US Open: Weaker macro pressures sentiments on Wall Street📉US30 loses 0.8%, VIX rises again

The Monday US trading session, on the day before Christmas Eve, brings a another downward impulse across the US equities after the biggest on record US 'Triple Witching' day on December 20, 2024. The US500 struggled to increase above the resistance zone at 6000 points, and DJIA (US30) is losing more than 0.8% today, making investors more stressed before the tomorrow's Christmas Eve.

• Wall Street opened today's session in a quite positive sentiments, especially around tech-sector with US100 gaining almost 0.5%. However, after US CB consumer sentiments, Wall Street loses, with US100 down 0.2% and US30 sliding as much as 0.8%
• Shares of semiconductor companies dominate bull activity on Wall Street today; Broadcom (AVGO.US) and AMD (AMD.US) shares rise more than 4%. Shares of Arm Holdings (ARM.US) lose nearly 5% as company lost in the court agains Broadcom (AVGO.US)
• Shares of quantum computing-related company Rigetti Computing and space equipment maker Intuitive Machines gain nearly 15%. 

US Macro

US macro readings (Consumer Confidence) and new home sales came in unexpectedly well below expectations. Investors fear that the Fed will slow rate cuts in 2025 (pressured also by tariffs), even despite (unexpectedly) slowing US economic activity.

Source: XTB Research, Bloomberg Finance L.P.

US CB Consumer Confidence: 104.7 vs 113.2 exp. and 111.7 previously

• US New Home Sales: 0.664M (Forecast 0.669M, Previous 0.610M)

• US November median home sale price $402,600, down 6.3% since November 2023 ($429,600)

• US New Home Sales (MoM): 5.9% vs 9.7% exp. and -17.3% previously

The recent upward momentum continues with shares of U.S.-based Eli Lilly, whose obesity drugs are trading higher than rival Danish drugmaker Novo Nordisk; the company's shares are trading up 4% today after a 20% sell-off last Friday. Outside of technology, we see declines dominating today. Palantir loses almost 4% today. We can see that valuation of almost all US companies is dropping today. Source: xStation5

US100 and US30 (M15 interval)

Despite the rise in chip companies, the other stocks in the Nasdaq 100 index are limiting the unwinding of the overall benchmark today. We can consider that further upward momentum is still not guaranteed, and the selling volume also remains elevated after the roll-off.

Source: xStation5

Source: xStation5

News from companies

• Applied Therapeutics (APLT.US) loses 4% after analysts at William Blair withdrew a positive rating on the stock due to increased uncertainty about the efficacy of the Govorestat drug and limited cash.
• Qualcomm (QCOM.US) is gaining after the company won a lawsuit against a claim by Arm Holdings Plc that it infringed on a chip technology license that the world's largest cell phone processor maker acquired when it bought the startup in 2021. Arm (ARM.US) shares lose nearly 5% today
• Rigetti Computing and other quantum computing-related stocks including IONQ (IONQ.US) are rising thanks to optimism about the long-term utility of Alphabet's Willow chips

Xerox (XRX.US) gains nearly 10% after agreeing to buy laser printer maker Lexmark International Inc. from a consortium of Asian investors; the deal is valued at about $1.5 billion. Lexmark was sold to Chinese investors by IBM, in 2016 for $3.6 billion. Xerox's current capitalization is about $1 billion. The company still faces competition from Canon and HP. The largely printer-based business continues to make losses for Xerox. The company remains active in 170 markets and serves more than 200,000 customers. The deal will be partially financed with the company's cash. The company has cut its annual dividend by 50% to $0.5 per share to finance the acquisition and reduce debt. Some investors expect Lexmkar could bring the company more growth in Asian markets.

Source: xStation5