Traders take action on the last day of annual trading on the New York Stock Exchange on December 31, 2024 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
A tough week for trading
US stocks It rose on Friday but ended the week lower. The S&P 500 energy sector bucked the trend, rising more than 3% for the week. European Stoke 600 The index fell 0.49%. Auto stocks among the worst performers star Shares fell about 2% after the company reported a 45.7% reduction in production in 2024.
Boeing’s rebuilding year
boeing company The company has not reported an annual profit since 2018, when its 737 Max aircraft were involved in two fatal crashes that killed 346 people. A year ago, an unused emergency exit door on a nearly new Boeing 737 Max 9 aircraft operated by Alaska Airlines was blown off in mid-air. New CEO Kelly Ortberg, who started as CEO in August, will be tasked with ensuring Boeing can increase production and maintain quality. This is his progress.
Sales of foreign mobile phones in China plummet
According to CNBC calculations based on data from the China Academy of Information and Communications Technology, foreign mobile phone brands sold 3.04 million units in China in November. This is down 47.4% from November 2023, indicating that like apple It has been struggling in the Chinese market.
Microsoft invests heavily in data centers
Microsoft The company said in a statement on Friday that it plans to spend $80 billion in fiscal 2025 to build data centers capable of handling artificial intelligence workloads. Blog article. Microsoft Vice Chairman and President Brad Smith writes that more than half of expected AI infrastructure spending will occur in the United States. Microsoft’s fiscal year 2025 will end in June.
(PRO) Watch December jobs report
Important economic data this week include the Federal Reserve’s December meeting minutes released on Wednesday and the December employment report released on Friday. While neither is likely to change the Fed’s interest rate decision at its January meeting, they could provide greater clarity on the Fed’s actions in 2025.
bottom line
U.S. markets rose on Friday, but those hoping for holiday cheer were disappointed.
Friday, S&P 500 Index increased by 1.26%, Dow Jones Industrial Average up 0.8%, Nasdaq Index up 1.77%. Still, the losses seen in previous sessions — the S&P and Nasdaq had posted five consecutive days of declines before Friday — were too much to bear. This week, the S&P 500 fell 0.48%, the Dow Jones fell 0.60%, and the Nasdaq fell 0.51%.
That means so-called Santa Claus rallies, a phenomenon in which stocks rise during the last five trading days of the year and the first two trading days of the next, are not happening in the market this year.
Santa Claus is not visiting this year, which could be a sign of tougher times ahead for the stock market. Stock Trader’s Almanac In 1968, he said: “If Santa Claus hadn’t called, the bears might have come to Broad and Wall.”
That is, over-belief in such signals may be equivalent to adults believing that Santa Claus actually leaves a PlayStation under the tree because we are all good kids.
As we grow older and realize that it is money that brings us gifts, it is necessary to remember that the stock market is a bet on how much cash a company can bring in.
In that respect, UBSDavid Lefkowitz, the bank’s chief investment officer for U.S. equities, is optimistic. “We expect the bull market to continue, with the S&P 500 reaching 6,600 by year-end, driven primarily by healthy profit growth of 9%,” Lefkowitz wrote in a recent note. He The price target implies an upside of about 11% from Friday’s closing price.
Now, this is a gift so precious that no one, real or imagined, can give it.
—CNBC’s Fred Imbert, Pia Singh, Sean Conlon, Jesse Pound and Sarah Min contributed to this report.
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