Presented by

NEWS
Market Waves Potential Red Flags

Source: Tenor.com

It was the first broad-based down day for the U.S. major indexes, with mega-cap tech finally catching down to the weakness small-caps have been experiencing. The market continues to digest recent economic data and commentary, though earnings and year-end positioning continue to drive most stocks. After hours, Bitcoin cracked back below 100k in rapid fashion, keeping this Friday eve interesting. 👀

Today’s issue covers what drove the airline sector to new heights, this market’s magazine cover madness, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 5 of 11 sectors closed green, with consumer discretionary (+0.82%) leading and materials (-1.32%) lagging.

Source: Finviz.com

And here are the closing prices: 

COMPANY NEWS
Airline Stocks Get An Upgrade ✈️ 

Airline stocks have had their time in the sun recently, with today’s news giving their shares another nice upgrade to new cycle highs. 👍️ 

American Airlines and Southwest both raised fourth-quarter guidance, citing robust travel demand and cost controls helping to boost margins. In addition, several analysts upgraded various airline stocks this week, ramping up sentiment across the sector and keeping the momentum going.

American Airlines led today’s gains, rising 17%, and ‘extremely bullish’ sentiment on Stocktwits suggests traders are looking for further upside. 🤑 

Source: Stocktwits.com

SPONSORED
Last Chance: Own this “unlisted” stock before its share price changes

When the team that created Zillow and grew it into a $16B real estate leader starts a new company, investors take note. That’s why top firms like SoftBank and Maveron already invested in Pacaso.

And you can join them as an investor before their share price changes tonight on account of 38% adjusted gross profit growth in their first-half earnings.

Pacaso’s streamlined digital marketplace offers fractional ownership of premier properties – completely revamping a $1.3T market.

This co-ownership approach maximizes demand by minimizing costs and worries. Look no further than their 1,500+ happy homeowners across 40 destinations – including the most recent addition, Paris – for proof.

With $100M+ in gross profits in four years, they’re ready to bring this co-ownership model across the globe (and into your portfolio). But you’ll need to invest before midnight PST to secure the current share price.

*This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com. 3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. 

SENTIMENT
Magazine Covers & Madness Continues 🤪 

A wildly bullish market environment wouldn’t be complete without the traditional ‘meme stocks’ taking part. GameStop has been slowly climbing higher over the last month, with many speculating that Keith Gill (aka Roaring Kitty) would make a return.

Well, the man himself has returned with another cryptic tweet that sent GameStop and AMC shares soaring double digits before paring those gains before the close. With meme coins making waves, why not throw meme stocks into the mix? 😂 

— Roaring Kitty (@TheRoaringKitty)
6:45 PM • Dec 5, 2024

The economist summed up today’s environment with a pretty wild take that it’s being roasted for on X. Sports, meme stocks, election betting, it’s all on the table. Some believe the widespread degenerate behavior is a positive, but for most, it’s a negative. Regardless, it’s here for the time being, and speculators around the globe are betting big on the party continuing. 🤑 

A craze for betting is sweeping over America. It should be celebrated, not feared econ.st/4ghsdwM

— The Economist (@TheEconomist)
4:44 PM • Dec 5, 2024

As for the equity market’s down day and Bitcoin’s after-hours flash crash, if this does turn out to be “a” top, we’ll all say there were signs lol.

This afternoon, President-elect Donald Trump celebrated Bitcoin’s latest milestone, taking credit for it in the process. The Financial Times also released a salty, tongue-in-cheek congratulations to Bitcoin bulls on their milestone. 🙄 

🇺🇸 LATEST: Donald Trump celebrates #Bitcoin’s $100K milestone.

— Cointelegraph (@Cointelegraph)
1:10 PM • Dec 5, 2024

And in the equity market, long-time bear David Rosenberg threw in the proverbial towel without necessarily throwing in the towel, saying, “My latest memo is in no way a throwing in of any towel, rather an effort to discuss and interpret the message from the market that may not actually be altogether that irrational.” 😐️ 

The remarkable surge in the S&P 500 over the past two years has truly surpassed my expectations, especially in the last twelve months. Given that this bull market has persisted long enough, those of us who have found ourselves on the wrong side of the trade must consider adopting… x.com/i/web/status/1…

— David Rosenberg (@EconguyRosie)
7:19 PM • Dec 5, 2024

We’ve been discussing sentiment being frothy for weeks, but we also noted that momentum to the upside remained intact. It’s hard to fight a trend, but stretched sentiment tends to make downside moves a lot more swift. Time will tell if today was a turning point or simply another blip on the radar of a very bullish year. 🤷 

If it does turn into a top, we’ve got dibs on calling it the “Rosenberg Reversal.” 😆

STOCKS
Other Noteworthy Pops & Drops 📋

VivoPower (-6%): The sustainable energy solutions company popped sharply on the news that its subsidiary, Caret Digital, will begin mining Dogecoin in January 2025. However, like several other companies making a crypto pivot lately, their gains were short-lived, and shares closed down on the day. 🤦‍♂️ 

SounHound AI (+36%): The voice and conversational artificial intelligence (AI) solutions provider announced that fast-casual taco chain Torchy’s Tacos has begun to roll out its advanced voice AI smart ordering product at all 130 of its locations. 🌮 

