You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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Stock market today: Dow leaps 400 points to fresh high as Wall Street cheers Trump's pick of Scott Bessent
US stocks rose on Monday as small caps rallied near new highs and the Dow Jones Industrial Average (^DJI) rose more than 400 points amid a broad sense of optimism over President-elect Donald Trump's choice of Scott Bessent for Treasury secretary.
The Dow increased 0.9% to close at a new record. The S&P 500 (^GSPC) rose 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, despite Nvidia (NVDA) sliding over 4%.
The Russell 2000 (^RUT), up more than 2%, also closed a whisker off a record high. It did notch an intraday high.
Stocks kicked off a holiday-shortened week with more of the upbeat mood that lifted the gauges to weekly wins. Markets will shut on Thursday for the Thanksgiving holiday and close early on Friday.
Trump tapped Bessent, viewed as the "investor favorite" pick for Treasury, late Friday evening after a surprisingly drawn-out process that saw candidates' stocks seem to rise and fall by the day. Bessent's nomination has seemed to at least temporarily calm nerves over the president-elect's inflationary agenda, with the benchmark 10-year Treasury yield (^TNX) dipping back under 4.3%.
On the inflationary front, the Fed will get its preferred look at the picture heading into Trump's term with Wednesday's release of the Personal Consumption Expenditures (PCE) index. Economists expect a tick up in "core" PCE, which is closely watched by the central bank.
Meanwhile, bitcoin (BTC-USD) was in search of a milestone $100,000-per-coin level amid a near-50% surge over the past month. It was back down below $95,000 on Monday, however.
LIVE13 updates
Ines Ferré
Dow notches fresh record, S&P 500 and Nasdaq also rise
Stocks rose on Monday with the Dow Jones Industrial Average (^DJI) closing at a fresh record.
The S&P 500 (^GSPC) rose 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) also gained 0.3%, weighed by shares of Nvidia (NVDA) sliding over 4%.
Meanwhile small cap stocks also rallied with the Russell 2000 (^RUT) gaining 1.7% and hitting intraday record highs.
The markets rose on Monday following President-elect Donald Trump's choice of Scott Bessent for Treasury secretary.
Investors also looked ahead for a price check in the form of a Federal Reserve-favored inflation print.
Ines Ferré
Allurion launches compounded GLP-1 program as FDA aims to ends access
Yahoo Finance's Anjalee Kamlani reports:
Allurion (ALUR) launched a new program to provide patients access to compounded weight-loss drugs Monday after months of pitching its own weight-loss solution — an ingestible balloon — as an alternative for patients who may not want to use the popular injectable GLP-1 drugs.
Allurion CEO Shantanu Gaur told Yahoo Finance that, like others, the company continues to see a spillover effect from the unprecedented interest in GLP-1 drugs like Novo Nordisk's (NVO) Wegovy and Eli Lilly's (LLY) Zepbound. It's why the company is now offering copycat products at a fraction of the cost.
Read more here.
Ines Ferré
Tesla stock lower as UBS says 'animal spirits' rather than fundamentals driving monster rally
Yahoo Finance's Pras Subramanian reports:
Tesla stock (TSLA) is down Monday following a strong recent run-up as one Wall Street bank says “animal spirits” have pushed the stock beyond any “fundamental change” at the company.
Joseph Spak at UBS noted that Tesla stock has surged around 40% since the election, adding over $350 million to its market cap. While some of President-elect Donald Trump's policy proposals could favor Tesla, there are some policy negatives as well that would hurt fundamentals more than where the theoretical upside has taken the stock.
“The rise in Tesla stock is mostly driven by animal spirits/momentum (which has happened multiple times in TSLA’s history),” Spak wrote.
Read more here.
Ines Ferré
Bitcoin hovers around $95,000
Bitcoin (BTC-USD) sank on Monday to $95,000 after recently jumping to record highs just a stone's throw away from $100,000.
The cryptocurrency has been on a steady climb since the Donald Trump's presidential victory earlier this month. On Friday the token inched above $99,600.
Year-to-date bitcoin is up about 120%.
Dani Romero
Cruise stocks climb: 'The travel industry is back'
Cruise line stocks have had an impressive run this year, and there’s still more room for growth, according to Bank of America.
Norwegian Cruise Line Holdings Ltd. (NCLH) and Carnival Corporation (CCL) have climbed more than 30% while Royal Caribbean Cruises (RCL) is up over 80% year-to-date.
Bank of America raised Norwegian's price target to $29 from $26 and kept a Neutral rating. For Carnival, the firm raised the price target to $28 from $24 and kept a Buy rating, while for Royal Caribbean, analysts raised the price target to $240 from $210 and kept a Neutral rating.
“The travel industry is back,” Bank of America analyst Andrew Didora told Yahoo Finance. “It just seems like the core demographic here for cruise [lines], which is typically a bit higher income, they continue to be in a good spot from a discretionary spending perspective.”
