Stocks ended higher, with the Dow posting a fresh record close, as investors continue to move away from the tech sector.
The Dow Jones Industrial Average climbed 426.16 points, or 0.97%, to finish the session at 44,296.51, while the S&P 500 gained 0.35% to close at 5,969.34, and the tech-heavy Nasdaq inched up 0.16% to end the day at 19,003.65.
The Dow ended the week about 2% higher, while the S&P 500 and Nasdaq each added about 1.7%, according to CNBC, marking a turn from last week, when Wall Street’s post-election rally stalled.
Updated at 1:11 PM EST
Amazon
Amazon (AMZN) shares edged lower in early afternoon trading after the online retail giant, which also houses one of the biggest hyperscalers in the world in the form of Amazon Web Services, doubled its investment in AI startup Anthropic.
Amazon's stake in the group now sits at $8 billion, around four times amount held by Alphabet (GOOGL) , as it seeks to cut into the lead that the Google parent, as well as rivals Microsoft (MSFT) and Meta Platforms (META) , have established in the market for generative AI.
Amazon shares were last marked 0.2% lower in early afternoon trading and changing hands at $197.99 each.
Amazon $AMZN just announced it's investing an additional $4,000,000,000.00 into AI startup Anthropic
— Evan (@StockMKTNewz) November 22, 2024
Amazon has now invested $8B into Anthropic retaining its position as a minority investor. AWS will become Anthropic’s “primary cloud and training partner” - CNBC pic.twitter.com/S3EjdG6FJX
Updated at 11:14 AM EST
Retail Therapy
Gap (GPS) shares powered higher in late-morning trading, and are lifting a host of retail rivals in its wake, after boosting its full-year profit forecast last night amid what it called a "strong start" to the holiday season.
Gap said third quarter sales rose 2% to $3.8 billion, while improving margins lifted its adjusted profit to 72 cents per share, well ahead of the Street's 58 cent forecast.
Gap shares were last marked 9.3% higher at $24.11 each, taking their six-month advance to just under 18%, while the SPDR S&P Retail ETF (XRT) was last trading 2.55% higher amid its best single-day gains since early October.
Gap Inc $GAP Earnings:
— GuruFocus (@gurufocus) November 21, 2024
- Diluted EPS of $0.72
- Revenue of $3.8 billion (+2% YoY)
- Comparable Sales growth of 1% YoY
- Store Sales decline of 2% YoY
- Online Sales growth of 7% YoY
“I'm proud that Gap Inc. delivered another successful quarter, growing net sales for the 4th… pic.twitter.com/xAAKZdiGVP
Updated at 10:17 AM EST
Muted open
S&P Global's factory business activity survey notched its strongest reading in nearly three years, rising 55.3 in November and well north of the 50 point mark that separates growth from contraction
"The rise in the headline flash PMI indicates that economic growth is accelerating in the fourth quarter," said chief economist Chris Williamson. "The prospect of lower interest rates and a more pro-business approach from the incoming administration has fueled greater optimism, in turn helping drive output and order book inflows higher in November."
The University of Michigan's benchmark survey of consumer sentiment was also positive, and although the headline reading eased from the mid-month estimate of 73 to 71.8, year-head inflation expectations slipped to 2.6%.
The PMI contrast could not be more stark:
— Mohamed A. El-Erian (@elerianm) November 22, 2024
While Europe struggles (see details below), ...
The overall US PMI rose from 54.1 to 55.3, its highest level since April 2022,
The contributors broadened as an expanding manufacturing sector joined what remains a strong services… https://t.co/KdKHQEjtK2
Updated at 9:37 AM EST
Muted open
The S&P 500 was marked 8 points, or 0.14% higher in the opening minutes of trading, with the Nasdaq rising 15 points, or 0.08%.
The Dow Jones Industrial Average gained 65 points while the mid-cap Russell 2000 bumped 11 points, or 0.47%.
