Important points
Major U.S. stock indexes gave investors some holiday cheer, rising during shortened trading hours on Christmas Eve.
The S&P 500 rose 1.1% on Tuesday, while strength in the tech sector helped lift the Nasdaq index 1.4%. The Dow Jones Industrial Average rose 0.9% as financial markets prepared for the Christmas holiday on Wednesday.
Tesla (TSLA) stock rose 7.4%, leading the S&P 500 index’s rise and spearheading strong trading in the Magnificent Seven tech stocks. Barclays analysts said they expected the company to deliver a record number of cars in the fourth quarter, but the impact on the stock price could be minimal. The investment bank believes Tesla’s recent momentum is driven by long-term opportunities in self-driving and artificial intelligence, rather than short-term indicators.
Super Micro Computer (SMCI) shares rose 6%, partially recovering from a series of losses that coincided with its removal from the Nasdaq 100 index last week. Earlier this month, the server and data storage provider received an extension from the Nasdaq exchange to delay filing its annual report until February.
Broadcom (AVGO) stock continued its rally in December, rising 3.2%. Broadcom’s pre-Christmas sales extended pre-market gains after UBS analysts raised their AI revenue forecasts and raised their price targets for Broadcom.
Starbucks (SBUX) stock rose 2.8%. Union-backed baristas on strike against the coffee chain are expected to return to work tomorrow. Starbucks executives said Monday that about 97% to 99% of its stores will remain open, adding that the strike is not expected to significantly impact U.S. operations.
Among the S&P 500’s worst performers on Christmas Eve was Walgreens Boots Alliance (WBA) stock, which fell 1.2%. The company’s stock price soared in early December following reports that the pharmacy operator was in talks to sell itself to private equity firm Sycamore Partners, but has since trended downward and remained down nearly 65% in 2024. It’s still there.
Shares of industrial chemicals supplier Celanese (CE) also fell 1.2%. RBC recently lowered its price target for Celanese stock, citing pressure on the company’s profits due to high energy costs.