Cruise-line operators have seen a resurgence in demand as interest rebounded from the pandemic-era, when the restrictions kept fleets docked. Data from Bank of America shows that monthly cruise spending increased 8% in October on a yearly basis.
Ines Ferré
Nvidia hits session lows, down 3.5%
Nvidia (NVDA) shares dropped to session lows, sinking more than 3% on Monday.
The AI chip heavyweight was the worst performer among the 'Magnificent 7' stocks. Tesla (TSLA) shares fell more than 1% while Alphabet (GOOG, GOOGL) and Amazon (AMZN) rose more than 1%.
Nvidia's slide weighed on the Nasdaq, which briefly turned negative by 12:20 p.m. ET.
Netflix (NFLX) shares also slid 3%, keeping a lid on the tech-heavy index.
Ines Ferré
Small cap stocks hit highest level in three years
The Russell 2000 (^RUT) rose more than 2% on Monday to hit its highest level since November 2021.
The small cap index has rallied in recent months as the Fed began its interest rate cutting cycle, fueling expectations of less expensive financing.
The Russell 2000 is up more than 20% year-to-date, with much of those gains occurring since early August.
Josh Schafer
S&P 500 seen reaching 6,600 next year by strategists at RBC, Barclays
Two more Wall Street strategists are projecting the bull market in US stocks will roll on in 2025.
On Monday, equity strategy teams at Barclays and RBC Capital Markets both issued a year-end target price of 6,600 for the S&P 500 (^GSPC) in 2025. The targets suggest a roughly 10.5% gain in the benchmark index over the next twelve months, about in line with the long-term historical average annual return over the past century.
"The story the data tells us is that another year of solid economic and earnings growth, some political tailwinds, and some additional relief on inflation (which should keep the S&P 500’s P/E elevated) can keep stocks moving higher in the year ahead," RBC Capital Markets head of US equity strategy Lori Calvasina wrote in a note to clients on Monday.
Venu Krishna, head of US equity strategy at Barclays, wrote that with "inflation continuing to normalize, resilient macro, and Big Tech maintaining EPS growth leadership," the S&P 500 should continue its march higher.
Read more here.
Ines Ferré
MicroStrategy spends $5.4 billion buying another 55,000 bitcoins
MicroStrategy (MSTR) said Monday it purchased another 55,000 worth of bitcoin last week for $5.4 billion as the world's largest cryptocurrency was trading at all-time highs.
MicroStrategy stock recovered from a loss of more than 7% in early trading.
In a filing with the SEC, MicroStrategy said it spent $5.4 billion to acquire these bitcoin between Nov. 18-24, buying the bitcoin at an average price of $97,862.
The company said it used proceeds from convertible notes and share sales to fund the purchase.
The application software company, which has become a bitcoin proxy, has been buying tokens since 2020.
In recent weeks, it has intensified its purchases as bitcoin has rallied to highs above $99,000 following Donald Trump's presidential win earlier this month.
As of Sunday, MicroStrategy held a total of approximately 386,700 bitcoins, acquired for an aggregate purchase price of about $21.9 billion and an average purchase price of approximately $56,761 per bitcoin.
Ines Ferré
Oil drops more than 2% on report of Israel-Lebanon ceasefire
Oil dropped to session lows on a report that a ceasefire between Israel and Lebanon-based Hezbollah may have been reached.
West Texas Intermediate (CL=F) sank more than 2% to hover below $70 per barrel, while Brent (BZ=F), the international benchmark, traded below $74 per barrel.
Axios reported on Monday that Israel and Lebanon have agreed to terms of a ceasefire, citing a senior US official.
Earlier, the Israeli ambassador to Washington said in a radio interview on Monday that deal points still need to be finalized but an agreement "can happen within days.”
Ines Ferré
Nvidia slides as AI chip darling extends losses
Nvidia (NVDA) shares dropped as much as 3% in early trading as the AI chip heavyweight failed to participate in the rest of the market gains.
Nvidia shares extended their decline from Friday's session, despite the company beating on quarterly results announced last week.
The AI chipmaker has been a leader in the overall markets this year, accounting for roughly 20% of the S&P 500's performance.
Ines Ferré
Stocks open higher after Trump picks Bessent for Treasury secretary
US stocks rose on Monday as investors await the Fed's preferred measure of inflation this week and after President-elect Donald Trump announced his pick for Treasury secretary, Scott Bessent.
The Dow Jones Industrial Average (^DJI) led the advance, up roughly 0.7%. The S&P 500 (^GSPC) rose 0.5%, while those the tech-heavy Nasdaq Composite (^IXIC) moved up almost 0.6%.
The Personal Consumption Expenditures (PCE) index will be released this Wednesday, giving investors clues on what the Fed's next move with interest rates may be.
