Crypto Crashes, Taking Stocks With It
1 hr 22 min ago
Bitcoin fell more than 8% to trade around $40,400 on Monday after rallying about 20% in the last month. Monday’s plunge, as deep as it was, still only took the cryptocurrency to a one-week low.
Other cryptos followed with Ethereum and Ripple both falling more than 7%. Crypto stocks like exchange Coinbase (COIN) and miners Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) were dragged lower as well. Late Monday afternoon Coinbase shares were down more than 6%, while Marathon and Riot both lost about 13%.
Midday Movers
2 hr 15 min ago
Cigna (CI) shares skyrocketed after reports the health insurance company called off plans to merge with rival Humana (HUM) and announced it would implement a $10 billion stock buyback. Humana shares declined.
Shares of Intel (INTC) and other chipmakers rose as the White House announced its first grant to companies that make semiconductors in the U.S. under the CHIPS and Science Act of 2022.
Nike (NKE) shares gained when Citi upgraded the stock and raised the price target, saying the athletic apparel retailer could protect its earnings in the next two years even in a choppy economy.
Eli Lilly (LLY) shares dropped after a study indicated that patients who lost weight taking the drugmaker’s Mounjaro and Zepbound gained weight once they stopped taking the medicines.
-Bill McColl
Semiconductor Stocks Rally, but Not Nvidia
2 hr 46 min ago
Companies operating in the semiconductor industry—designers, manufacturers, equipment suppliers, etc.—were 8 of the 10 best-performing stocks in the S&P 500 early Monday afternoon after the Commerce Department approved its first subsidy under the 2022 CHIPS and Science Act. Not among the day’s winners: industry leader Nvidia (NVDA).
The Commerce Department reached a deal with British weapons maker BAE Systems to provide the company with $35 million in incentives to update a plant in Nashua, New Hampshire.
The PHLX Semiconductor Index rose about 3.5% Monday, boosted by Broadcom’s (AVGO) 9% gain and Intel’s (INTC) 4% advance. Other winners included manufacturing equipment suppliers Applied Materials (AMAT), up 5%, and Lam Research (LRCX), up 4.5%.
Nvidia, meanwhile, was among the index’s worst performers, falling 2.5%.
Macy’s Shares Soar on Reports of $5.8B Offer to Take the Retailer Private
3 hr 43 min ago
Macy’s (M) shares skyrocketed Monday following reports an investor group is looking to buy the biggest U.S. department store chain and take it private.
Arkhouse Management, which focuses on real estate investments, and global asset manager Brigade Capital Management reportedly offered $5.8 billion for the iconic retailer. That works out to be $21 per share, about a 21% premium to Macy’s closing price on Friday.
The department store has struggled to fend off competition from online retailers, a fight that Covid-19 made even harder. Last month, Macy’s reported third-quarter sales dropped 7% from the year before, with demand down at both its brick-and-mortar and online stores.
Shares of Macy’s were 20% higher early Monday afternoon, lifting them into positive territory for the year, with shares up 4% year-to-date.
-Bill McColl
Natural Gas Futures Sink 10% as Robust Supply Meets Tepid Demand
4 hr 8 min ago
Natural gas continuous futures contracts fell about 10% to a six-month low of about $2.31 on Monday, continuing a more-than-month-long decline spurred by strong suppled and a modest demand outlook.
The total supply of natural gas in the U.S. averaged 110 billion cubic feet in the week ending Dec. 6, about 3 billion cubic feet more than last year. Meanwhile, U.S. natural gas stocks totaled 3.7 trillion cubic feet as of Dec. 1, a 7% increase from the same time a year ago.
Forecasters are expecting another mild winter, a headwind for natural gas demand, which spikes in the winter when about 60% of U.S. homeowners rely on it to keep warm. Plus, economic data is pointing to a slowdown in consumption, lowering expectations for demand from industry, which accounts for more than 30% of all natural gas use in the U.S.
Cigna Shares Surge as It Abandons Humana Tie-Up
5 hr 8 min ago
Cigna Group (CI) shares jumped in early trading Monday after reports that it called off earlier plans to buy Humana Inc. (HUM) and as the company announced a $10 billion share buyback program.
Cigna called off its merger with Humana after the two companies could not agree on price, according to The Wall Street Journal. Cigna also announced a $10 billion share buyback program Sunday, saying that it intends to use the majority of its discretionary cash flow for share repurchases in 2024.
CEO David Cordani noted the company isn’t writing off acquisitions. Cigna “will consider bolt-on acquisitions aligned with our strategy, as well as value-enhancing divestitures,” he said.
Cigna shares were up more than 16% Monday morning but were still down more than 6% year-to-date. Humana shares fell more than 2% Monday.
-Naomi Buchanan
TradingView
The Winners and Losers of the Nasdaq-100’s Annual Reconstitution
5 hr 48 min ago
Nasdaq announced late Friday that it would boot six stocks from the Nasdaq-100 Index, replacing them with new entries starting Dec. 18, 2023.
The companies getting the axe are:
- Align Technology (ALGN), the maker of Invisalign.
- eBay Inc. (EBAY), one of America’s oldest e-commerce names.
- Enphase Energy (ENPH), the green energy tech firm.
- JD.com (JD), one of China’s largest online retailers.
- Lucid Group (LCID), the luxury electric vehicle start-up.
- Zoom Video Communications (ZM), the videoconferencing company that became synonymous with the Covid-19 pandemic.
The Nasdaq-100 is composed of the 100 largest non-financial stocks trading on the Nasdaq. All six of the above stocks have underperformed the index, which is up 48% year-to-date.
The stocks being added to the index are:
- CDW Corporation (CDW), an IT solutions provider.
- Coca-Cola Europacific Partners (CCEP), which manages Coca-Cola Co. (KO) brands in Europe.
- DoorDash (DASH), a food delivery company.
- MongoDB (MDB), a database developer.
- Roper Technologies (ROP), a diversified tech company.
- Splunk (SPLK), a cloud software provider.
Stocks Making the Biggest Moves Premarket
6 hr 55 min ago
Gains:
- Macy’s (M): Shares jumped 15% after Arkhouse Management, a real estate investing firm, and Brigade Capital Management, an asset manager, submitted a proposal to take the department store chain private for $21 a share.
- Cigna (CI): The insurance company’s shares surged 13% after it dropped its bid to merge with competitor Humana (HUM) and said it would instead spend $10 billion buying back shares.
- Snap Inc. (SNAP): Shares of the social media company rose more than 4% after Wells Fargo upgraded the stock to overweight from equal weight, citing the firm’s investment in its ad tech stack and focus on cost controls.
Losses:
- Zoom Communications (ZM): Shares fell more than 2% after Nasdaq late Friday said it would boot the video conferencing software company from the Nasdaq-100 Index. Other companies getting the axe in the index’s annual reconstitution: Chinese e-tailer JD.com (JD), Enphase Energy (ENPH), and eBay (EBAY). All were lower before markets opened.
- Occidental Petroleum (OXY): Shares slipped about 1% after the oil producer said it would buy privately held CrownRock L.P. in a cash and stock deal valued at about $12 billion.
Stock Futures Little Changed Before the Open
7 hr 33 min ago
Futures contracts connected to the Dow Jones Industrial Average were slightly above flat in premarket trading.
S&P 500 futures were unchanged.
Nasdaq 100 contracts traded 0.1% lower about an hour before the open.