This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
What To Note Today
A Rough Trading Week
Despite a Friday increase, U.S. stocks closed the week lower. The S&P 500 Energy sector is up over 3% for the week, defying the trend. Monday saw uneven trading in Asia-Pacific markets. Amid ongoing political unpredictability, South Korea’s Kospi increased by about 2%. Even though the Caixin services purchasing managers’ index grew at its strongest rate in seven months in December, China’s CSI 300 dipped by about 0.6%.
Boeing’s Reconstruction Year
Since 2018, when its 737 Maxes were involved in the first of two deadly crashes that claimed 346 lives, Boeing has not reported an annual profit. An unutilised emergency exit door on an Alaska Airlines virtually brand-new Boeing 737 Max 9 burst out in midair a year ago. Kelly Ortberg, who took over as CEO in August, has the responsibility of making sure Boeing can increase production while maintaining quality. This is how he is progressing.
Microsoft Invests Much In Data Centres
In a blog post published on Friday, Microsoft stated that it would invest $80 billion in fiscal 2025 to build data centres capable of managing workloads related to artificial intelligence. According to Microsoft Vice Chair and President Brad Smith, more than half of the anticipated investment in AI infrastructure will occur in the United States. June marks the end of Microsoft’s fiscal year for 2025.
Cleaning Up The Hoover Contest?
Following the release of a new model featuring a foldable arm for removing socks and other obstructions, the shares of the Chinese robot hoover cleaner business Roborock surged more than 3% on Monday. The business, which has a research institution in Shenzhen and a lab in Shanghai, has developed artificial intelligence that powers its appendage.
Focus On The December Jobs Report.
This week’s key economic data includes the December jobs report, which is released on Friday, and the minutes of the U.S. Federal Reserve’s December meeting, which are released on Wednesday. Both might shed more light on the Fed’s 2025 actions, but they are unlikely to alter the central bank’s interest rate decision at its January meeting.
Bottom Line
Although U.S. markets rose on Friday, investors hoping for some holiday cheer were let down.
The Dow Jones Industrial Average increased by 0.8%, the S&P 500 by 1.26%, and the Nasdaq Composite by 1.77% on Friday. However, losses from earlier trading sessions were too great to handle. Before Friday, the S&P and Nasdaq had been declining for five straight days. The S&P fell 0.48%, the Dow down 0.60%, and the Nasdaq fell 0.51% for the week.
This indicates that markets did not experience the so-called Santa Claus Rally, a phenomenon in which stocks rise over the final five trading days of the year and the first two of the following.
This year’s lack of Santa might portend a more difficult period for markets. Bears may visit Broad and Wall if Santa Claus doesn’t call, according to the late Yale Hirsch, who founded the Stock Trader’s Almanack in 1968.
Nevertheless, placing too much trust in these signals could be the adult counterpart of thinking that Santa is actually bringing a PlayStation under the tree because we were good kids.
We should keep in mind that the stock market is a wager on how much money businesses can generate, especially as we get older and realise that money is what buys us presents.
David Lefkowitz, the chief investment officer for UBS’s U.S. stocks, is feeling upbeat about that front.
In a recent letter, Lefkowitz stated, “We expect the bull market to continue with the S&P 500 reaching 6,600 by the end of the year, primarily driven by healthy profit growth of 9%.”
His price target suggests an 11% increase over Friday’s closing price.
That’s a priceless gift that no one, real or imagined, could provide.
