S&P futures are down 0.7% Monday morning, near session lows, after US equities sold off on Friday, with the S&P, Nasdaq, and Russell 2000 all dropping over 1%. Despite Friday’s losses, stocks ended the week higher, recovering from the prior week’s sharp pullback. Treasuries are firmer with some curve steepening, the dollar index is down 0.1%, gold is flat, Bitcoin futures are off 0.6%, and WTI crude is up 0.5%.
The widely anticipated “Santa Claus rally” failed to materialize, though the S&P 500 remains on track for back-to-back annual gains exceeding 20%. US equity and economic resilience remain key themes, though concerns about rising bond yields, sticky inflation, deficit challenges, and trade/tariff uncertainty persist.
Corporate Updates
- NVDA-US: Betting on robotics as its next major growth driver, per FT.
- TSLA-US: Q4 delivery numbers expected this week.
- BA-US: Under pressure after a 737-800 crash in South Korea.
- T-US and VZ-US: Networks reportedly clear after Salt Typhoon hack.
- Trump: Requested SCOTUS to delay TikTok ban for deal negotiations.
- Industry Notes: Articles highlighted aging US shale, 2025 banking tailwinds, automakers increasing US discounts/incentives, and US credit card defaults hitting their highest level since 2010.
US equities closed lower on Friday, with the Dow down 0.77%, S&P 500 off 1.11%, Nasdaq dropping 1.49%, and the Russell 2000 falling 1.56%. Stocks finished off their worst levels but extended declines from an uneventful Thursday session. Despite the pullback, equities are still on track for strong weekly gains after last week’s selloff. Big tech and broader technology sectors underperformed, with the “Magnificent 7” names leading the losses. Relative outperformers included energy, food, tobacco, marine shipping, and utilities. Treasuries were mixed, with the curve steepening. The dollar index fell 0.1%, gold declined 0.8% but recovered from session lows, Bitcoin futures were down 1.3%, and WTI crude rose 1.4%.
The market pullback followed earlier week gains as investors reassessed hawkish Fed concerns and related de-risking. Rising rates remain an overhang on sentiment, alongside ongoing uncertainty around Trump tariffs and their inflationary impact under potential “Trump 2.0” policies.
Economic Updates
The US economic calendar was quiet, with preliminary November wholesale inventories down 0.2% m/m, compared to expectations for a 0.2% rise. October’s increase was 0.1%. Key releases next week include Chicago PMI, pending home sales, home prices, final manufacturing PMI, initial claims, and the ISM manufacturing index. The week of January 6th will be busier with ISM services, JOLTS job openings, ADP private payrolls, December FOMC minutes, nonfarm payrolls, and preliminary University of Michigan consumer sentiment. It also features major 3-, 10-, and 30-year bond auctions.
Company News by GICS Sector
Health Care
- +14.9% PGNY-US (Progyny): CEO disclosed purchasing 209.5K shares, while Executive Chairman acquired 150K shares after the close on Thursday.
- +4.7% AMED-US (Amedisys): Both the company and UnitedHealth Group (UNH-US) waived their rights to terminate the merger agreement due to a missed Outside Date, signaling continued progress on the deal.
Information Technology
- +7.7% GDYN-US (Grid Dynamics Holdings): Announced its addition to the S&P SmallCap 600 Index, effective before trading on January 2nd.
Eco Data Releases | Monday December 30th, 2024
S&P 500 Constituent Earnings Announcements | Monday December 30th, 2024
No constituents report today
Data sourced from FactSet Research Systems Inc.
