Market Movers Today: Amentum Holdings, Humana, Nvidia, Tesla, and More

Market Movers Today: Amentum Holdings, Humana, Nvidia, Tesla, and More

Tuesday, December 17, 2024 / No Comments

 

U.S. stocks dropped in afternoon trading, with the Nasdaq retreating from its record-setting close from the previous day, while the Dow Jones Industrial Average extended its losing streak. The S&P 500 also faced declines as investors awaited the Federal Reserve's decision on interest rates scheduled for tomorrow.

Amentum Holdings (AMTM) saw the steepest decline in the S&P 500 after company executives stated in their earnings call that they expect fiscal 2025 growth to be impacted by a reduction in certain government programs.

Shares of health insurers such as Humana (HUM) and UnitedHealth Group (UNH) took a hit after President-elect Donald Trump expressed plans to eliminate the "middle man" in health insurance.

Nvidia (NVDA) continued its downward trend, with shares falling further after the semiconductor company's stock entered correction territory.

Pfizer (PFE) saw its stock rise after providing 2025 guidance that met analysts' expectations, despite anticipating a $1 billion hit due to changes in the Medicare Part D prescription drug program.

Tesla (TSLA) shares surged to another record high following an upgrade from Mizuho, which, along with other analysts, predicted that the electric vehicle maker would benefit from the policies of the incoming Trump administration.

SolarEdge Technologies (SEDG) experienced a significant jump in its stock price after a double upgrade from Goldman Sachs, which forecast a turnaround for the solar power company in 2025.

Oil and gold futures dropped, while the yield on the 10-year Treasury note also declined. The U.S. dollar strengthened against the euro but weakened against the pound and yen. Bitcoin, although down from its record high of $108,000, remained higher overall.

Today's Top Stock Gainers: Alphabet, Netflix, Tesla, and More

Today's Top Stock Gainers: Alphabet, Netflix, Tesla, and More

Wednesday, December 11, 2024 / No Comments

U.S. stock indexes rose on Wednesday afternoon after new data on consumer inflation fueled hopes that the Federal Reserve could lower interest rates next week. The Nasdaq reached a new record, driven by gains in tech stocks. Meanwhile, the Dow and S&P 500 also posted gains.

Shares of Alphabet (GOOGL) hit an all-time high, driven by enthusiasm over its new quantum computing chip, Willow, which is being hailed as a significant breakthrough.

Netflix (NFLX) shares also reached a new peak after JPMorgan raised its price target for the stock from $850 to $1,010, citing strong content offerings and optimistic expectations for 2025 ad revenue.

Tesla (TSLA) saw its stock hit a new high as well, following news that the company was pushing ahead with plans for a $30,000 electric vehicle, with a potential release as soon as next year. Goldman Sachs also raised its price target for Tesla, adding to the stock's momentum after a similar move by Morgan Stanley.

In contrast, Walgreens Boots Alliance (WBA) saw its shares decline after a sharp rise the previous day, following reports that the company was in talks to be acquired by Sycamore Partners.

Macy's (M) stock fell sharply after the company released its delayed third-quarter earnings report and lowered its full-year guidance, with sales coming in below analysts' expectations.

Meanwhile, oil and gold futures climbed, and the yield on the 10-year Treasury note ticked higher. The U.S. dollar strengthened against the euro, pound, and yen. Most major cryptocurrencies surged, with Bitcoin surpassing $101,000.

Uber and Lyft stocks Drop as Google's Waymo Launches Driverless Taxis in Miami

Uber and Lyft stocks Drop as Google's Waymo Launches Driverless Taxis in Miami

Thursday, December 5, 2024 / No Comments

 

Google's Waymo is expanding its self-driving taxi service to Miami, a move that caused a sharp decline in shares of Uber Technologies (UBER) and Lyft (LYFT) as investors considered the potential threat to their businesses.

In a blog post on Thursday, Waymo revealed plans to bring its driverless ride-hailing service to Miami. The company has previously conducted tests in the city, which presented "challenging rainy conditions" for its autonomous vehicles.

Waymo, a subsidiary of Alphabet (GOOGL), has already launched its self-driving ride-hailing services in Phoenix, Los Angeles, San Francisco, and Austin. The company plans to begin training its all-electric Jaguar I-PACE vehicles on Miami streets in early 2025, with an official launch set for 2026.

Additionally, Waymo announced a partnership with African fintech provider Moove to help manage its Miami expansion. Moove will also take over the fleet management operations for Waymo’s service in Phoenix.

