Markets News, Jan. 8, 2024: Big Tech Boosts Nasdaq as Stocks Rebound; Bitcoin Hits $47K


Equity Indexes Wrap: Big Gains for Big Tech; Oil Stocks Tumble

January 08, 2024 04:16 PM EST

The Dow

Salesforce (CRM) and Intel (INTC) led the Dow higher, rising 4% and 3.3%, respectively, as conviction returned to tech stocks after last week’s sell-off. 

Apple (AAPL) rose 2.4% after it announced its Vision Pro virtual reality headset would launch on Feb. 2. The headset starts at $3,499. 

Nike (NKE) shares gained 1.5% amid reports it was ending its nearly three-decade partnership with golf legend Tiger Woods. 

Johnson & Johnson (JNJ) inched up 0.2% after it said it would buy biotech Ambrx Biopharma (AMAM) for about $2 billion to expand its cancer treatment pipeline. 

Merck (MRK) also crept higher on an acquisition. It rose 0.1% after offering to buy Harpoon Therapeutics (HARP) for $680 million.

Boeing (BA) tumbled 8% after the FAA ordered some of its 737 Max 9 jets temporarily grounded for inspection after part of an Alaska Airlines plane’s fuselage detached shortly after take-off on Friday. 

Chevron (CVX) slipped 0.6%, one of several oil majors to fall after Saudi Arabia cut prices on February orders of its Arab Light Crude. 

The S&P 500

American Airlines (AAL) led the index, adding 7.2% after Morgan Stanley upgraded the stock to “overweight” from “equalweight.”

But the index got the biggest boost from big tech as Microsoft (MSFT) added 1.9% and Amazon (AMZN) rose 2.7%. Alphabet (GOOGL) gained 2.3%. 

Oil companies lagged as oil prices slumped about 4% on Riyadh’s price cuts. Schlumberger (SLB) fell 3% while ConocoPhillips (COP) dropped 1.8% and ExxonMobil (XOM) lost 1.7%.

Bank of America (BAC) fell 0.8% after it said it would book a $1.6 billion charge related to Bloomberg’s discontinuation of a short-term rate the bank used in various lending programs.

The Nasdaq 100

Chip stocks rebounded from last week’s slump, led by Marvell Technologies (MRVL), up 7%. 

Nvidia (NVDA) rose 6.4% after it unveiled three new chips designed to run artificial intelligence on personal computers. Competitor Advanced Micro Devices (AMD) rose 5.5% on the release of its own AI PC chip. 

Cybersecurity firms CrowdStrike Holdings (CRWD) and Fortinet (FTNT) climbed 5.6% and x%, respectively. 

DoorDash (DOOR) rose 3.9% after getting upgraded to “buy” by analysts at Jefferies. 

Oilfield services provider Baker Hughes (BKR) fell 2.9% alongside oil prices. 

Regeneron (REGN) shares lost 1.1% after the drugmaker said sales of its best-selling drug Eylea fell short of Wall Street estimates in the fourth quarter.

Oil Futures, Stocks Tumble as Saudi Arabia Slashes Prices

January 08, 2024 03:06 PM EST

Oil futures plummeted Monday after Saudi Arabia cut prices for February shipments of crude oil as it contends with robust global supply. 

West Texas Intermediate futures contracts fell 4% Monday to trade at less than $71 a barrel. Brent crude, the European benchmark, fell a little over 3% to trade around $76. 

State-owned Saudi Aramco cut prices on its Arab Light Crude by $2 a barrel for Asian customers, its largest market. It also lowered prices for deliveries to Europe and North America. While analysts had expected prices to be lowered, Monday’s cuts were larger than expected.  

The move comes as oil demand in Asia moderates and ample oil enters the market despite a series of production cuts by Saudi Arabia and its OPEC+ allies. In particular, U.S. oil, which was being pumped at record rates at the end of 2023, has helped keep a cap on oil prices even amid mounting geopolitical tensions that risk disrupting supply and trade.

Shares of some of the world’s largest oil companies were sharply lower Monday. ExxonMobil (XOM) lost about 2% while Chevron (CVX) dipped about 1%.

Apple Shares Climb After Vision Pro Launch Date Is Set for Feb. 2

January 08, 2024 02:22 PM EST

Apple Inc. (AAPL) shares climbed during intraday trading on Monday after the iPhone maker announced a launch date early next month for its Vision Pro virtual reality (VR) headset.

The spatial computer headset will launch in the U.S. on Feb. 2, with preorders opening on Jan. 19. It will cost $3,499, with prescription lens add-ons costing $149.

The Vision Pro could allow Apple to compete with Meta’s (METAQuest 3 headset, which held 55% market share for VR headsets in the third quarter of 2023, according to IT market intelligence firm International Data Corp.

Jefferies Group securities analysts project that Apple will capture just 4% of VR headset market share, with around 400,000 units shipped in 2024. The firm noted that Vision Pro is to be sold at a higher price point than other comparable headsets like the Meta Quest 3, which starts at about $500.

Apple shares were up nearly 2% Monday afternoon.

Naomi Buchanan

Nvidia Stock Hits Record as It Unveils AI PC Chips

January 08, 2024 01:08 PM EST

Nvidia (NVDA) on Monday unveiled three new graphics processing units (GPU) designed to power artificial intelligence on personal computers, adding to its suite of market-leading AI chips. 

The GeForce RTX 40 SUPER Series, announced today ahead of the 2024 Consumer Electronics Show in Las Vegas, “deliver up to 836 trillion operations per second, bringing transformative AI capabilities to gaming, creating and everyday productivity.”