S&P 500 Opening Bell Heatmap (Nov. 22, 2024)$SPY +0.03%🟩$QQQ -0.14%🟥$DJI +0.22%🟩$IWM +0.49%🟩 pic.twitter.com/p0uQJfVe1s
— Wall St Engine (@wallstengine) November 22, 2024
Updated at 9:22 AM EST
Flowing locks
Bank of America's Flow Show report indicates U.S. stocks are set for record inflows of around $450 billion this year, with another $14.4 billion added to the pile last week.
Tech stocks saw $5.4 billion in new money, the highest in six weeks, while U.S. Treasury bonds saw their biggest two-week outflow ($6.4 billion) in nearly a year.
The report also notes that investors are betting on a sustained rally into 2025, as "Trump admin sees rising stocks/crypto as tool to boost 'animal spirits' and few believe Trump will allow bear market."
Updated at 7:59 AM EST
MicroStrategy bounce
MicroStrategy (MSTR) clawed back some of yesterday's declines, which were tied to a report from short-seller Citron Research, as bitcoin prices tested the $100,000 level for the first time.
MicroStrategy, which uses debt and equity financing to purchase bitcoin, now holds an estimated $24 billion in value from its holdings, with based on a Barclays average price of $40,000 each.
MicroStrategy shares were last marked 5.6% higher in premarket trading to indicate an opening bell price of $419.48, a move that would boost the stock's six-month gain to around 145%.
$MSTR has completed a $3 billion offering of convertible notes at 0% coupon and 55% premium, with an implied strike price of ~$672. https://t.co/GzO0br0Xfh
— Michael Saylor⚡️ (@saylor) November 21, 2024
Stock Market Today
Stocks closed higher on Thursday, helped in part by steady Treasury bond yields and a modest advance for Nvidia (NVDA) following its October-quarter update and near-term outlook, with the S&P 500 rising around 0.53% and the Dow Jones Industrial Average gaining 462 points.
Friday's moves, however, will likely be dictated in early trading by events overseas, where the escalating conflict between Russia and Ukraine continues to weigh on investor sentiment and a reading of economic activity around Europe slumped to the lowest levels in 10 months.
The HCOB PMI reading for November came in well south of the 50-point mark that separates growth from contraction, adding to the region's broader economic malaise and lifting bets on an outsized 50 basis point interest rate cut from the European Central Bank next month in Frankfurt.
That's pushing the euro to a near two-year low of 104.251 against the U.S. dollar and taking the dollar index to a multiyear high of 107.422 in overnight trading.
"The index has climbed over 2% this month, adding to the nearly 3% jump last month, amid escalating geopolitical concerns in Europe and widening yield and interest rate gaps favoring the greenback," Saxo Bank strategists wrote.
Related: Nvidia earnings adjust chances for S&P 500 record year
Safe-haven flows are holding Treasury yields in place, however, with 10-year notes pegged at 4.392% and 2-year paper trading at 4.328% heading into the start of the New York session.
Gold prices are also on the move, with bullion on pace for its best weekly gain of the year and last marked 1.42% higher at $2,707.30 per ounce.
Heading into the start of the trading day on Wall Street, stocks are set for a modest opening bell pullback with futures tied to the S&P 500 suggesting a 13 point opening bell decline.
Futures tied to the Dow Jones Industrial Average, meanwhile, are priced for an 85 point dip while those linked to the tech-heavy Nasdaq are called 75 points lower.
More Wall Street Analysts:
- Walmart analysts reset stock price targets ahead of Black Friday
- Analysts revamp Cisco stock price targets after earnings
- Analysts revisit Applied Materials stock price targets after Q4 earnings
In overseas markets, Europe's Stoxx 600 pared gains following the PMI data and was last marked 0.3% higher in midday Frankfurt trading. Britain's FTSE 100, meanwhile, rose 0.74% as the pound fell to a six-month low of 1.2521 against the surging U.S. dollar.
Overnight in Asia, the regional MSCI ex-Japan benchmark rose 0.17% into the close of trading, while the Nikkei 225 added 0.68% in Tokyo, but still ended 0.93% lower for the week.
Related: Veteran fund manager sees world of pain coming for stocks
