Dj Ibd: Rocket Lab Lands Chips Award, Successful Missions, Spacex Launch On Deck

The S&P 500 Index today is up +0.77%, the Dow Jones Industrials Index is up +1.04%, and the Nasdaq 100 Index is up +0.94%.

Stocks are moving higher today, with the S&P 500 and Dow Jones Industrials posting new all-time highs and the Nasdaq 100 climbing to a 1-week high. Stocks and government bonds are rallying today on optimism that President-elect Trump's pick of Scott Bessent, a former hedge fund manager, for US Treasury Secretary will bring a Wall Street mindset to the role and ease concerns over Trump's inflationary agenda of lower taxes and higher tariffs. Bessent has indicated he'll back Trump's policies, but his background as a fiscal hawk signals that he will prioritize economic and market stability and lower deficits.

The US Oct Chicago Fed national activity index fell -0.13 to a 9-month low of -0.40, weaker than expectations of no change at -0.28.

Most of this week’s US economic news is front-loaded due to Thursday’s Thanksgiving Day holiday. Tuesday will bring Oct new home sales (expected -1.8% m/m to 725,000) and the Conference Board’s Nov consumer confidence index (expected +3.1 to 111.8). Also, the Nov-6-7 FOMC meeting minutes will be released on Tuesday afternoon. Wednesday will bring revised Q3 GDP (expected no change at 2.8% y/y annualized), and the Oct core PCE price index, the Fed’s preferred inflation gauge (expected +0.3% m/m and +2.8% y/y).

The markets are discounting the chances at 56% for a -25 bp rate cut at the December 17-18 FOMC meeting.

Overseas stock markets today are mixed. The Euro Stoxx 50 rose to a 1-week high and is up +0.30%. China's Shanghai Composite Index dropped to a 5-week low and closed down by -0.11%. Japan's Nikkei Stock 225 rose to a 1-week high and closed up +1.30%.

Interest Rates

December 10-year T-notes (ZNZ24) today are up +23 ticks. The 10-year T-note yield is down -11.0 bp to 4.2912%. Dec T-notes today rallied to a 2-week high, and the 10-year T-note yield fell to a 2-week low of 4.285%. T-notes are climbing today after President-elect Trump nominated Scott Bessent as the next Treasury Secretary. The bond market applauds the move as Bessent, a former hedge fund manager, is seen as a fiscal hawk who will prioritize economic and market stability and lower deficits. T-notes are also supported due to a decline in inflation expectations after the 10-year T-note breakeven inflation rate fell to a 2-1/2 week low today at 2.310%. T-notes added to their gains after today’s US economic news showed the Oct Chicago Fed national activity index fell more than expected to a 9-month low, a dovish factor for Fed policy.

European government bond yields today are moving lower. The 10-year German bund yield dropped to a 5-week low of 2.207% and is down -3.2 bp to 2.210%. The 10-year UK gilt yield fell to a 3-1/2 week low of 4.319% and is down -5.9 bp to 4.327%.

The German Nov IFO business climate fell -0.8 to 85.7, weaker than expectations of 86.0.

ECB Governing Council member Kazaks said, "My conviction is that looking at what's happening at the moment in the European economy, there has to follow another interest rate cut in December."

Swaps are discounting the chances at 100% for a -25 bp rate cut by the ECB at its December 12 policy meeting and at 35% for a -50 bp rate cut at the same meeting.

US Stock Movers

Homebuilding stocks are rallying today after the 10-year T-note yield dropped to a 2-week low, which will lower mortgage rates and support housing demand. As a result, DR Horton , Toll Brothers , Builders FirstSource are up more than +3%. Also, Lennar and PulteGroup are up more than +2%.

Super Micro Computer is up more than +9% to lead gainers in the S&P 500 and Nasdaq 100 and adding to the 25% jump over the past two sessions after it said it believes it can file its delayed 10-K and 10-Q reports in the period available under Nasdaq rules.

Moderna is up more than +9% after Jeffries said Robert F. Kennedey’s nomination to the Department of Health and Human Services is unlikely to mean the removal of vaccines.

Healthcare stocks are climbing today after a federal judge late last Friday ruled the Biden administration wrongly downgraded UnitedHealth Group’s 2025 star ratings and must re-calculate them. As a result, UnitedHealth Group , Humana , Centene , and Elevance Health are up more than +1%.

Bath & Body Works is up more than +21% after reporting Q3 net sales of $1.61 billion, better than the consensus of $1.58 billion, and raising its 2025 sales forecast to down -1.7% to -2.5% from a previous forecast of -2% to -4%.

Rocket Lab USA is up more than +1% after announcing it successfully launched its 56th Electron missile.

EQT Corp is up more than +4% after the Financial Times reported that Blackston agreed to buy a $3.5 billion JV stake in interstate pipelines from EQT.

US Bancorp is up more than +1% after Citigroup upgraded the stock to buy from neutral with a price target of $65.

