What a recovery in the market! Will this momentum continue?
Cricket LoversDecember 22, 2024
0
Week Ending December 20th, 2024
Market Moves
Dow Jones - 42,840.26 (+1.18%)
Nasdaq - 19,572.60 (+1.03%)
S&P 500 - 5,930.85 (+1.09%)
Weekly Recap
An end of the week recovery. While stocks took a volatile turn last week with the Dow experiencing 10 days of losses, a partial recovery rally on Friday offset much of the earlier drop. Every index closed in the green above 1% on Friday. The Dow's 10 day losing streak was the longest since an 11-day decline in 1974. The streak ended on Thursday when the index rose slightly.
The Feds are now hawkish. The U.S. Federal Reserve on Wednesday afternoon indicated that it's likely to cut interest rates less than previously expected in 2025. The Federal Reserve Board has however marked the new year with a quarter-point interest rate reduction, aiming to stimulate the economy and bolster employment.
Bond prices tumbled. For the second week in a row, bond prices tumbled, pushing yields higher. The yield of the 10-year U.S. Treasury note climbed to its highest level in nearly seven months, reaching as high as 4.59% on Thursday before retracing to around 4.53% at Friday's close.
The markets are unsettled. An index that tracks investors' expectations of short-term U.S. stock market volatility moved higher about 74% on Wednesday. The Cboe Volatility Index closed Wednesday's session at 27.7, up from 15.9 the previous day. By Friday's close, it had settled down to 18.4.
Cooler inflation data. November's reading of the personal consumption expenditures price index — the Federal Reserve's preferred inflation metric — increased 2.4% year over year.
GDP is growing. The U.S. economy's third-quarter growth was stronger than anticipated. It was revealed on Thursday that the GDP grew at an annual rate of 3.1%. That was up from an earlier estimate of 2.8% and the second quarter's 3.0% growth. GDP growth has now topped 2.0% in eight of the last nine quarters.
The dollar moved higher. The value of the U.S. dollar moved higher after the U.S. Federal Reserve on Wednesday embraced a more hawkish outlook for further rate cuts. Relative to other major currencies, the dollar rose more than 1%. This was its highest level since November 2022.
The government crisis was averted. President Joe Biden signed a government funding bill on Saturday that averted a government shutdown.
Mortgage rates went higher. Despite the Fed cut, the average 30-year mortgage rate was 6.72% in the week through Wednesday, compared with 6.6% a week earlier, according to Freddie Mac data. The average 15-year mortgage rate was 5.92%, from 5.84%.
Most Active Stocks
Nvidia (NVDA)
Rigetti Computing (RGTI)
Tesla (TSLA)
Nukkleus (NUKK)
Teva Pharmaceuticals (TEVA)
Biggest Gainers
Rigetti Computing (RGTI) +25.44%
Palantir Technologies (PLTR) +8.54%
Nvidia (NVDA) +3.08%
IonQ, Inc. (IONQ) +17.64%
Kingsoft Cloud Holdings (KC) +14.05%
Biggest Losers
Innovative Industrial Properties (IIPR) -22.74%
XPO (XPO) -7.05%
NextNav (NEXT) -6.92%
Uranium Energy Corp. (UEC) -5.09%
Novo Nordisk A/S (NVO) -17.83%
Weekly Notables
Big Banks Including Bank of America and Chase are Hit with Lawsuit Over Zelle Payment Fraud
The Consumer Financial Protection Bureau on Friday sued the operator of the Zelle payments network and the three U.S. banks that dominant transactions on it. According to the agency's allegations, the firms failed to properly investigate fraud complaints or give victims reimbursements. Zelle said in a statement Friday that it was prepared to defend itself against this "meritless lawsuit."
Stellantis Takes Back Ohio Layoffs After CEO's Sudden Departure
Franco-Italian automaker Stellantis has changed its course on laying off about 1,100 employees at an Ohio Jeep plant less than three weeks after the abrupt resignation of Chief Executive Carlos Tavares. The company has decided not to put any employees on indefinite layoff from Jan. 5 due to a previously announced shift reduction and will instead extend a worker adjustment and retraining notification notice, a company spokesperson said.
The Week Ahead
Potential market moving catalysts this week: The last days of the year will be light in terms of economic reports, but a consumer confidence report will be issued on Monday, followed by Tuesday releases on new home sales and durable goods.
