S&P 500 futures are up 11 points, Nasdaq 100 futures are up 35 points, and Dow Jones Industrial Average futures are up 64 points as the final trading session of the year begins. Gains in large-cap stocks are driving this positive trend, along with some buying interest after recent dips.
Treasury yields have fallen, with the 10-yr yield down to 4.52% and the 2-yr yield down to 4.23%.
Today's News
Tesla (TSLA, Financial) is gearing up to release its Q4 delivery report on January 2, with expectations of surpassing its previous record of 484,507 units. Analysts forecast deliveries of approximately 506,763 vehicles, with a breakdown of 476,398 Model 3/Model Y units and 30,365 for other models. To achieve its 2023 target of 1.8 million deliveries, Tesla would need to deliver around 515,000 vehicles in Q4. Key factors boosting Tesla's delivery pipeline include increased demand in China and various incentives like 0% financing for new purchases. Analysts remain optimistic about Tesla's growth trajectory, particularly looking towards 2025.
Nvidia (NVDA, Financial) and Microsoft (MSFT, Financial) are positioned as leaders in the AI Revolution, expected to significantly impact the tech sector by 2025. A report from Wedbush highlights a potential 25% increase in tech stocks, driven by substantial AI capital expenditure and a favorable regulatory environment. Despite potential challenges such as Fed concerns and China tariffs, these hurdles are seen as opportunities for strategic investment in AI-driven growth.
Alibaba (BABA, Financial) saw its shares rise in premarket trading after announcing a significant price cut for its cloud computing unit's large language models. This move is part of a broader strategy to stay competitive amid a price war with other Chinese tech giants like Baidu (BIDU, Financial) and Tencent (OTCPK:TCEHY). The company has been adjusting its pricing strategy throughout the year to maintain its market position.
Leidos Holdings (LDOS, Financial) secured a $48.76 million contract with the U.S. Army for General Electronic Test Station equipment and upgrades. The contract involves work in multiple countries, including Saudi Arabia and the UAE, and is set to be completed by the end of 2029. Despite this new contract, LDOS shares experienced a slight decline in pre-market trading.
Starbucks (SBUX, Financial) is entering 2025 with a focus on restructuring under new CEO Brian Niccol. The company has suspended its fiscal 2025 guidance following disappointing financial results, including a 3% drop in Q4 revenue. Starbucks plans to reduce new store openings and focus on redesigning existing locations while simplifying its menu to enhance customer experience. The company has also pledged not to increase prices in the U.S. despite ongoing labor challenges.
BlackRock (BLK, Financial) faces a January 10 deadline from the FDIC to comply with new regulatory measures concerning its stakes in FDIC-regulated banks. This comes after similar agreements were reached with Vanguard, as regulators aim to manage the influence of large asset managers. The FDIC's focus is on the growing concentration of voting power and the potential impact on policy decisions.
Wizz Air Holdings (OTCPK:WZZAF) announced that 40 of its planes will remain grounded through fiscal year 2026 due to ongoing engine issues. The company has secured a new support deal with Pratt & Whitney for operational assistance and compensation related to the grounded aircraft. Despite these challenges, Wizz Air plans to expand its fleet with new Airbus A321NEO deliveries.
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