To The Moon

With a shorter trading week due to holiday, stocks finished higher on Monday as the equities market continued to rally while Treasury yields fell and bitcoin retreated. 

The stock market began the week on a positive note and resumed their post-election rally as investors digest news that President-elect Donald Trump nominated Wall Street veteran Scott Bessent as Treasury Secretary.

Scott Bessent's nomination is viewed as "market-friendly" because of his hedge fund background. This has contributed to a positive sentiment in the equity market.

The DJIA rose 0.99% to an all-time closing high for the second consecutive session, while the S&P gained for the sixth straight day, closing 0.3% higher after hitting an intraday record early Monday. The Nasdaq Composite tacked on 0.27% and is nearing record highs of its own

Large-cap technology stocks were mixed on Monday, with Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL) and Meta Platforms (META) rising, while Nvidia (NVDA) and Tesla (TSLA) lost ground. Nvidia shares fell 4.2%,,extending a volatile stretch of trading for the AI favorite following the release last Wednesday of quarterly results, while Tesla tumbled 4%, giving back some of the big gains the stock has recorded since the election amid optimism about CEO Elon Musk's close relationship with Trump.

We are expecting Tuesday's economic data which will include the September FHFA Housing Price Index and the September S&P Case-Shiller Home Price Index, as well as November's Consumer Confidence and October's New Home Sales figures.

Major Stocks Rotation

The relative underperformance of the S&P 500 and Nasdaq Composite was due to some rotation out of major stocks with significant gains this year. Notably, NVIDIA (NVDA) decreased by 4.2%, though it remains 174.7% higher for the year. Tesla (TSLA) also fell by 4.0%, yet it is up 36.3% in 2024.

Yield Lower

The bond market rallied on optimism that Bessent would focus on tax cuts, reducing the national debt, and cutting the budget deficit to 3% of GDP. He is also expected to advocate for a gradual approach to tariffs to avoid inflation.

The 10-year yield dropped 15 basis points to 4.27% before up four basis point to 4.283%, and the 2-year yield fell by twenty-eight basis points to 4.262%. The U.S. Treasury successfully auctioned $69 billion in 2-year notes.

S&P 500 Real Estate Sector Lead

The broad market rally led nine of the S&P 500 sectors higher, with real estate leading the way at a 1.28% increase, responding to lower rates. The consumer discretionary sector followed, gaining 0.99%. However, the energy sector lagged, dropping 2.01% as oil prices fell due to potential ceasefire news between Israel and Hezbollah. WTI crude futures settled 3.3% lower at $68.93 per barrel.

Stocks To Watch

$Comcast(CMCSA)$ is reportedly finalizing a new multi-million dollar deal to broadcast the Macy's (M, Financial) Thanksgiving parade on its network and Peacock streaming service for at least the next decade. The new agreement, expected to start next year, would significantly increase the annual fee from the current $20 million to over $60 million. This deal also includes other Macy's-branded events, such as the July 4 fireworks, with NBCUniversal Media Group Chairman Mark Lazarus playing a key role in the negotiations.

Shares of $Quantum Computing Inc.(QUBT)$ surged about 13% following a recent order for its photonic chip and the launch of Amazon Web Services' Quantum Embark program. The company's stock has been volatile, experiencing significant gains and losses, but continues to gain momentum with the AWS partnership announcement.

$SoFi Technologies Inc.(SOFI)$ extended its rally, closing 0.64% higher, marking a 14% gain over the past six sessions. The fintech company has raised its full-year guidance for GAAP EPS and adjusted net revenue, outperforming the S&P 500 Index with a 59% increase this year. Wall Street analysts are mixed, with a majority rating the stock as a Hold.

I have written a article to look at SoFi LPB, Why SoFi Loan Platform Business (LPB) Need Attention, this might be something that we can look at on SoFi growth in future quarter.

I am holding onto my position in SoFi as I see more upside coming from this stock especially in the next quarter when LPB business should give SoFi a much better revenue and profit.

If we looked at the technical, we are seeing that SoFi is trading comfortably above the short-term and long-term MA, and we are seeing MACD also in upside movement, MTF continued to give confirmation with strong upward trend.

Defense contractors are gaining attention as analysts at Bernstein predict a strong defense focus with President-elect Donald Trump's return. Despite concerns over potential cost-cutting by a new Department of Government Efficiency, U.S. defense stocks are expected to benefit from an emphasis on nuclear deterrence and space capabilities.

$SUPER MICRO COMPUTER INC(SMCI)$ shares surged 16% as the server maker and Nvidia partner continues to soar following the release of a plan a week ago to avoid a delisting by the Nasdaq. The stock, which had declined for several months as the company faced significant accounting issues, has more than doubled over the past six trading sessions.

Summary

We might continued to see positive bias in the market on Tuesday (26 Nov), but drug makers from outside U.S. might see some stock volatility because of the tariffs mentioned by President-elect Trump, so we need to watch this healthcare sector.

Defense contractor stocks might also take a positive momentum as they should be able to benefit from an emphasis on nuclear deterrence and space capabilities.

Appreciate if you could share your thoughts in the comment section whether you think Tuesday market would trade in a positive notes.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.