Stock market today: S&P 500, Nasdaq drift near record levels with JOLTS data on deck
US stocks drifted near all-time highs on Tuesday as investors waited for fresh jobs data and Fedspeak to cement or dent growing hopes for future interest rate cuts.
The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) hugged the flatline, coming off fresh records for the two gauges. The Dow Jones Industrial Average (^DJI) ticked up about 0.1%.
Investors are bracing for a reading later on JOLTS job openings in October, the first in a wave of key data this week that culminates in Friday’s all-important monthly US payrolls report.
The watch is on for signs of a soft landing for the economy, which will shape views on the path of rates — especially after Federal Reserve officials hinted that they’re still open to a December cut.
Traders are now pricing in about a 73% chance that the Fed lowers rates by a quarter percentage point at its Dec. 18 meeting, compared with 62% a day ago, per the CME FedWatch tool.
Those odds could shift after appearances by Fed policymakers Austan Goolsbee and Adriana Kugler later Tuesday, which set the stage for Fed Chair Jerome Powell’s panel discussion on Wednesday.
On the corporate front, Tesla (TSLA) stock slipped in early trading after shipments of the EV maker’s China-built models fell again, putting sales targets in doubt. In addition, CEO Elon Musk’s $56 billion pay deal was rejected again by a judge.
Meanwhile, shares in US Steel (X) fell about 8% on the heels of President-elect Donald Trump’s promise to “block” its $15 billion takeover by Japan’s Nippon Steel (5401.T, NPSCY). Trump said tax incentives and tariffs will enable the American steel giant to thrive on its own.
Political turmoil in France is also attracting market attention, with the government on the brink of collapse as its faces a parliamentary vote. With Germany also set for a snap election after a government breakdown, Wall Street is keeping a close eye on the two pillars of the EU.
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After Crashing 27% in the Past Month, Is Viking Therapeutics Stock a Bargain Buy Right Now?
There’s a growing number of companies entering the weight loss space, focusing on GLP-1 drugs which can be game changers for their businesses. And one of them is Viking Therapeutics (NASDAQ: VKTX), which has a promising GLP-1 treatment in development that investors are hopeful will generate billions in revenue for the modestly sized healthcare company. It may even lead to an acquisition.
In the past month, however, excitement around Viking has cooled, considerably. During November, the stock fell by 27%, hitting lows it hasn’t been at in months. At a cheaper valuation, has Viking Therapeutics become too good of a buy to pass up right now?
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Although it looks like there may be some mounting pessimism surrounding Viking Therapeutics stock recently, its shares are still up more than 180% this year, as of the end of last week. Investors may simply be cashing out some profits heading into the close of 2024.
And as news from other GLP-1 drugmakers comes out, that could also serve as a reminder that although it has a promising product in its pipeline in VK2735, even upon approval, it may face some serious competition. Beyond Novo Nordisk and Eli Lilly, which are the leaders in the GLP-1 space right now with top drugs such as Ozempic, Wegovy, Mounjaro, and Zepbound in their portfolios, there are also companies such as Amgen and Pfizer which have been developing their own drugs. And there also many smaller drugmakers looking to make a big play in what could be a massive anti-obesity drug market worth a staggering $100 billion or more (by 2030), according to estimates from Goldman Sachs.
Investors may also be concerned that the new incoming Republican government may take a tougher stance on weight loss drugs, which could impact approvals and coverage of these types of treatments.
While Viking’s stock has fallen of late, investors shouldn’t forget that at $6 billion, its market cap is high, considering this is a company which doesn’t generate any revenue right now. It has completed phase 2 trials for VK2735, which have shown that the drug can help people lose around 14.7% of their body weight over a 13-week period. It also has a promising weight loss pill in development, which could be an even bigger game changer as it may be a more tenable option for people who don’t want to use injectables.