The company also said major computer manufacturers, including Dell, HP, and Samsung, were releasing AI GPU-equipped laptops, “bringing a full set of generative AI capabilities to users right out of the box.”

The announcement comes as Nvidia, the leading supplier of AI chips to data centers, seeks to expand its AI offering and fend off competitors eager to grow their slice of the massive AI pie.

Advanced Micro Devices (AMD), one of Nvidia’s fiercest competitors, unveiled AI PC chips of its own on Monday. It said its Ryzen 8000G Series chips are the first PC processors to contain a dedicated AI neural processing unit. Intel (INTC) preempted both Nvidia and AMD when, in December, it launched its set of AI PC chips.

Chipmakers were among the S&P 500’s best-performing stocks Monday. Nvidia shares were more than 4.5% Monday afternoon, while AMD rose more than 5%. Intel shares traded more than 3.5% higher. 

Boeing Shares Plummet After FAA Grounds 737 MAX 9 Fleet

January 08, 2024 11:59 AM EST

Boeing (BA) shares tumbled in early trading Monday after the Federal Aviation Administration (FAA) temporarily grounded certain Boeing 737 MAX 9 aircraft for inspections.

The FAA’s directive comes after an incident Friday in which an Alaska Airlines (ALK) Max 9 lost a panel mid-flight, forcing an emergency landing. About 171 Boeing aircraft in the U.S. or operated by U.S. airlines outside the U.S. are impacted by the FAA’s investigation to address potential door safety issues before resuming flights.

“We agree with and fully support the FAA’s decision to require immediate inspections of 737-9 airplanes with the same configuration as the affected airplane,” Boeing said in a statement.

Shares of Boeing were down 6.8% at $232 per share midday Monday but remained up about 13% in the last year.

Fatima Attarwala

Crocs Shares Jump on Record Sales Forecast

January 08, 2024 11:10 AM EST

Shares of Crocs (CROX) jumped 20% Monday morning after the casual shoemaker said full-year sales would exceed its prior guidance after a strong holiday season. 

The company said in a statement that it expects sales to grow 1% year-over-year in the fourth quarter, surpassing its November forecast of sales declining between 1% and 4%.

Subsequently, the company estimated that full-year sales would total about $3.95 billion, a record and a more than 11% increase year-over-year. The company had previously forecast full-year sales growth of between 10% and 11%. 

Despite Monday’s gains, Crocs shares have lost about 8% of their value in the last year and remain well off their record high of about $180. 

One Chart to Watch Monday: Berkshire Hathaway

January 08, 2024 10:14 AM EST

Warren Buffet-run Berkshire Hathaway (BRK.B) may appear on watchlists Monday after the multinational conglomerate settled a billion-dollar lawsuit with the Haslam family over a truck stop company.

A trial scheduled to commence today in Delaware was to determine if Berkshire Hathaway had used pushdown accounting methods to significantly reduce the value it would have to pay for the family’s remaining 20% stake in Pilot Travel Centers (PTC), the largest truck-stop operator in the U.S. Berkshire had alleged that Cleveland Browns owner Jimmy Haslam enticed senior PTC executives with side payments to inflate the value of the company to receive a more attractive buyout from the financial conglomerate.

Berkshire has been increasing its stake in PTC from the Haslam family since 2017, taking majority ownership of the company in January last year.

Source: TradingView.com.

Berkshire Hathaway shares trended mostly higher throughout 2023 apart from several retracements to the 200-day moving average. Currently, the stock trades between a 15-month uptrend line and its all-time high (ATH). If the price moves higher from current levels, monitor how it responds to the ATH around $373. Conversely, during retracements, keep an eye out if buyers can defend the uptrend line and 200-day moving average, currently sitting near $351.

See here for more charts to watch today.

Timothy Smith

Stocks Making the Biggest Moves Premarket

January 08, 2024 09:24 AM EST

Gains:

Crocs Inc. (CROX): Shares of the shoemaker jumped 8% after it said it expected revenue in 2023 to total $3.95 billion, a record and more than analysts estimated.
DoorDash Inc. (DASH): Shares of the meal delivery service rose more than 3% after Jefferies upgraded the stock to “buy” from “hold,” citing cost controls and its strong market position. 
Dell Technologies Inc. (DELL): Shares of the computer hardware maker rose 2% after analysts at JPMorgan upgraded to stock to “overweight,” citing the likelihood the company’s server business will benefit from AI investment.

Losses:

Boeing Co. (BA): Shares of the aircraft maker fell more than 7% after U.S. regulators grounded more than 170 of its 737 Max 9 jets following an incident in which part of an Alaska Airlines plane’s fuselage detached mid-flight. Shares of its supplier Spirit AeroSystems (SPR) tumbled 14%.
Regeneron Pharmaceuticals Inc. (REGN): Shares of the drugmaker fell more than 2% after it said it sold $1.34 billion of its blockbuster eye drug Eylea in the fourth quarter, nearly $200 million less than Wall Street expected.
ExxonMobil Corp. (XOM): The oil giant’s shares fell more than 1% as oil prices tumbled in early trading. 

Futures Mixed as Boeing Drags on the Dow

January 08, 2024 08:39 AM EST

Futures contracts connected to the Dow Jones Industrial Average were more than 0.3% lower in premarket trading on Monday, weighed down by Boeing.

S&P 500 futures were little changed about an hour before markets opened.

Nasdaq 100 ticked up about 0.2%.



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