Investing.com-- The Dow closed a fresh record high Friday, as the rotation into cyclical stocks including industrials continued to propel stocks higher amid weakness in tech. At...
Investing.com-- The Dow closed a fresh record high Friday, as the rotation into cyclical stocks including industrials continued to propel stocks higher amid weakness in tech.
At 4.00 p.m. ET (2100 GMT), the Dow Jones Industrial Average gained 426 points, or 0.8% to close at a record of 44,296.51. The S&P 500 index rose 0.3%, while the NASDAQ Composite gained 0.2%.
Boeing leads industrials higher as rotation into cyclicals continued
Boeing Co (NYSE:BA) gained more than 4% to prop up the broader industrials sector as the aircraft maker won a $2.39 billion contract modification from the defense department.
As well as the rise in Boeing, sentiment on cyclicals have also been supported by expectations that a second Donald Trump administration is set to extend U.S. economic exceptionalism.
December rate cut in question
Business activity data, released earlier Friday, showed that the US economy remained relatively healthy, adding to strong jobless claims data released last week.
The S&P manufacturing PMI release rose to 48.8 in November, from 48.5 he prior month, while the more significant services PMI soared to 57.0, from 55.0 in October.
There remains doubt over whether the Federal Reserve will cut interest rates in December, particularly after the strong inflation readings for October, while policymakers also flagged a more cautious approach to further easing.
Traders were seen scaling back some bets that the Fed will cut rates by 25 basis points in December, CME Fedwatch showed this week. Traders were pricing in a 61.7% chance for a December cut.
The equivalent news out of Europe was disappointing earlier Friday, as eurozone business activity took a surprisingly sharp turn for the worse as the bloc's dominant services industry contracted and manufacturing sank deeper into recession.
Tech sector subdued; Gap surges on blowout earnings
The tech sector will remain in focus Friday, with Google owner Alphabet (NASDAQ:GOOGL) stock dropping more than 1%, adding to losses of almost 5% on Thursday, following the Department of Justice demanding that Google sell its Chrome web browser to help curb the tech giant’s monopoly in online search.
The DOJ also recommended the firm share its data and search results with rivals and potentially sell its Android operating system.
The recommendations come after a landmark ruling earlier this year, that Google operated an illegal monopoly in online search.
Nvidia (NASDAQ:NVDA) stock fell around 3%, handing back the previous sector's gains as strong artificial intelligence demand fueled an earnings beat, but the AI darling also forecast a slower pace of revenue growth in the current quarter.
Elsewhere, Gap (NYSE:GAP) stock soared nearly 13% after the fashion retailer raised its annual sales forecast and said the holiday season was off to a "strong start".
On the flip side, Intuit (NASDAQ:INTU) stock fell 5.7% after the financial software company issued disappointing guidance for the second quarter and fiscal year.
(Peter Nurse, Ambar Warrick contributed to this article.)
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Nvidia’s NVDA quarterly results were excellent, with the chip giant not only beating estimates and raising guidance but also achieving top- and bottom-line growth rates that are typically associated with start-up players.
Nvidia’s Q3 earnings increased +106.3% from the year-earlier period to $19.37 billion while revenues were up +93.6% year-over-year to +35.08 billion.
To get a sense of the market’s lukewarm reaction to these otherwise impressive results from Nvidia, take a look at the chart below that plots the stock price relative to how estimates consensus EPS estimates have evolved over time.
The chart's light blue and red lines represent the evolution of consensus EPS estimates for 2024 and 2025, respectively. The steepness of those lines shows how persistent the favorable revisions trend has been, with analysts seemingly struggling to catch up with how strong underlying business trends have been for Nvidia.
Nvidia’s stock market momentum has made its market capitalization the highest of the Magnificent 7 group at $3.59 trillion, surpassing Apple at $3.45 trillion and Microsoft at $3.07 trillion. Investors’ lukewarm reaction suggests that they have become used to getting far bigger guidance upgrades than what they received this time around. Nvidia’s upgraded guidance is solid, but relatively underwhelming by the company’s own standards.
We don’t want to come across as making too big of a deal of the stock’s reaction to the quarterly results. After all, Nvidia shares are up +191.3% over the past year and have handily outperformed the Zacks Tech sector (up +32.5%), the S&P 500 index (up +30.4%), and the Mag 7 group (up +20.6%).
Beyond Nvidia, the focus lately has been on the Retail sector, with several major conventional operators coming out with quarterly results. Through Friday, November 22nd, we have seen Q3 results from 29 of the 34 Retail sector companies in the S&P 500 index.
Regular readers know that Zacks has a dedicated stand-alone economic sector for the retail space, which is unlike the placement of the space in the Consumer Staples and Consumer Discretionary sectors in the Standard & Poor’s standard industry classification.