The "Magnificent Seven" stocks were mostly higher, with the exception of Nvidia (NVDA), down more than 1%, extending its declines
Earnings: Bath & Body Works (BBWI), Zoom (ZM), Macy's (M) (preliminary)
Here are some of the biggest stories you may have missed over the weekend and early this morning:
Fed-favored PCE inflation seen as stalling: The week ahead
Trump's Treasury choice Bessent says tax cuts are a priority
Macy's delays Q3 report on accounting issue, stock falls
Tesla's $350B surge driven by hype, not fundamentals: UBS
YF columnist Rick Newman: The Republican economy takes off
Trump trade muddles inflation outlook in Fed's favorite gauge
Nvidia CEO says global cooperation in tech will continue under Trump administration
Black Friday Can’t Come Soon Enough for Retailers
Risk Warnings and Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
Add to Favorites
Share
Stock market today: Dow leaps 400 points to fresh high, Russell 2000 notches first record since 2021
US stocks rose on Monday as small caps rallied to new highs and the Dow Jones Industrial Average (^DJI) rose more than 400 points amid optimism over President-elect Donald Trump's choice of Scott Bessent for Treasury secretary. Investors also looked ahead for a price check in the form of a Federal Reserve-favored inflation print.
The Dow increased 0.9% to close at a new record. The S&P 500 (^GSPC) rose 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, despite Nvidia (NVDA) sliding over 4%.
The Russell 2000 (^RUT), up more than 2% also closed at a record as small cap stocks gained.
Stocks kicked off a holiday-shortened week with more of the upbeat mood that lifted the gauges to weekly wins. Markets will shut on Thursday for the Thanksgiving holiday and close early on Friday.
Trump tapped Bessent, viewed as the "investor favorite" pick for Treasury, late Friday evening after a surprisingly drawn-out process that saw candidates' stocks seem to rise and fall by the day. Bessent's nomination has seemed to at least temporarily calm nerves over the president-elect's inflationary agenda, with the benchmark 10-year Treasury yield (^TNX) dipping back under 4.3%.
On the inflationary front, the Fed will get its preferred look at the picture heading into Trump's term with Wednesday's release of the Personal Consumption Expenditures (PCE) index. Economists expect a tick up in "core" PCE, which is closely watched by the central bank.
Meanwhile, bitcoin (BTC-USD) was in search of a milestone $100,000-per-coin level amid a near-50% surge over the past month. It was back down below $95,000 on Monday, however.
LIVE12 updates
Ines Ferré
Allurion launches compounded GLP-1 program as FDA aims to ends access
Yahoo Finance's Anjalee Kamlani reports:
Allurion (ALUR) launched a new program to provide patients access to compounded weight-loss drugs Monday after months of pitching its own weight-loss solution — an ingestible balloon — as an alternative for patients who may not want to use the popular injectable GLP-1 drugs.
Allurion CEO Shantanu Gaur told Yahoo Finance that, like others, the company continues to see a spillover effect from the unprecedented interest in GLP-1 drugs like Novo Nordisk's (NVO) Wegovy and Eli Lilly's (LLY) Zepbound. It's why the company is now offering copycat products at a fraction of the cost.
Read more here.
Ines Ferré
Tesla stock lower as UBS says 'animal spirits' rather than fundamentals driving monster rally
Yahoo Finance's Pras Subramanian reports:
Tesla stock (TSLA) is down Monday following a strong recent run-up as one Wall Street bank says “animal spirits” have pushed the stock beyond any “fundamental change” at the company.
Joseph Spak at UBS noted that Tesla stock has surged around 40% since the election, adding over $350 million to its market cap. While some of President-elect Donald Trump's policy proposals could favor Tesla, there are some policy negatives as well that would hurt fundamentals more than where the theoretical upside has taken the stock.
“The rise in Tesla stock is mostly driven by animal spirits/momentum (which has happened multiple times in TSLA’s history),” Spak wrote.
Read more here.
Ines Ferré
Bitcoin hovers around $95,000
Bitcoin (BTC-USD) sank on Monday to $95,000 after recently jumping to record highs just a stone's throw away from $100,000.
The cryptocurrency has been on a steady climb since the Donald Trump's presidential victory earlier this month. On Friday the token inched above $99,600.
Year-to-date bitcoin is up about 120%.
Dani Romero
Cruise stocks climb: 'The travel industry is back'
Cruise line stocks have had an impressive run this year, and there’s still more room for growth, according to Bank of America.
Norwegian Cruise Line Holdings Ltd. (NCLH) and Carnival Corporation (CCL) have climbed more than 30% while Royal Caribbean Cruises (RCL) is up over 80% year-to-date.
Bank of America raised Norwegian's price target to $29 from $26 and kept a Neutral rating. For Carnival, the firm raised the price target to $28 from $24 and kept a Buy rating, while for Royal Caribbean, analysts raised the price target to $240 from $210 and kept a Neutral rating.
“The travel industry is back,” Bank of America analyst Andrew Didora told Yahoo Finance. “It just seems like the core demographic here for cruise [lines], which is typically a bit higher income, they continue to be in a good spot from a discretionary spending perspective.”
Cruise-line operators have seen a resurgence in demand as interest rebounded from the pandemic-era, when the restrictions kept fleets docked. Data from Bank of America shows that monthly cruise spending increased 8% in October on a yearly basis.