Future Technologies Announces Advisory Board to Drive Strategic Growth
SUWANEE, Ga., Dec. 03, 2024 (GLOBE NEWSWIRE) — Future Technologies Venture, LLC (“Future Technologies”), an end-to-end wireless network solutions provider, announced today that they have named four members to their new Industry Advisory Board. Future Technologies believes that this distinguished panel of industry experts and thought leaders will provide strategic guidance and industry insights to accelerate innovation, strengthen market leadership, and support the company’s long-term vision. The Advisory Board reflects the organization’s long-standing commitment to leveraging diverse expertise to address emerging opportunities to drive its leadership position in delivering connectivity solutions across a wide range of vertical markets.
“As we finish our 25th year in business with record results, we believe our organization is at a pivotal moment whereby establishing this Advisory Board will help us execute on the next stage of our growth,” said Peter Cappiello, CEO of Future Technologies. “Our Advisory Board consists of a select group of industry experts, each with deep experience in their respective fields, that share our core values and passion for our People, our Customers and our Partners. We are thankful for their time and commitment to help our organization actualize our full potential.”
Meet the Future Technologies Advisory Board Members:
GEORGE MULHERN
George Mulhern retired as CEO of Cradlepoint and leader of Ericsson’s Enterprise Wireless Solutions in July 2024 after 13 years at Cradlepoint. Under his leadership, Cradlepoint grew from 80 to 1,500 employees, raised $170M in venture capital, and was acquired by Ericsson in 2020 for $1.1 billion. Before Cradlepoint, Mr. Mulhern spent 20 years at Hewlett Packard, culminating in a role as Senior Vice President of the LaserJet Global Business Unit. A San Jose State University alumnus, he holds a BS and MBA from the university and was inducted into the Idaho Technology Hall of Fame.
SARAH CAMPBELL
Sarah Campbell currently serves as the Associate Vice President of Research for Defense & Security, and Head of Special Projects at George Mason University and brings with her 20 years of experience at the intersection of the Telecommunications industry and the Defense & Government vertical markets. In Ms. Campbell’s role at George Mason University, she is responsible for organizing and elevating the various defense and security research initiatives on campus to enhance the university’s research profile. Sarah was previously the Chief of Staff at the Applied Research Laboratory for Intelligence and Security (ARLIS) at the University of Maryland, College Park, (one of the 15 DoD sponsored University Affiliated Research Centers UARC) and a Principal Faculty member since 2020. Ms. Campbell received her bachelor’s degree in Political Science from the University of Mary Washington, and her master’s degree in International Commerce & Policy from George Mason University, Schar School of Policy & Government.
ANTONIS PAPADOURAKIS
Antonis Papadourakis is the President of AlphaPi Global Advisory, LLC, which he founded in January 2024. Previously, he served as President and CEO of LANXESS Corporation, a $7B multinational specialty chemicals corporation, from 2015 until his retirement in October 2023. Outside of his role at LANXESS, he also held leadership roles at the American Chemistry Council and the National Association of Manufacturers. Born in Greece, Antonis holds a degree from the University of Thessaloniki and a PhD from the University of Massachusetts – Amherst, both in Chemical Engineering.
MIKE CARROLL
Mike Carroll, a graduate of Ohio University with a degree in Engineering, has a diverse background spanning the pulp & paper, robotics, software, and construction markets. Mr. Carroll previously served as Deputy Chairman and CEO of UK-based Shepard, LTD, and co-owned the Atlanta-based McTech Group, working with Fortune 500 companies like Walmart and Home Depot. In 2010, he joined Georgia-Pacific as VP of Transformation & Innovation, showcasing his expertise in Industrial Transformation. Recognized for his leadership and innovation, Mr. Carroll was named Innovator of the Year by ASPI in 2019 and Visionary of the Year by Smart Industry in 2020. He remains a sought-after keynote speaker and expert in leadership, innovation, and organizational transformation.
