Markets News, November 25, 2024: Dow Closes at Record High; S&P Gains for 6th Straight Day as Stock Market Rally Continues (2024)

Biggest S&P 500 Movers on Monday

November 25, 2024 05:59 PM EST

Advancers

• Super Micro Computer (SMCI) shares jumped 16%, extending the string of gains posted last week after the server maker filed a compliance plan related to the release of its delayed annual report and announced that accounting firm BDO would step in as its auditor. Supermicro secured the top daily performance in the S&P 500 for the fifth time in six trading sessions.
• U.S. Treasury yields ticked lower, providing a boost for stocks in the solar energy and housing sectors. Shares of solar technology provider Enphase Energy (ENPH) jumped 8.5%. Shares of major homebuilders also saw gains amid hopes that elevated mortgage rates could be set to moderate.
  
• Shares of cosmetics retailer Ulta Beauty (ULTA) advanced 7.2% on Monday. The gains followed a strong earnings report from peer Bath & Body Works (BBWI), which posted better-than-expected sales and profits while issuing guidance for the current quarter that exceeded consensus forecasts. The results and outlook bode well for demand in the key holiday shopping season. Bath & Body Works shares rose more than 16%

Decliners

• Shares of energy technology provider GE Vernova (GEV) fell 5.8%, the steepest drop of any S&P 500 stock. Although the company has been the subject of positive commentary from several analysts who have noted an improving macroeconomic outlook and opportunities stemming from power demand related to artificial intelligence (AI) applications, GE Vernova faces uncertainties as President-elect Donald Trump has vowed to reverse policies designed to bolster the renewable energy industry.
  
• ConocoPhillips (COP) shares dropped 5.1% as the oil and gas exploration and production giant completed its acquisition of Marathon Oil. The company announced an offer for holders of debt securities issued by Marathon to exchange them for newly issued ConocoPhillips notes.
• Oneok (OKE) shares tumbled 4.7% after the natural gas company announced a plan to acquire the remaining stock of Enlink Midstream (ENLC) for $4.3 billion. The announcement raised concerns about dilution, with around 37 million new shares set to be issued as part of the transaction, as well as uncertainty about the debt impact of the deal.
• Shares of aerospace and defense contractor Lockheed Martin (LMT) dropped nearly 4%. A post from Elon Musk over the weekend on his X social media platform questioned the wisdom of constructing costly manned fighter jets like Lockheed's F-35 given the effectiveness and efficiency of drones. Musk's post came as he prepares to assume a leadership role in the incoming Trump administration'sDepartment of Government Efficiency.

-Michael Bromberg

Why Treasury Yields Fell Sharply on Monday

November 25, 2024 05:39 PM EST

Investor concerns about inflation heavily influence Treasury yields, so some economists suggested the dip may reflect optimism among traders that Trump's pick ofScott Bessent for Treasury Secretarycould temper some of the president-elect's plans for tariffs.

Economists widely believe Trump's campaign-trail proposals of high tariffs on foreign products—including a 60% tariff on Chinese goods and a tariff as high as 20% on goods from every other country—would push up prices for consumer productsand stoke inflation.

-Diccon Hyatt

Robinhood Gets Morgan Stanley Upgrade, Target Price Boost

November 25, 2024 04:38 PM EST

Shares of Robinhood Markets (HOOD) advanced Monday after Morgan Stanley upgraded the stock and more than doubled itsprice target, saying the online trading platform was among the biggest winners from thepresidential election outcome.

The bank raised its rating to "overweight" from "equal weight," and boostedRobinhood's price target to $55 from $24. Shares rose 3.3% to $37.85 on Monday.

President-elect Trump has called for the U.S. to be thecryptocurrency"capital of the planet," and the analysts wrote that "potential deregulation enables HOOD to participate more aggressively incrypto."

They added that post-election "animal spirits" associated with deregulation, along with recovery inmergers and acquisitionsactivity and, eventually,initial public offerings, "likely lead to robust retail trading environment into 2025."

