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
Automakers, unite
Following a report on Tuesday that the Japanese automaker is thinking of merging with Honda Motor, Nissan Motor’s stock surged 23.7% on Wednesday.
Additionally, both businesses intend to eventually include Mitsubishi Motors, of which Nissan owns 24% and is thus the largest shareholder, under the holding company. Nissan has been having trouble lately; its operating profit fell 85% in the second quarter.
Dow falls for the ninth day
The Dow Jones Industrial Average dropped 0.61% on Tuesday, continuing its nine-day losing run. The Nasdaq Composite fell 0.32% and the S&P 500 fell 0.39%.
On Wednesday, Asia-Pacific markets saw uneven trading. As investors evaluated Japan’s larger-than-expected trade deficit in November and awaited the Bank of Japan’s interest rate announcement this week, the Nikkei 225 fell almost 0.4%.
Hong Kong sees renewed interest in new listings
Data from Dealogic shows that this year’s new listings on the Hong Kong Stock Exchange increased in terms of deal values after declining for three years in a row. This year’s 63 transactions raised $10.65 billion, which is about 80% greater than the total amount raised in 2023. It indicates that the support that Chinese officials have promised for the Hong Kong market is actually happening.
Expectations from the Fed
Later this Wednesday, the U.S. Federal Reserve will wrap up its two-day rate-setting session. It is generally anticipated that the Fed would cut rates by 25 basis points in spite of sticky inflation and a strong labour market.
However, only 63% of the 27 respondents – who included fund managers, strategists, and economists – believed it was the proper course of action for the Fed.
When to profit
Even though Nvidia’s stock dropped 1.2% yesterday, sending it further into correction territory, the chipmaker is still up 163.3% so far this year. That raises the possibility that some investors were profiting from Nvidia’s incredible surge. CNBC Pro uses charts to determine the best time for investors to sell their top-performing stocks.
Bottom Line
“Stayin’ Alive” by the Bee Gees was the number-one single on the Billboard charts for the month of February 1978. Additionally, it was the song for the Dow Jones Industrial Average, which had been losing money for nine days in a row.
The Dow is once again in the midst of a nine-day losing streak, about fifty years ahead. Using the Billboards chart as another example, investors’ one Christmas wish is for the Dow to cease losing ground.
Nevertheless, despite the alarming figures, the 30-stock index is not severely hurt.
TNC understands that UnitedHealth is the biggest drag on the Dow, accounting for over half of the index’s fall over the previous eight sessions. Along with a larger industry sell-off, the health insurance company was rocked by the shooting death of its CEO, Brian Thompson.
The stock market remains upbeat outside the Dow. Both the S&P and the Nasdaq are trading close to their record closes, even though they both saw declines in their most recent trading session. This implies that the “old-economy” equities, such as consumer discretionary, financial, and industrial firms, which make up the majority of the Dow, are the ones that are struggling.
David Russell, global head of market strategy at TradeStation, stated that Wall Street is realizing that a Trump presidency might not be as beneficial for stocks as some had anticipated. “Healthcare faces its greatest political risks in recent memory, and financials and industrials jumped on his win, but they may now have to deal with higher rates and trade uncertainties.”
Furthermore, even though the Dow’s losses are continuous, the ascent isn’t very sharp. The index’s 50-day moving average is still rising, and it is only 3.6% off its all-time high.
Investors are not receiving money from the stock market for nothing. However, we are not yet in a catastrophic situation.