Shares of Uber and Lyft fell by approximately 10% on Thursday, as investors assessed the competitive risk posed by Waymo’s growth. Uber is already collaborating with Waymo in Austin and Atlanta to offer autonomous rides in those cities.

Citi: Trump Tariffs May Cut S&P 500 Earnings

Citi: Trump Tariffs May Cut S&P 500 Earnings

Wednesday, November 27, 2024 / No Comments

 

Citi analysts have warned that President-elect Donald Trump's proposed increase in trade tariffs could negatively impact corporate earnings, particularly for U.S. companies with significant exposure to Canada, Mexico, and global trade. With Trump's plan to impose higher tariffs, including a 10% duty on China and a 25% duty on Canada and Mexico, sectors tied to these regions could face increased costs, especially in areas like energy exports from Canada.

The analysts estimate that these tariffs could reduce S&P 500 earnings by a few percentage points in 2025 and potentially erode gross margins by over 250 basis points. However, Citi also pointed out that many companies were granted exemptions during Trump’s first term, and there is still some uncertainty about the exact nature of the tariffs in his second term. Markets are transitioning from election uncertainty to policy uncertainty, as investors remain unclear about how Trump's new term will affect the economy.

US Stock Inflows to Hit Record $448B in 2024: BofA"

US Stock Inflows to Hit Record $448B in 2024: BofA"

Friday, November 22, 2024 / No Comments

US equity funds are on track for a record-breaking year, with annualized inflows projected to hit $448 billion, according to Bank of America.

Money market funds are also experiencing unparalleled demand, expected to receive a substantial $1.1 trillion in 2024.

During the week ending November 11, equity funds saw inflows of $14.4 billion, while bonds received $9.1 billion, and cryptocurrencies gained $900 million. On the other hand, gold experienced outflows of $600 million, and money market funds saw withdrawals of $1.3 billion, as reported in BofA’s weekly "Flow Show" report, which referenced EPFR global data.

Other key movements include Treasuries, which experienced outflows of $6.4 billion in the past two weeks, marking the highest level since December 2023. Sector-wise, Financials saw inflows of $6 billion over the last four weeks, the largest since February 2022, while tech stocks had their biggest inflow in six weeks, at $5.4 billion. In contrast, healthcare stocks saw outflows of $1.1 billion, the largest since December.

Geographically, US equities saw their seventh consecutive week of inflows, totaling $16.4 billion. Emerging market equities, however, faced outflows for the sixth consecutive week, totaling $1.8 billion, while Europe continued its losing streak, with $3.6 billion in outflows for the eighth straight week.

Bank of America strategists, led by Michael Hartnett, are optimistic about the S&P 500, predicting another significant double-digit rise in 2025, driven by falling bond yields, which they see as the "secret sauce" for sustaining equity gains and avoiding sharp reversals. They believe that a "melt-up" in stocks and crypto is likely to continue in the coming months, fueled by the newly elected Trump administration’s focus on rising markets as a tool to enhance economic sentiment, with few believing Trump will allow a bear market.

Additionally, "boomy" global macroeconomic data is surfacing in the short term, as companies rush to accelerate activities ahead of potential tariffs—highlighted by record-high imports at the Port of Long Beach—and stockpile labor in anticipation of immigration controls. This has contributed to a notable decline in unemployment claims.

In the fixed income market, investment-grade bonds continued their inflow streak for the 56th week, attracting $10.2 billion, while high-yield bonds maintained a 15-week streak of inflows, drawing $1.5 billion. However, Treasury funds experienced $2.9 billion in outflows, adding to the previous week’s withdrawals.

Nvidia earnings more important than CPI, Fed: Barclays Predicts

Nvidia earnings more important than CPI, Fed: Barclays Predicts

Tuesday, November 19, 2024 / No Comments

 

Barclays analysts believe that Nvidia's upcoming earnings report on November 20 will be the most crucial market event of the year, overshadowing traditional economic indicators such as CPI data and Federal Reserve decisions. This anticipation highlights the significant impact AI has on the market and the growing enthusiasm among retail investors seeking potential gains.

In their note, Barclays notes that Nvidia's earnings will likely serve as the final major catalyst for market movements in 2024. The bank points to a surge in activity surrounding Nvidia and similar stocks like Tesla, Coinbase, and Palantir, emphasizing the dominance of single-stock dynamics in driving market sentiment.