Ines Ferré
Nvidia hits session lows, down 3.5%
Nvidia (NVDA) shares dropped to session lows, sinking more than 3% on Monday.
The AI chip heavyweight was the worst performer among the 'Magnificent 7' stocks. Tesla (TSLA) shares fell more than 1% while Alphabet (GOOG, GOOGL) and Amazon (AMZN) rose more than 1%.
Nvidia's slide weighed on the Nasdaq, which briefly turned negative by 12:20 p.m. ET.
Netflix (NFLX) shares also slid 3%, keeping a lid on the tech-heavy index.
Ines Ferré
Small cap stocks hit highest level in three years
The Russell 2000 (^RUT) rose more than 2% on Monday to hit its highest level since November 2021.
The small cap index has rallied in recent months as the Fed began its interest rate cutting cycle, fueling expectations of less expensive financing.
The Russell 2000 is up more than 20% year-to-date, with much of those gains occurring since early August.
Josh Schafer
S&P 500 seen reaching 6,600 next year by strategists at RBC, Barclays
Two more Wall Street strategists are projecting the bull market in US stocks will roll on in 2025.
On Monday, equity strategy teams at Barclays and RBC Capital Markets both issued a year-end target price of 6,600 for the S&P 500 (^GSPC) in 2025. The targets suggest a roughly 10.5% gain in the benchmark index over the next twelve months, about in line with the long-term historical average annual return over the past century.
"The story the data tells us is that another year of solid economic and earnings growth, some political tailwinds, and some additional relief on inflation (which should keep the S&P 500’s P/E elevated) can keep stocks moving higher in the year ahead," RBC Capital Markets head of US equity strategy Lori Calvasina wrote in a note to clients on Monday.
Venu Krishna, head of US equity strategy at Barclays, wrote that with "inflation continuing to normalize, resilient macro, and Big Tech maintaining EPS growth leadership," the S&P 500 should continue its march higher.
Read more here.
Ines Ferré
MicroStrategy spends $5.4 billion buying another 55,000 bitcoins
MicroStrategy (MSTR) said Monday it purchased another 55,000 worth of bitcoin last week for $5.4 billion as the world's largest cryptocurrency was trading at all-time highs.
MicroStrategy stock recovered from a loss of more than 7% in early trading.
In a filing with the SEC, MicroStrategy said it spent $5.4 billion to acquire these bitcoin between Nov. 18-24, buying the bitcoin at an average price of $97,862.
The company said it used proceeds from convertible notes and share sales to fund the purchase.
The application software company, which has become a bitcoin proxy, has been buying tokens since 2020.
In recent weeks, it has intensified its purchases as bitcoin has rallied to highs above $99,000 following Donald Trump's presidential win earlier this month.
As of Sunday, MicroStrategy held a total of approximately 386,700 bitcoins, acquired for an aggregate purchase price of about $21.9 billion and an average purchase price of approximately $56,761 per bitcoin.
Ines Ferré
Oil drops more than 2% on report of Israel-Lebanon ceasefire
Oil dropped to session lows on a report that a ceasefire between Israel and Lebanon-based Hezbollah may have been reached.
West Texas Intermediate (CL=F) sank more than 2% to hover below $70 per barrel, while Brent (BZ=F), the international benchmark, traded below $74 per barrel.
Axios reported on Monday that Israel and Lebanon have agreed to terms of a ceasefire, citing a senior US official.
Earlier, the Israeli ambassador to Washington said in a radio interview on Monday that deal points still need to be finalized but an agreement "can happen within days.”
Ines Ferré
Nvidia slides as AI chip darling extends losses
Nvidia (NVDA) shares dropped as much as 3% in early trading as the AI chip heavyweight failed to participate in the rest of the market gains.
Nvidia shares extended their decline from Friday's session, despite the company beating on quarterly results announced last week.
The AI chipmaker has been a leader in the overall markets this year, accounting for roughly 20% of the S&P 500's performance.
Ines Ferré
Stocks open higher after Trump picks Bessent for Treasury secretary
US stocks rose on Monday as investors await the Fed's preferred measure of inflation this week and after President-elect Donald Trump announced his pick for Treasury secretary, Scott Bessent.
The Dow Jones Industrial Average (^DJI) led the advance, up roughly 0.7%. The S&P 500 (^GSPC) rose 0.5%, while those the tech-heavy Nasdaq Composite (^IXIC) moved up almost 0.6%.
The Personal Consumption Expenditures (PCE) index will be released this Wednesday, giving investors clues on what the Fed's next move with interest rates may be.
