To The Moon

We saw the stocks creating new record highs again on Monday (02 Dec), which was catalyst by gains from the technology stocks. The market extended the post-election rally.

S&P 500 and NASDAQ both gained +0.24% and +0.97% respectively to reach record closing highs, while DJIA declined by -0.29%. The stock market began the final month of 2024 on a high note after posting its biggest monthly gains of the year in November.

Labor Market Data To Watch Closely On Friday - November Jobs Report

Investors will be focused on labor market data, in particular the November jobs report that is due on 06 Dec Friday, as they look for information that will influence the Federal Reserve's decision-making on interest rates.

S&P 500 Sector Communication Services Information Technology Helped By Mag 7 Names

We saw only three S&P 500 sectors gaining more than 1% despite the market hitting new record highs, communication services gained 1.45% which was helped by 3.22% gains from META and Alphabet (GOOGL) also gained ground.

Large-cap technology stocks were higher across the board, led by a 3.5% gain for Tesla (TSLA) after the EV maker received price target upgrades from a couple of Wall Street analysts. This helped the consumer discretionary sector to finished 1.06% higher. Lululemon Athletica inc (LULU) advancing 4.28% also helped the consumer discretionary sector.

The information technology sector was helped by gains from Super Micro Computer (SMCI) being the big mover Monday, with shares jumping 29% to lead both the S&P 500 and Nasdaq, after the embattled server maker said that an independent committee found no evidence of financial misconduct by the company.

Chipmaker Broadcom (AVGO) rose 2.7%, respectively, while Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), $Amazon.com(AMZN)$ and $Alphabet(GOOGL)$ also gained ground. The VanEck Semiconductor ETF (SMH) rose 2.4%.

Among other noteworthy movers, shares of beleaguered chipmaker Intel (INTC) closed 0.5% lower, after rising 6% early in the session following news that CEO Pat Gelsinger had retired.

Note Yield Little Changed

The yield on 10-year Treasurys, which is correlated with expectations about where interest rates are headed, was little changed Monday at 4.19%, before rising four basis points to close at 4.202%.

The two-year yield was also flat to close at 4.192%.

Stocks To Watch

Semiconductor equipment stocks extended gains posted late last week following reports that proposed restrictions on exports to China could be less stringent than previously anticipated. $Lam Research(LRCX)$ shares added 6.27% on Monday, while Applied Materials (AMAT) stock was up 4.9%. 

These two stocks have helped to power S&P 500 Information Technology into positive gains on the first trading day of December.

$SUPER MICRO COMPUTER INC(SMCI)$ shares surged 28.7%, leading the S&P 500 higher on Monday. The volatile stock's latest jump came after Supermicro said an independent review committee had found no evidence of accounting misconduct or fraud. The server maker also announced changes to shore up its governance structure, including a new chief financial officer, chief compliance officer, and general counsel.

But I would exercise caution as from the technical, SMCI is still trading above the short-term MA but below the long-term MA by a wide margin, this normally indicate there is a bearish downside potential.

Though MACD is showing a strong upside but that could be due to the sudden surge on Monday (02 Dec), as MTF is showing a neutral signal, indicating that we need to continue to monitor this stock and find more confirmation whether there is indeed potential.

Shares of cruise operators notched gains following positive commentary on industry booking and pricing trends from analysts at Truist. $Norwegian Cruise Line(NCLH)$ shares sailed 5.4% higher after Truist boosted its price target on the stock, indicating that the company appears to be on track to meet the implied sales guidance provided at its recent investor day.

I would think there is potential of a nice upside considering that NCLH is trading above both the short-term and long-term MA period comfortably, and we are also seeing a potential MACD bullish crossover.

From the MTF, we are seeing a strong upward trend signal, so I would be monitoring this stock price action to see if can take a swing trade for this stock.

Summary

I think there is still positive momentum continuing in the market as investors are starting to count down to the November jobs report on Friday, a key input for the Federal Reserve's policy making, as well as to job openings and private payrolls readings.

The S&P 500 and NASDAQ are entering December on a roll, having ended November with their best monthly gains in a year. The rally got a boost last month thanks to optimism around President-elect Donald Trump's victory.

Year to date, the benchmark S&P is up over 25%, while the Dow has gained nearly 20%. The tech-heavy Nasdaq has gained nearly 30%.

Appreciate if you could share your thoughts in the comment section whether you think market would continue its positive momentum and technology continued to be main contributors.

@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.