Options markets are predicting an 8% move in Nvidia's stock after earnings, which is slightly lower than the two-year average. Barclays warns of asymmetric risks due to speculative activity in Nvidia-related products, particularly leveraged exchange-traded products (ETPs) that could amplify volatility.

The influence of Nvidia's earnings isn't just limited to U.S. markets—Europe's semiconductor giant ASML is also seeing heightened interest tied to Nvidia's results, with options indicating a larger-than-usual implied move of 3.3%.

Barclays advises caution in approaching Nvidia's earnings, as high expectations combined with speculative activity could lead to unpredictable market swings.

Israel’s TA 35 Sees Slight Uptick, Closing Up 0.04%

Israel’s TA 35 Sees Slight Uptick, Closing Up 0.04%

Sunday, November 17, 2024 / No Comments

Israeli stocks experienced a slight uptick on Sunday, driven by strength in the Insurance, Financials, and Banking sectors. At market close, the TA 35 index edged up by 0.04%.

Among the session's top performers, Harel Insurance (TASE: HARL) surged by 4.98%, reaching an all-time high of 4,220.00 points. Israel Corp (TASE: ILCO) advanced 3.01% to 87,910.00 points, while ICL Israel Chemicals Ltd (TASE: ICL) climbed 2.94% to 1,682.00 points.

On the downside, Nova (TASE: NVMI) led the losses, dropping 6.04% to 67,210.00 points. Camtek Ltd (TASE: CAMT) and Tower Semiconductor Ltd (TASE: TSEM) also fell sharply by 5.87% and 5.05%, respectively.

Overall, advancing stocks outpaced decliners on the Tel Aviv Stock Exchange, with 283 gainers against 167 losers, and 88 stocks remaining unchanged.

In commodities, crude oil for January delivery dropped by 2.45% to $66.92 per barrel, and Brent oil fell 2.09% to $71.04 per barrel. Gold futures dipped slightly, declining 0.11% to $2,570.10 per troy ounce.

Currency-wise, the USD/ILS exchange rate was steady at 3.74, while the EUR/ILS rose by 0.25% to 3.94. Meanwhile, the US Dollar Index Futures ticked up marginally by 0.02%, reaching 106.62.

European Stocks Gain Momentum; Siemens Outperforms with Strong Results

European Stocks Gain Momentum; Siemens Outperforms with Strong Results

Thursday, November 14, 2024 / No Comments

 

The eurozone’s economy expanded more than anticipated in the third quarter compared to the previous period, with data released on Thursday confirming a 0.4% growth. While this was above forecasts, it highlighted ongoing vulnerabilities within the eurozone economy.

In contrast, eurozone industrial production experienced a sharper-than-expected decline in September, with Germany posting the steepest decrease among the region’s major economies. This 2.0% drop surpassed expectations of a 1.4% decrease, and last month’s initially strong 1.8% rise was revised down to 1.5%, suggesting that the anticipated recovery may be delayed further.

Adding to investor concerns is the possibility of a trade conflict with the incoming Trump administration in the U.S. Meanwhile, U.S. consumer inflation data for October, released Wednesday, met market expectations but indicated persistent inflation. This inflation reading has reinforced expectations of a potential rate cut by the Federal Reserve in December, though the longer-term outlook remains uncertain as inflationary policies under Trump could influence future rate decisions.

Siemens impresses with results

Thursday brought a flurry of corporate updates across Europe, with several major companies reporting strong performance.

Siemens (ETR) saw its stock rise nearly 6% after the German engineering firm reported results that exceeded expectations and expressed confidence in managing global political and trade challenges.

Deutsche Telekom (ETR) gained 4% as the telecom giant posted a strong third-quarter performance, largely fueled by solid growth in Germany, and raised its financial guidance.

French reinsurance company Scor (EPA) rose over 7% following strong third-quarter results, while ASML (AS), Europe’s largest tech company, climbed 5% after projecting an 8% to 14% sales increase over the next five years, driven by surging demand in AI-related sectors.

Burberry (LON) surged 17% as new CEO Joshua Schulman presented his strategy to rejuvenate the luxury fashion brand, despite reporting a half-year operating loss.

Aviva (LON) also gained 4% after the British insurer announced a 15% increase in general insurance premiums over the first nine months and expressed confidence in meeting its group targets.

Crude bounces despite demand concerns 

Oil prices inched up on Thursday morning, though gains remained modest due to ongoing concerns over global demand growth and rising production levels.

As of 06:40 ET, Brent crude rose by 0.1%, reaching $72.65 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 0.5%, trading at $68.78 per barrel.