The "Magnificent Seven" stocks were mostly higher, with the exception of Nvidia (NVDA), down more than 1%, extending its declines
Earnings: Bath & Body Works (BBWI), Zoom (ZM), Macy's (M) (preliminary)
Here are some of the biggest stories you may have missed over the weekend and early this morning:
Fed-favored PCE inflation seen as stalling: The week ahead
Trump's Treasury choice Bessent says tax cuts are a priority
Macy's delays Q3 report on accounting issue, stock falls
Tesla's $350B surge driven by hype, not fundamentals: UBS
YF columnist Rick Newman: The Republican economy takes off
Trump trade muddles inflation outlook in Fed's favorite gauge
Nvidia CEO says global cooperation in tech will continue under Trump administration
Black Friday Can’t Come Soon Enough for Retailers
Risk Warnings and Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
Add to Favorites
Share
Stock market today: Dow, S&P 500 jump after Trump picks Scott Bessent for Treasury
US stocks rose on Monday as small caps rallied and the Dow Jones Industrial Average (^DJI) touched intraday record highs amid optimism over President-elect Donald Trump's choice of Scott Bessent for Treasury secretary. Investors also looked ahead for a price check in the form of a Federal Reserve-favored inflation print.
The Dow was on track to notch another record close, rising 0.9%, or about 300 points. The S&P 500 (^GSPC) rose 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) rose slightly, weighed by shares of Nvidia (NVDA) sliding over 3%.
The Russell 2000 (^RUT), up more than 2%, was on pace for a record close as small cap stocks gained.
Stocks kicked off a holiday-shortened week with more of the upbeat mood that lifted the gauges to weekly wins. Markets will shut on Thursday for the Thanksgiving holiday and close early on Friday.
Trump tapped Bessent, viewed as the "investor favorite" pick for Treasury, late Friday evening after a surprisingly drawn-out process that saw candidates' stocks seem to rise and fall by the day. Bessent's nomination has seemed to at least temporarily calm nerves over the president-elect's inflationary agenda, with the benchmark 10-year Treasury yield (^TNX) dipping back under 4.3%.
On the inflationary front, the Fed will get its preferred look at the picture heading into Trump's term with Wednesday's release of the Personal Consumption Expenditures (PCE) index. Economists expect a tick up in "core" PCE, which is closely watched by the central bank.
Meanwhile, bitcoin (BTC-USD) was in search of a milestone $100,000-per-coin level amid a near-50% surge over the past month. It was back down near the $95,000 mark on Monday, however.
LIVE11 updates
Ines Ferré
Tesla stock lower as UBS says 'animal spirits' rather than fundamentals driving monster rally
Yahoo Finance's Pras Subramanian reports:
Tesla stock (TSLA) is down Monday following a strong recent run-up as one Wall Street bank says “animal spirits” have pushed the stock beyond any “fundamental change” at the company.
Joseph Spak at UBS noted that Tesla stock has surged around 40% since the election, adding over $350 million to its market cap. While some of President-elect Donald Trump's policy proposals could favor Tesla, there are some policy negatives as well that would hurt fundamentals more than where the theoretical upside has taken the stock.
“The rise in Tesla stock is mostly driven by animal spirits/momentum (which has happened multiple times in TSLA’s history),” Spak wrote.
Read more here.
Ines Ferré
Bitcoin hovers around $95,000
Bitcoin (BTC-USD) sank on Monday to $95,000 after recently jumping to record highs just a stone's throw away from $100,000.
The cryptocurrency has been on a steady climb since the Donald Trump's presidential victory earlier this month. On Friday the token inched above $99,600.
Year-to-date bitcoin is up about 120%.
Dani Romero
Cruise stocks climb: 'The travel industry is back'
Cruise line stocks have had an impressive run this year, and there’s still more room for growth, according to Bank of America.
Norwegian Cruise Line Holdings Ltd. (NCLH) and Carnival Corporation (CCL) have climbed more than 30% while Royal Caribbean Cruises (RCL) is up over 80% year-to-date.
Bank of America raised Norwegian's price target to $29 from $26 and kept a Neutral rating. For Carnival, the firm raised the price target to $28 from $24 and kept a Buy rating, while for Royal Caribbean, analysts raised the price target to $240 from $210 and kept a Neutral rating.
“The travel industry is back,” Bank of America analyst Andrew Didora told Yahoo Finance. “It just seems like the core demographic here for cruise [lines], which is typically a bit higher income, they continue to be in a good spot from a discretionary spending perspective.”
Cruise-line operators have seen a resurgence in demand as interest rebounded from the pandemic-era, when the restrictions kept fleets docked. Data from Bank of America shows that monthly cruise spending increased 8% in October on a yearly basis.
Ines Ferré
Nvidia hits session lows, down 3.5%
Nvidia (NVDA) shares dropped to session lows, sinking more than 3% on Monday.
The AI chip heavyweight was the worst performer among the 'Magnificent 7' stocks. Tesla (TSLA) shares fell more than 1% while Alphabet (GOOG, GOOGL) and Amazon (AMZN) rose more than 1%.
Nvidia's slide weighed on the Nasdaq, which briefly turned negative by 12:20 p.m. ET.
Netflix (NFLX) shares also slid 3%, keeping a lid on the tech-heavy index.
Ines Ferré
Small cap stocks hit highest level in three years
The Russell 2000 (^RUT) rose more than 2% on Monday to hit its highest level since November 2021.
