NEWS
Nasdaq Breaks Above 20,000

Source: Tenor.com

Another day, another milestone in the stock market. Unrelenting strength in mega-cap tech helped drive the Nasdaq Composite to yet another record high. After a crappy few days for crypto, the sector coin-tinued its recent run as Bitcoin broke back above 100k. President-elect Donald Trump will be ringing the NYSE opening bell tomorrow morning, making for what’s likely to be an interesting day. 👀

Today’s issue covers Tesla driving Musk’s wealth to $400 billion, November CPI setting the stage for another rate cut, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 5 of 11 sectors closed green, with consumer discretionary (+1.76%) leading and healthcare (-1.36%) lagging.

Source; Finviz.com

And here are the closing prices: 

STOCKS
Tesla & Musk Take The Cake 😋 

The U.S. stock market continued its tear today, led by the biggest and baddest names in the “Magnificent Seven.” Apple was the only one in the group to close down marginally, breaking its recent win streak, and Tesla was the belle of the ball.

Tesla surged 6%, topping its November 2021 highs and cracking $420. A flurry of positive notes from Wall Street summarized the recent cocktail of factors driving the stock. Goldman Sachs was the latest, raising its price target to $350. Since the election, the perceived positives for Tesla have just kept stacking up. ⚡️ 

Interestingly, many of the recent upgrades resulted in price targets that are still well below current levels. So yes, many analysts are positive on the stock, but their price targets actually imply there’s downside from here…not upside. 🙃 

According to Koyfin data, the average rating among the 48 analysts covering the stock remains a “hold.” More notably, the average price target is $260, and the street’s high-water mark of $421 was surpassed today.

Source: Koyfin.com

Despite the obvious disconnect between the analyst notes and their price targets, what’s clear is that the chase is on in Tesla. And nobody is better positioned to benefit from this massive surge than Elon Musk, who just became the first person ever to cross the $400 billion net worth mark. In addition to Tesla, SpaceX’s valuation hit $350 billion as Musk’s “big bets” stack in his favor.

The Stocktwits community was bullish coming into the week, but much like analysts, not bullish enough. With prices already above $420, it appears 58% of voters underestimated how far the stock could move this week. 😐️ 

Source: Stocktwits.com

We’ll see how much further the now 8th largest stock in the world runs through year-end. But for now, Musk’s mountain of cash continues to grow. 🤑 

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ECONOMY
CPI Print Seals Fed’s December Plans ✂️ 

November’s consumer price index (CPI) rose 0.3% MoM and 2.7% YoY, with the annual rate being 0.1% higher than in October. Excluding food and energy, core CPI rose 0.3% MoM and 3.3% YoY, with shelter costs coming down at a slow pace.

Downward progress has remained somewhat stalled for the last few months, but the growth is low enough for the Fed to keep moving towards the “neutral” rate. 😐️ 

Source: CNBC.com

The bond market indicates a 98.6% chance of the Fed cutting rates by another 25 bps next week, though expectations for the next cut were pushed to March. The market will listen to Powell’s commentary and the FOMC’s updated economic projections to help understand the Fed’s plans for 2025. 🕵️ 

Lastly, it’s worth noting that the Bank of Canada cut rates again today but outlined a more ‘gradual approach’ ahead as its inflation progress stalls. Additionally, the possibility of new tariffs has ‘clouded’ the central bank’s outlook.

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STOCKS
Other Noteworthy Pops & Drops 📋️ 

Adobe (-9%): The software giant’s fourth-quarter earnings and revenue topped expectations, but its first-quarter and fiscal 2025 revenue guidance missed estimates.

Broadcom (+7%): The chipmaker jumped on reports it’s collaborating with Apple to design its first artificial intelligence (AI) chip.

Alaska Airlines (+4%): The airline received several price target hikes following its investor day, where it unveiled its three-year “Alaska Accelerate” strategic plan.

AgEagle Aerial Systems (-13%): The provider of unmanned aerial systems, sensors, and software solutions announced that it has been granted Green UAS certification from the Association for Uncrewed Vehicle Systems International (AUVSI).

Macy’s (-2%): The department store lowered its fiscal 2024 profit outlook after its third-quarter results came essentially in line with estimates.

Ardagh Metal Packaging (-6%): Bank of America double downgraded the stock from ‘Buy’ to ‘Underperform,’ cutting its price target and saying it prefers other beverage can makers and packagers in the space.

Q32 Bio (-73%): The clinical-stage biotech company fell after the Phase 2a trials of its lead candidate, bempikibart (ADX-914), showed mixed results.

Gevo Inc. (+7%): The renewable energy and advanced biofuels firm disclosed that Red Trail Energy shareholders voted in favor of its $210 million acquisition offer.

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WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: European Central Bank (ECB) Rate Decision (8:15 am ET), Producer price Index (8:30 am ET), Initial/Continuing Jobless Claims (8:30 am ET), ECB Press Conference (8:45 am ET), ECB Economic Projections (9:45 am ET), ECB President Lagarde Speech (10:15 am ET). 📊

Pre-Market Earnings: Ciena ($CIEN), Live Ventures ($LIVE), LoveSac ($LOVE). 🛏️

After-Hour Earnings: Costco ($COST), Broadcom ($AVGO), RH $(RH). 🎧

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🕵️ How the six-day hunt for New York shooting suspect unfolded

🍩 Hackers find hole in Krispy Kreme Doughnuts’ cyber-security

👑 Forbes 100 most powerful women: List names Taylor Swift, Beyoncé, more

⭐️ New York’s Michelin stars were announced in a ceremony on Monday evening

😡 Albertsons gives up on Kroger merger and sues the grocery chain for failing to secure deal

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

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