.png)
But what should you look for before you decide on the right group of stocks to own? These three promising technology stocks are ones you should buy and own for the long term. Goldman Sachs economist David Mericle expects that to slow by the end of next year to 2.4%, but he said inflation would be even lower if not for expected tariff increases on imports from China and autos favored by Trump.
Technicals
Homebuilders, D.R. Horton, PulteGroup and Lennar all rose at least 5.6%. Another big retailer, Macy’s, said Monday its sales for the latest quarter were in line with its expectations, but it will delay the release of its full financial results. It found a single employee had intentionally hid up to $154 million in delivery expenses, and it needs more time to complete its investigation. The Fed began cutting its main interest rate just a couple months ago from a two-decade high, hoping to keep the job market humming after bringing inflation nearly all the way down to its 2% target. But immediately after Trump’s victory, traders had reduced bets for how many cuts the Fed may deliver next year.
The bond market has another early closure scheduled on New Year’s Eve, or Tuesday, Dec. 31. Both markets will be closed on Wednesday, Jan. 1, New Year’s Day, and reopen as usual a day later. With today’s gain, the stock is up nearly 30% year-to-date, which is slightly better than the S&P 500’s increase over the period. Among the noteworthy earnings-related movers Wednesday, Dell (DELL) shares plunged 12%, HP (HPQ) tumbled 11%, Autodesk (ADSK) slid 8.6%, Workday (WDAY) fell 6.2% and CrowdStrike (CRWD) was off 4.6%.
The Fed thinks its medicine can cure inflation … next year
.png)
Much focus has been on how resilient U.S. shoppers can remain, given high prices across the economy and still-high interest rates. Target tumbled after giving a Forex quotes dour forecast for the holiday shopping season. After climbing above 4.44% immediately after Trump’s election, the yield on the 10-year Treasury fell back to 4.26% Monday, down from 4.41% late Friday. That’s a notable move, and lower yields make it cheaper for all kinds of companies and households to borrow money.
“Bessent as Treasury Secretary lends substantial economic and market credibility to the cabinet,” Fundstrat’s head of research Tom Lee said, adding that his role will be a positive for market dynamics heading into 2025. Traders will have some extra time to digest their turkey this week. A bearish divergence has formed between the stock’s November peak and the relative strength index, a technical occurrence that signals weakening buying momentum. Notably, Dell makes servers that use Nvidia (NVDA) AI chips, drawing a shoutout from the chipmaker in its earnings call last week. Stimpson said tech giants that his funds own, such as networking equipment leader Cisco (CSCO), Google owner Alphabet (GOOGL) and chip companies Broadcom (AVGO) and Qualcomm (QCOM), have more exposure to business spending.
European Central Bank calls unscheduled meeting to discuss bond market ‘panic’
Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. 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. The president-elect has already proposed imposing a duty as high as 20% on all imports, including levies exceeding 60% on products from China. President-elect Trump plans to raise tariffs an additional 10% on all Chinese goods coming into the U.S., according to a post Monday on his social media platform Truth Social.
The DJIA then hit 11,750 in January 2000, before falling to below 7,200 in October 2002 after the dot-com crash. The Dow Jones Industrial Average (DJIA) tracks thirty of America’s biggest and most established companies, acting like a quick temperature check of the U.S. economy. Futures tied to the Dow Jones Industrial Average added 45 points, or 0.1%, while S&P 500 futures and Nasdaq 100 futures each rose about 0.15%. President-elect Donald Trump pledged he would impose a 25% tariff on products coming into the U.S. from Canada and Mexico, according to a Monday post on his social media platform Truth Social. Rumble, a video platform focused on conservatives, said Monday evening that it will begin allocating a portion of its excess cash reserves to bitcoin and making purchases of up to $20 million in the cryptocurrency. “The ~$100 wipeout in Gold today is as severe in size & pace as the post U.S. election selloff on Nov 6th,” MKS Pamp’s head of metals strategy, Nicky Shiels, said.
NEW YORK (AP) — U.S. stocks rose Monday, with those benefiting the most from lower interest rates and a stronger economy leading the way. Economists expect initial jobless oanda broker claims to come in at 215,000, and third-quarter GDP growth to be 2.8%, while PCE inflation data is expected to be the same as last month at 0.2% on a month-over-month basis. On the corporate front, Dell (DELL) shares sank over 12% after quarterly revenue fell short amid flagging PC demand. Peer HP’s (HPQ) stock also fell post-earnings, also down more than 11%.
Gold prices lost about 3% after President-elect Trump picked Scott Bessent as his Treasury secretary, with reports of Israel and Hezbollah nearing a ceasefire deal also eroding the safe-haven metal’s appeal. Trump is set to be inaugurated as the next U.S. president on Jan. 20. Hong Kong’s Hang Seng Index traded 0.05% higher in its last hour of trade, while mainland China’s CSI 300 added 0.21% to close at 3,840.18. Following the two stocks’ big gains, “a higher bar has been set” with less attractive risk/reward profiles, according to Martinez.
- CEO Richard Hayne said the company is “optimistic” about demand the company is seeing ahead of the holiday shopping season, noting in Tuesday’s earnings call that Urban Outfitters has seen a “remarkably resilient” consumer.
- Those results came in at the lower range of Wall Street’s expectations for the drug, with some hoping for weight loss of at least 20%, or up to 25%.
- And in 2024, the Fed now believes inflation will return to 2.2%, down from the 2.3% it predicted in March.
- Also out Wednesday, the second estimate of third quarter GDP was unchanged, showing the US economy grew at an annualized rate of 2.8% in the period.
- Powell said the chances of a soft landing are eroding because of factors outside of his control, including Russia’s invasion of Ukraine, Covid and the supply chain crunch.
Meanwhile, he raised his price target on Goldman Sachs to $608 from $569, implying less than 1% upside potential from Monday’s close. He also increased his Morgan Stanley price target by just $3 to $131. In the quarter, the company earned 20 cents per share on $3.51 billion in revenue, below the consensus estimate of 28 cents per share and $3.64 billion in revenue, according to LSEG. Meanwhile, comparable sales dropped 9.3% for the period, while analysts were expecting a decline of 5.1%. The company posted adjusted earnings of 26 cents per share on $236.8 million in revenue, topping the 23 cents per share and $232.9 million in revenue expected by analysts polled by FactSet.
Stock futures open slightly higher
The markets will return to their normal schedule on Thursday, Dec. 26th. Shares of CrowdStrike were down nearly 6% at around $343 in recent trading. Despite Wednesday’s losses, they’ve gained about 35% since the start of the year.
Revenue of activtrades forex broker analysis $9.45 billion missed the $9.63 billion consensus estimate. Shares of Kohl’s plunged more than 17% during premarket trading after the retailer’s third-quarter results missed Wall Street’s expectations. Analyst Richard Clarke initiated coverage on Royal Caribbean with an outperform rating and $290 price target, which implies 20.6% upside potential from Monday’s close.