The small cap index has rallied in recent months as the Fed began its interest rate cutting cycle, fueling expectations of less expensive financing.
The Russell 2000 is up more than 20% year-to-date, with much of those gains occurring since early August.
Josh Schafer
S&P 500 seen reaching 6,600 next year by strategists at RBC, Barclays
Two more Wall Street strategists are projecting the bull market in US stocks will roll on in 2025.
On Monday, equity strategy teams at Barclays and RBC Capital Markets both issued a year-end target price of 6,600 for the S&P 500 (^GSPC) in 2025. The targets suggest a roughly 10.5% gain in the benchmark index over the next twelve months, about in line with the long-term historical average annual return over the past century.
"The story the data tells us is that another year of solid economic and earnings growth, some political tailwinds, and some additional relief on inflation (which should keep the S&P 500’s P/E elevated) can keep stocks moving higher in the year ahead," RBC Capital Markets head of US equity strategy Lori Calvasina wrote in a note to clients on Monday.
Venu Krishna, head of US equity strategy at Barclays, wrote that with "inflation continuing to normalize, resilient macro, and Big Tech maintaining EPS growth leadership," the S&P 500 should continue its march higher.
Read more here.
Ines Ferré
MicroStrategy spends $5.4 billion buying another 55,000 bitcoins
MicroStrategy (MSTR) said Monday it purchased another 55,000 worth of bitcoin last week for $5.4 billion as the world's largest cryptocurrency was trading at all-time highs.
MicroStrategy stock recovered from a loss of more than 7% in early trading.
In a filing with the SEC, MicroStrategy said it spent $5.4 billion to acquire these bitcoin between Nov. 18-24, buying the bitcoin at an average price of $97,862.
The company said it used proceeds from convertible notes and share sales to fund the purchase.
The application software company, which has become a bitcoin proxy, has been buying tokens since 2020.
In recent weeks, it has intensified its purchases as bitcoin has rallied to highs above $99,000 following Donald Trump's presidential win earlier this month.
As of Sunday, MicroStrategy held a total of approximately 386,700 bitcoins, acquired for an aggregate purchase price of about $21.9 billion and an average purchase price of approximately $56,761 per bitcoin.
Ines Ferré
Oil drops more than 2% on report of Israel-Lebanon ceasefire
Oil dropped to session lows on a report that a ceasefire between Israel and Lebanon-based Hezbollah may have been reached.
West Texas Intermediate (CL=F) sank more than 2% to hover below $70 per barrel, while Brent (BZ=F), the international benchmark, traded below $74 per barrel.
Axios reported on Monday that Israel and Lebanon have agreed to terms of a ceasefire, citing a senior US official.
Earlier, the Israeli ambassador to Washington said in a radio interview on Monday that deal points still need to be finalized but an agreement "can happen within days.”
Ines Ferré
Nvidia slides as AI chip darling extends losses
Nvidia (NVDA) shares dropped as much as 3% in early trading as the AI chip heavyweight failed to participate in the rest of the market gains.
Nvidia shares extended their decline from Friday's session, despite the company beating on quarterly results announced last week.
The AI chipmaker has been a leader in the overall markets this year, accounting for roughly 20% of the S&P 500's performance.
Ines Ferré
Stocks open higher after Trump picks Bessent for Treasury secretary
US stocks rose on Monday as investors await the Fed's preferred measure of inflation this week and after President-elect Donald Trump announced his pick for Treasury secretary, Scott Bessent.
The Dow Jones Industrial Average (^DJI) led the advance, up roughly 0.7%. The S&P 500 (^GSPC) rose 0.5%, while those the tech-heavy Nasdaq Composite (^IXIC) moved up almost 0.6%.
The Personal Consumption Expenditures (PCE) index will be released this Wednesday, giving investors clues on what the Fed's next move with interest rates may be.
The "Magnificent Seven" stocks were mostly higher, with the exception of Nvidia (NVDA), down more than 1%, extending its declines
Earnings: Bath & Body Works (BBWI), Zoom (ZM), Macy's (M) (preliminary)
Here are some of the biggest stories you may have missed over the weekend and early this morning:
Fed-favored PCE inflation seen as stalling: The week ahead
Trump's Treasury choice Bessent says tax cuts are a priority
Macy's delays Q3 report on accounting issue, stock falls
Tesla's $350B surge driven by hype, not fundamentals: UBS
YF columnist Rick Newman: The Republican economy takes off
Trump trade muddles inflation outlook in Fed's favorite gauge
Nvidia CEO says global cooperation in tech will continue under Trump administration
Black Friday Can’t Come Soon Enough for Retailers
Risk Warnings and Disclaimers
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CCL's Earnings Estimates Trend Upward: Time to Buy the Stock?
Carnival Corporation & plc CCL, a cruise and vacation company, witnessed 9.9% and 7.1% growth in its fiscal 2024 and 2025 earnings per share (EPS) estimates over the past 60 days. Considering the break-even EPS reported in fiscal 2023, the estimate for fiscal 2024 indicates notable year-over-year growth. Fiscal 2025 earnings estimates reflect 25.2% year-over-year growth.
