Biggest S&P 500 Movers on Monday
1 hr 6 min ago
Advancers
- After skyrocketing past the $1 trillion market capitalization milestone Friday, Broadcom (AVGO) stock picked up this week right where it left off, soaring 11.2% to print another record and lead the S&P 500 higher. The chipmaker reported better-than-expected quarterly sales and profits last week, highlighting strong artificial intelligence (AI) sales. The momentum continued Monday as Bernstein analysts named Broadcom one of their top semiconductor picks alongside industry behemoth Nvidia (NVDA).
- Tesla’s (TSLA) stock popped 6.1% to an all-time high as Wedbush analysts discussed the potential upside of carmakers’ AI and full self-driving (FSD) technology under the incoming presidential administration. Wedbush estimated that Tesla’s full self-driving and AI opportunity alone could be worth $1 trillion and expressed confidence that the Trump White House will streamline approval processes for these initiatives.
Lauren Petracca / Bloomberg / Getty Images
Decliners
- Super Micro Computer (SMCI) shares plunged 8.3%, losing the most of any S&P 500 stock. The decline followed the announcement late last week that Supermicro would be among the three stocks removed from the Nasdaq 100 as part of the influential index’s annual reconstitution. In addition, Bloomberg reported Friday that Supermicro had enlisted investment banking advisory firm Evercore (EVR) to help with a potential capital raise.
- Shares of companies that operate pharmacy benefit management (PBM) businesses moved lower after President-elect Donald Trump suggested that eliminating the so-called “middle man” could be one way to reduce the cost of prescription drugs. Lawmakers introduced a bipartisan bill last week aimed at requiring insurers and PBMs to separate from their pharmacy businesses. CVS Health (CVS) shares sank 5.6% Monday, while shares of major health insurers with PBM operations also lost ground.
- Crude oil prices retreated from recent highs as consumer spending data from China came in below forecasts and ahead of this week’s Federal Reserve interest-rate announcement, pressuring oil and gas stocks. Phillips 66 (PSX) shares fell 5.2% after the refiner announced its 2025 capital plan and an agreement to sell its interest in a natural gas pipeline in Texas. Marathon Petroleum (MPC) shares were down 5.1%.
Nvidia-Backed SoundHound AI Stock Jumps 16%
1 hr 35 min ago
SoundHound AI (SOUN) shares soared Monday after analysts at Wedbush raised their price target for the Nvidia (NVDA)-backed artificial intelligence (AI) voice technology company.
The firm issued an “outperform” rating and raised its price target on the shares to $22 from $10. The revised target is more than twice the three other targets tracked by Visible Alpha that were issued since the start of November.
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Monday’s rise brought the stock closer to that target price. Shares of SoundHound, which rallied more than 16% to close at a record high of $19.69, are up more than ninefold in 2024.
SoundHound, which offers its AI voice solutions to the auto industry, restaurants, call centers, and other markets, is “seeing continued demand,” Wedbush said, positioning it as a “long-term winner in the AI Revolution.”
Nvidia held more than 1.73 million shares of SoundHound as of Sep. 30, according to a regulatory filing.
Ford Stock Slides After Downgrade from Jefferies
1 hr 59 min ago
Ford Motor (F) shares fell Monday after analysts at Jefferies downgraded the stock, pointing to inventory issues.
Jefferies lowered its rating to “underperform” from “hold,” and reduced its Ford price target to $9 from $12. The new target is below the mean of analysts tracked by Visible Alpha, which is currently above $11. Ford’s stock slipped 3.9% to $9.99 on Monday.
The analysts wrote in a note to clients that the move came “on broad concerns ranging from inventory overhang to looming strategic decisions on European presence and a widening gap between warranty provisions and related cash outflows.”
The Jefferies analysts said that while they see Ford benefiting from a likely loosening of emissions standards under the new Trump White House, “de-stocking has become an overhang with US inventory,” which has risen to 96 days in spite of solid sales.
The analysts called the carmaker’s balance sheet “robust rather than strong,” and warned that “potential claims from restructuring and warranty leave little cash for shareholders if Ford wants to maintain a conservative financial profile.”
Nvidia Slips Into Technical Correction, Analysts Remain Bullish
2 hr 33 min ago
Nvidia (NVDA) shares slipped into correction territory Monday, but analysts are still bullish on the chipmaking giant.
Nvidia shares fell 1.7% to $132 on Monday and are down 11% from their record closing high posted on Nov. 7. A technical correction is considered to have occurred when shares dropped 10% from their peak.