-Bill McColl

Snowflake Gets an Upgrade on Optimism About AI Demand

November 25, 2024 03:54 PM EST

Shares of Snowflake (SNOW) gained ground Monday afternoon as Wedbush upgraded the stock, saying the cloud software provider is in the "sweet spot" to benefit from the booming demand forartificial intelligence (AI)products.

The bank raised its rating on the stock to "outperform" from "neutral." It has a new price target of $190. The stock was up about 3% in late trading Monday to around $173.

Wedbush argued that "the AI Software era is now here in our view." The analysts wrote that the first big phase of AI was driven by big players, including Microsoft (MSFT), Amazon (AMZN), and Alphabet's (GOOGL) Google. They said now it's "time for the broader software space to get in on the AI Party."

Snowflake shares jumped more than 30% last Thursday after the company reported better-than-expected quarterly results. Despite the recent advance, shares of Snowflake remain 13% lower year-to-date.

-Bill McColl

Coinbase Benefits From Crypto Enthusiasm, Oppenheimer Says

November 25, 2024 02:24 PM EST

Enthusiasm for cryptocurrency has gone "through the roof" since the re-election of President Donald Trump, analysts said Monday, which should lift shares of Coinbase Global (COIN).

Oppenheimer analysts earlier today set a price target on the crypto exchange's shares of $358, more than 17% above Friday's close. That's one of the higher targets on Wall Street, according to Visible Alpha data, well ahead of the average of $273.

"The sentiment and momentum for crypto has gone through the roof after Trump won the election and Republicans secured the majority of both House and Senate," Oppenheimer wrote. Regulation under President Biden andoutgoing SEC ChairGary Gensler "had deterred new capital going into this space, and many developers had pivoted to other industries. But the industry has a chance to rebuild the reputation, and Coinbase is leading this new chapter."

Shares of Coinbase recently were up almost 3% Monday asbroader markets rose. The stock is up some 80% in 2024,rising post-electionalongside bitcoin—which recently flirted with the $100,000 level, though it has pulled back in recent days—and other crypto assets.

That could continue, according to Oppenheimer, with theFederal Reserveexpected to continue cutting interest rates and investor appetite for crypto increasing.

"While many people still have [a] strong memory of the chaos and bankruptcy for crypto industry back in 2022, and how much [Coinbase] had declined, we would argue that it was primarily driven by the Fed's rapid rate hike and people misunderstanding crypto," Oppenheimer analysts wrote.

-David Marino-Nachison

Supermicro Stock Price Has Doubled Over Past Week

November 25, 2024 01:01 PM EST

Super Micro Computer (SMCI) shares soared again Monday as the embattled server maker continues rebounding from a turbulent stretch.

The recent gainsfollow the filing of a compliance plan last Monday to avoid a potentialNasdaqdelisting, as well as a mention from partner and AI favorite Nvidia (NVDA) in the chipmaker’s earnings call on Wednesday.

The stock, which has nearly doubled since the start of trading last week, had slumped for several months amid accounting andcorporate governanceissues that, in part, led to the resignation of the company’s auditor and delayed filing of several financial reports.

The stock was up 12% at around $37 in recent trading.

Supermicro shares broke down below support earlier this month before promptly reversing direction to reclaim the key technical level. Such a move creates a potentialbear trap, a chart event that lures investors into selling or opening ashort positionbefore the market rebounds to cause a loss.

It’s also worth pointing out that above-averagetrading volumehas backed the stock’s recent recovery, indicating strong buying conviction. Moreover, therelative strength index (RSI)has crossed above 50 to confirm improving momentum, but sits belowoverboughtterritory, giving the price ample room to test higher prices.

Read the full technical analysis piece for information on key levels of resistance and support for the stock.

-Timothy Smith

Cassava Plummets on Alzheimer's Drug Test Disappointment

November 25, 2024 11:55 AM EST

Cassava Sciences (SAVA) shares lost most of their value Monday morning after the biotech firm said its experimental Simufilam drug—aimed at treating Alzheimer’s disease—failed to show a “significant reduction in cognitive or functional decline” during thePhase 3 trialof the treatment.

