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NEWS
Call Your Grandparents, The Dow Is Down

Source: Tenor.com

The Dow Jones Industrial Average just notched a nine-day losing streak, its longest since 1978. Fewer and fewer stocks are participating in the recent large-cap rally, but investors and traders are betting that tomorrow’s rate cut outlook can bring the annual Santa Claus rally back into play. 👀

Today’s issue covers what’s driving the Dow’s decline, 2024’s final “Trends With Friends” episode, and must-see pops and drops. 📰

Here’s the S&P 500 heatmap. 1 of 11 sectors closed green, with consumer discretionary (+0.31%) leading and industrials (-0.93%) lagging.

Source: Finviz.com

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $WOR, $WIMI, $EHTH, $USAU, $AHG 📉 $BMEA, $MBRX, $LPG, $TSLA, $BYON*

*If you’re a business and want to access this data via our API, email us.

STOCKS
What’s Behind The Dow Jones’ Dive? 🤔 

Your grandfather’s favorite index is down nine days in a row, as the market’s latest jut of strength has been isolated to mega-cap tech stocks. It’s the longest stretch of downside since 1978, although that sounds scarier than it is. 😐️ 

UnitedHealth Group, the second-largest component of the price-weighted index, is driving the weakness. The stock has come under pressure over concerns that the incoming Trump administration’s regulatory overhaul will cut into healthcare profits.

And it’s not just UnitedHealth that’s falling. The healthcare sector ETF ($XLV) is now down 13% from its September high, and investors remain cautious about the industry’s prospects. Still, despite the decline in its leading stocks, 66% of Stocktwits users polled see healthcare’s weakness as a buying opportunity. 🛒 

Source; Stocktwits.com

Getting back to the Dow’s decline… its lack of tech and communication services exposure is keeping it from participating to the upside. As the sector chart below shows, 8 of 11 sectors are in the red for December, with the large-cap indexes being buoyed by strength in the Magnificent Seven, Broadcom, and others. 🙃 

Source: Koyfin.com

After a strong run in 2024, a little December weakness isn’t necessarily a sign of a longer correction ahead. In fact, many are looking for the market to close the year strong on the back of a Santa Claus rally. Wall Street’s stat master Ryan Detrick shared nine reasons his firm still believes in the holiday rally, even after some initial December weakness.

We’ll have to wait and see how it plays out. But for now, retail investors and traders are doubting the Dow and favoring the other indexes that still have momentum. 🤷 

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*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. **This is a paid advertisement for Atombeam’s Regulation A+ Offering. This Reg. A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. Please read the Offering Circular and related risks at Atombeam’s webpage on StartEngine before investing. In addition, as described in the Offering Circular, the Company retains the right to continue the offering beyond the Termination Date, in its sole discretion.

PRESENTED BY STOCKTWITS
The Last “Trends With Friends” Of 2024 👀 

Howard, Phil, Michael, and Riley are joined by special guests Ben Cahn (The Ben & Emil Show and Weekend Rip) and Tyler Denk (Beehiiv) to discuss the future of email, owning your audience, network effects, and leveraging AI to drive efficiency.

Plus, Ben has an epic Elon Musk rant you won’t want to miss. Trust us. 😂 

STOCKS
Other Noteworthy Pops & Drops 📋️ 

Nissan (+11%): Nikkei reported that the Japanese automaker is holding merger discussions with Honda Motor Co. as both struggle with their EV future.

Nukkleus Inc. (+755%): The fintech firm acquired a 51% controlling stake in Star 26 Capital Inc., a defense acquisition holding 95% ownership of RIMON, which supplies critical components for the Iron Dome missile defense system.

Root, Inc. (+2%): The insurance solutions provider announced that it’s expanding to Minnesota, now covering 35 states and over 77% of the U.S. population.

Pfizer (+5%): The struggling pharmaceutical giant released its financial forecast for 202, which was largely in line with Wall Street estimates.

Teva Pharmaceuticals (+26%): Shares hit a 6-year high following positive data from its trial of a drug candidate aimed at treating inflammatory bowel disease (IBD).

Portage Biotech (+183%): The clinical-stage immuno-oncology company has entered into a letter of intent with Immunova, a biotech firm, to negotiate a potential deal involving Portage subsidiary iOx Therapeutics.

Byrna Technologies (+5%): Personal security solutions provider hit a 3-year high following plans to increase its launcher production by 33% beginning in Jan ‘25.

Momentus (+3%): The commercial space company signed a contract with SpaceX to join an upcoming Transporter rideshare mission that will launch by early 2026.

Red Cat Holdings (-7%): The U.S.-based drone maker’s second-quarter earnings disappointed Wall Street. Additionally, Chief Financial Officer (CFO) Leah Lunger unexpectedly resigned, citing family reasons.

Mitek Systems (+15%): The mobile capture and digital identity verification solutions provider’s fourth-quarter results topped estimates, with newly-appointed CEO Ed West praising the company’s recent momentum.

EVgo (-26%): The electric charging station operator’s largest investors will be selling 23 million shares in a secondary public offering, netting no proceeds to the company.

Sacks Parente Golf (+9%): The maker of golf products is down 95% YTD but seeing a spike in retail interest following its $8.5 million public offering at $1.20/share.

Rezolve AI (+55%): Saw renewed retail interest after saying it’s actively participating in initiatives to align with the Department of Government Efficiency (DOE).

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Building Permits/Housing Starts (8:30 am ET), EIA Energy Inventories (10:30 am ET), Fed Rate Decision & Economic Projections (2:00 pm ET), Jerome Powell Press Conference (2:30 pm ET), Japan Rate Decision (10:00 pm ET). 📊

Pre-Market Earnings: Organigram Holdings ($OGI), General Mills ($GIS), Jabil ($JBL), Birkenstock ($BIRK). 🛏️

After-Hour Earnings: Micron Technology ($MU), Lennar ($LEN), Steelcase ($SCS), Worthington Steel ($WS), MillerKnoll ($MLKN). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

Links That Don’t Suck 🌐

🤑 Answer a short survey for a chance to win a $100 Amazon gift card.*

🧑‍🔬 Clarifying the results of a study on black plastics

💱 Brazil fights Real selloff with two Dollar auctions in a day

🎫 Hidden ticket fees and vacation rental charges banned in America

🏬 Walmart employees are now wearing body cameras in some stores

💻️ Grammarly acquires productivity startup Coda, brings on new CEO

🧫 After years on transplant wait list, Alabama grandmother receives kidney from gene-edited pig

Privacy: Your responses are confidential and will only ever be shown in aggregate after being combined with those of other survey respondents. *3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. 

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