- Wall Street with high open on Monday
- Stellantis plunges following CEO unexpected resignation
- MARA Holdings announced plans to offer $700 million in convertible senior notes due 2031 to purchase Bitcoin
- MicroStrategy acquired 15,400 Bitcoins for approximately $1.5 billion during the last week of November 2024
- Intel Corporation announced that CEO Pat Gelsinger has retired
- Super Micro Computer saw its stock jump 15% on Monday after announcing that an independent special committee found no evidence of misconduct
US equity markets are showing mixed performance, with the US100 leading gains up 0.56% to 21106.93, while US500 and MEXComp also trade higher, up 0.03% to 6053.2 and 0.15% to 50064 respectively. The US30 is underperforming, down 0.25% to 44939, while the US2000 declines 0.34% to 2438.0. Brazil’s BRAComp is down 0.64% to 125716. Market volatility, as measured by the VIX, is down 0.34% to 14.73.
European markets are broadly positive, with Vienna’s W20 leading gains up 2.18% to 2249.6, followed by Germany’s DE40 rising 1.21% to 19923.1. The EU50 advances 0.86% to 4845.6, while Netherlands’ NED25 gains 0.79% to 887.28. Southern European markets also show strength with Spain’s SPA35 up 0.65% to 11723, Switzerland’s SUI20 adding 0.38% to 11826, and France’s FRA40 gaining 0.33% to 7257.9. The UK100 rises 0.28% to 8323.5, while Italy’s ITA40 is up 0.23% to 33514. Only Austria’s AUT20 (-0.06% to 3518) and the VSTOXX volatility index (-0.31% to 16.08) are trading lower.
S&P 500 returns per sector. Source: Bloomberg
In S&P 500 sectors, Consumer Discretionary leads with a 0.50% gain, followed by Information Technology and Communication Services both up 0.63-0.65%. However, market breadth is mixed with seven sectors trading lower. The weakest sectors are Utilities (-0.77%), Energy (-0.75%), and Materials (-0.68%). Real Estate (-0.93%), Industrials (-0.39%), Health Care (-0.35%), and Financials (-0.27%) are also in negative territory. Consumer Staples shows minimal change at -0.61%. The overall market is marginally positive with the S&P 500 up 0.13%.
Current volatility observed on Wall Street. Source: xStation
The Nasdaq-100 index, represented by the US100 contract, is trading above the mid-July high of 20,895, now serving as initial support for bulls. Key target levels for bears include the 50-day SMA at 20,563 and the August highs around 19,917, aligning with the 100-day SMA. RSI is gradually diverging higher while MACD is close to bullish crossing. Source: xStation
News
- Stellantis (STLA.US) shares plunged 8.5% to multi-year lows following CEO Carlos Tavares’ unexpected resignation, marking their steepest one-day decline since September 2024. The world’s fourth-largest automaker faces mounting challenges, including U.S. overcapacity issues, intensifying Chinese competition, and a projected €10 billion cash burn. Chairman John Elkann will lead an interim executive committee while the company searches for a new CEO, expected in the first half of 2025. The departure follows emerging differences between major shareholders, the board, and Tavares, who had been scheduled to step down in early 2026. The stock has declined 45% year-to-date as investors worry about the company’s 14-brand portfolio sustainability and dividend prospects. Despite concerns, analysts note that Tavares’ cost-cutting measures have left the company more efficient, though the new CEO will face significant challenges including potential U.S. trade tensions and stricter European emissions standards.
- MicroStrategy (MSTR.US) acquired 15,400 bitcoins for approximately $1.5 billion during the last week of November 2024, at an average price of $95,976 per bitcoin. The purchases were funded through the company’s ongoing equity offering, which raised $1.48 billion through the sale of 3.73 million shares between November 25 and December 1. The enterprise software company, which has become the largest corporate holder of bitcoin, now holds approximately 402,100 bitcoins acquired at an average price of $58,263 per bitcoin, representing a total investment of $23.4 billion. The company still has approximately $11.3 billion remaining in its $21 billion equity offering program established in October 2024 through multiple investment banks including TD Securities, Barclays, and Mizuho Securities.
- Super Micro Computer (SMCI) saw its stock jump 15% on Monday after announcing that an independent special committee found no evidence of misconduct or fraud involving the company’s management or board of directors. The IT company confirmed it has fully adopted the committee’s recommendations and initiated a search for a new chief financial officer. Current CFO David Weigand will remain in his role until a successor is appointed, ensuring continuity during the transition. Additionally, Super Micro reiterated that it does not expect to restate any previously reported financial results, further reinforcing confidence in its financial integrity. The positive outcome of the review and the proactive steps by the company have boosted investor sentiment.
- Cloudflare (NET.US) shares gained 4% after Morgan Stanley upgraded the stock to Overweight from Equal-weight, raising its price target to $130 from $92. The firm cited multiple growth catalysts including Edge AI contribution and a fully ramped enterprise sales force, projecting a 28% revenue CAGR through 2028 to reach $5 billion in annual recurring revenue. The company’s Q3 earnings showed strong momentum with revenue up 28% year-over-year to $430.1 million and an expanded customer base of 3,265. Cloudflare maintains robust financials with a 78.8% gross margin, $72.6 million in net income, and $1.8 billion in cash reserves. The company expects Q4 2023 revenue between $451-452 million, representing 25% year-over-year growth.
- MARA Holdings (MARA.US) announced plans to offer $700 million in convertible senior notes due 2031, with an additional $105 million option for initial purchasers. The zero-coupon notes will be convertible into cash, common stock, or a combination thereof, at MARA’s election. The company plans to use up to $50 million of the proceeds to repurchase existing 2026 convertible notes, with the remainder targeted for bitcoin acquisition and general corporate purposes. The private offering, available to qualified institutional buyers under Rule 144A, includes redemption options after June 2029 and repurchase rights for holders in June 2027 and 2029. MARA anticipates significant market activity from hedged holders unwinding positions, potentially impacting its stock price during the offering period.
- Intel Corporation (INTC.US) announced that CEO Pat Gelsinger has retired, effective December 1, 2024, and has also stepped down from the company’s board of directors. David Zinsner and Michelle Johnston Holthaus have been named interim Co-CEOs while the company searches for a permanent successor. The leadership transition comes at a pivotal moment for Intel as it continues its efforts to regain a competitive edge in the semiconductor industry amidst evolving market challenges. The stock has gained 4% after the news.
Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP
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