Earlier in the week, the Organization of Petroleum Exporting Countries (OPEC) lowered its projections for global oil demand growth in 2024 and 2025, largely due to uncertainty over China’s demand. The International Energy Agency (IEA) is expected to follow with similar adjustments in its monthly report later today.

On the supply side, the U.S. Energy Information Administration (EIA) slightly revised up its 2023 U.S. oil production forecast and also raised its 2024 global oil output expectations. The EIA is set to release its weekly report on crude and product stockpiles later today, a day later than usual due to the Veterans’ Day holiday earlier this week in the United States.

US Stocks Tick Upward as Investors Eye CPI Report, Fed Commentary

US Stocks Tick Upward as Investors Eye CPI Report, Fed Commentary

Tuesday, November 12, 2024 / No Comments

 

"U.S. stocks steady ahead of inflation data release as investors seek clarity on monetary policy outlook.

At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average edged up 50 points, or 0.2%, the S&P 500 gained 7 points, or 0.1%, and the NASDAQ Composite added 15 points, or 0.1%.

Following recent highs, Wall Street’s main indexes paused, with traders awaiting inflation insights to gauge the Fed's next moves on interest rates."

CPI data, Fedspeak awaited 

Investors grow cautious ahead of Wednesday's key consumer price index (CPI) data release.

October inflation is anticipated to have held steady from September, reflecting the ongoing resilience of the U.S. economy. However, any uptick could hinder the Federal Reserve’s timeline for future rate cuts. Following last week’s 25-basis-point rate cut, the Fed has signaled a data-driven approach to further policy adjustments.

Persistent inflationary pressures have sparked uncertainty around the extent of future rate cuts. According to CME FedWatch, traders are currently pricing a 70.7% chance of an additional 25-bps cut in December, with a 29.3% probability of rates staying unchanged.

In addition to CPI, the spotlight this week includes speeches from several Fed officials, with Fed Governor Christopher Waller and Richmond Fed President Thomas Barkin slated to speak Tuesday, potentially providing more clues on rate policy.

Home Depot earnings in focus

The quarterly corporate earnings season is winding down, though several companies are still set to release their latest results.
Home Depot (NYSE: HD) saw a modest 0.3% uptick in its stock after raising its annual same-store sales forecast. The company is betting on strong demand from professional contractors to counteract weaker consumer spending on large projects like kitchen renovations.
Shopify (NYSE: SHOP) surged 20% after the Canadian e-commerce company forecast fourth-quarter revenue growth that exceeded analysts' expectations, while Live Nation Entertainment (NYSE: LYV) gained 4% following a third-quarter profit beat, driven by cost controls and high ticket prices for concerts.
Hertz (NASDAQ: HTZ) dropped 9% after posting a larger-than-expected third-quarter loss, missing revenue estimates, and incurring depreciation charges from its fleet.
Tyson Foods (NYSE: TSN) rose 8.1% after reporting better-than-expected fourth-quarter earnings and revenue, along with a positive outlook for fiscal 2025.
Spotify (NYSE: SPOT) is set to report its earnings after the market close. The Swedish audio streaming company, which has been trimming headcount and slashing its marketing budget in an effort to manage costs, exceeded profit expectations in the second quarter.

Crude Prices Rise Despite OPEC's Lowered Demand Forecasts

"Oil Prices Rebound Despite OPEC's Continued Downward Revisions on Demand"Oil prices rose on Tuesday, recovering from recent declines, even as OPEC once again downgraded its global demand growth forecast.By 09:35 ET, the Brent contract was up 1.4%, reaching $72.81 per barrel, while U.S. crude futures (WTI) gained 1.5%, trading at $69.08 a barrel.In its latest monthly report, OPEC reduced its forecast for oil demand growth for the fourth consecutive month, citing concerns over weaker global consumption and lower prices. Additionally, the group delayed its planned output increase in response to these market challenges."OPEC Lowers Demand Growth Forecasts Amid Supply Stability Concerns"OPEC now expects global oil demand to grow by 1.82 million barrels per day (bpd) this year, and 1.54 million bpd next year, down from previous estimates of 1.93 million and 1.64 million bpd, respectively.This downward revision comes despite a recovery in oil prices, which had fallen by more than 5% in the previous two trading sessions. Market sentiment was dampened by disappointment over China’s new stimulus package and the weakening of Hurricane Rafael into a tropical storm, alleviating concerns over potential supply disruptions in the region.