The Nasdaq and S&P 500 closed higher on Monday, recovering some losses as investors anticipate quarterly earnings from AI leader Nvidia, and Tesla jumped on the prospect of favorable policy changes from the incoming Trump administration.
Market Snapshot
The Dow Jones Industrial Average fell 55.39 points, or 0.13%, to 43,389.60, the S&P 500 gained 23.00 points, or 0.39%, to 5,893.62 and the Nasdaq Composite gained 111.69 points, or 0.60%, to 18,791.81.
Market Movers
Nvidia, the maker of artificial-intelligence chips, is scheduled to report third-quarter earnings on Wednesday after the stock market closes. Investors will be primed to learn how quickly the company can ramp up sales of its Blackwell AI chips. A report from The Information said Blackwell chips have been overheating when connected in custom server racks. Nvidia shares were down 1.3%.
The deadline for Super Micro Computer to get approval from the Nasdaq exchange on how it plans to regain compliance with listing requirements is Monday. A source familiar with the matter told Barron's the server maker intends to submit a plan to regain compliance by the deadline. The stock has fallen 20% this year. It reached its 2024 closing high on March 13, when it was up 318% for the year. Shares rose 16% on Monday.
Tesla jumped 5.6% following a report from Bloomberg that President-elect Donald Trump will seek to create a federal framework for self-driving cars. A framework could make it easier to obtain self-driving licenses and allow autonomous cars to drive across state lines. "This would be a huge step forward in easing U.S. rules...and be a significant tailwind for Tesla's autonomous and AI vision heading into 2025," wrote Wedbush analyst Dan Ives in a report. Uber Technologies was down 5.4% on the report about easing regulations for self-driving cars.
Palantir Technologies was down 7.3%. Shares rose 11% to a record on Friday after the software company announced it planned to transfer its listing to the Nasdaq from the New York Stock Exchange.
Netflix rose 2.8% after trading lower earlier in the session. The streaming service said its airing of the much-hyped boxing match between YouTuber Jake Paul and former heavyweight champion Mike Tyson drew 60 million households worldwide, with a high of 65 million concurrent streams. There were reports of technical issues among many viewers that could complicate the service's plans to expand its live sports offerings.
Warner Bros. Discovery rose 2.7% after the entertainment company said it reached an agreement with the National Basketball Association following months of uncertainty. Warner Bros. said its TNT Sports network and the NBA agreed to extend their media partnership an additional 11 years.
Spirit Airlines stock was halted at $1.08, down 18%, after the discount carrier filed a chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of New York. "Spirit has entered into an agreement with our bondholders that is expected to reduce our total debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value. Part of this financial restructuring includes filing a "prearranged" chapter 11," the airline said in a filing.
Liberty Energy was rising 4.9% after Trump nominated the company's founder, Christopher A. Wright, as U.S. Energy secretary.
CVS Health rose 5.4% after analysts at Wells Fargo upgraded shares of the pharmacy and healthcare company to Overweight from Equal Weight. The company also appointed four new members to its board following successful discussions with hedge fund Glenview Capital Management.
Market News
DOJ Will Push Google to Sell Chrome to Break Search Monopoly
Top Justice Department antitrust officials have decided to ask a judge to force Alphabet Inc.’s Google to sell off its Chrome browser in what would be a historic crackdown on one of the biggest tech companies in the world.
The department will ask the judge, who ruled in August that Google illegally monopolized the search market, to require measures related to artificial intelligence and its Android smartphone operating system, according to people familiar with the plans.
Bitcoin ETF Options Trading Will Start Tuesday
Options trading will begin on Tuesday on the $42 billion iShares Bitcoin Trust, the largest of the Bitcoin exchange-traded funds, a Nasdaq spokesperson confirmed toBarron’slate Monday. The move offers a new way to trade, hedge, and speculate on the cryptocurrency.
In an earlier interview on Bloomberg television, Alison Hennessy, the director of exchange-traded products listings at Nasdaq, the primary exchange for the ETF, said “our intent is to list and trade these options as early as tomorrow.”
