On December 20, 2021, a Christmas tree with NYSE brand decorations stood in front of the New York Stock Exchange in New York City.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
S&P and Nasdaq reach new highs
The US market is Mix on Monday. this S&P 500 Index and Nasdaq Index Climbing to new highs, but Dow Jones Industrial Average dropped. Pan-European Stoke 600 It rose 0.66%, rebounding from earlier losses. shares star Chief Executive Carlos Tavares resigned on Sunday due to “differences” with the board, sending shares down 6.3%.
Intel CEO ousted
Intel CEO Pat Gelsinger was fired over the weekend. One source said the decision, announced on Monday, was due to the board’s lack of confidence in Kissinger’s plans. His replacements as interim co-CEOs are Chief Financial Officer David Zinsner and Chief Product Officer MJ Holthaus. Gelsinger was named CEO in 2021 but failed to turn around the troubled company.
$56 billion Musk plan rejected
Tesla Chief Executive Elon Musk failed to restore his $56 billion compensation package for 2018. A Delaware judge has upheld her previous ruling that a compensation plan was improperly awarded. Tesla shareholders voted to “approve” the plan in June. However, the judge wrote in her opinion, “Even if a shareholder vote could have a ratifying effect, it cannot do so here.”
U.S. Cryptocurrency Law Will Be Passed “Quickly”
Chief Policy Officer Faryar Shirzad says the U.S. will pass cryptocurrency legislation “fairly quickly” after President-elect Donald Trump takes office Coin Library. “We have the most pro-crypto Congress in history, and we have a very pro-crypto president in office,” Shirzad told CNBC last week.
(PRO) Interest rate cuts are a foregone conclusion
Last week, the odds of a rate cut by the Federal Reserve in December seemed like a coin toss. Traders appear to be changing their minds and believe the Fed will cut interest rates a total of three times by the end of the year.
bottom line
Investors remain awash in positive sentiment, driving stocks to new highs, but some analysts worry the good mood is on thin foundations.
this S&P 500 Index 0.24% was added, and Nasdaq Indexpower ups Tesla’s up 3.5% super microcomputer A surge of 29%, up 0.97%. Both indexes closed at new highs. this Dow Jones Industrial Average Although it briefly exceeded 45,000 points during the day, it still fell 0.29%.
“The holidays are in full swing and sentiment appears to be positive, at least among investors.” UBS wrote in Monday’s note. In fact, 56.4% of consumers expect stock prices to rise over the next year, according to one survey poll Developed by The Conference Board. This is the highest level ever recorded.
Don’t get gloomy this holiday season, but analysts are seeing signs that optimism may be taking root in Wonderland.
InfraCap founder and CEO Jay Hatfield told CNBC that the stock market may have had an incredible rebound in November, but it may have been investors “pricing the upside of a new pro-business administration.”
Hatfield added that now investors “need to know the details – not just the tweets – but the details of the policy,” suggesting the rally could be temporarily paused.
Investment bank Oppenheimer also noted that stocks remain expensive. “Benchmarks point to forward price-to-earnings ratios above the five-year average,” chief investment strategist John Stoltzfus wrote on Monday.
UBS believes that investor enthusiasm “raises concerns about a bubble in the market.”
A bubble means things will settle down, which isn’t necessarily a bad thing in the long run.
However, Oppenheimer believes that the bull market is “driven by fundamentals” and will continue to move higher next year despite high valuations. Likewise, Savita Subramanian, head of U.S. equities and strategy at Bank of America, believes there are “strong reasons to stick with stocks over bonds for the long term.”
After all, a layer of foamed milk adds to the delicious flavor of the cappuccino without affecting the coffee underneath.
—CNBC’s Lisa Kailai Han, Alex Harring and Pia Singh contributed to this report.
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