About Future Technologies
Future Technologies is celebrating its 25th year in the industry, starting out as a Satellite Integrator in 1999 and growing into its current position as a Lead System Integrator (LSI) and solutions provider supporting Fortune 5000 and Federal Government Clients. Future Technologies specializes in the assessment, planning, design, implementation, and support of innovative communications solutions for vertical markets – Manufacturing, Utility, Oil & Gas, Transportation, and Military. Future Technologies maintains a strong concentration on emerging standards such as 5G, 4G, Private LTE, WIFI, SCADA and Automation technologies. Future Technologies has also invested into a Living Lab at its Atlanta-based headquarters to provide a showcase of Private 5G solutions, Edge Computing/MEC and, most importantly, industry specific use cases, such as Connected Worker, Instrumentation Connectivity, Remote Worker, Augmented Reality/Virtual Reality/Mixed Reality, Asset Health, Inventory Management, Computer Vision, IoT Sensors, Robotics and other solutions. To Request a Virtual or In-Person tour of the Living Lab please contact: Request a Tour or visit futuretechllc.com
Media Contact
Taylor Juska
Head of Marketing – Future Technologies Venture, LLC
tjuska@futuretechllc.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
FREEDOM WEST HOMES SURPASSES $30M FUNDING MILESTONE
Freedom West 2.0 Model Featured in Inaugural Parity Zone Symposium
SAN FRANCISCO, Dec. 3, 2024 /PRNewswire/ — Freedom West Homes Corporation (“Freedom West”), a nonprofit limited-equity housing co-operative in the Fillmore District of San Francisco, announced the closing of predevelopment funding commitments from the San Francisco Foundation (SFF), Low Income Investment Fund (LIIF), and Menorah Park which has helped the organization surpass $30M in funding to-date raised to achieve operational stabilization and to prepare for it’s $2.3B revitalization plan known as Freedom West 2.0.
“LIIF supports this historic investment to drive economic parity in San Francisco’s once predominantly African American and Asian neighborhood. We applaud the impact of the resident-led Freedom West 2.0 revitalization plan, a mixed-income, mixed-use masterplan development countering the dire effects of displacement that started in the mid-1950s,” said Daniel A. Nissenbaum, Chief Executive Officer at LIIF. “LIIF provided the first $250,000 grant in support of the resident leaders and to catalyze other funders to participate. We are now providing a $1.25M predevelopment loan under favorable terms to support this unique joint venture among the resident owners and Black-led private development team. This project will both increase the supply of affordable housing units and preserve multi-generational affordable housing stability for the long-term residents who could otherwise be displaced by gentrification and San Francisco’s strong housing market.”
The Freedom West 2.0 place-based development was featured at the November 20th Parity Zone Symposium 2024 as a model for potential replication and scale by others as a sample Parity Zone case study. A Parity Zone is a geographically defined area where a concentrated effort is made to bridge the economic divide and create equitable opportunities for all residents: a place where access to high-paying jobs, access to capital, quality education, and affordable housing in mixed-income communities converge to catalyze economic mobility.
The Symposium included discussions across four panels, initiated by McKinsey & Company’s Global CMO, Shelley Stewart III, highlighting research findings and amplifying the call to action in their 2024 The State of Black Residents report. Symposium co-hosts included SFF, LIIF, Institute for the Future (IFTF), Freedom West Homes, MacFarlane Partners, Avanath Capital Management, JP Morgan Chase, Bethel AME Church of SF, Common Spirit, Terner Labs, and Legacy First Partners.
The San Francisco Foundation was also recognized at the symposium for their $2.5M impact investment in Freedom West 2.0.
“We don’t usually fund individual projects, but this felt like an exception,” said Fred Blackwell, San Francisco Foundation CEO. “We invested more than we usually do because we saw the transformative potential of Freedom West 2.0 — a vision that goes well beyond the bricks and mortar. Doing this the right way has the potential to impact systems change in San Fransisco, across the Bay Area, and beyond.”
The Parity Zone Symposium concluded with an announcement by the Institute for the Future, the world’s leading futures organization whose stated mission is to prepare the world to create better, more equitable futures by disrupting short-term thinking with visions of transformative possibilities. IFTF will take lead on the creation and management of the post-symposium working group task force, which will convene to document the findings from the Symposium, then refine and build out the Parity Zone framework to be published for the benefit of stakeholders across the country.
“We are excited and honored to support the work of Freedom West. Housing inequality is one of the key drivers of wealth inequality in the US, and Freedom West 2.0 offers an innovative model for achieving not only housing parity but also economic parity for low-income populations in a high-cost urban setting,” said IFTF Executive Director Marina Gorbis. “My hope is that this project will spur larger systemic changes in place-based economic development throughout the country.”