The company’s performance is driven by notable cost-saving opportunities, a tone down in inflationary pressures, benefits from one-time items and the timing of expenses between the quarters. Also, benefits realized from increased top-line growth, backed by sustained demand strength and increased booking volumes, add to the uptick.
The 60-day earnings estimate growth trend for Carnival remains higher for fiscal 2024 compared with other significant industry players, including Royal Caribbean Cruises Ltd. RCL, Norwegian Cruise Line Holdings Ltd. NCLH and Lindblad Expeditions Holdings, Inc. LIND. Over the past 60 days, 2024 earnings estimates for RCL and NCLH grew 1% and 5.1%, while the same declined 13.9% for LIND.
Moreover, shares of Carnival have gained 50% over the past three months, outperforming the Zacks Leisure and Recreation Services industry, the Zacks Consumer Discretionary sector and the S&P 500. The detailed price performance is shown in the chart below.
Factors Aiding CCL Stock
Solid Demand Trend: Carnival has been witnessing solid demand for its services throughout its global fleet offerings. The uptrend is backed by increased booking trends, enhanced commercial execution and diversified fleet offerings with enhanced onboard services. During the first nine months of fiscal 2024, consolidated revenues increased 17.8% year over year to $19.08 billion, driven by 19% growth in Passenger Ticket revenues and 15% growth in Onboard and other revenues.
Notably, CCL’s strategic investment in advertising is yielding significant returns, thereby stimulating demand across its portfolio with the launch of several new campaigns during the peak season. The company’s marketing efforts, along with support from travel agents and the narrowing of the unjustified price gap with land-based vacations, have helped attract newer and existing guests, leading to market share gains.
Expectations for Net Income: Having reported a $74 net loss in fiscal 2023, Carnival is currently expecting a $1.76 billion net income in fiscal 2024. The improvement is backed by three essential factors, including growth in net yields (which is a measure of revenue per available passenger cruise day after subtracting direct costs and expenses), improvement in cruise cost per ALBD (available lower berth day) and benefit from fuel pricing.
The improvements mentioned above are also backed by higher ticket prices, increased onboard spending and higher occupancy across the Atlantic brands and somewhat in the European brands. The net income (loss) trend for the past year can be observed in the chart below.
Declining Debt Levels: Since the beginning of fiscal 2024, Carnival has been managing its cash position while reducing its long-term debt levels. The company has been focusing on its refinancing and deleveraging efforts, which have undoubtedly helped it in managing its debt profile. Since the beginning of fiscal 2024, the quarter-wise long-term debt levels were $28.544 billion, $27.154 billion and $26.642 billion. This compares with $28.483 billion at the fiscal 2023-end. Also, the company is likely to benefit from decreased interest rates. If Carnival can refinance a portion of this debt at more favorable rates, it could see a reduction in interest costs, thereby boosting its financial performance. The quarterly trend of long-term debt for the past year is given below.
The company aims to continue searching for more opportunistic re-financings over time, thus reducing debt further and improving adjusted EBITDA. At the end of the nine months of fiscal 2024, adjusted EBITDA improved 48.9% year over year to $4.89 billion.
CCL Stock Trading Above 50 & 200-Day SMA
Technical indicators suggest a continued strong performance for Carnival. From the graphical representation given below, it can be observed that CCL stock is trading above both the 50-day simple moving average (SMA) and 200-day SMA, signaling a bullish trend. The technical strength underscores positive market sentiment and confidence in CCL’s financial health and prospects.
50 & 200-day Moving Average
CCL Trading at a Discount
Carnival is currently trading at a discount compared with the industry peers on a forward 12-month price-to-earnings (P/E) ratio basis. The discounted valuation indicates that despite the recent stock price increase in the past three months, it remains an attractive option for investors looking for a suitable entry point.
Should You Consider CCL Stock: Yay or Nay?
As discussed above, Carnival is benefiting from its cost-saving initiatives, favorable pricing, demand-boosting strategies and the objective of reducing its debt level. Its focus on realizing benefits from increased top-line growth by reducing debt levels and ensuring shareholder value is encouraging. Such motives of the company must be considered by investors when undertaking any decisions in favor of the stock.
Thus, based on the overall discussion and the favorable trends of technical indicators, investors can consider adding this Zacks Rank #1 (Strong Buy) stock to their portfolio for now. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Investment Research
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You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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RCL Stock Hits 52-Week High: Should You Wait for a Dip or Buy Now?
Royal Caribbean Cruises Ltd. RCL is sailing full steam ahead. On Friday, the stock reached a new 52-week high of $242.20 before closing slightly lower at $241.49.
This milestone comes amid stellar third-quarter results and an optimistic outlook for the coming years, fueling an 18.7% surge in the stock price since the earnings announcement. The company's strong third-quarter performance exceeded expectations, driven by high demand, strong pricing, and onboard revenue growth. It achieved a significant financial milestone by transitioning to a fully unsecured capital structure, which will likely bolster its growth plans and broaden its capital allocation strategies.
