Check back for updates throughout the trading day
U.S. stocks extended declines in mi-day Monday trading, while the dollar and Treasury yields steadied, as investors looked to defend the market's solid December rally ahead of a key inflation reading later in the week.
Updated at 12:47 PM EST
Deeper red
Big tech declines, lead by Nvidia's 2.4% pullback, are leading markets lower into the afternoon session, with the Nasdaq down 82 points, or 0.4% and the S&P 500 off 24 points, or 0.4%.
Global equity inflows soaring.. nearing those euphoric, stimmy-aided 2021 highs pic.twitter.com/c2ZbPnYrs4
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) December 9, 2024
Updated at 10:17 AM EST
Sweet deal?
Hershey Company (HSY) shares were briefly halted from trading on the New York Stock Exchange following reports that Mondelez International (MDLZ) is exploring a takeover offer for the confectionary group
Bloomberg News first reported news of the takeover, which could value the group at more than $40 billion. Mondelez, which is valued at around $85 billion, walked away from a takeover approach in 2016.
Hershey has a dual share structure, with class B stock held by a trust that gives it 80% voting power. The state of Pennsylvania would also need to approval a formal takeover off
Hershey shares were last marked 18.2% higher at $206.47 and changing hands at $200.28 each, a move that would vault the stock into positive territory for the year.
Mondelez $MDLZ is reportedly exploring a takeover of Hershey $HSY.$HSY is up nearly 6% on the day! pic.twitter.com/XTmSG8CDW9
— Dividendology (@dividendology) December 9, 2024
Updated at 9:35 AM EST
Mixed open
The S&P 500 was marked 3 points lower, or 0.05%, in the opening minutes of trading, with the Nasdaq marked 4 points, or 0.01% lower.
The Dow gained 45 points while the mid-cap Russell 2000 rose 13 points, or 0.57%.
"Last week’s headline may have been “More record highs for stocks,” but bears made their presence felt in the fine print," said Chris Larkin, managing director for trading and investing at E*TRADE from Morgan Stanley.
"The Dow and the Russell 2000 small-cap index both lost ground for the week, and only three of the S&P 500’s 11 sectors had positive returns," he added. "Friday’s strong jobs report may have traders wondering whether this week’s inflation data will come in hotter than expected, but at this point it may take a dramatic increase to prevent the Fed from following through with another rate cut next week."
S&P 500 Opening Bell Heatmap (Dec 09, 2024)$SPY -0.09%🟥$QQQ -0.32%🟥$DJI +0.12%🟩$IWM +0.87%🟩 pic.twitter.com/hPiumF86Td
— Wall St Engine (@wallstengine) December 9, 2024
Updated at 8:58 AM EST
Macy's activists
Macy's (M) shares jumped higher as activist investors continue to press fore changes at the iconic department store group.
Barington Capital Group and Thor Equities LLC were the latest two firms to seeks big moves from the group, including the sale of its Bloomingdale's and Bluemercuy chains, alongside cost cuts and capital spending reductions.
"We will continue to act in the best interests of the Company and all shareholders and we look forward to engaging with our shareholders, including Barington and Thor, as we further advance our initiatives and execute toward our long-term goals,' Macy's said in a statement.
Macy's shares were marked 3.8% higher in premarket trading to indicate an opening bell price of $17.05 each.
$M (+3.0% pre) Activist Investor to Push Macy’s for Changes, Including New Real-Estate Unit - WSJhttps://t.co/1w3vj1TTgJ
— Open Outcrier (@OpenOutcrier) December 9, 2024
Updated at 8:16 AM EST
Bitcoin buy
MicroStrategy (MSTR) shares slipped lower after the tech group controlled by crypto investor Michael Saylor added another round of bitcoin purchases to its growing balance sheet.
MicroStrategy said it bought 21,550 bitcoins for around $2.1 billion between December 2 and December 8, as the world's biggest crypto currency topped the $100,000 mark for the first time on record. It also sold around 5.4 million shares for around $2.13 billion to finance the deal.
