OPENING CALL
Stock futures rose Tuesday with tech back on top for the final day of 2024.
Investor favorites such as MicroStrategy, Palantir and chip stocks led gains, after pulling back in recent days as traders took some risk off the table.
According to Dow Jones Market Data, the S&P 500 recorded its best consecutive years in 2023-2024 since 1997-1998.
But many are expecting the rally to slow in 2025, with valuations at lofty levels and the Federal Reserve growing more reluctant to cut interest rates.
Bond markets will close at 2 p.m. ET on Tuesday, but stocks will trade as normal. Both markets will shut on New Year's Day.
Stocks to Watch
Boeing edged lower after falling 2.3% on Monday. The plane that crashed on Sunday in South Korea was a Boeing 737-800.
MicroStrategy, which has borrowed heavily to invest in bitcoin, rose 3% after falling more than 8% on Monday.
JD.com, NIO, Alibaba: U.S.-listed shares of Chinese companies rose after President Xi Jinping said China had hit its target of 5% economic growth for 2024 and pledged more economic support next year.
Tesla was recently up 1.3% following a three-day selloff. It is expected to release fourth-quarter and full-year deliveries and production figures this week.
Watch For:
S&P CoreLogic Case-Shiller Home Prices Index for Oct
Today's Top Headlines/Must Reads:
-Intel's Grim Lesson for Boeing: Sometimes Mr. Fix-It Is Too Late
-When Fewer Americans Are Buying Homes, These Companies Suffer
-Biden Exits Battling for His Legacy and Believing He Could Have Won
MARKET WRAPS
Forex:
The dollar was lower as investors adjusted portfolios at the end of the year and booked profits after the currency's stellar gains over 2024, particularly since Donald Trump's election victory.
The dollar has come under mild selling pressure in the final days of 2024, Jefferies said but the DXY dollar index has gained 6.5% in 2024, boosted by a strong U.S. economy.
Investors now expect the Fed will cut interest rates by much less than most had anticipated at the start of the year.
Continued economic strength relative to other major economies could lift the currency further in 2025.
The yen remained at very weak levels against the dollar, dropping sharply during December due to higher U.S. bond yields and the Bank of Japan's cautious approach to raising interest rates, MUFG said.
Energy:
Oil was poised to end the year lower on weaker demand, particularly in China, with Brent on track to end 2024 down 3.5%.
Tuesday's modest gains might reflect an expansion in Chinese factory activity, market watchers said, boosting expectations of demand from China.
Metals:
Gold continued to trade broadly sideways in thin holiday trading and in the absence of fresh catalysts.
That said, the precious metal has had a stellar year in 2024 overall, Swissquote Bank said, and stands to finish the year up nearly 21%, reflecting a combination of U.S. monetary policy easing and geopolitical tensions.
Gold could see more gains in 2025 in case of a downside correction in global equity markets,Swissquote Bank said.
TODAY'S TOP HEADLINES
Beijing Pushes to Use China-Made Chips in Its EVs
SINGAPORE-China isn't satisfied with becoming the world's dominant maker of electric vehicles. It wants the chips inside to be Chinese-made too.
Not long ago, almost all the chips in Chinese cars relied on manufacturing by the likes of Texas Instruments and Germany's Infineon. Today, the use of homemade chips has risen to around 15%, say people involved in the industry, and it is poised to rise further.
Stocks on Pace for Best Two Years in a Quarter-Century
U.S. stocks roared to another blockbuster showing in 2024. Few expect such a torrid advance in the year to come.
The S&P 500 has climbed 24%, notching 57 record closes as the economy remained healthy, inflation ticked lower and an AI-fueled rally in big tech stocks powered on. Even with a stumble in the last few trading days, the broad U.S. stock index is on pace for its best consecutive years since 1997 and 1998, according to Dow Jones Market Data, during the lead-up to the bursting of the dot-com bubble.
Taiwan Outperforms as Asia's Strongest Market in 2024
Taiwan's equity market is the best-performing major Asian market in 2024, boosted by its semiconductor companies amid robust demand for artificial intelligence-related hardware and applications.
The Taiex index jumped 28% in 2024 as Asian markets broadly gained ground, supported by falling interest rates globally. Rounding up Asia's top three major markets-Japan's Nikkei Stock Average with a 19% increase and Hong Kong's Hang Seng Index with a 18% advance.