The Zacks Retail sector includes not only Walmart, Home Depot, and other traditional retailers, but also online vendors like Amazon AMZN and restaurant players.
Total Q3 earnings for these 29 retailers that have reported are up +12.8% from the same period last year on +5.6% higher revenues, with 58.6% beating EPS estimates and only 51.7% beating revenue estimates.
The comparison charts below put the Q3 beats percentages for these retailers in a historical context.
As you can see above, members of the Zacks Retail sector have struggled to beat estimates in Q3, with the trend particularly notable on the EPS beats front that are tracking below the 20-quarter low at this stage.
Concerning the elevated earnings growth rate at this stage, we like to show the group’s performance with and without Amazon, whose results are among the 24 companies that have reported already. As we know, Amazon’s Q3 earnings were up +71.6% on +11% higher revenues, as it beat EPS and top-line expectations.
As we all know, the digital and brick-and-mortar operators have been converging for some time now. Amazon is now a decent-sized brick-and-mortar operator after Whole Foods, and Walmart is now a growing online vendor. This long-standing trend got a huge boost from the Covid lockdowns.
The two comparison charts below show the Q3 earnings and revenue growth relative to other recent periods, both with Amazon’s results (left side chart) and without Amazon’s numbers (right side chart).
Q3 Earnings Season Scorecard
Through Friday, November 22nd, we have seen Q3 results from 476 S&P 500 members, or 92.2% of the index’s total membership. We have another 8 S&P 500 members on deck to report results this holiday-shortened week, including Dell, HP, Best Buy, and others.
Total earnings for these 476 companies that have reported are up +8.1% from the same period last year on +5.5% higher revenues, with 73.7% of the companies beating EPS estimates and 61.8% beating revenue estimates.
The proportion of these 476 index members beating both EPS and revenue estimates is 51.1%.
The comparison charts below put the Q3 earnings and revenue growth rates and the EPS and revenue beats percentages in a historical context. The first set of comparison charts show the earnings and revenue growth rates.
One significant drag on the aggregate growth pace has been the Energy sector, whose Q3 earnings were down -22.9% from the same period last year on -2.7% lower revenues. Q3 earnings for the index would be up +10.6% on +6.3% higher revenues had it not been for this Energy sector drag. The comparison charts below show the ex-Energy earnings and revenue growth pace across different periods.
The second set of comparison charts compare the Q3 EPS and revenue beats percentages in a historical context.
The comparison charts below spotlight the revenue performance and the blended beats percentage for this group of 476 index members.
As you can see above, the growth trend appears stable-to-positive, though fewer companies are beating consensus estimates relative to other recent periods. In fact, both the EPS and revenue beats percentages are tracking below the 20-quarter averages.
The Earnings Big Picture
Looking at Q3 as a whole, combining the results that have come out with estimates for the still-to-come companies, total earnings for the S&P 500 index are expected to be up +8.1% from the same period last year on +5.7% higher revenues.
The chart below shows the Q3 earnings and revenue growth pace in the context of where growth has been in the preceding four quarters and what is expected in the coming three quarters.
The Energy and Tech sectors are having the opposite effects on the Q3 earnings growth pace, with the Energy sector dragging it down and the Tech sector pushing it higher.
Had it not been for the Energy sector drag, Q3 earnings for the S&P 500 index would be up +10.6% instead of +8.1%. Excluding the Tech sector’s substantial contribution, Q3 earnings growth for the rest of the index would be up only +2.9% instead of +8.1%.
Excluding the contribution from the Mag 7 group, Q3 earnings for the rest of the 493 S&P 500 members would be up only +2.4% instead of +8.1%.
For the last quarter of the year (2024 Q4), total S&P 500 earnings are expected to be up +7.7% from the same period last year on +4.9% higher revenues.
Unlike the unusually high magnitude of estimate cuts that we had seen ahead of the start of the Q3 earnings season, estimates for Q4 are holding up a lot better, as the chart below shows.
The chart below shows the overall earnings picture on a calendar-year basis, with the +7.9% earnings growth this year followed by double-digit gains in 2025 and 2026.
Please note that this year’s +7.9% earnings growth improves to +9.9% on an ex-Energy basis.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Walmart and Target: A Closer Look at Retail Earnings
Zacks Investment Research
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Over The River And Through The Woods: Wall St Ends Winding Week With Gains
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 closes at record, S&P 500, Nasdaq rise as Wall Street notches strong weekly gains
US stocks closed near session highs on Friday as investors surveyed President-elect Donald Trump's efforts to build his team and bitcoin's (BTC-USD) bid to reach a key milestone.