Despite the recent slump, analysts don’t seem to be worried about the long-term outlook. Analysts at Bank of America and Bernstein each called Nvidia a “top pick” Monday, posting price targets of $190 and $175, respectively. The consensus price target for Nvidia among the 20 firms tracked by Visible Alpha is about $176.
Bernstein analysts acknowledged “recent angst” caused by Nvidia’s shift from Hopper to Blackwell chips, but noted that “2025 seems likely to be an exceedingly good year.”
Nvidia stock took a slight hit last week after China’s State Administration for Market Regulation said it is investigating the company for potential violations of the country’s anti-monopoly laws related to its 2020 acquisition of networking hardware maker Mellanox Technologies. Still, Nvidia stock is up 167% in 2024, far outpacing the Nasdaq Composite.
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Broadcom Hits New High as Post-Earnings Rally Continues
3 hr 59 min ago
Broadcom (AVGO) shares jumped to a fresh all-time high Monday as the chipmaker’s post-earnings rally continued.
The stock was up 11% at around $250 in recent trading and has gained nearly 40% since Broadcom reported fiscal fourth-quarter earnings late Thursday that topped expectations. The recent gains have pushed the company’s market capitalization above the $1 trillion level, putting Broadcom in exclusive company with other major technology companies.
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Several analysts raised their price targets late last week in the wake of Broadcom’s quarterly results, and with Monday’s climb, the stock has already exceeded or is close to hitting most of those targets. Citi had bumped its target to $220, while JPMorgan and Bank of America raised their targets to $250.
Bernstein analysts compared Broadcom’s meteoric rise to that of artificial intelligence (AI) darling Nvidia (NVDA), writing Monday that the stock may be having its own “Nvidia moment.” Broadcom shares have more than doubled in value this year as demand for infrastructure to support AI surged. The analysts issued a $250 target and “overweight” rating for Broadcom, calling it a “top pick,” along with Nvidia.
In a note to clients Monday morning, BofA also listed Broadcom among its top six semiconductor industry picks for 2025, along with Nvidia, Marvell Technology (MRVL), Lam Research (LRCX), Onsemi (ON), and Cadence Design Systems (CDNS). They pointed to Broadcom’s strong earnings per share (EPS) growth and “best-semis profitability” for its inclusion in the list.
Dow on Track for 8th Straight Daily Loss
5 hr 40 min ago
The Dow Jones Industrial Average came into the week on a seven-session losing streak, and the blue chip index is on pace to lose ground again Monday.
The Dow was down 0.1% in recent trading while the Nasdaq Composite rose more than 1% to a record high and the S&P advanced near a new high of its own.
The Dow has lost 2.7% over its losing run. The index is up 16% since the start of 2024, a healthy gain but less than half the 34% increase for the tech-heavy Nasdaq Composite over the period.
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MicroStrategy Levels to Watch as Bitcoin Surges, Stock Added to Nasdaq 100
6 hr 9 min ago
MicroStrategy (MSTR) shares rose Monday after Bitcoin (BTCUSD) set a new record high above $107,000 and the company’s stock secured inclusion in the Nasdaq 100 index.
The stock has consolidated within a descending triangle in the past month, a chart pattern that often signals a move in the direction of a breakout or breakdown. Meanwhile, the relative strength index (RSI) has retreated below overbought levels throughout the stock’s latest consolidation phase, though it has carved out an inverse head and shoulders-like pattern, potentially pointing to a local bottom in the indicator.
The bars pattern tool, which extracts the recent trend higher that preceded the descending triangle and repositions it from the pattern’s upper trendline, forecasts an upside target of around $800.
Investors should watch important support levels on MicroStrategy’s chart near $268, $227, and $180.
MicroStrategy shares were up nearly 6% at around $432 in recent trading.
Read the full technical analysis piece here.
Honeywell Rises as Company Considers Aerospace Spinoff
7 hr 29 min ago
Honeywell International (HON) shares advanced Monday as the conglomerate issued an update on its portfolio review begun earlier this year, noting that it is considering spinning off its aerospace unit.
CEO Vimal Kapur said that since the company realigned its operations in January, “we have been moving swiftly and decisively to optimize the Honeywell portfolio to deliver superior growth and drive incremental shareholder value.” Kapur added that Honeywell has also been “evaluating more transformational changes.”
