Dow Jones Today: Stock Futures Point to Lower Open as Santa Clause Rally Stumbles; Bitcoin Slumps
December 27, 2024
Biggest S&P 500 Movers on Thursday22 hr 15 min ago Advancers
Walgreens Boots Alliance (WBA) stock rose 5.3% to secure the S&P 500’s top daily performance. Shares of the pharmacy operator surged higher earlier in December following reports of buyout discussions with a private equity firm, but the stock has been volatile since.
Shares of discount retailer Dollar Tree (DLTR) advanced 3.8%. The stock lost ground after Dollar Tree’s latest quarterly earnings report, released at the beginning of the month, as the company noted continued pressure on consumer spending in the uncertain economic environment. The company announced last week that CEO Michael Creedon would remain in the role on a permanent basis, leading the retailer’s turnaround plan as it navigates consumer headwinds and competition.
Other retailers’ stocks also gained ground. Target (TGT) added 3% as the company announced price cuts and additional promotions, aiming to keep its seasonal sales flowing as the critical holiday season winds down. In its latest earnings report, Target predicted that fourth-quarter comparable sales would be flat year-over-year.
Decliners
Shares of Fair Isaac Corp. (FICO), the data analytics firm known for its credit rating scores, sank 2%, the most of any S&P 500 stock. Analysts at JPMorgan initiated coverage of Fair Isaac stock last week with a “neutral” rating, noting that price increases could hinder the company’s growth trajectory.
Tesla (TSLA) shares fell 1.8%, handing back a portion of the stock’s uptick heading into the Christmas Day market holiday. Analysts have said that while the electric vehicle maker is expected to report record vehicle deliveries for the fourth quarter, investors may be more focused on Tesla’s long-term autonomous driving and artificial intelligence opportunities.
Shares of server and data storage provider Super Micro Computer (SMCI) lost 1.7%, giving back some of the gains posted by the stock on Christmas Eve. The removal of the stock from the influential Nasdaq 100 Index last week pressured Supermicro shares, but the company received an extension from the Nasdaq exchange until late February for the filing of its delayed annual report, alleviating some concerns about a possible delisting.
–Michael Bromberg
KULR Technology Shares Soar 40% as Company Buys Bitcoin22 hr 32 min ago Shares of KULR Technology Group (KULR) soared Thursday after the energy storage company made its first investment in bitcoin, purchasing about $21 million worth of the digital currency.
The company said Thursday that it bought 217.18 bitcoins at an average price of $96,556 per bitcoin. KULR shares jumped 40% to a record closing high of $4.80.
The move comes after the company said earlier this month it was launching a “Bitcoin Treasury” strategy that called for allocating up to 90% of its surplus cash to the digital currency. It said this $21 million purchase marks its first toward that strategy, with plans to buy more bitcoin in the future.
Bitcoin investors have been rewarded with big returns this year as the cryptocurrency soared to record highs following the reelection of Donald Trump, who has previously said he wants to make the U.S. the “crypto capital of the planet.”
Another company that has benefited from the run-up in bitcoin is Microstrategy (MSTR), the biggest corporate holder of the cryptocurrency. Its shares have surged nearly 500% since the start of the year.
Toyota Shares Surge on Reported Plans to Boost ROEDecember 26, 2024 02:55 PM EST Toyota Motor’s (TM) U.S.-listed shares soared Thursday following a report that the carmaker is looking to double its target return on equity (ROE).
The Japanese auto giant is planning to raised its ROE to 20%, according to a report by Japan’s Nikkei, roughly double what analysts were anticipating for this fiscal year.
Bloomberg later reported a spokesperson for the company said Toyota doesn’t have an explicit target or deadline to reach that figure.
The news comes just days after the Japanese auto industry was roiled by an announcement from Honda (HMC) and Nissan that the two companies plan to merge. Moody’s analysts applauded the move, arguing that it would be “credit positive” if done properly. However, former Nissan CEO Carlos Ghosn warned in an interview that Nissan could face cost-cutting “carnage” in such an arrangement.
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Toyota shares were up more than 8% in mid-afternoon trading Thursday, lifting the stock into positive territory for the year.