The S&P 500 (^GSPC) advanced 0.3%, while the Dow Jones Industrial Average (^DJI) gained over 400 points, or almost 1% to close at a record. The tech-heavy Nasdaq Composite (^IXIC) rose 0.2%.
The major gauges closed out the week with wins of over 1%, despite getting it off to a lackluster start as the post-election rally stalled.
Markets regrouped after Nvidia's (NVDA) earnings fell short of definitively settling the question of whether AI would keep boosting stocks. Some of the "Magnificent Seven" tech megacap stocks closed lower on Friday, also dogged by the potential breakup of Alphabet (GOOG, GOOGL).
Wall Street is still waiting to learn who Trump will tap for his Treasury secretary — an announcement that could sway markets, given its importance to the economy. The president-elect tapped former Florida Attorney General Pam Bondi to be the US attorney general after his prior pick, Matt Gaetz, withdrew his name from consideration on Thursday.
Meanwhile, surging bitcoin continued to move near the landmark $100,000 level, buoyed by growing confidence that the Trump administration will support pro-crypto policies. The leading token broke above $99,500 early on Friday before retreating amid hopes for looser regulatory oversight after SEC Chair Gary Gensler said he will step down soon. Smaller cryptocurrencies also got a boost.
LIVE16 updates
Ines Ferré
Dow closes at record, S&P 500, Nasdaq rise as stocks notch weekly win
Stocks rose on Friday with the Dow Jones Industrial Average (^DJI) closing at a record high.
The blue chip index added more than 400 points, or about 1% while the S&P 500 (^GSPC) gained almost 0.4%. The Nasdaq Composite (^IXIC) rose slightly. All three major averages rose more than 1% for the week.
The 'Magnificent 7' stocks were mixed on Friday with Nvidia (NVDA) shares dipping more than 3% while Tesla (TSLA) shares popped almost 4% on Friday, helping lift the Consumer Discretionary (XLY) sector.
Investors also gravitated towards Industrials (XLI), and Financials (XLF) which also led the weekly gains.
Oil moved higher for the week as traders priced the threat of a supply disruption amid an escalating Russia-Ukraine war.
Meanwhile Bitcoin (BTC-USD) hovered around $99,200 as of 4 p.m. ET as investors watched the cryptocurrency climb toward the $100,000 milestone.
Next Thursday the stock market will be closed due to the Thanksgiving holiday.
Ines Ferré
Consumer Discretionary, Industrials, Financials lead weekly gains
The biggest winning sectors this week were the ones leading Friday's gains — Consumer Discretionary (XLY), Industrials (XLI), and Financials (XLF).
Here's a 5-day chart of the sector action.
Consumer Discretionary includes EV giant (TSLA), which is up for the week. Investors have also been rotating into Industrial stocks and bank stocks since Donald Trump's presidencial win earlier this month.
Ines Ferré
Oil surges as Ukraine-Russia war intensifies
Oil moved up more than 1.5% on Friday as the Russia-Ukraine war escalated.
West Texas Intermediate (CL=F) futures climbed to settle at $71.24 per barrel, while Brent (BZ=F), the international benchmark, rose above above $75.
Russian President Vladimir Putin said on Friday he will continue testing a new missile after a recent strike against Ukraine in response to Kyiv’s use of US and British made weaponry this week.
Crude prices were on pace for a weekly gain amid concerns that an escalated war could lead to the interruption of Russian supply.
Ines Ferré
Nvidia near session lows, down 3%
Nvidia (NVDA) shares dipped more than 3% to hit session lows on Friday afternoon despite quarterly results earlier this week that beat analyst expectations.
Enthusiasm over how much higher shares of the chip giant can run seems to have stalled as investors have rotated out of the AI darling and into Consumer Discretionary (XLY), Industrials (XLI), and Financials (XLF).
Ines Ferré
Microsoft begins rolling out Recall feature to developers as AI PC push continues
Yahoo Finance's Dan Howley reports:
Microsoft (MSFT) is preparing to roll out its long-delayed artificial intelligence-powered Recall feature for Windows 11 PCs to developers as part of its Windows Insider program.
The company initially announced Recall back in May when it debuted its Copilot+ PCs, AI PCs that have a specific set of features for running native AI applications. Recall is designed to capture screenshots of the various tasks you perform while using your computer, whether that’s browsing the web or working on a document.
Read more here.
Ines Ferré
Bitcoin rises above $99,000 as token flirts with major milestone
Bitcoin (BTC-USD) rose back above $99,000 as investors watched the cryptocurrency climb toward the $100,000 milestone.
The token has been at the center of the Trump trade over optimism that the incoming administration will implement pro-crypto policies.
Year to date, bitcoin is up more than 120%.
Ines Ferré
Tesla shares pop 4% as stock heads for weekly win
Tesla (TSLA) shares popped 4% on Friday, helping lift the Consumer Discretionary (XLY) sector.