Verint Systems (+23%): The customer experience automation company’s strong AI momentum drove an earnings beat and maintained full-year guidance. 🤖 

Synopsys (-13%): The supplier of tools and services for the semiconductor industry announced better-than-expected fourth-quarter results, but investors focused on its lackluster 2025 revenue guidance. 🔮 

Symbotic Inc. (+8%): The robotics warehouse automation company soared after TD Cowen reportedly said the company filed its annual report with no additional material changes. With its financial reporting issues aside, the firm kept its ‘Buy’ rating and $50 price target intact. 👍️ 

Protara Therapeutics (+60%): The clinical-stage company unveiled promising results from its ongoing Phase 2 ADVANCED-2 trial for its investigational cell-based therapy, TARA-002. 💉 

Canadian Solar (+5%): The solar manufacturer’s results and revenue guidance came in below expectations. Lower average selling prices and project sales were the primary drivers, as the solar industry faces significant internal and external challenges. ⛈️

ChargePoint Holdings (+11%): The electric-vehicle charging company posted a wider-than-expected loss and a weak revenue forecast, but upbeat comments about network utilization helped buoy the stock. ⚡️ 

Arcadia Biosciences (+101%): The company announced a transformative merger with Roosevelt Resources LP, as mergers and acquisition activities pick up in anticipation of Trump’s administration taking over and clearing roadblocks. 🤝 

SentinelOne (-13%): The AI cybersecurity platform provider’s bottom-line miss and slower growth for its annualized recurring revenue (ARR) weighed on shares. 📉 

DocuSign (+14%): Third-quarter revenue and profit beat, with management raising full-year guidance on billing, subscription, and new customer growth. 📝 

Asana (+19%): The work management software’s earnings and revenue beat expectations, with management citing the launch of AI studio helping results. 💻️

Lululemon (+9%): The athletic apparel retailer posted an earnings and revenue beat as international sales growth offset a slowdown in its largest market, the U.S. 🧘 

Ulta Beauty (+12%): The cosmetic retailer’s efforts to stem sales declines showed some progress as it looks to reinforce its market position during the holidays. 💄 

Uber (-9%): Ridesharing companies Uber and Lyft took a hit today after self-driving taxi company Waymo expanded its operations to Miami. 🚕 

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Nonfarm Payrolls & Average Hourly Earnings (8:30 am ET), Unemployment/Labor Force Participation Rate (8:30 am ET), Fed Bowman Speech (9:15 am ET), Michigan Consumer Sentiment (10:00 am ET), Fed Goolsbee Speech (10:30 am ET), Fed Hammack Speech (12:00 pm ET), Fed Daly Speech (1:00 pm ET). 📊

Pre-Market Earnings: Kirkland’s ($KIRK), Genesco ($GCO), BRP Inc. ($DOOO). 🛏️

After-Hour Earnings: None — enjoy your weekend. 🎧

Links That Don’t Suck 🌐

🏷️ This week, save over 75% on MarketSurge—get 5 weeks of unlimited access for only $39.95*

🔋 Pope Francis goes electric in new eco-friendly popemobile

🍟 One of McDonald’s most iconic snacks is finally coming back

❌ Anthem Blue Cross Blue Shield calls off surgery anesthesia cap

🛢️ OPEC+ extends production cuts till end of March 2025: Retail on wait-and-watch mode

🥤 ‘Call Her Daddy’ host Alex Cooper announces new drink ‘designed specifically for women’

🤖 OpenAI confirms new $200 monthly subscription, ChatGPT Pro, which includes its o1 reasoning model

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

Get In Touch 📬

Follow our social channels for great, real-time content on Stocktwits and Twitter. And check out our YouTube channel for in-depth video content! 📲

Help us deliver the best content possible by completing this brief survey. 📝

Email me (Tom Bruni) your feedback; I’d love to hear from you. 📧

Want to sponsor this newsletter and reach hundreds of thousands of passionate investors and traders? Reach us here. 

Terms & Conditions 📝

Securities Disclaimer: STOCKTWITS IS NOT A TAX ADVISOR, BROKER, FINANCIAL ADVISOR OR INVESTMENT ADVISOR. THE SERVICE IS NOT INTENDED TO PROVIDE TAX, LEGAL, FINANCIAL OR INVESTMENT ADVICE, AND NOTHING ON THE SERVICE SHOULD BE CONSTRUED AS AN OFFER TO SELL, A SOLICITATION OF AN OFFER TO BUY, OR A RECOMMENDATION FOR ANY SECURITY. Trading in such securities can result in immediate and substantial losses of the capital invested. You should only invest risk capital, and not capital required for other purposes. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should also consult an attorney or tax professional regarding your specific legal or tax situation. The Content is to be used for informational and entertainment purposes only and the Service does not provide investment advice for any individual. Stocktwits, its affiliates and partners specifically disclaim any and all liability or loss arising out of any action taken in reliance on Content, including but not limited to market value or other loss on the sale or purchase of any company, property, product, service, security, instrument, or any other matter. You understand that an investment in any security is subject to a number of risks, and that discussions of any security published on the Service will not contain a list or description of relevant risk factors. In addition, please note that some of the stocks about which Content is published on the Service have a low market capitalization and/or insufficient public float. Such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information. Read the full terms & conditions here. 🔍

Author Disclosure: The author of this newsletter does not hold positions in any of the securities or assets mentioned. 📋