About Freedom West
Freedom West Homes Corporation is a nonprofit housing cooperative comprised of 382 housing units located in the Fillmore District of San Francisco. In the late 1960s, in a period of civil turmoil, Rev. J. Austell Hall had a vision to preserve a portion of this neighborhood that was being threatened by the City’s urban renewal. From this vision, he established Freedom West with the objective of creating a safe, affordable community, protecting cultural diversity, and providing a source of social and economic empowerment through co-operative ownership. For additional information visit Freedom West Homes.
About MacFarlane Partners
MacFarlane Partners is a real estate investment management and development firm that acquires, develops and manages properties on behalf of some of the world’s largest pension plans and institutions. Founded in 1987, the firm pioneered the urban investment concept among institutional real estate investment managers in the 1990s and today is a leading investor and developer of properties that promote smart growth, urban revitalization and sustainability in urban and high-density suburban areas nationwide. It is headquartered in San Francisco and operates regional offices in Los Angeles and Seattle. For additional information, visit Macfarlane Partners.
MEDIA CONTACT
Julie Chase
(415) 710-7108
jchase@chasepr.com
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SOURCE MacFarlane Partners
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
2 Disruptive Growth Stocks With Room to Run
The investment landscape has transformed since the presidential election, with small-cap stocks gaining momentum. The Russell 2000 index, which tracks the performance of roughly 2,000 smaller publicly traded U.S. companies, has outperformed the S&P 500 by 3.4% since election day, as of Nov. 29, 2024. This surge suggests renewed investor interest in emerging growth companies, particularly as a potential shift toward reduced regulation could benefit innovative enterprises in the United States.
In this dynamic environment, two companies stand out for their transformative potential and strategic execution. These enterprises aren’t merely participating in their respective markets; they’re positioning themselves to fundamentally reshape them through breakthrough technologies and visionary business models. Their approaches to innovation and market development warrant closer examination for investors seeking exposure to potentially transformative technologies.
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Archer Aviation (NYSE: ACHR) represents a bold vision for the future of urban transportation. The company’s stock has surged 55.8% year to date (as of Nov. 29, 2024) as it progresses from concept to commercialization of its electric air taxi service.
The numbers tell a compelling story of execution and market validation. Archer has secured over $6 billion in indicative orders, including partnerships with Japan Airlines and planned commercial operations in the UAE starting in late 2025.
Strategic partnerships underscore the company’s potential, with automotive giant Stellantis holding a whopping 20.19% stake. The company also exited the most recent quarter with over $500 million in cash while demonstrating exceptional capital efficiency, having built its Georgia manufacturing facility for just $65 million.
The market opportunity for urban air mobility extends beyond simple transportation services. Archer’s technology platform could revolutionize emergency services, cargo delivery, and urban planning, creating multiple revenue streams and market applications. Still, this is a nascent market that will take decades to fully develop, requiring patience on the part of shareholders.
Viking Therapeutics (NASDAQ: VKTX) is a differentiated player in the metabolic disease space, with its stock surging 184% year to date (as of Nov. 29, 2024) on compelling clinical results. The company’s lead asset VK2735, a novel dual glucagon-like peptide-1/glucose-dependent insulinotropic polypeptide (GLP-1/GIP) receptor agonist, achieved up to 14.7% weight reduction in a mid-stage trial, positioning Viking as a potential competitor in the rapidly growing obesity market that Morgan Stanley projects could reach $105 billion by 2030.
