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Futures

Stellantis, Intel, S&P 500: Market Updates After Best Month

2024-12-02

Stellantis, a prominent carmaker with brands like Chrysler, Jeep, Fiat, and Peugeot, recently made headlines when its CEO, Carlos Tavares, stepped down. This decision came over the weekend and was effective immediately. The company stated that the process to appoint a replacement was already in progress and they expect to name a new head in 2025. In the meantime, an interim executive committee will handle Tavares's duties.

The Impact of Stellantis CEO's Resignation on the Stock Market

CEO Resignation and Its Immediate Effect

Stellantis shares took a significant hit after the announcement of CEO Carlos Tavares's resignation. As of 18 minutes ago, the stock had sunk, with shares off by some 7% to reach their lowest point of the year. Since the start of 2024, the stock has already fallen nearly 50%, highlighting the challenges the company is facing. The struggling carmaker is battling weak sales and tough competition, especially from China. Some dealers have expressed their concerns about the company's focus on cutting costs and keeping prices high, which has kept potential buyers away from showrooms.

The Process of Appointing a New CEO

Senior Independent Director Henri de Castries mentioned in a statement that different views had emerged in recent weeks, leading to this decision. The company is confident that the process to appoint a new CEO is well underway. They expect to name a new company head in 2025, and until then, the interim executive committee will ensure the smooth running of the business. This transition period will be crucial for Stellantis as they look to regain their footing in the highly competitive automotive market.

Impact on the Stock Market in the Long Run

The resignation of the CEO has not only affected the short-term performance of Stellantis stock but also raised questions about the company's future. Investors will be closely watching the appointment of a new CEO and how it will impact the company's strategy and performance. The automotive industry is constantly evolving, and a new leader may bring fresh perspectives and ideas to drive the company forward. In the meantime, the stock market will continue to monitor Stellantis's progress and react accordingly.

Intel Stock's Response to CEO Retirement

Meanwhile, Intel also made headlines with its CEO's retirement. Pat Gelsinger stepped down effective yesterday, and the company named two interim leaders, David Zinsner (CFO) and Michelle “MJ” Johnston Holthaus (Intel Products CEO). The stock, which has lost about half its value since the start of the year, showed some initial signs of recovery, rising about 2% in early trading Monday. Intel has already formed a search committee to find a permanent replacement, indicating their commitment to moving forward.

S&P 500 Levels and Key Support Levels

The S&P 500 hit a new record high of 6,047 points in early trading Monday after an impressive November. However, as the index rose to all-time highs, the relative strength index recorded a comparatively lower high, creating a bearish divergence. This chart signal suggests slowing buying momentum. During pullbacks, investors should keep an eye on key support levels on the S&P 500's chart around 5,870 and 5,670. A measured move calculation forecasts a bullish price target in the index of 6,675, providing some potential upside for investors.

Stocks' Performance in December After a Strong November

The S&P 500 and Dow Jones Industrial Average rose 5.7% and 7.5%, respectively, in November, marking their biggest one-month gains of the year. The Nasdaq Composite also performed well, rising 6.2% and achieving its best performance since May. So far in 2024, the Nasdaq is up 28%, while the S&P 500 has gained 26.5% and the Dow has added 19%. These gains indicate a positive start to December, but investors will need to remain cautious as the market continues to evolve.

Futures and Their Minor Changes

Futures tied to the Dow Jones Industrial Average were down less than 0.1%, while S&P 500 futures were also down fractionally. Nasdaq 100 futures showed a slight increase. These minor changes in futures suggest that the market is in a state of flux, with investors waiting for more clarity on the future direction of the stock market.

Morning Brief Co-hosts Seana Smith and Brad Smith embark on an in-depth exploration of US stock futures (ES=F, YM=F, NQ=F). They meticulously examine factors that hint at the continuation of market growth and closely study the historical December market performance since 1990. This examination provides valuable insights into the market trends.