Shares of the EV giant are on track for a weekly win.
The stock is up roughly 40% since the presidential elections earlier this month over optimism that CEO Elon Musk's support for President-elect Donald Trump will result in looser regulations around autonomous driving.
Alexandra Canal
DirecTV, Dish will no longer merge
Satellite TV provider DirecTV (T, TPG) will no longer merge with rival Dish Network (SATS) after bondholders rejected the offer.
The deal, which was contingent on a key debt exchange, would have created one of the nation's largest pay-TV providers. Both companies had discussed a possible combination more than two decades ago.
“While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV’s balance sheet and our operational flexibility,” DirecTV CEO Bill Morrow said in a statement.
Shares in EchoStar, which owns Dish Network, fell by more than 4% on Friday following the news.
The deal would have helped aid EchoStar's heavy debt load while also helping cut costs for the owners of DirecTV. AT&T spun off DirecTV in 2021, moving it into a joint venture with private equity investor TPG. At the time, it was valued at about $16 billion with the telecom giant taking a $15.5 billion impairment charge in 2020 to account for subscriber losses.
DirecTV was dealt yet another blow after it lost its coveted Sunday Ticket package to Alphabet's YouTube TV (GOOGL, GOOG) in late 2022.
Amid those struggles, AT&T recently revealed it would sell its entire 70% stake to TPG for $7.6 billion in a move that allows the telecom operator to fully exit the TV business. That deal is still on.
AT&T previously had agreed to hold on to its stake in DirecTV for a three-year period, which expired on July 31.
Ines Ferré
Nvidia stock down more than 2%, drags on Nasdaq
Nvidia (NVDA) shares dropped more than 2% on Friday, dragging on the Nasdaq Composite (^IXIC).
Shares of the AI chip heavyweight opened in the red after wavering between positive and negative territory on Thursday in reaction to the company's latest quarterly results.
Other 'Magnificent Seven' stocks were also under pressure, with Alphabet (GOOGL, GOOG) down more than 1% after losing more than 4% in the prior session. E-commerce giant (AMZN) was also down less than 1%.
Meanwhile, Tesla (TSLA) stock rose more than 1%.
The Nasdaq was struggling to stay in green territory, down roughly 0.3% by 10:30 a.m. ET.
Josh Schafer
US economic output hits highest level since April 2022
US economic output is roaring as businesses prepare for lower interest rates and a new administration in Washington.
S&P Global's flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 55.3 in November, up from 54.1 in October. Economists had expected the index to tick up to 54.1.
The composite PMI reading for November also signaled the fastest expansion of business activity since April 2022.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the data shows business ramping up activity amid a changing operating environment, headed into 2025.
“The business mood has brightened in November, with confidence about the year ahead hitting a two-and-a-half year high," Williamson said. "The prospect of lower interest rates and a more pro-business approach from the incoming administration has fueled greater optimism, in turn helping drive output and order book inflows higher in November."
Laura Bratton
Super Micro on track for over 65% weekly gain
Super Micro Computer (SMCI) — an AI server maker that uses Nvidia's chips and has a major deal with Elon Musk's xAI — continued a sharp ascent Friday.
Shares rose over 9% in early trading, putting the stock on track to record a weekly gain of over 65%.
The stock's rally this week has been driven by the company's announcement that it's hired a new auditor and submitted a compliance plan to avoid delisting by the Nasdaq. Super Micro's prior accountant, Ernst & Young, resigned in late October, saying it was "unwilling to be associated with the financial statements prepared by management," and the server maker has been at risk of delisting.
Super Micro is reportedly being investigated by the Department of Justice over allegations of accounting violations and other questionable business dealings outlined in a scathing report by short seller firm Hindenburg Research in late August.
Laura Bratton
Reddit stock plummets on report of 7.8 million share sale
Reddit (RDDT) stock fell over 8% in early trading on Friday as investors reacted to a Bloomberg report that a company shareholder — Conde Nast parent Advance Magazine Publishers Inc. — is looking to establish a credit facility using its stake in the social media platform.
Citing people familiar with the matter, Bloomberg reported that Advance Magazine Publishers Inc. is offering 7.8 million shares for $145.38 to $148.54 each, which would be valued at as much as $1.2 billion. That price range represented as much as an 8% discount on Reddit's closing price Thursday of $158.
Reddit stock has been on a massive rally over the past month, surging more than 90% since its earnings beat in late October.
The social media company went public in March in one of 2024's few hot IPOs, surging nearly 50% after its debut.
Shares rose 16% on Thursday alone.