Nvidia is down more than -3% to lead losers in the S&P 500, the Dow Jones Industrials, and Nasdaq 100 after Amazon.com said it was developing its own AI chips.

Macy’s is down more than -3% after saying it would delay the release of its Q3 earnings after an investigation revealed an employee hid tens of millions of dollars of expenses.

Newmont is down more than -2%, with the prices of gold today down sharply by more than -2%.

Despegar.com is down more than -3% after TD Cowen double-downgraded the stock to sell from buy with a price target of $14.

Tenet Healthcare is down more than -1% after Wells Fargo Securities downgraded the stock to equal weight from overweight.

Earnings Reports (11/25/2024)

Agilent Technologies Inc (A), Bath & Body Works Inc (BBWI), Blue Bird Corp (BLBD), Central Garden & Pet Co (CENT), Enanta Pharmaceuticals Inc (ENTA), Fluence Energy Inc (FLNC), Leslie's Inc (LESL), New Jersey Resources Corp (NJR), Semtech Corp (SMTC), Woodward Inc (WWD), Zoom Video Communications Inc (ZM).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.

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The broad market exchange-traded fund SPDR S&P 500 ETF Trust was up 0.5% and the actively traded Invesco QQQ Trust advanced 0.6% in Monday's premarket activity, ahead of key inflation data due this week.

US stock futures were also higher, with S&P 500 Index futures up 0.5%, Dow Jones Industrial Average futures advancing 0.6%, and Nasdaq futures gaining 0.5% before the start of regular trading.

The Chicago Fed National Activity Index for October will be released at 8:30 am ET, followed by the Dallas Fed Manufacturing Survey for November at 10:30 am ET.

In premarket activity, bitcoin was up 1.3% and the cryptocurrency fund ProShares Bitcoin Strategy ETF was 1.1% lower.

Power Play:

Consumer

The Consumer Staples Select Sector SPDR Fund was up 0.2%, while the Vanguard Consumer Staples Fund advanced 0.7%. The iShares US Consumer Staples ETF was inactive, and the Consumer Discretionary Select Sector SPDR Fund gained 0.7%. The VanEck Retail ETF was inactive, while the SPDR S&P Retail ETF rose 0.8%.

Bath & Body Works shares were up 11% pre-bell after the company reported higher fiscal Q3 adjusted earnings and revenue in addition to lifting its fiscal 2024 guidance.

Winners and Losers:

Technology

Technology Select Sector SPDR Fund gained 0.6%, and the iShares US Technology ETF was 0.6% higher, while the iShares Expanded Tech Sector ETF was up 0.3%. Among semiconductor ETFs, SPDR S&P Semiconductor ETF was up 2.3%, while the iShares Semiconductor ETF rose by 0.8%.

Mobix Labs shares were up 9% in recent Monday premarket activity after the company said it agreed to buy Spacecraft Components for $18 million to $24 million.

Industrial

Industrial Select Sector SPDR Fund advanced 0.6% while the Vanguard Industrials Index Fund was inactive. The iShares US Industrials ETF (IYJ) advanced 0.4%.

Rocket Lab USA stock was up more than 8% before the opening bell after the US Department of Commerce said the company has won up to $23.9 million in direct funding from the US government as part of the federal CHIPS Program.

Energy

The iShares US Energy ETF was up 0.5%, while the Energy Select Sector SPDR Fund was 0.2% higher.

EQT stock was up 4.3% before Monday's opening bell after the company said that it has entered into a definitive agreement with funds managed by Blackstone Credit & Insurance to form a new midstream joint venture valued at about $8.8 billion.

Health Care

The Health Care Select Sector SPDR Fund advanced 0.5%. The Vanguard Health Care Index Fund gained 0.1% while the iShares US Healthcare ETF was inactive. The iShares Biotechnology ETF was 1% higher.

Merck stock was up 1% premarket after the company said that its experimental drug for pulmonary arterial hypertension, Winrevair, met the primary endpoint in a phase 3 study.

Financial

Financial Select Sector SPDR Fund advanced 0.4%. Direxion Daily Financial Bull 3X Shares rose 1.7%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares fell 1.5%.

Morgan Stanley shares were up 1% pre-bell Monday after Bloomberg reported Sunday that the company received regulatory approval to set up its Middle East headquarters in Riyadh, Saudi Arabia.

Commodities

Front-month US West Texas Intermediate crude oil retreated 0.1% to $71.15 per barrel on the New York Mercantile Exchange. Natural gas was 4.8% higher at $3.28 per 1 million British Thermal Units. United States Oil Fund gained marginally by 0.01%, while the United States Natural Gas Fund rose 5%.

Gold futures for February were down nearly 1% at $2,708.20 an ounce on the Comex, while silver futures declined 1.7% to $31.24 an ounce. SPDR Gold Shares gained 5%, while the iShares Silver Trust was 1.6% lower.