NYSE, Nasdaq Intend to Shut on Jan. 9 in Memory of Jimmy Carter
The New York Stock Exchange and Nasdaq separately plan to close their markets on Jan. 9 to mourn the death of former President Jimmy Carter.
The exchanges said separately on Monday that their equity and options markets would be closed next Thursday for a national day of mourning. Carter died Sunday in Plains, Ga., at the age of 100.
Trump Endorses Mike Johnson for House Speaker, but Doubts Remain
WASHINGTON-President-elect Donald Trump endorsed House Speaker Mike Johnson (R., La.) for another term Monday, as Johnson worked the phones to tamp down rumblings from some Republicans who have suggested the party seek an alternative leader.
Johnson is a "good, hard working, religious man. He will do the right thing, and we will continue to WIN," said Trump, who wants to pass a broad border-and tax-policy agenda in his second term, on Truth Social. "Mike has my Complete & Total Endorsement," he said, while imploring Republicans not to blow their opportunity.
Treasury Department Says Systems Hacked by China-Backed Actor
The Treasury Department told lawmakers Monday that a state-sponsored actor in China hacked its systems, accessing several user workstations and certain unclassified documents.
The treasury was informed on Dec. 8 by a third-party software service provider, BeyondTrust, that a threat actor used a stolen key to remotely access certain workstations and unclassified documents, according to a letter reviewed by The Wall Street Journal.
South Korea Jet Crash Sparks Debate Over Barrier's Proximity to Runway
The Jeju Air crash has raised concerns about the design of a South Korean airport and whether a concrete-reinforced mound beyond the runway played a significant role in one of the deadliest plane accidents in recent years.
Investigators probing the Dec. 29 crash that killed 179 people are seeking clues on why the plane hit the tarmac at Muan International Airport without its landing gear down after an apparent bird strike. There were just two survivors.
Trump Loses Appeal of E. Jean Carroll Sexual-Abuse Verdict
A federal appeals court Monday upheld a jury's verdict that President-elect Donald Trump sexually abused writer E. Jean Carroll in the mid-1990s and owes her $5 million in damages.
In a 77-page written decision, a unanimous three-judge panel in New York rejected Trump's argument that the trial judge erred by allowing jurors to hear the now-infamous "Access Hollywood" recording where Trump can be heard talking about groping women in 2005.
Write to gareth.mcpherson@wsj.com TODAY IN CANADA
Earnings:
None scheduled
Economic Calendar [ET]:
Nothing major scheduled
Stocks to Watch:
Alpayana Commences Formal All-Cash Offer to Acquire Sierra Metals; C$0.85/Shr Offer Open for Acceptance Until April 14 Unless Extended, Accelerated or Withdrawn
Expected Major Events for Tuesday
07:45/FRA: Nov Housing starts
13:55/US: 12/28 Johnson Redbook Retail Sales Index
14:00/US: Oct U.S. Monthly House Price Index
14:00/US: Oct S&P CoreLogic Case-Shiller Indices
20:00/US: Nov Agricultural Prices
21:30/US: API Weekly Statistical Bulletin
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Tuesday
Advent Technologies Holdings Inc $(ADN)$ is expected to report for 3Q.
Daily Journal Corp $(DJCO)$ is expected to report for 4Q.
Emcore Corp $(EMKR)$ is expected to report for 4Q.
Finch Therapeutics Group Inc $(FNCH)$ is expected to report for 3Q.
Gencor Industries Inc $(GENC)$ is expected to report for 4Q.
Sonder Holdings Inc $(SOND)$ is expected to report for 3Q.
Three Valley Copper Corp (TVC.H.V) is expected to report for 3Q.
Vertex Energy Inc $(VTNRQ)$ is expected to report $-0.07 for 3Q.
Wins Finance Holdings Inc $(WINSF)$ is expected to report for Full year.
Yield10 Bioscience Inc (YTEN) is expected to report for 3Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
American Airlines Group Raised to Outperform From Market Perform by Raymond James
Citius Pharmaceuticals Raised to Buy From Hold by D. Boral Capital
Vacasa Cut to Hold From Buy by Needham
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
December 31, 2024 06:00 ET (11:00 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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