Ines Ferré
Dow gains 250 points as S&P 500, Nasdaq also rise
The Dow Jones Industrial Average (^DJI) added 250 points, or 0.6%, shortly after the market open as shares of Home Depot (HD), Honeywell (HON), and Nike (NKE) rose.
The S&P 500 (^GSPC) gained 0.4%, while the Nasdaq Composite (^IXIC) stepped above the flat line.
Ines Ferré
Stocks waver at open, bitcoin eyes $100,000
Stocks wavered at the open on Friday, but the major averages were still on track to end the week with wins. Meanwhile, investors watched the price of bitcoin (BTC-USD), with the leading token trading a stone's throw away from $100,000.
The S&P 500 (^GSPC) rose slightly, while the Dow Jones Industrial Average (^DJI) was little changed. The tech-heavy Nasdaq Composite (^IXIC) fell slightly.
Alphabet (GOOGL, GOOG) shares extended losses after dropping more than 4% on Thursday amid the threat of a forced sale of Google's Chrome browser.
Bitcoin climbed above $99,400 early on Friday before retreating. The cryptocurrency has been on fire since Donald Trump's presidential victory earlier this month, amid optimism that his incoming administration will implement crypto-friendly policies.
By 9:30 a.m. ET, bitcoin was trading at just under $98,000.
Laura Bratton
Bitcoin flirts with $100,000
Bitcoin (BTC-USD) neared the $100,000 level Friday in its latest flirtation with the milestone.
Yahoo Finance's Julie Hyman reports on bitcoin's recent surge, up nearly 50% in the past month:
The most-held cryptocurrency has been surging since the US presidential election as the crypto community expects a more friendly regulatory regime with President-elect Trump as "HODLer-in-chief." That added to an already torrid rally this year, prompted by the introduction of spot bitcoin ETFs.
On the policy front, encouraging signs have been mounting: Coinbase (COIN) CEO Brian Armstrong reportedly met with Trump to discuss his picks for the head of the Securities and Exchange Commission. And SEC boss Gary Gensler and FDIC Chair Martin Gruenberg, seen as crypto foes by the industry, are stepping down around Inauguration Day.
Read the full story here.
Jenny McCall
Good morning. Here's what's happening today.
Economic data: S&P Global US manufacturing & services PMI (November preliminary); University of Michigan consumer sentiment (November final)
Earnings: No notable earnings releases.
Here are some of the biggest stories you may have missed overnight and early this morning:
YF columnist Rick Newman: Musk's DOGE is already overreaching
2025 Medicare premiums will eat into Social Security checks
Bitcoin's surging to $100K — and that's what it needs to do
Boeing CEO tells staff to focus on competition, not complaining
Gold gains, set for biggest weekly jump in 13 months
Honeywell to sell PPE business for $1.33B
Cryptos targeted by SEC rise after Gensler steps away
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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Stock market today: Dow, S&P 500, Nasdaq rise as Wall Street notches strong weekly gains
US stocks closed near session highs on Friday as investors surveyed President-elect Donald Trump's efforts to build his team and bitcoin's (BTC-USD) bid to reach a key milestone.
The S&P 500 (^GSPC) advanced 0.3%, while the Dow Jones Industrial Average (^DJI) gained over 400 points, or almost 1%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.2%.
The major gauges closed out the week with wins of over 1%, despite getting it off to a lackluster start as the post-election rally stalled.
Markets regrouped after Nvidia's (NVDA) earnings fell short of definitively settling the question of whether AI would keep boosting stocks. Some of the "Magnificent Seven" tech megacap stocks closed lower on Friday, also dogged by the potential breakup of Alphabet (GOOG, GOOGL).
Wall Street is still waiting to learn who Trump will tap for his Treasury secretary — an announcement that could sway markets, given its importance to the economy. The president-elect tapped former Florida Attorney General Pam Bondi to be the US attorney general after his prior pick, Matt Gaetz, withdrew his name from consideration on Thursday.
Meanwhile, surging bitcoin continued to move near the landmark $100,000 level, buoyed by growing confidence that the Trump administration will support pro-crypto policies. The leading token broke above $99,500 early on Friday before retreating amid hopes for looser regulatory oversight after SEC Chair Gary Gensler said he will step down soon. Smaller cryptocurrencies also got a boost.
LIVE16 updates
Ines Ferré
Dow, S&P 500, Nasdaq notch weekly win
Stocks rose on Friday to end the week with gains.
The Dow Jones Industrial Average (^DJI) added more than 400 points, or about 1% as while the S&P 500 (^GSPC) gained almost 0.4%. The Nasdaq Composite (^IXIC) rose slightly. All three major averages rose more than 1% for the week.
The 'Magnificent 7' stocks were mixed on Friday with Nvidia (NVDA) shares dipping more than 3% while Tesla (TSLA) shares popped almost 4% on Friday, helping lift the Consumer Discretionary (XLY) sector.
