Equity💝 Indexes Wrap: Communications, Consumer Staples Lead Indexes Higher

The Dow

Consumer staples outperformed today, with Procter & Gamble (PG) rising 1.5% to lead the index. Walmart (WMT) gained nearly 1.5%. 

American Express (AXP) shares rose 1.3% as Goldman Sachs raised its price target on the credit card provider and reiterꦏated its buy rating. 

Salesforce (CRM) rose 0.8🐟% after getting an upgrade from analysts at Wolfe Research, citing their belief that growth had bottomed and would stay in the double digits. 

International Business Machines (IBM) gained 0.3% after it said it would 澳洲幸运5官方开奖结果体彩网:buy Software AG’s 💛AI and hybrid cloud offerings for $2.3 billion. 

Goldman Sachs (GS) shares fell 1.1% after Reuters reported the company will face pressure to write down the value of its Apple Card venture as it looks to unwind the partnership, according to people familiar with the talks.

UnitedHealth Group (UNH) fell 0.9% aꦕfter HSBC dowꦗngraded the stock and cut its price target. 

Apple (AAPL) shares also fell 0.9% following reports it would 澳洲幸运5官方开奖结果体彩网:pause sales of two new Applꦡe Watch models to comply with a U.S. import ban imposed by federal trade regulators because of a patent dispute. 

The S&P 500

Etsy (ETSY) led the index higher, gaining 4.7%. 

Netflix (NFLX) shares rose 3% after Morgan Stanley said in a research note the company was well-positioned to benefit from surprisingly strong consumer demand for entertainment next year. Other stocks singled out by the firm didn’t fare as well—Disney (DIS) fell 0.6% and Spotify (SPOT) inched up 0.5%. 

VF Corp. (VFC) fell 7.8% after it ಌrevealed a cybersecurity br🔥each last week had disrupted operations and could materially impact results. 

Paramount Global (PARA) fell 4.7% after Morgan Stanley warned in the note previously mentioned of the company’s reliance on advertising, which the firm sees remaining soft next year. Morgan Stanley also warned about Roku's (ROKU) and iHeartMedia’s (IHRT)🦋 ad businesses. They fell 2.6% and 6.4%, respectively.

Archer Daniels Midland (ADM), a major a📖gricultural commodities processor, fell 4.5% after it said it would buy Revela Foods, a developer of dairy flavor ingredients. 

Shares of M&T Bank (MTB) fell 3.9% after Deutsche✃ Bank downgr♒aded the regional lender to hold, citing its asset sensitivity and limited fee revenue exposure.

United Airlines (UAL) fell 2.9% and Delta Air Lines (DAL) lost 2.7% as oil prices rose on supply concerns stemming from shipping disruptions in the Red Sea.

The Nasdaq-100

Costco (COST) rose 3.4%, continuing to climb after last week’s 澳洲幸运5官方开奖结果体彩网:be🃏tter-tha🙈n-expected quarterly earnings report. 

Amazon (AMZN) gained 2.7% amid reports it is in talks to invest in local sports programmer Diamond Sports as it seeks to push deeper into sports content. Shares of Diamond Sports owner Sinclair Broadcasting (SBGI) gained 2.1%.

Adobe (ADBE) shares🔯 rose 2.5% after it called off its $20 billion acquisition of design software maker Figma, citing resistance from EU and U.K. regulatౠors.

Illumina (ILMN) gained 1.6% after it said it would 澳洲幸运5官方开奖结果体彩网:divest itself of GRAIL, the cancer test developer it acquired in 2021 witho🌌ut regulatory approval. 

Shares of utility Exelon (EXC) fell 2.9% after being ♋downgraded by Morgan Stanley and JPMorgan following an unfavorable rate decision by Illinois regulators. 

Semiconductor stocks, one of last week’s big winners, lagged the market Monday. Onsemi (ON) lost 2.2%, while Analog Devices (ADI) fell 2.1% and NXP Semiconductors (NXPI) slipped 1.6%. 

Communications Sector Gets a Boost from FAANG

The communications sector was the best-performing corner of the market Monday, buoyed by big tech firms Meta (META), Netflix (NFLX), and Alphabet (GOOGL). Sh💟ares of each 🍨were about 3% high Monday afternoon, possibly buoyed by conviction the digital advertising market is set for a rebound in 2024.