Market Digest: ED, KIM
Summary
Stocks continue to rise with broad sector participation, and 2024 is on track to be another very good year for equity investors. Meanwhile, corporate insiders remain on the sidelines, seemingly content to observe the action without any major participation. As new all-time highs are being printed on a regular basis, we can’t fault insiders for not jumping in to buy at the (latest) top, but are pleased that they have not been dumping shares in a manner that would suggest a correction is imminent. Digging into the latest weekly insider-sentiment data from Vickers Stock Research, we note eight-week sell/buy ratios that are uniformly neutral. The neutral range for the ratios runs from 2.00 to 6.00, and current eight-week numbers are 5.43 for the Total (all exchanges) ratio, 5.26 for the NYSE, and 5.74 for the Nasdaq. That said, as we detailed last week, the volume of Form 144 filings (indicating an intent to sell shares) was higher than normal in November — and now we do indeed see some increased insider selling, especially on the NYSE. With end-of-year ‘portfolio dressing’ in play, we are not overly alarmed. But we will watch this carefully — and should the trend evolve into a multi-week event, it may lead us to a more-defensive opinion. On a sector basis, insider buying was the greatest in the Energy sector over the last week, with shares valued at nearly $10 million bought — although buying activity was still outpaced by selli
2 Stocks Down 34% and 42% to Buy Right Now
With just over a month to go in 2024, it’s fair to say that it’s been a good year for stocks. The S&P 500 index’s level has risen 26% across the stretch, and the more growth-oriented Nasdaq Composite index has rocketed 42% higher.
While a powerful bull market is in swing and some companies are rocketing to new highs, there are still high-quality growth stocks out there that are trading far below previous valuation peaks. With that in mind, read on to see why two Motley Fool contributors think these stocks are good buys while they’re still down big from their highs.
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Keith Noonan: Like some other high-profile chip companies, Micron Technology (NASDAQ: MU) has seen increased sales and profits, thanks to artificial intelligence (AI) trends. The company is a leading provider of memory solutions, and rising demand for storage that can hold the data for AI applications has driven revenue higher.
Sales increased 93% to hit $7.75 billion in the fourth quarter of the company’s last fiscal year, which ended Aug. 29. Even better, much of the sales growth was driven by high-margin DRAM and high-bandwidth-memory (HBM) solutions.
Thanks to surging sales and improving gross profit margins due to a better sales makeup, the business managed to record a non-GAAP (adjusted) net profit of roughly $1.34 billion. For comparison, the business posted an adjusted loss of $1.18 billion in the prior-year period.
Management also expects continued improvement in the near term. For the first quarter of its current fiscal year, Micron expects sales of roughly $8.7 billion — good for growth of roughly 84% year over year and 12% on a sequential quarterly basis. The company’s adjusted gross margin is also projected to improve to roughly 39.5% — up from 36.5% last quarter.
The stock’s performance has been uneven. Its gain of 18% has lagged significantly behind the 26% rally for the S&P 500 this year. And the memory-chip specialist is still down 34% from its high. There’s a reason why the stock isn’t trading at all-time highs despite great results.
The memory chip industry is highly cyclical, and performance is impacted by macroeconomic conditions and more specific shifts and cycles in the consumer and enterprise markets. The timing of these cyclical shifts can be difficult to predict, and charting Micron’s business performance involves a high degree of speculation because of this. Some analysts are betting that enterprise demand for HBM solutions will weaken and softness in the consumer market will also depress performance.
3 Reasons to Buy American Express Stock Like There's No Tomorrow
American Express (NYSE: AXP) is a top holding for Warren Buffett-led Berkshire Hathaway‘s massive equities portfolio. It has worked out well, especially recently, as shares of the card payment giant have risen 153% in the past five years (as of Nov. 26).
With this financial stock trading in record territory, you might be wondering if adding the business to your portfolio is a smart decision. It just might be. Here are three reasons to buy American Express shares like there’s no tomorrow.
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The past couple of years, with high interest rates and a period of elevated inflation, created an uncertain economic environment. However, American Express has continued to put up strong financial results.
Net revenue increased 14% year over year in 2023, before rising 9% through the first nine months of 2024. These impressive top-line gains were driven by solid card member growth and higher payment volumes.
The company’s income trajectory provides another encouraging trend. Executives upped their guidance, now expecting a 24% double-digit earnings per share (EPS) bump for all of 2024. The projected EPS total of $13.95 (at the midpoint) for 2024 would be 75% above 2019’s figure.
Perhaps one of the key reasons that Buffett owns this stock is because American Express has staying power. The business has been around since the mid-1800s, which should give prospective investors confidence that it can last for a long time.