Investors also gravitated towards Industrials (XLI), and Financials (XLF), sectors which also led the weekly gains.
Oil moved higher for the week as traders priced the threat of a supply disruption amid an escalating Russia-Ukraine war.
Meanwhile Bitcoin (BTC-USD) hovered around $99,200 as of 4 p.m. ET as investors watched the cryptocurrency climb toward the $100,000 milestone.
Next Thursday the stock market will be closed due to the Thanksgiving holiday.
Ines Ferré
Consumer Discretionary, Industrials, Financials lead weekly gains
The biggest winning sectors this week were the ones leading Friday's gains — Consumer Discretionary (XLY), Industrials (XLI), and Financials (XLF).
Here's a 5-day chart of the sector action.
Consumer Discretionary includes EV giant (TSLA), which is up for the week. Investors have also been rotating into Industrial stocks and bank stocks since Donald Trump's presidencial win earlier this month.
Ines Ferré
Oil surges as Ukraine-Russia war intensifies
Oil moved up more than 1.5% on Friday as the Russia-Ukraine war escalated.
West Texas Intermediate (CL=F) futures climbed to settle at $71.24 per barrel, while Brent (BZ=F), the international benchmark, rose above above $75.
Russian President Vladimir Putin said on Friday he will continue testing a new missile after a recent strike against Ukraine in response to Kyiv’s use of US and British made weaponry this week.
Crude prices were on pace for a weekly gain amid concerns that an escalated war could lead to the interruption of Russian supply.
Ines Ferré
Nvidia near session lows, down 3%
Nvidia (NVDA) shares dipped more than 3% to hit session lows on Friday afternoon despite quarterly results earlier this week that beat analyst expectations.
Enthusiasm over how much higher shares of the chip giant can run seems to have stalled as investors have rotated out of the AI darling and into Consumer Discretionary (XLY), Industrials (XLI), and Financials (XLF).
Ines Ferré
Microsoft begins rolling out Recall feature to developers as AI PC push continues
Yahoo Finance's Dan Howley reports:
Microsoft (MSFT) is preparing to roll out its long-delayed artificial intelligence-powered Recall feature for Windows 11 PCs to developers as part of its Windows Insider program.
The company initially announced Recall back in May when it debuted its Copilot+ PCs, AI PCs that have a specific set of features for running native AI applications. Recall is designed to capture screenshots of the various tasks you perform while using your computer, whether that’s browsing the web or working on a document.
Read more here.
Ines Ferré
Bitcoin rises above $99,000 as token flirts with major milestone
Bitcoin (BTC-USD) rose back above $99,000 as investors watched the cryptocurrency climb toward the $100,000 milestone.
The token has been at the center of the Trump trade over optimism that the incoming administration will implement pro-crypto policies.
Year to date, bitcoin is up more than 120%.
Ines Ferré
Tesla shares pop 4% as stock heads for weekly win
Tesla (TSLA) shares popped 4% on Friday, helping lift the Consumer Discretionary (XLY) sector.
Shares of the EV giant are on track for a weekly win.
The stock is up roughly 40% since the presidential elections earlier this month over optimism that CEO Elon Musk's support for President-elect Donald Trump will result in looser regulations around autonomous driving.
Alexandra Canal
DirecTV, Dish will no longer merge
Satellite TV provider DirecTV (T, TPG) will no longer merge with rival Dish Network (SATS) after bondholders rejected the offer.
The deal, which was contingent on a key debt exchange, would have created one of the nation's largest pay-TV providers. Both companies had discussed a possible combination more than two decades ago.
“While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV’s balance sheet and our operational flexibility,” DirecTV CEO Bill Morrow said in a statement.
Shares in EchoStar, which owns Dish Network, fell by more than 4% on Friday following the news.
The deal would have helped aid EchoStar's heavy debt load while also helping cut costs for the owners of DirecTV. AT&T spun off DirecTV in 2021, moving it into a joint venture with private equity investor TPG. At the time, it was valued at about $16 billion with the telecom giant taking a $15.5 billion impairment charge in 2020 to account for subscriber losses.
DirecTV was dealt yet another blow after it lost its coveted Sunday Ticket package to Alphabet's YouTube TV (GOOGL, GOOG) in late 2022.
Amid those struggles, AT&T recently revealed it would sell its entire 70% stake to TPG for $7.6 billion in a move that allows the telecom operator to fully exit the TV business. That deal is still on.
AT&T previously had agreed to hold on to its stake in DirecTV for a three-year period, which expired on July 31.
Ines Ferré
Nvidia stock down more than 2%, drags on Nasdaq
Nvidia (NVDA) shares dropped more than 2% on Friday, dragging on the Nasdaq Composite (^IXIC).