Social media company Snap (SNAP) was upgraded to buy from hold on Monday by Guggenheim analysts who cited the digital ad market’s recovery from the tough times of 2022 and the potential for further improvement next year. Snap shares jumped as much as🍬 5.5% Monday morning before giving up their gain🙈s to trade little changed in the afternoon. 

Meta’s advertising revenue, which accounts for 98% of total revenue, 澳洲幸运5官方开奖结果体彩网:climbed to a record $33.64 billion in the most recent quarter. 澳洲幸运5官方开奖结果体彩网:Google’s ad revenue in the same period totaled $59.65 billion, the second highest on record. And at Netflix, 澳洲幸运5官方开奖结果体彩网:ad-based subscriptions grew 70% sequential🌞ly in the third quarter as the company cracked down on password-sharing and subscribeওrs turned to less expensive plans.

Digital retailers, which also generate revenue from advertisements, also gained Monday, with Etsy (ETSY) up about 5%, leading the S&P 500, and Amazon (AMZN) rising more than 3%. 

Apple Shares Fall Af💜ter Reports It Will Ha𒉰lt US Sales of Latest Watches

Apple Inc. (AAPL) 澳洲幸运5官方开奖结果体彩网:shares slid on Monday after the company reporte🔴dly said it was halting sales of its most recently launched watches over a patent infringement ruling.

The Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available in the U.S. starting later this week, according to a 9to5 Mac report. The move follows an October ruling by the U.S. International Trade Commission (ITC) after a patent dispute with California-based tech firm Masimo Corp.

The watch ban is a blow to Apple, whose 澳洲幸运5官方开奖结果体彩网:wearables, home, and accessories business delivered $9.32 billion in net sales during the latest quarter ended in September, or almost 10% of total sales.

Apple shares were down 0.7% at $196.23 late Monday afternoon. Still, the stock is up about 56% for the year🉐.

-Kevin George

Midday Movers

U.S. Steel (X): Shares of the world’s first billion-dollar company jumped nearly 30% after it 澳洲幸运5官方开奖结果体彩网:agreed to be bought ♍by Nippon Steel, Japan’s largest steelmaker. Competitor Nucor (NUE) also gained. 

Valero Energy (VLO): Shares of the oil refiner rose about 3% as oil prices jumped after BP (BP) said it would reroute ships passi💦ng through the Red Sea in response to attacks on commercial vessels. 

Costco Wholesale Corp. (COST): Shares of the members-only retailer rose 3%, adding to last week’s gains on a 澳洲幸运5官方开奖结果体彩网:better-than-expected 🦹quarterly earnings report. 

VF Corp. (VFC): Shares of the North Face and Vans owner fell 7% after it disclosed a cyberatt⛎ack that disrupted operations last week and warned it could have a “mat൩erial impact” on results. 

Apple (AAPL): Shares of the consumer tech company fell about 1% after it said it would pause sales of two Apple Watch models to comply with an import ban imposed by the U.S. International Trade Commission over allegations of a paไtent viꦿolation. 

Illumina Gives Up Fight With✤ Regulators, Will Divest GRAIL

DNA sequencing firm Illumina Inc. (ILMN) announced Sunday it was 澳洲幸运5官方开奖结果体彩网:divesting itself of GRAIL following significant opposition from regulators.

Illumina spun off cancer test developer GRAIL in 2016 and then repurchased it in September 2020. It closed on the deal, then valued at $8 billion, in August 2021 before getting regulatory approval. Officials in both the U.S. and Europe opposed the move, saying the combination 🐭澳洲幸运5官方开奖结果体彩网:would hurt innovat𓆉ion and raise prices. 

Illumina shares were up more than 2% Monday afternoon, but have lost more 🔴than a third of their value so far this year.

-Bill McColl

Oil🎐 Rises as Middle East Fighting Disrupts Red Sea Transport

Oil futures rose Monday morning after British oil producer BP (BP) said it would halt the transport of oil through the Red Sea after several recent attacks on commercial ships by Yemen’s Houthi rebels. 

BP’s decision follows similar moves by most of the world’s largest shipping companies, including MS꧑C, A.P. Moller-Maersk, and Hapag-Lloyd. 

Iran-backed militants have stepped up attacks within the major shipping route in the last couple of weeks, purportedly targeting ships destined for Israel. Last week, a Norwegian vessel caught fire after being struck by a missile, and an MSC ship was taken out of service after being attacked.

Rerouting via the Cape of Good Hope adds thousands of miles to trips from South Asia to Europe and North America, raising concerns the ongoing conflict in the Middle East could reignite inflation that most Western central banks just started to feel like they had und♓er control. 