Kapur said that after “portfolio enhancements” that were initiated earlier this year, “Honeywell is now well-positioned for significant transformational alternatives, and we are continuing our deeper, more granular exploration of their feasibility and possible timing.”
The company noted that a further update on the actions will be given in its fourth-quarter earnings release, which is likely in late January or early February.
Activist investor Elliott Investment Management reacted to the statement, writing that it welcomed the announcement of the ongoing review of strategic alternatives by Honeywell, “including the separation of its Aerospace business.” Last month, Elliott revealed it had taken a more than $5 billion stake in Honeywell and called for a breakup of the company.
Shares of Honeywell, which rose nearly 3% Monday morning to lead Dow gainers, hit an all-time high following the Elliott news last month. They’ve gained about 12% year-to-date.
Tesla Hits Record High as Wedbush Boosts Price Target Again
8 hr 9 min ago
Tesla (TSLA) shares traded at a fresh all-time high Monday after Wedbush again raised its price target, arguing the electric vehicle (EV) maker’s self-driving car and artificial intelligence (AI) efforts will get a boost from the new Trump administration.
Wedbush lifted its price target to $515 from $400, and gave a “bull case” scenario of $650 next year. The move came about a month after Wedbush initially increased its price target to $400 from $300 for similar reasons.
Tesla shares were up 2.7% at around $448 in recent trading. The stock has gained 80% since the start of the year, far outpacing the S&P 500 (see chart below). Most of the increase has come since the presidential election, as investors hope that CEO Elon Musk’s close ties with President-elect Donald Trump will benefit the EV maker.
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Wedbush said in a note to clients that the “Trump White House the next 4 years will be a ‘total game changer’ for the autonomous and AI story for Tesla and Musk over the coming years.”
They estimate that the full self-driving (FSD) and AI opportunity is worth at least $1 trillion alone, and they “fully expect” that the Trump administration will fast-track these initiatives “as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era.”
The analysts argued that Tesla could have a $2 trillion market cap by the end of 2025, up from about $1.4 billion now, as the self-driving vision takes shape, and because of an expected jump in deliveries of EVs in China. Wedbush maintained an “outperform” rating on the stock.
Supermicro Slumps as Stock to be Removed from Nasdaq 100
8 hr 54 min ago
Super Micro Computer (SMCI) shares slumped Monday morning as the stock feels the impact of a pair of headlines that came out after the bell Friday.
The Nasdaq said Friday that Palantir (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON) would join the index starting next week, replacing Supermicro, Moderna (MRNA), and Illumina (ILMN). Supermicro is being replaced on the index less than six months after it was added in July, as shares had lost 70% of their value entering Monday since closing at a record $118.81 in March.
Along with the index removal, Bloomberg also reported Friday that Supermicro has hired investment banking advisory firm Evercore (EVR) to assist the server maker in raising capital. The raise could involve equity or debt, or take the form of an investment from a private equity company, Bloomberg reported.
The hardware manufacturer has raised capital once this year, as it said in March that it would sell 2 million new shares as it looked to raise $2 billion.
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Super Micro shares have fallen in the second half of the year as the company has seen earnings reports miss estimates, and has also been the subject of a short-seller’s report alleging accounting manipulation and other issues, along with the resignation of its last auditor. Super Micro also delayed the filing of its annual report for its last fiscal year, and last week received an extension for the filing to ensure the stock wouldn’t be delisted from the Nasdaq.
The stock was down 4% in early trading.
Palantir Levels to Watch as Stock Added to Nasdaq 100
10 hr 17 min ago
Palantir Technologies (PLTR) shares are likely to remain in the spotlight after the Nasdaq announced late Friday that the analytics software provider, along with MicroStrategy (MSTR), and Axon Enterprise (AXON), had been added to the Nasdaq 100 Index.
The stock has continued to trend sharply higher after breaking out from a cup and handle pattern, though the relative strength index cautions overbought conditions that could lead to near-term price fluctuations.
The measuring principle, which calculates the percentage change to the cup and handle’s “cup” and adds it to the pattern’s top trendline value, projects a bullish price target of $140.07.
Investors should watch key lower levels on Palantir’s chart at $45 and a zone of support between $33 and $29.
The stock was little changed at around $76 in recent premarket trading.
Read the full technical analysis piece here.
Futures Tied to Major Indexes Move Higher
11 hr 1 min ago
Dow Jones Industrial Average Futures were up 0.2%.
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S&P 500 futures also added 0.2%.
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Nasdaq 100 futures were up 0.4%.
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