Stock Talk Weekly: Edition 2
Updated: Dec 27, 2024
Reviewing the week of December 9th - 13th
Major Market Events:
🚀 Record Highs: For the first time in history, Nasdaq broke the $20,000 barrier—once again reaching new highs.
💎 Broadcom: AI-related sales increased Broadcom stock by 24.4% and pushed it past $1 trillion market cap.
📈 Economic Indicators: In November, the CPI increased by 0.3%, and the annual inflation rate rose from 2.6% to 2.7%.
This Week's Winners:
🟢 Candel Therapeutics, Inc. (CADL): A 25% hike in share value due to positive results in their Phase 3 trial for prostate cancer therapy. To support CADL development plans, the company conducted an $80 million public offering.
🟢 Walgreens Boots Alliance (WBA): Word of a potential acquisition with private equity firm Sycamore Partners caused a 20.25% jump. Investors were excited to know that a buyout may be in the cards.
🟢 RH (Restoration Hardware): The company announced its profitability for the quarter, creating a positive outlook for the coming year. Despite the current housing market weakness, investor optimism increased the stock by 16.46%.
🟢 Warner Bros. Discovery (WBD): Surged 11.76% following Warner Bros. announcement that they're restructuring into two operational divisions. Investors are relieved to see improvements in efficiency and strategic focus.
🟢 Tesla (TSLA): The increase in Cybertruck deliveries and slashing of prices inspires greater demand in China, boosting TSLA stock by 9.63%.
This Week's Losers:
🔴 NVIDIA Corp (NVDA): A Chinese antitrust investigation is taking place which raised concerns and reduced share value by 3.27%.
🔴 UnitedHealth Group Inc (UNH): The stock dropped 5.61% as lawmakers introduced new bills that target pharmacy-benefit managers.
🔴 General Motors Company (GM): The company ended its Cruise Robotaxi program and share value declined by 2.20%. Terminating the program led to concerns about its vehicle strategy.
🔴 Super Micro Computer Inc (SMCI): The company is at risk of being removed from the Nasdaq 100. Concern from investors caused shares to lessen by 23.94%.
🔴 Bicycle Therapeutics Plc (BCYC): Disappointing clinical trial results caused the stock price to fall by 30.81%. Investors lose confidence in the company's experimental cancer treatments.
Upcoming Events:
📅 Inflation (CPI) and Federal Reserve Decisions: On December 18th, the Federal Reserve will announce changes to the interest rate. Investors speculate a quarter-point cut which would impact the cost of borrowing and economic growth. The banking and real estate sectors may be impacted by the ripple effects.
🎯 Technology Sector: Micron Technology has their earnings call scheduled for December 18th. Due to their large presence in their industry, their earnings may influence the other tech companies. Investors are keeping a close watch on companies involved with AI and memory chips.
🎯 Retail Sector: Darden Restaurants earnings report is scheduled for December 19th and Carnival Corporation for December 20th. The upcoming earnings reports will reflect the impact holiday spending has on the company's finances.
📊 Economic Indicators: Critical data will be released this week giving investors insights into consumer spending trends and the Personal Consumption Expenditures (PCE) inflation. These metrics help investors make an educated guess regarding future inflation rates and determine economic resilience.
Next Week's Watchlist:
⭐ Jabil Inc. (JBL): Jabil Inc. leads the manufacturing services. The earnings call is scheduled for December 18th. The results will reveal product demand across industries and the dynamics of their supply chain.
⭐ Micron Technology Inc. (MU): Micron's earnings report is set for December 18th. The call will expose their influence in the semiconductor market. More specifically, their impact on AI and memory chip demand.
⭐ Accenture plc (ACN): Accenture’s earnings call is planned for December 19th. The outcome will reflect company spending on digital transformation and consulting services.
⭐ Darden Restaurants, Inc. (DRI): Darden's earnings report takes place on December 19th. The company's report will reveal consumer spending trends in the dining sector.
⭐ Carnival Corp. (CCL): Carnival's earnings call is on December 20th. This report will highlight the health of the travel industry and showcase the impact of the current economic conditions.
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