Highlighting the S&P 500's Ascent in 2024

As the first trading day of December commences, the S&P 500 (^GSPC) shows a remarkable upward trajectory. This ascent throughout 2024 is a significant aspect that the co-hosts focus on. They analyze the various factors contributing to this growth and discuss its implications for investors.

Examining Market Growth Factors

The Morning Brief Co-hosts delve deep into the factors suggesting continued market growth. They consider economic indicators, industry trends, and global events that could impact the stock futures. By analyzing these factors, they offer a comprehensive understanding of the market dynamics. 1: Economic indicators such as GDP growth, employment rates, and inflation play a crucial role in determining market trends. A healthy economy with stable growth often leads to increased investor confidence and a rise in stock prices. The co-hosts closely monitor these indicators and their impact on US stock futures. 2: Industry trends also have a significant influence on stock futures. They analyze different sectors such as technology, healthcare, and finance to identify emerging trends and potential growth areas. By staying ahead of these trends, investors can make more informed decisions.

Studying Historical December Market Performance

Looking back at the historical December market performance since 1990 provides valuable lessons and insights. The co-hosts examine how the market has performed during this period and identify patterns and trends. This historical analysis helps them predict future market movements and make more accurate forecasts. 1: December has often been a month of volatility in the stock market. The co-hosts explore the reasons behind this volatility and how it affects different asset classes. They provide strategies for investors to navigate through this volatility and minimize risks. 2: By studying historical data, the co-hosts also identify periods of strong market performance in December. They analyze the factors that contributed to these periods and look for similarities and differences with the current market conditions. This helps investors make better investment decisions based on historical precedents.To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Angel Smith.

Canada's main stock index faced a decline on Monday, with various elements at play. The strong U.S. dollar had a significant impact, weighing down the commodity-heavy index. Investors were also eagerly awaiting major domestic bank earnings later in the week.

Unraveling the Dynamics of Canada's Stock Market

Impact of the Strong U.S. Dollar

The Toronto Stock Exchange's S&P/TSX composite index dropped 124.17 points, or 0.48%, to 25,523.83. The materials sector fell 0.8% as gold and copper prices took a hit due to the robust U.S. dollar making commodities more expensive in other currencies. For instance, [GOL/] and [MET/L] witnessed these price fluctuations. This shows how the strength of the U.S. dollar directly affects the performance of Canada's commodity-related sectors.Moreover, the energy sector also fell 0.9% despite higher oil prices. This indicates that other factors beyond just oil prices are influencing the sector. It could be the overall market sentiment or the impact of the strong U.S. dollar on energy trading.

Performance of Different Sectors

At least 10 sectors on the index were in the red, with the healthcare sector leading the losses at 1.7%. Bausch Health Companies, which fell 3.1%, weighed down this sector. This shows that even within the broader market, specific companies within a sector can have a major impact on its overall performance.In contrast, other sectors also faced challenges. The loonie was trading 0.5% lower at C$1.41 to the greenback, and Canadian government 10-year bond yields rose as much as 7 basis points, mirroring its U.S. counterpart. This indicates that the interest rate environment and currency fluctuations are having a combined effect on the Canadian market.

Economic Data and Future Outlook

Canadian manufacturing activity increased at the fastest pace in 21 months in November. This is a positive sign for the economy but may not be enough to offset the other challenges faced by the stock market.Later in the week, the key November employment numbers will be closely watched. These numbers could play a crucial role in dictating how far and how fast the Bank of Canada will lower interest rates. Traders are pricing in a 44.3% chance for a 50-basis point cut at the Dec. 11 rate-setting meeting.Focus will also be on quarterly earnings from big Canadian lenders later in the week. Royal Bank of Canada, National Bank of Canada, and Toronto Dominion Bank are among the key players. Small added that while the picture for Canadian banks may not be great, they are expected to remain resilient and their earnings will be okay.South of the border, Friday's U.S. monthly payrolls report will guide the Federal Reserve's move at its policy meeting on Dec. 18. This shows the interconnectedness of global markets and how events in one country can have a ripple effect on others.