Shares of the AI chip heavyweight opened in the red after wavering between positive and negative territory on Thursday in reaction to the company's latest quarterly results.
Other 'Magnificent Seven' stocks were also under pressure, with Alphabet (GOOGL, GOOG) down more than 1% after losing more than 4% in the prior session. E-commerce giant (AMZN) was also down less than 1%.
Meanwhile, Tesla (TSLA) stock rose more than 1%.
The Nasdaq was struggling to stay in green territory, down roughly 0.3% by 10:30 a.m. ET.
Josh Schafer
US economic output hits highest level since April 2022
US economic output is roaring as businesses prepare for lower interest rates and a new administration in Washington.
S&P Global's flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 55.3 in November, up from 54.1 in October. Economists had expected the index to tick up to 54.1.
The composite PMI reading for November also signaled the fastest expansion of business activity since April 2022.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the data shows business ramping up activity amid a changing operating environment, headed into 2025.
“The business mood has brightened in November, with confidence about the year ahead hitting a two-and-a-half year high," Williamson said. "The prospect of lower interest rates and a more pro-business approach from the incoming administration has fueled greater optimism, in turn helping drive output and order book inflows higher in November."
Laura Bratton
Super Micro on track for over 65% weekly gain
Super Micro Computer (SMCI) — an AI server maker that uses Nvidia's chips and has a major deal with Elon Musk's xAI — continued a sharp ascent Friday.
Shares rose over 9% in early trading, putting the stock on track to record a weekly gain of over 65%.
The stock's rally this week has been driven by the company's announcement that it's hired a new auditor and submitted a compliance plan to avoid delisting by the Nasdaq. Super Micro's prior accountant, Ernst & Young, resigned in late October, saying it was "unwilling to be associated with the financial statements prepared by management," and the server maker has been at risk of delisting.
Super Micro is reportedly being investigated by the Department of Justice over allegations of accounting violations and other questionable business dealings outlined in a scathing report by short seller firm Hindenburg Research in late August.
Laura Bratton
Reddit stock plummets on report of 7.8 million share sale
Reddit (RDDT) stock fell over 8% in early trading on Friday as investors reacted to a Bloomberg report that a company shareholder — Conde Nast parent Advance Magazine Publishers Inc. — is looking to establish a credit facility using its stake in the social media platform.
Citing people familiar with the matter, Bloomberg reported that Advance Magazine Publishers Inc. is offering 7.8 million shares for $145.38 to $148.54 each, which would be valued at as much as $1.2 billion. That price range represented as much as an 8% discount on Reddit's closing price Thursday of $158.
Reddit stock has been on a massive rally over the past month, surging more than 90% since its earnings beat in late October.
The social media company went public in March in one of 2024's few hot IPOs, surging nearly 50% after its debut.
Shares rose 16% on Thursday alone.
Ines Ferré
Dow gains 250 points as S&P 500, Nasdaq also rise
The Dow Jones Industrial Average (^DJI) added 250 points, or 0.6%, shortly after the market open as shares of Home Depot (HD), Honeywell (HON), and Nike (NKE) rose.
The S&P 500 (^GSPC) gained 0.4%, while the Nasdaq Composite (^IXIC) stepped above the flat line.
Ines Ferré
Stocks waver at open, bitcoin eyes $100,000
Stocks wavered at the open on Friday, but the major averages were still on track to end the week with wins. Meanwhile, investors watched the price of bitcoin (BTC-USD), with the leading token trading a stone's throw away from $100,000.
The S&P 500 (^GSPC) rose slightly, while the Dow Jones Industrial Average (^DJI) was little changed. The tech-heavy Nasdaq Composite (^IXIC) fell slightly.
Alphabet (GOOGL, GOOG) shares extended losses after dropping more than 4% on Thursday amid the threat of a forced sale of Google's Chrome browser.
Bitcoin climbed above $99,400 early on Friday before retreating. The cryptocurrency has been on fire since Donald Trump's presidential victory earlier this month, amid optimism that his incoming administration will implement crypto-friendly policies.
By 9:30 a.m. ET, bitcoin was trading at just under $98,000.
Laura Bratton
Bitcoin flirts with $100,000
Bitcoin (BTC-USD) neared the $100,000 level Friday in its latest flirtation with the milestone.
Yahoo Finance's Julie Hyman reports on bitcoin's recent surge, up nearly 50% in the past month:
The most-held cryptocurrency has been surging since the US presidential election as the crypto community expects a more friendly regulatory regime with President-elect Trump as "HODLer-in-chief." That added to an already torrid rally this year, prompted by the introduction of spot bitcoin ETFs.