Earnings on deck this week: BHP Group Limited, Ennis, Mega Matrix, Zeo Energy, ILearningEngines, EMCORE Corp., Spire Global, Nukkleus Inc. Best Inc., Sound Group Inc., Universal Corp., AMMO Inc., Comtech Telecommunications Corp., Cel-Sci Corp., and Outlook Therapeutics
Company Spotlight: Nukkleus (NUKK)
NUKK shares have been on a tear this week and have continued seeing momentum following the company's announcement that it took a 51% controlling stake in defense acquisition firm Star 26 Capital. Nukkleus has acquired a 51% controlling stake in Star 26 Capital Inc. for $26 million, marking a strategic shift from fintech to defense. Star 26 owns 95% of RIMON, a key supplier of components for Israel's Iron Dome missile defense system. The transaction, completed on December 15, 2024, includes cash, promissory notes, common stock, and stock warrants, with an option to acquire the remaining equity later.
Disclaimer: We are engaged in the business of advertising and promoting companies. All content on our website is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a solicitation of the purchase or sale of any securities. Neither the owner of Trading Wire nor any of its members, officers, directors, contractors or employees are licensed broker-dealers, account representatives, market makers, investment bankers, investment advisers, analyst or underwriters. Investing in securities, including the securities of those companies profiled or discussed on this website is for individuals tolerant of high risks. Viewers should always consult with a licensed securities professional before purchasing or selling any securities of companies profiled or discussed on Trading Wire. It is possible that a viewer's entire investment may be lost or impaired due to the speculative nature of the companies profiled. Remember, never invest in any security of a company profiled or discussed on this website unless you can afford to lose your entire investment. Also, investing in micro-cap securities is highly speculative and carries an extremely high degree of risk. Trading Wire makes no recommendation that the securities of the companies profiled or discussed on this website should be purchased, sold or held by viewers that learn of the profiled companies through our website.
Some of the content on this website contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which may be beyond a company's control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. It is hereby noted that forward-looking statements contained herein may include everything other than historical information, involve risk and uncertainties that may affect a company's actual results of operation. A company's actual performance could greatly differ from those described in any forward-looking statements or announcements mentioned on this website or the websites contained within. Factors that should be considered that could cause actual results to differ include: the size and growth of the market for the company's products; the company's ability to fund its capital requirements in the near term and in the long term; pricing pressures; unforeseen and/or unexpected circumstances in happenings; etc. and the risk factors and other factors set forth in the company's filings with the Securities and Exchange Commission. However, a company's past performance does not guarantee future results.
Generally, the information regarding a company profiled or discussed on this website is provided from public sources tradingwire.com makes no representations, warranties or guarantees as to the accuracy or completeness of the information provided or discussed. Viewers should not rely solely on the information obtained through our website or in communications originating from our website. Viewers should use the information provided by us regarding the profiled companies as a starting point for additional independent research on the companies profiled or discussed in order to allow the viewer to form his or her own opinion regarding investing in the securities of such companies. Factual statements, or the similar, made by the profiled companies are made as of the date stated and are subject to change without notice and Trading Wire has no obligation to update any of the information provided. Trading Wire, its owners, officers, directors, contractors and employees are not responsible for errors and omissions.
From time to time certain content on this website is written and published by our employees or third parties. In addition to information about our profiled companies, from time to time, our website will contain the symbols of companies and/or news feeds about companies that are not being profiled by us but are merely illustrative of certain activity in the micro cap or penny stock market that we are highlighting. Viewers are advised that all analysis reports and news feeds are issued solely for informational purposes. Any opinions expressed are subject to change without notice. It is also possible that one or more of the companies discussed or profiled on this website may not have approved certain or any statements within the website. Trading Wire encourages viewers to supplement the information obtained from this website with independent research and other professional advice. The content on this website is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Third Party Web Sites and Other Information This website may provide hyperlinks to third party websites or access to third party content.Trading Wire, its owners, officers, directors, contractors and employees are not responsible for errors and omissions nor does Trading Wire control, endorse, or guarantee any content found in such sites. Trading Wire does not control, endorse, or guarantee content found in such sites. By accessing, viewing, or using the website or communications originating from the website, you agree that Trading Wire, its owners, officers, directors, contractors and employees, are not responsible for any content, associated links, resources, or services associated with a third party website. You further agree that Trading Wire, its owners, officers, directors, contractors and employees shall not be liable for any loss or damage of any sort associated with your use of third party content. Links and access to these sites are provided for your convenience only. Trading Wire uses third parties to disseminate information to subscribers. Although we take precautions to prevent others from obtaining our subscriber list, there is a risk that our subscriber list, through no wrong doing on our part, could end up in the hands of an unauthorized party and that subscribers will receive communications from unauthorized third parties. We encourage viewers to invest carefully and read the investor issuer information available at the web sites of the United States Securities and Exchange Commission (SEC). The SEC has launched an investor-focused website to help you invest wisely and avoid fraud at www.investor.gov and filings made by public companies can be viewed at www.sec.gov and/or the Financial Industry Regulatory Authority (FINRA) at: www.finra.org. In addition, FINRA has published information at its website on how to invest carefully at www.finra.org/Investors/index.htm.
