Stocks Get Boost From Tesla as EV Giant Surges 6%: Markets Wrap

This content was published on November 18, 2024 - 17:55

5 minutes

(Bloomberg) — Stocks rebounded after last week’s slide as a rout in Treasuries abated after 10-year yields approached 4.5%, with traders keeping a close eye on news around President-elect Donald Trump’s administration.

The tech-heavy Nasdaq 100 halted its longest rout since January, with Tesla Inc. up 6% on a news report Trump’s transition team have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department’s priorities. Nvidia Corp., which reports results this week, fell. Longer-term bonds underperformed, with 30-year yields near its May highs. Bitcoin topped $91,000.

The S&P 500 will end 2025 at 6,500 points, up 11% from Friday’s close, with stocks set to benefit from economic growth and Federal Reserve interest-rate cuts, according to Morgan Stanley strategists led by Michael Wilson. Meantime, Lori Calvasina at RBC Capital Markets said last week’s pullback in US stocks could be the beginning of a bigger drawdown of as much as 10%.

“Traders appear to be gauging the potential impact of a new Trump administration’s policies on the economy, and the possibility that the Fed may slow down its rate-cutting campaign,” said Chris Larkin at E*Trade from Morgan Stanley. “With a relatively light economic calendar this week, the focus will shift to earnings—especially Nvidia’s, which have the potential to dictate the market’s short-term momentum.”

The S&P 500 rose 0.5%. The Nasdaq 100 rose 0.9%. The Dow Jones Industrial Average was little changed.

Treasury 10-year yields were little changed at 4.44%. The Bloomberg Dollar Spot Index fell 0.3%.

Corporate Highlights:

Nvidia Corp. dropped after the Information reported that the chip giant has asked its suppliers to change the design of the server racks for its new Blackwell graphics processing unit due to an overheating problem.
Super Micro Computer Inc. climbed as the server maker approaches a Monday deadline to either file a delayed 10-K annual report or submit a plan to file the form to Nasdaq in order to remain listed on the exchange.
MicroStrategy Inc. bought about 51,780 Bitcoin for around $4.6 billion, the largest purchase by the crypto hedge-fund proxy since it began acquiring the digital-asset more than four years ago.
Spirit Airlines Inc. has filed for bankruptcy in the wake of greater competition from rival carriers and financial troubles following its scuttled merger with JetBlue Airways Corp.
CVS Health Corp. named Glenview Capital Management founder Larry Robbins to its board as part of an agreement with the activist firm that’s been pressuring the company for change.
President-elect Donald Trump nominated Chris Wright, the chief executive officer of Liberty Energy Inc., to lead the Energy Department.
Newmont Corp. agreed to sell its Musselwhite gold mine in Ontario to Orla Mining Ltd. for up to $850 million as part of a divestment campaign designed to boost shareholder returns.
Hewlett Packard Enterprise Co. was upgraded at Raymond James to strong buy from outperform.
Moderna Inc. was upgraded to buy from hold at HSBC, with analysts saying the market isn’t giving enough credit to the firm’s pipeline.
Biogen Inc. was downgraded to hold from buy at Needham, which said it does not see a “meaningful source of upside” for the stock in the next 12 months.

Key events this week:

Eurozone CPI, Tuesday
US housing starts, Tuesday
Fed’s Jeff Schmid speaks, Tuesday
China loan prime rates, Wednesday
Nvidia earnings, Wednesday
Fed’s Lisa Cook and Michelle Bowman speak, Wednesday
Eurozone consumer confidence, Thursday
US existing home sales, initial jobless claims, Philadelphia Fed factory index, Thursday
Eurozone HCOB Manufacturing & Services PMI, Friday
US University of Michigan consumer sentiment, S&P Global Manufacturing & Services PMI, Friday

Some of the main moves in markets:

Stocks