Where Analysts Think Bitcoin is Headed in 2025December 26, 2024 01:37 PM EST Bitcoin (BTCUSD) has had a strong 2024, climbing past many price milestones—including $100,000—as a confluence of factors drove up investor confidence in the leading cryptocurrency.
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This year’s runup started with demand associated with the spot bitcoin exchange-traded funds (ETFs) that began trading in January, followed by a halving that limited supply of new bitcoin and then the hope for crypto-supportive policies after the reelection of Donald Trump, seemingly reinforced by several of his post-election appointments.
While the Federal Reserve’s latest projections for cutting interest rates next year shook the crypto markets, some of the aforementioned reasons for optimism remain on the table—though if the Fed slows its rate-cutting campaign, experts say, Treasury yields could remain elevated, shifting investors away from bitcoin and other risk assets.
Read here about why some analysts are still bullish on bitcoin—but warn of volatility ahead.
Apple Set for ‘Golden Era of Growth,’ Analyst SaysDecember 26, 2024 12:12 PM EST Wedbush analysts led by Dan Ives, long an Apple (AAPL) bull, told clients in a note Thursday that the iPhone maker could be headed for a “golden era of growth” in 2025, driven by demand for artificial intelligence (AI).
The analysts raised their price target for Apple’s stock by $25 to $325 and maintained an “outperform” rating, anticipating a multi-year iPhone upgrade cycle driven by AI that “is still being underestimated by the Street.”
That’s a lot higher than the average analyst price target compiled by Visible Alpha at about $244. Just over half or nine of the 15 analysts polled hold “buy” or equivalent ratings for the stock, with four “hold” and two “sell” ratings.
Apple shares were up slightly in midday trading after hitting a fresh all-time high of just over $260.
Wedbush’s target boost comes as the firm projects Apple could sell more than 240 million iPhones in fiscal year 2025, “as this AI-driven upgrade cycle takes hold and this will be the highest iPhone unit sales year in Apple’s history.”
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Apple shares have gained over one-third of their value since the start of the year, as the company’s market capitalization nears $4 trillion. The stock has outpaced the S&P 500 in 2024. (See chart above)
Wedbush expects Apple could soon reach that $4 trillion threshold, which would make it the first company in the world to do so. At present, there are only three companies with a market caps over $3 trillion, including Apple, Nvidia (NVDA), and Microsoft (MSFT).
GameStop Rises After Roaring Kitty Christmas PostDecember 26, 2024 10:34 AM EST Did Roaring Kitty give meme-stock traders a Christmas present? While that isn’t presently clear, GameStop (GME) fans are doing a little shopping of their own this morning.
Shares of the retailer associated with Keith “Roaring Kitty” Gill, who for many is the first person who comes to mind when the company comes up, were rising in early trading Thursday.
The gains, modest but noticeable at about 4%, follow a Wednesday tweet from his X account that was characteristically vague—he often tweets clips from movies and other media without explaining their meaning, leaving much to the beholder—though also seasonal: an image of a wrapped gift box.
Does that mean he got something nice? Has something to give? Likes nicely wrapped boxes? Predictably, people are wondering—and watching, with the message at recent count seen some 4 million times, according to X, with thousands of responses, retweets and likes.
Shares of the company, meanwhile, are up nearly 80% in 2024, though below prices seen at the top of spikes largely inspired by Gill earlier this year. GameStop earlier this month reported its latest quarterly results, turning in a decline in sales and swinging to a net profit.
–David Marino-Nachison
Major Indexes Riding Multi-Day Win StreaksDecember 26, 2024 09:29 AM EST Heading into the start of Thursday’s session, the Dow Jones Industrial Average has finished higher in four straight sessions, while the S&P 500 and Nasdaq Composite have gained for three consecutive days.
With its gains so far this week, the S&P 500 has moved into positive territory for the month. The Nasdaq is also higher for the month, while the Dow is on track to finish December with losses.
For the year, the Nasdaq is up 33.4%, while the S&P 500 and Dow have gained 26.6% and 14.9%, respectively.
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Futures Point to Lower Open for Major IndexesDecember 26, 2024 08:14 AM EST Futures tied to the Dow Jones Industrial Average were down 0.3%.
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S&P 500 futures were also off 0.3%.
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Nasdaq 100 futures slipped 0.4%.
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