Over the past year, RCL has outperformed its peers including Carnival Corporation & plc CCL, Norwegian Cruise Line Holdings Ltd. NCLH and OneSpaWorld Holdings Limited OSW. The stock has surged an impressive 126.9% compared to industry and S&P 500 gains of 31.9% and 31.2%, respectively.
RCL Price Performance
As RCL rides high on strong fundamentals, investors are left wondering whether they should jump on board now or wait for a potential dip.
Factors Acting in Favor of RCL
The cruise industry continues to thrive, supported by a robust macroeconomic environment. Increased consumer spending on travel and leisure, especially among millennials and families, has bolstered demand for cruise vacations.
During the third quarter of 2024, RCL reported solid booking volumes across all key itineraries. It also stated a rise in consumer spending onboard and pre-cruise purchases (exceeding 2023 levels) driven by higher participation at increased prices.
The company is highly optimistic about the demand and pricing landscape for 2025. The company's new ships, existing fleet and private destinations have received a strong market response, paving the way for yield growth in 2025.
RCL’s innovative ships, such as the newly launched Utopia of the Seas, have been pivotal in attracting younger demographics and first-time cruisers. The strong response to RCL’s Icon of the Seas and the announcement of a fourth Icon-class ship set for 2027 reinforce the company’s strategy of delivering cutting-edge vacation experiences.
RCL’s investment in AI-enabled yield management tools has been a game-changer. During the third quarter of 2024, over 70% of onboard purchases were made pre-cruise, doubling the spending of those who waited until onboard. This proactive approach optimizes pricing, enhances customer engagement, and contributes significantly to revenue growth.
What Next for Royal Caribbean?
Looking ahead to 2025, RCL anticipates continued growth, with earnings expected to start with a “$14 handle.” The introduction of new ships, including the Star of the Seas and Celebrity Xcel, alongside the opening of Royal Beach Club Paradise Island, will likely bolster its portfolio.
RCL is at the forefront of innovation within the vacation industry, introducing new products and experiences, including private destinations, to fuel growth. During the third quarter of 2024, RCL announced expansions to its private destinations portfolio. These include the launch of "Perfect Day Mexico," set for 2027, and a new Silversea hotel in Puerto Williams, Chile, expected to open in the winter of 2025-2026. These additions aim to enhance guest experiences with exclusive destination options. RCL expresses optimism regarding the prospects of private destinations and anticipates it as a key driver of growth in the upcoming periods.
Upgraded 2024 Guidance Instills Confidence in RCL
The company raised its guidance for 2024. RCL expects net yields to increase 10.9-11.4% on a reported basis and 10.8-11.3% at cc on a year-over-year basis. Earlier, the company projected net yields to rise 10.4-10.9% (on a reported and constant-currency basis) year over year. Much optimism prevails on the back of new ship additions, a strong pricing environment, continued growth from onboard revenues and accelerating commercial apparatus. For 2024, the company anticipates adjusted EPS to be in the range of $11.57-$11.62, up from the prior projection of $11.35-$11.45.
The Zacks Consensus Estimate for RCL’s 2024 and 2025 EPS has moved up 1% and 6%, respectively, in the past 60 days. The upward revision in earnings estimates indicates analysts’ increasing confidence in the stock.
RCL Returns Higher Than the Industry
Royal Caribbean’s return on invested capital (ROIC) has outperformed the industry average in the trailing 12 months. The ROIC of RCL was 16.74% compared with the industry average of 10.63%.
The company’s impressive ROIC is a testament to its strategic initiatives and operational excellence, including optimized fleet operations, premium pricing strategies, effective cost management, and innovative investments in advanced ships and private destinations. Additionally, robust financial flexibility and strong ancillary revenue growth have collectively driven superior returns and long-term shareholder value.
RCL’s trailing 12-month return on equity is 52.92%, ahead of the industry average of 24.79%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in its operations to generate income.
RCL’s Valuation
With a forward 12-month price-to-earnings of 17.35X, well below the industry average of 21.75X, the stock presents a potentially attractive valuation for investors.
Technical indicators are supportive of RCL's performance. The stock is currently trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability.
RCL Stock Trades Above 50 and 200-Day Moving Average
Our Thoughts
While the recent rally may tempt cautious investors to wait for a dip, the company's solid fundamentals, innovative pipeline, and optimistic 2025 outlook make it a compelling buy for those with a long-term perspective.
The company’s focus on moderate capacity growth, disciplined cost management, and yield improvement ensures sustainable shareholder value. Moreover, rising EPS estimates and technical indicators, such as trading above its 50-day and 200-day moving averages, reinforce the stock’s bullish momentum. We believe that this Zacks Rank #2 (Buy) stock is an ideal candidate for those looking to capitalize on the booming cruise industry.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Investment Research
Risk Warnings and Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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