One important factor protects American Express from existing competitors, like other banks and payment networks, and new entrants to the industry, including fintech upstarts. This company has a wide economic moat, demonstrating it’s a high-quality enterprise.
American Express has one of the strongest brands in the financial services sector. This is supported by premium credit card offerings, like the Centurion Black card and the Platinum and Gold cards. Due to high annual fees and fantastic perks and rewards programs, Amex naturally attracts a more affluent customer base that has the ability to spend more.
That greater spending ability results in more revenue potential for the company, while also helping keep charge-off rates in check. And thanks to the brand’s standing, Amex is able to occasionally raise its annual fees, something that hasn’t prevented customer growth.
Another part of American Express’ moat is the presence of network effects. The huge number of cardholders, paired with the vast number of merchant acceptance locations, make the Amex platform extremely valuable to all parties involved. It would be nearly impossible for anyone to create a new payment network like this from scratch.
Intel CEO Gelsinger's removal raises doubts over turnaround plan
By Arsheeya Bajwa and Deborah Mary Sophia
(Reuters) – Intel CEO Pat Gelsinger’s removal has put an abrupt end to his role in the struggling chipmaker’s turnaround efforts, leaving Wall Street with doubts whether his ambitious revival plan is headed for the chopping block.
A change at the top after a tumultuous year was cheered by investors as Intel shares rose as much as 6% following the news, before it closed down 0.5% on Monday.
The shares have slumped more than 50% this year as it loses out on an AI-fueled rally in chipmaking peers. Nvidia has become the second most-valuable company in 2024, while Intel’s market capitalization dropped below $100 billion for the first time in 30 years.
Intel struggled under Gelsinger as his plan to increase focus on its money-losing contract manufacturing business hurt cash flow.
Despite the spending spree, it failed to keep up with peers in an AI race and trailed Taiwan’s TSMC in chip manufacturing.
The company had also missed out on an investment in AI juggernaut OpenAI, while Gelsinger’s comments on Taiwan cost Intel its discounted chipmaking deal with TSMC.
Intel’s revenue shrank to $54 billion in 2023, down nearly one-third from the year Gelsinger took over.
Wall Street’s earnings expectations for the company too have fallen sharply, giving the stock an elevated forward price-to-earnings ratio – a benchmark for valuing stocks.
(Reporting by Deborah Sophia and Arsheeya Bajwa in Bengaluru; Editing by Arun Koyyur)
Stock market today: S&P 500, Nasdaq futures hold just short of records with JOLTS on deck
US stock futures drifted near all-time highs on Tuesday as investors waited for fresh jobs data and Fedspeak to cement or dent growing hopes for interest-rate cuts.
Futures on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) were down around 0.1%, coming off fresh records for the indexes. Dow Jones Industrial Average futures (YM=F) traded broadly flat.
Investors are bracing for a reading later on JOLTS job openings in October, the first in a wave of key data this week that culminates in Friday’s all-important monthly US payrolls report.
The watch is on for signs of a soft landing for the economy, which will shape views on the path of rates — especially after Federal Reserve officials hinted that they’re still open to a December cut.
Traders are now pricing in about a 73% chance that the Fed lowers rates by a quarter percentage point at its Dec. 18 meeting, compared with 62% a day ago, per the CME FedWatch tool.
Those odds could shift after appearances by Fed policymakers Austan Goolsbee and Adriana Kugler later Tuesday, which set the stage for Fed Chair Jerome Powell’s panel discussion on Wednesday.
On the corporate front, Tesla (TSLA) stock slipped in pre-market trading after shipments of the EV maker’s China-built models fell again, putting sales targets in doubt. In addition, CEO Elon Musk’s $56 billion pay deal was rejected again by a judge.
Meanwhile, shares in US Steel (X) fell over 8% on the heels of President-elect Donald Trump’s promise to “block” its $15 billion takeover by Japan’s Nippon Steel (5401.T, NPSCY). Trump said tax incentives and tariffs will enable the American steel giant to thrive on its own.
Political turmoil in France is also attracting market attention, with the government on the brink of collapse as its faces a parliamentary vote. With Germany also set for a snap election after a government breakdown, Wall Street is keeping a close eye on the two pillars of the EU.
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