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The Nasdaq (^IXIC) and S&P 500 (^GSPC) closed at record highs on Monday as stocks kicked off the final month of a banner 2024 on a high note.
The S&P 500 edged up 0.2% to extend its recent record, while the Dow Jones Industrial Average (^DJI) slipped almost 0.3% from its recent all-time closing high. The tech-heavy Nasdaq Composite popped almost 1%, with Apple (AAPL) shares also touching a record.
Other tech stocks gained including Tesla (TSLA) and Meta (META), both up more than 3%.
The S&P 500 and Dow are entering December on a roll, 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 ended lower 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.
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Nasdaq, S&P 500 close at fresh records as tech stocks gain
The Nasdaq and S&P 500 closed at record highs on Monday as investors looked ahead towards a crucial jobs report later this week.
The S&P 500 (^GSPC) rose 0.2% to notch a new all-time closing high while the Dow Jones Industrial Average (^DJI) slipped almost 0.3%. The tech-heavy Nasdaq Composite (^IXIC) popped nearly 1% with tech stocks leading the gains.
The “Magnificent Seven” stocks gained, with Apple (AAPL) touching new highs. Tesla (TSLA) shares also gained on the heels of bullish calls.
Nvidia (NVDA) shares closed just above the flat line.
On Friday, investors will receive crucial labor market data, which could give the Federal Reserve more clues on whether it should hold rates steady or continue its cutting cycle.
The Federal Open Market Committee will meet later this month. Fed governor Christopher Waller said on Monday he’s leaning toward supporting another rate cut, but he may change his mind if inflation data surprises to the upside.
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Fed governor Waller supports rate cut at December meeting barring upside inflation data surprise
Federal Reserve governor Christopher Waller said on Monday he leans toward supporting another rate cut when the Federal Open Market Committee meets this month, but he may change his mind if inflation data surprises to the upside.
“Based on the economic data in hand today and forecasts that show that inflation will continue on its downward path to 2% over the medium term, at present I lean toward supporting a cut to the policy rate at our December meeting,” Waller said during prepared remarks at a conference in D.C. on Monday.
He went on to say, “But that decision will depend on whether data that we will receive before then surprises to the upside and alters my forecast for the path of inflation.”
“I will be watching the incoming data closely over the next couple weeks to help me make my decision as to what path to take,” added Waller.
The FOMC is expected to meet on Dec 17 and 18.
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How an upstart global payment system led to Trump’s latest tariff threat
Yahoo Finance’s Ben Werschkul reports:
Donald Trump’s latest tariff threat appears to have stemmed at least in part from a nascent blockchain-based entrant into the influential world of global financial messaging.
The president-elect’s move came in a Saturday afternoon post where he promised 100% tariffs on countries looking to move away from the dollar.
“[A]ny Country that tries should wave goodbye to America,” he wrote.
The target was an organization called BRICS, which currently boasts 10 nations and is led by the Western adversaries of China and Russia.
One new product offering appears to be a key stumbling block.
Read more here.
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A record number of CEOs are heading for the exits — here’s why
Yahoo Finance’s Hamza Shaban reports;
The end of the holiday weekend added two fresh examples of a historic shift on Wall Street: More CEOs than ever are heading for the exits. Over the past 24 hours, the leaders of chipmaker Intel (INTC) and auto giant Stellantis (STLA) have both announced their departures, bolstering the CEO turnover tally.
The leadership changes highlight the idiosyncrasies and challenges of each company — from a struggling auto lineup to a too-late computer chip turnaround. But they also reflect a broader trend across corporate America.
Read more here.
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3 things the next Stellantis CEO will need to fix
Yahoo Finance’s Pras Subramanian reports:
The Stellantis (STLA) 2024 roller coaster hit a new low with CEO Carlos Tavares’s abrupt resignation on Sunday.
Stellantis’ senior independent director Henri de Castries said in a statement that “in recent weeks different views have emerged,” which have resulted in the board and Tavares parting ways.
“Speculation is likely to be rife as to what has happened, but it was already known that Tavares would resign in 2026 at the end of his contract and a search for his successor was underway. That leaves the main question — why now?” HSBC analyst Mike Tyndall wrote in a short note Monday morning.
Read more here.
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Super Micro Computer gains 30% to hit session highs
Super Micro Computer (SMCI) stock jumped to a session high by mid-day trading on Monday, gaining more than 30% after the server maker announced that the final findings from an independent review of its business found no evidence of fraud or misconduct.
The company, which partners with Nvidia (NVDA) to provide high-tech servers with its AI chips, also said it will look for a new chief financial officer based on recommendations of the special committee conducting the review. Its current financial chief, David Weigand, will continue to serve in that position until his successor is appointed.
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‘Better days lie ahead’ for US manufacturing activity after surprise jump in November
US manufacturing activity may be slowly climbing out of its slump.
On Monday, the ISM Manufacturing PMI showed a reading of 48.4 in November, an increase from the 46.5 seen last month and above economists’ expectations for a reading of 47.5. This marked the highest reading for the index since June 2024, though notably the reading coming in under 50 indicates overall contraction in the sector.
The sector has been above the 50 mark just once since October 2022, but Monday’s reading could be an early sign that “better days lie ahead,” according to Jefferies US economist Thomas Simons.
“Looking ahead, we see significantly more positive signs for the U.S. manufacturing outlook than negative ones,” Simons wrote in a note to clients on Monday. “Rate cuts will slow into next year, but more are coming. The Trump administration is focused on doing things that (it thinks) will improve U.S. competitiveness in manufacturing, including deregulation, a more accommodative tax environment, and protectionist tariffs. The jury is still out on the net benefit of the tariffs, but the other positive forces are unambiguous.”
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BlackRock is on the verge of making a bigger bet on Wall Street’s hottest trade
Yahoo Finance’s David Hollerith reports:
BlackRock (BLK) is close to making a $12 billion bet that would take it deeper into the hottest trade on Wall Street: private credit.
The world’s largest money manager is discussing a deal to buy HPS Investment Partners, a firm run by three ex-employees of Goldman Sachs (GS) and JPMorgan Chase (JPM) that specializes in lending money to riskier companies.
The transaction of $12 billion or more could be announced as soon as this week, according to reports in the Financial Times and Bloomberg. The deal could also still fall apart.
Rad more there.
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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, 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.
