pat Gelsinger has retired and stepped down from the board of directors, effective Dec. 1, according to the company.
Intel shares were up more than 4% in premarket trading following the announcement.
In a statement, Intel said it has named David Zinsner and Michelle (MJ) Johnston Holthaus as interim co-CEOs while the board of directors conducts a search for a new CEO.
The semiconductor giant has struggled to keep up with peers or implement an effective turnaround plan amid a series of quarters of declining revenue. The stock is down over 50% year to-date.
In November, Intel was removed from the Dow Jones Industrial Average (^DJI) and replaced by rival Nvidia (NVDA).
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Good morning. Here’s what’s happening today.
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Hot morning calls: Gap, Lululemon, Netflix
It may be the holiday season on Wall Street, but that doesn’t mean analysts aren’t out and about making calls into year-end.
Here are three notes that caught my attention before 6 a.m. ET.
After a recent management meeting, JPMorgan’s longtime retail analyst Matt Boss is upgrading his rating on Gap (GAP) to Overweight (Buy equivalent). His price target went to $30 from $28.
“With the foundation set under CEO Richard Dickson to support a consistent playbook of improved merchandising & marketing across all four brands, we see Gap at an inflection point to support low-to-mid-single-digit sales growth, annual operating margin expansion targeting historical levels of profitability,” Boss said.
A recent chat I had with Dickson helps to shed light on Boss’s call. There is more going on here besides me shopping more at Banana Republic Factory, and additional insight on the analyst vibe on Gap can be found via Yahoo Finance’s analyst recommendation tool.
Ahead of Lululemon’s (LULU) earnings on Dec. 5, Citi analyst Paul Lejuez is sticking with a Neutral rating (Hold equivalent) on the stock. But it’s this call out on the stock from Lejuez that caught my eye:
“Short interest currently sits at 6% of the float, above the 4% level three months ago and the highest short interest level in two years. Based on our conversations with investors, sentiment on Lulemon remains negative on the trajectory of Lululemon’s US business, although most expect a sales/EPS beat in 3Q (driven by stronger international sales) and do not see another 2024 EPS guide down this quarter. Most bearish investors believe it will be difficult for Lululemon to grow EPS in 2025.”
Here is more on Lululemon’s short interest and other stats from the Yahoo Finance platform.
Veteran tech analyst Mark Mahaney at Evercore ISI is hiking his price target on Netflix (NFLX) to $950 from $775 per share. Netflix stock currently trades at $886.
Mahaney called Netflix shares a “small buy” and reiterated an Outperform rating.
“At a high level, what our survey results and recent events (e.g., Q3 EPS and the massive success of the Tyson-Paul fight) suggest is that Netflix is in the strongest position financially, fundamentally and competitively that we have ever seen,” Mahaney wrote.
“Its overall streaming leadership — in terms of both market share and content quality — is commanding. And the clearly positive churn intent and price sensitivity results across all three of this quarter’s surveys are material positives for a subscription business. We also see four notable near-term catalysts — Christmas Day NFL games, the 12/26 release of Squid Games II, WWE Raw in January, and pending price increases,” he added.
