MARKET SNAPSHOT
U.S. stocks fell on weakness in technology shares. Treasury yields climbed ahead of CPI inflation, probably the last batch of numbers that could change markets' bet on a Fed cut next week. Oil prices edged higher ahead of OPEC's monthly report. Gold prices continued higher as strong demand from China outweighed a strengthening dollar.
MARKET WRAPS
EQUITIES
Stock investors' obsession with technology cut both ways as optimism over quantum computing duked it out with anxiety about overvaluation in artificial intelligence. Bearish sentiment ultimately won out with major indexes closing slightly lower.
"We've just had this impenetrable broad-based rally arguably since the election," said Sylvia Jablonski, chief investment officer at fund manager Defiance ETFs. "It makes sense that markets are going to pause, especially ahead of CPI tomorrow."
The S&P 500 and Nasdaq Composite lost 0.3% while the Dow Jones Industrial Average shed 0.4%.
Earlier Tuesday, Chinese shares ended mostly higher after China's policymakers signaled strong policy support, lifting market sentiment. China's Politburo on Monday called for a more proactive fiscal policy in 2025 and hinted at more monetary easing next year. Retail stocks led the gains.
The Shanghai Composite Index gained 0.6%. The Shenzhen Composite Index was lifted 0.9% and the ChiNext Price Index added 0.7%. Hong Kong's Hang Seng Index, however, lost 0.5%.
Japan's Nikkei Stock Average rose 0.5%, led by gains in electronics stocks, as hopes grow for China's policy stimulus.
Stocks in Australia slipped, as the S&P/ASX 200 Benchmark Index dropped 0.4%, despite strength in Fortescue and BHP Group.
New Zealand's NZX-50 gave up 0.6%, sliding to a third straight decline amid weakness in most large-cap stocks.
COMMODITIES
U.S. and global benchmark oil futures finished modestly higher, stretching their rise to a second straight session.
Prices found support as the fall of the Assad regime in Syria over the weekend raised some risks surrounding Middle East supplies, and as a pledge by China's politburo to implement easier monetary policy and more fiscal stimulus fed prospects for energy demand.
West Texas Intermediate crude for January delivery rose 0.3% to settle at $68.59 a barrel on the New York Mercantile Exchange. February Brent crude edged up nearly 0.1%, settling at $72.19 a barrel on ICE Futures Europe.
However, Samer Hasn, senior market analyst at XS.com, said the Middle East may actually become "less influential" for oil prices with the "potential diminishing of the risk premium around disruptions to crude flows in the region."
After the fall of the Assad regime, Iran may become "even weaker than before and less able to threaten Israel and economic interests in the region," he said.
Front-month gold futures climbed 1.2%, to $2,697.60 per troy ounce.
Resurgent demand for gold out of China is credited for the streak, said Quasar Elizundia of Pepperstone.
TODAY'S TOP HEADLINES
Arabica Coffee Price Sets Record High on Supply Concerns
Arabica coffee prices hit their highest ever level on global supply worries, beating a prior record set almost 50 years ago.
Continuous arabica futures on ICE rose 4.1% to $3.44 a pound by midday in Europe, having reached as high as $3.48 earlier in the session. That beat the prior record of about $3.356, set in 1977.
Arabica coffee futures are up more than 83% in the year-to-date on concerns over the 2025 harvest in Brazil. The South American producer had its worst drought in 70 years in August and September, swiftly followed by heavy rains in October.
General Motors Scraps Cruise Robotaxi Program
General Motors has scrapped its Cruise robotaxi program, citing the time and costs needed to scale the business and rising competition from other autonomous driving competitors.
Kroger-Albertsons Merger Blocked by Court, Handing Victory to Biden Antitrust Enforcers
A federal judge blocked Kroger from acquiring Albertsons, siding with Biden administration antitrust enforcers who said the $20 billion supermarket merger would erode competition and raise prices for consumers.
U.S. District Judge Adrienne Nelson agreed with the Federal Trade Commission's argument that Kroger would become the dominant player in traditional supermarkets if allowed to add nearly 2,000 stores by taking over Albertsons, its smaller rival. Nelson rejected the companies' counterargument that selling 579 stores to C&S Wholesale Grocers would replace the lost competition.
"Evidence shows that defendants engage in substantial head-to-head competition and the proposed merger would remove that competition," Nelson wrote in the ruling.
Walgreens Is in Talks to Sell Itself to Private-Equity Firm Sycamore Partners
Walgreens is in talks to sell itself to a private-equity firm in a deal that would take the pharmacy chain off the public market after its shares have been on a downward slide for nearly a decade.
Walgreens Boots Alliance and Sycamore Partners have been discussing a deal that could be completed early next year, assuming talks don't fall apart, according to people familiar with the matter.
Walgreens's market value reached a peak of over $100 billion in 2015 but had since shrunk to around $7.5 billion as of Monday. Mounting pressures on both its pharmacy and retail businesses had helped send its shares down nearly 70% so far this year before The Wall Street Journal reported on the deal talks Tuesday.
Micron Receives $6.2 Billion in Chips Act Funding
The U.S. government will support Micron Technology, America's largest maker of memory chips.
On Tuesday, the Biden administration announced the Commerce Department has awarded $6.165 billion to Micron via direct funding from the Chips and Science Act. The funding is expected to eventually support 20,000 jobs across New York and Idaho.
Micron is a leader in the markets for DRAM, or dynamic random-access memory, which is used in desktop computers and servers, and for flash memory, which is found in smartphones and solid-state hard drives. It has also become a key supplier of HBM, or high-bandwidth memory, for artificial-intelligence servers.
Expected Major Events for Wednesday
00:00/AUS: Nov Vacancy Report
03:00/SKA: Nov Economic Trends, including household loans, money supply index Lf
03:00/AUS: Dec Monthly Leading Indicator of Employment
04:00/SIN: 4Q MAS Survey of Professional Forecasters
21:45/NZ: Nov Electronic Card Transactions
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(END) Dow Jones Newswires
December 10, 2024 16:51 ET (21:51 GMT)
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