MicroStrategy shares were last marked 2.05% lower in premarket trading to indicate an opening bell price of $386.90 each.
MicroStrategy has acquired 21,550 BTC for ~$2.1 billion at ~$98,783 per #bitcoin and has achieved BTC Yield of 43.2% QTD and 68.7% YTD. As of 12/8/2024, we hodl 423,650 $BTC acquired for ~$25.6 billion at ~$60,324 per bitcoin. $MSTR https://t.co/8r7bFqMFof
— Michael Saylor⚡️ (@saylor) December 9, 2024
Updated at 7:55 AM EST
Nvidia probe
Nvidia (NVDA) shares moved lower in early trading after antitrust officials in China launched a probe into the chipmaker tied to its 2020 acquisition of Mellanox Technologies.
The move, seen as the latest in a series of high-tech trade tensions between Washington and Beijing, was initiated by the State Administration for Market Regulation, or SAMR, and follows a third round of export restrictions on China-bound tech by the Biden Administration earlier this month.
Nvidia shares were last marked 1.8% lower in premarket trading to indicate and opening bell price of $139.81 each.
Related: Nvidia stock slides as China launches anti-monopoly probe in AI trade war
Stock Market Today
Stocks ended higher on Friday, with fresh all-time highs for both the S&P 500 and the Nasdaq, following a muted November jobs reports cemented the case for a December Federal Reserve interest rate cut but wasn't weak enough to suggest the labor market would notably slow over the coming months.
The record spending and travel spree consumers posted over the Thanksgiving weekend also added to bets that the most important segment of the economy would continue to outperform into 2025, supporting the so-called soft landing prospects that are likely to keep markets elevated.
This week's November inflation report, due prior to the start of trading on Wednesday, is likely to confirm that thesis, with investors betting on only modest changes to headline and core price pressures over the penultimate month of the year.
Markets are still facing a host of geopolitical risks, however, which could be leaning into gains to start the week. In particular the collapse of Bashar Al-Assad's 24-year rule in Syria over the weekend is likely to create a power vacuum in the already combustible Middle East.
“Markets are calm in digesting the news that the Assad regime has finally collapsed, in a move that weakens allies Russia and Iran and may yet lead to further shifts in the regional balance of power in the coming days," said Lindsay James, investment strategist at London-based Quilter Investors.
"Oil prices remain low at around $71 in a week that could see OPEC+ production further cut as weak demand, combined with growing global supplies, have led to price weakness in recent months despite pockets of unrest," James added.
Global oil prices reflected a portion of that concern, with Brent crude prices rising 80 cents to $71.92 per barrel in overnight trading, with U.S. WTI futures rising 86 cent toe $68.06 per barrel.
Related: Major analyst revamps S&P 500 target for 2025
On Wall Street, futures contracts tied to the S&P 500, which is up just under 1% for the month and 27.7% for the year, suggest a modest 5-point opening bell dip for the benchmark. The Dow Jones Industrial Average is called 20 points lower.
The tech-focused Nasdaq, which is up 3.3% for the month and riding a year-to-date advance of 32.3%, is priced for a 30-point decline.
Benchmark 10-year Treasury note yields were marked 2 basis points lower from Friday levels at 4.164% while 2-year notes eased to 4.106%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.18% lower at 105.865.
More Wall Street Analysts:
- Top analysts unveil their S&P 500 forecasts for 2025
- Analysts overhaul MicroStrategy stock price target amid bitcoin rally
- Google analysts sent scrambling by startling break-up news
In overseas markets, state media reports of new stimulus plans in China, including an "appropriate loosening" of monetary policy, sent shares in Hong Kong up nearly 2.8% by the close of trading as investors looked to this week's Central Economic Work Conference of Communist Party officials in Beijing.
That optimism helped lift Europe's Stoxx 600 to a six-week high in midday Frankfurt trading, with the benchmark rising 0.1%, while Britain's FTSE 100 rose 0.24% in London.
Related: Veteran fund manager delivers alarming S&P 500 forecast
