December 11th Market Overview

Happy Wednesday everyone.

Annual inflation rate increased to 2.7% in November, as expected. The market is rallying. The CPI numbers matched the forecasts for once. This, along with the Nasdaq hitting new highs, fueled today's momentum.

Let's dig in...

Executive Summary

• Nasdaq Composite achieves historic milestone above 20,000, driven by robust tech performance
  

• November CPI data aligns with expectations, keeping Fed rate cut hopes alive
  

• Mag7 stocks continue market leadership, with quantum computing news (GOOGL) and AI developments taking center stage
  

• General Motors strategic pivot from robotaxi to personal autonomous vehicles draws positive analyst attention

Market Overview

All major indices posting solid gains today.

Key Market Drivers

1. November CPI: Core inflation rose 0.3% month-over-month and 3.3% annually, matching expectations and supporting Fed pivot hopes
   

2. Autonomous vehicle sector reshaping: $GM's strategic pivot impacting competitive landscape, particularly benefiting $TSLA
   

3. China sales momentum: Strong EV demand data from China boosting sentiment in tech and auto sectors
   

4. Bank of Canada rate decision: Global monetary policy developments adding layer of complexity to Fed rate cut expectationsStrong corporate developments in autonomous vehicles and streaming content

Stock Spotlight

• $GOOGL: ▲ 5% after Bank of America reiterates buy rating with $210 PT, citing Willow quantum computing breakthrough as potential game-changer
  

• $TSLA: ▲ 5% on record China sales of 21,900 EVs in first week of December, following November’s best month of 2024 with 73,000+ deliveries
  

• $NFLX: Gains after JPM raises PT to $1,010, citing strong content slate and advertising tier momentum
  

• $GM: Restructuring autonomous vehicle strategy could yield $1B annual savings, maintaining analyst optimism despite share price dip

Big Name Updates

• $META, $AMZN, $AAPL all reach new all-time highs since their respective IPOs
  

• $AVGO: ▲ 5% on reports of collaboration with Apple on AI chip development
  

• $UNH: ▼ 5% following bipartisan Senate bill affecting health insurer ownership structures

Other Notable Company News

• $DUOL: BofA downgrades to Neutral, raises PT to $375, citing peak valuation
  

• $GEV: FY2025 revenue forecast of $36B-$37B falls below $37.24B consensus
  

• $MRVL: Launches 1.6 Tbps chipset for AI data center interconnects
  

• $GSAT: Apple plans to integrate satellite connectivity in Ultra Watch next yearr”

Sector Watch

Bond Market

Market sentiment strongly favors a December rate cut following today’s CPI data.

Policy Watch

• Fundstrat's Tom Lee forecasts S&P 500 reaching 7,000 by mid-2025 before retreating to 6,600, citing Fed policy shifts and Trump policies as key catalysts
  

• Trump announces companies investing $1B+ in U.S. will receive expedited approvals and permits
  

• China's top policymakers considering allowing yuan weakening in 2025 as Trump tariffs loom, with proposed 10% universal tariff and 60% on Chinese goods
  

• Bank of Japan officials indicate no urgency for rate hike given current price trends, though December move still possible

What to Watch

1. Tomorrow's Market Open: Donald Trump scheduled to ring NYSE opening bell, potentially influencing market sentiment
   

2. Bank of Canada Decision: Rate announcement could provide insights into global monetary policy trends
   

3. Tech Sector Momentum: Watch for continuation of MAG7 leadership and broader tech sector strength
   

4. Healthcare Sector Developments: Monitor impact of proposed legislation on major health insurers following $UNH decline
   
   
   Thanks for reading 🙂
   
   - John