Both Brent cr𒊎ude, the European benchmark, and West Texas Intermediate, its American equivalent, rose more than 2.5% Monday to trade around $78.50 and $73 a barrel, respectively. 

U.S. Steel Stock Soars on Nippon Steel Deal

U.S. Steel (X) shares jumped in early trading Monday after Nippon Steel Corporation, ൩Japan's largest steelmaker, agreed to buy the iconic American company in a $14.9 billion deal.

Nippon Steel said it would pay $55 per share for U.S. Steel, a 40% premium to the American steelmaker's share price at market close on Friday.

The transaction, which has already been unanimously approved by Nippon Steel and U.S. Steel's boards, is subject to approval by U.S. Steel’s shareholders, regulators, "and other customary closing conditions." The acquisition is expected to close in the second or third quarter of 2024.

U.S. Steel shares were up more than 27% at $50 per🌜 sh🤪are, a 12-year high, Monday morning.

-Naomi Buchanan

Adobe Shares Rise on Scrapped Figma Acquisition

Shares of design software firm Adobe (ADBE) rose Monday morning after it called off its 澳洲幸运5官方开奖结果体彩网:$20 billion acquisition of enterprise software maker Figma following resistance f𓃲rom European regulators. 

The announcement comes after the European Commission and the U.K.’s Competition and Markets Authority both raised objections to the deal on the grounds that it would reduce competition in the product and digital design software markets. Both regulators identified Figma’s leading position in digital product design software and its potential to challenge Adobe’s dominance in image editing and illustration software as reasons the merger could limit product innovation.

“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” said Adobe CEO Shantanu Narayen in a statement.

According to the terms of the deal, Adobe will now pay Figma a $1 billion 澳洲幸运5官方开奖结果体彩网:termination fee. 

3 Charts For Inve💞stors to Watch Monday: ✨Illumina, Roku, Bitcoin

Illumina Inc.

Illumina, Inc. (ILMN) shares rose 1% Monday morning after the gene sequencing company announced over the weekend that it will divest its Grail unit, which manufactures blood test kits to detect early signs of cancer. Shares tumbled 3.3% on Friday after a federal appeals court upheld the Federal Trade Commission's ruling that the company's $7.1 billion 澳洲幸运5官方开奖结果体彩网:acquisition of cancer test developer Grail in𓆉 2021 was antic꧙ompetitive.

Since bottoming out just below $90 in early November, the ILMN share price has gained more than 40% on above-average volumes, indicating a level of conviction behind the buying. If news-driven volatility increases, it could be worth keeping an eye on two key areas: the $135 level, where the price may encounter overhead 澳洲幸运5官方开奖结果体彩网:resistance from a downtrend line that stretches back to mid-April, and the $117 level, an area on the chart that may find support from a 澳洲幸运5官方开奖结果体彩网:countertrend retracement high and the 50-day moving average.

See here for more stock charts to keep an eye on Monday.

-Timothy Smith

Stocks Making the Biggest Moves Premarket

Gains: 

• U.S. Steel Corp. (X): Shares of the steelmaker jumped nearly 30% to about $50.60 after the company agreed to be bought by Japan’s Nippon Steel for $14.1 billion, or $55 per share.
• Nio Inc. (NIO): Shares of the Chinese electric vehicle maker gained nearly 9% after it was pledged a $2.2 billion investment by Abu Dhabi-based fund CYVN Holdings. 
• Adobe Inc. (ADBE): Shares of the design software maker rose about 2% after it called off its planned $20 billion merger with workplace software company Figma. The companies cited pushback from regulators. 
  

Losses:

• Affirm Holdings Inc. (AFRM): Shares of the digital finance company fell 6% after Morgan Stanley downgraded the stock to underweight from equal weight, citing downside risk following the stock’s recent surge. Affirm stock has gained more than 75% in the last month. 
• Coinbase Global (COIN): Shares of the cryptocurrency exchange slipped about 2% as the crypto market cooled off following a two-month rally that saw Bitcoin surge from about $27,000 in early October to $44,000 earlier this month.

Stock Futures Gain to Start Last Full Trading Week of 202💞3

Futures contracts connected to the Dow J🌄ones Industrial Average were 0.2% higher🤪 in premarket trading.

S&P 500 futures were also up 0.2%.

N🔜asdaq-100 futures gained 0.1% about an hour before the opening beꦏll.