On the policy front, encouraging signs have been mounting: Coinbase (COIN) CEO Brian Armstrong reportedly met with Trump to discuss his picks for the head of the Securities and Exchange Commission. And SEC boss Gary Gensler and FDIC Chair Martin Gruenberg, seen as crypto foes by the industry, are stepping down around Inauguration Day.
Read the full story here.
Jenny McCall
Good morning. Here's what's happening today.
Economic data: S&P Global US manufacturing & services PMI (November preliminary); University of Michigan consumer sentiment (November final)
Earnings: No notable earnings releases.
Here are some of the biggest stories you may have missed overnight and early this morning:
YF columnist Rick Newman: Musk's DOGE is already overreaching
2025 Medicare premiums will eat into Social Security checks
Bitcoin's surging to $100K — and that's what it needs to do
Boeing CEO tells staff to focus on competition, not complaining
Gold gains, set for biggest weekly jump in 13 months
Honeywell to sell PPE business for $1.33B
Cryptos targeted by SEC rise after Gensler steps away
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US Equities Markets End Higher Friday as Private Sector Output Reaches Highest Level in Over 2 Years
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3 Reasons Besides Q3 Data Center Success to Buy NVIDIA Stock
NVIDIA Corporation NVDA has delivered better-than-expected sales and earnings in its latest quarterly report as it continues to progress banking on the incessant demand for its artificial intelligence (AI) chips.
Amid the recent data center success, NVIDIA stock remains attractively priced, exhibits a bullish trend, and is fundamentally strong, making it a good buy for investors. Let’s see in detail –
NVIDIA Stock – Positive Q3 Data Center Result & Outlook
NVIDIA recently reported fiscal third-quarter results, in which its revenues jumped 94% to $35.1 billion from the same period a year ago. Earnings per share (EPS) came in at $0.81, up 103% from a year ago.
The company’s revenues exceeded Wall Street expectations due to record gains from the data center business. Third-quarter revenues from the data center came in at $30.8 billion, up 112% from a year ago.
CEO Jensen Huang admitted that demand for its Superchips and related hardware was robust, particularly for its present Hopper chips. Huang expects continued high demand for Hopper chips into next year.
The advanced H200 chips will be available in several cloud services, such as Azure, Google Cloud and AWS. Beyond big tech cloud operators, Denmark launched its AI supercomputer driven by H100 Tensor Core graphic processing units (GPUs). The government’s demand for Hopper chips, beyond private companies, fuels NVIDIA’s growing data center business in the information arms race.
But it’s not all about Hopper chips, Huang clarified that the demand for the much-awaited next-generation Blackwell chips remains “staggering” for the fourth quarter and next year.
Companies like Microsoft Corporation MSFT and Meta Platforms, Inc. META will likely adopt the Blackwell chips for higher AI throughput than the current Hopper chips. The Blackwell platform can enhance AI training performance and train large language models cost-effectively.
According to SoftBank Corp, NVIDIA’s Blackwell platform will build Japan’s most powerful AI supercomputer. Also, NVIDIA’s Blackwell platform may power Taiwan’s fastest AI supercomputer. Therefore, the data center business will drive NVIDIA’s success and increase its share price, making it an enticing buy.
NVIDIA Stock is Less Pricey Than Its Peers
NVIDIA’s strong third-quarter performance comes as no surprise since the company has been delivering promising quarterly results for quite some time. NVIDIA is one of the top performers on the S&P 500 and is the most valuable company.
Despite all the success, buying NVIDIA stock as of now will burn a smaller hole in your pocket than its peers. After all, per the price/earnings, the NVDA stock trades at 51.7X forward earnings, less than the Semiconductor - General industry’s 59.6X forward earnings multiple.
NVIDIA Stock Has Bullish Chart Patterns
Despite NVIDIA’s commendable third-quarter performance, its share price dipped initially as the hype surrounding its earnings results was insane. The stock was in overbought territory and a short-term dip after the earnings release was inevitable.
However, the NVIDIA stock is currently trading above the short-term 50-day moving average (DMA) and long-term 200-DMA, a tell-tale bullish trend, making it a sound investment option.
NVIDIA Stock is Fundamentally Solid
NVIDIA has been able to manage its costs efficiently and generate profits persistently for a somewhat long time, which anyhow makes it the best stock to invest in.
NVIDIA’s net profit margin is 55%, higher than the industry’s 47.3%. Any reading greater than 20% indicates a high profit margin.
Similarly, NVIDIA’s return on equity (ROE) of 120.4% exceeded the industry average of 78.3%, showcasing that the net income surpassed equity.
NVIDIA, thus, rightfully has a Zacks Rank #1 (Strong Buy) (read more: This Is Why NVIDIA Joined the Dow; And Why It's Time to Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Zacks Investment Research
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