The drug was aimed at treating patients with mild-to-moderate Alzheimer’s, which the Mayo Clinic describes as the most common cause of dementia.

CEO Rick Barry said that the failure of the late-stage trial for Simufilam means that the company would discontinue another late-stage study and open-label study of the drug.An open-label or nonblinded study is where both the health providers and the patients are aware of the drug or treatment being given, according to the National Cancer Institute.

The company in September agreed to a$40 million settlementwith theSecurities and Exchange Commission (SEC)over charges that it manipulatedclinical trialdata related to its Alzheimer’s disease drug.

Cassava shares were down 85% and trading at a four-year low late Monday morning.

-Nisha Gopalan

Bath & Body Works Stock Soars on Earnings, Outook

November 25, 2024 10:55 AM EST

Bath & Body Works (BBWI) shares skyrocketed Monday after the personal care items retailer posted better-than-expected results and boosted its outlook on strong store traffic, customer loyalty and optimism about the upcoming holiday season.

The owner of its namesake locations reported third-quarteradjusted earnings per share (EPS) of $0.49, with revenue up 3.1% to $1.61 billion.Both exceeded forecasts.

CEO Gina Boswell said Bath & Body Works was “capitalizing on our agile business model and predominantly U.S.-based supply chain, and we believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar.”

The company now sees full-year adjusted EPS of $3.15 to $3.28, compared to its earlier guidance of $3.06 to $3.26. It predicts revenue to decline 1.7% to 2.5%, versus the previous expectation of a drop of 2.0% to 4.0%.

Bath & Body Works shares were up 18% in recent trading. Despite the big gain, the stock is still down more than 16% since the start of the year.

-Bill McColl

Macy's Stock Slides as Company Delays Earnings Report

November 25, 2024 10:13 AM EST

Macy's (M) shares fell Monday morning after the retailer said its official third-quarter results would be delayed so that an independent investigation into an accounting issue can be completed.

The company said that it discovered that an employee had made "erroneous accounting accrual entries to hide approximately $132 to $154 million of cumulative delivery expenses" from the fourth quarter of fiscal 2021 through the third quarter of 2024.

Macy's said it found the issue with delivery expenses while preparing the earnings report, which was originally set to be released Tuesday. It said the employee responsible for the seemingly intentional error is no longer with Macy's.

Macy's did, however, release preliminary results for the third quarter on Monday. It saidrevenuedeclined just over 2% year-over-year to $4.74 billion, below the $4.88 billion analysts had expected, according to estimates compiled by Visible Alpha.

Macy's shares were down about 4.5% in recent trading and is now down about 23% since the start of 2024.

-Aaron McDade

Bitcoin Levels to Watch as $100K Remains in Sight

November 25, 2024 08:40 AM EST

Bitcoin (BTCUSD) has given up some ground this morning but still sits on the precipice of surpassing the $100,000 mark for the first time.

The cryptocurrency was at $97,500 in recent trading, after hitting a high around $99,800 on Friday afternoon.

Since Donald Trump’s decisive election victory on Nov. 5, Bitcoin has surged around 40% amid expectations of a crypto-friendly administration and Congress.

The cryptocurrency’s price has recently broken out from a pennant pattern, signaling a continuation of its strong bullish move.

A bars pattern, which takes the trending price bars that preceded the pennant and repositions them from the pattern’s top trendline, projects a price target of around $118,000. Investors should watch important support levels on Bitcoin's chart around $93,000 and $70,000.

Read the full technical analysis here.

-Timothy Smith

Futures Point to Higher Open for Major indexes

November 25, 2024 08:07 AM EST

Futures tied to the Dow Jones Industrial Average were up 0.7%.

S&P 500 futures were up 0.5%.

Nasdaq 100 futures were also up 0.5%.