The stock market closed the year with losses across major indices. The Nasdaq Composite, which surged 28.6% in 2024, fell by 0.9% from the previous day. The S&P 500 declined 0.4%, and the Dow Jones Industrial Average slipped 0.1%, while the Russell 2000 outperformed slightly, ending 0.1% higher.

Initially, the market rallied at the open after recent declines, but buying interest waned as the 10-year Treasury yield increased. The yield started the day at 4.53% and ended two basis points higher at 4.57%, marking a 69 basis point rise for 2024.

Profit-taking in mega-cap stocks also contributed to the market's weakness. The Vanguard Mega Cap Growth ETF (MGK) dropped 1.0% today but achieved a 32.3% gain for the year. In contrast, the equal-weighted S&P 500 dipped 0.2% today, with an 11.1% increase for 2024.

The information technology (-1.0%) and consumer discretionary (-1.0%) sectors were among the day's weakest performers, despite posting strong gains of 35.7% and 29.1% for the year, respectively.

Note that markets will be closed tomorrow in observance of New Year's Day.

• Nasdaq Composite: +28.6% YTD
• S&P 500: +23.3% YTD
• Dow Jones Industrial Average: +12.9% YTD
• S&P Midcap 400: +12.2% YTD
• Russell 2000: +10.0% YTD

Today's economic data highlights:

• October FHFA Housing Price Index: 0.4% (previous: 0.7%)
• October S&P Case-Shiller Home Price Index: 4.2% (previous: 4.6%)

Looking ahead to Thursday, key economic data releases include weekly initial and continuing claims at 8:30 ET, final December S&P Global US Manufacturing PMI at 9:45 ET, November Construction Spending at 10:00 ET, and weekly EIA Crude Oil Inventories at 10:30 ET.

Guru Stock Picks

Ron Baron has made the following transactions:

• Add in FIGS by 2.69%

Steven Cohen has made the following transactions:

• Add in STNE by 23.53%

Murray Stahl has made the following transactions:

• Reduce in TPL by 3.15%
• Add in LB by 4.06%

Warren Buffett has made the following transactions:

• Reduce in BAC by 1.12%
• Add in OXY by 3.49%

Today's News

US Steel (X) experienced a significant surge of 11.8% following a report that Nippon Steel proposed giving the U.S. government veto power over any reduction in US Steel's production capacity. This move aims to alleviate national security concerns raised by the Committee on Foreign Investment in the United States regarding the takeover. With a decision deadline approaching, local leaders are urging the Biden administration to approve the acquisition.

In Puerto Rico, nearly the entire island was left without power due to a grid failure, affecting over 1.2 million customers. Luma Energy, a joint venture of Quanta Services (PWR, Financial) and Atco (ACLLF, Financial), is investigating the cause, suspected to be a fault in an underground line. New Fortress Energy's (NFE, Financial) subsidiary, Genera, is managing the power plants under a 10-year contract, but the outage highlights ongoing challenges in the region.

Netflix (NFLX, Financial) ended the year on a high note, with its Christmas Day NFL games and the second season of "Squid Game" attracting massive audiences. The new season became the streaming service's biggest TV debut, while the first season also saw renewed interest. Additionally, NFL games drew significant viewership, marking a successful end to 2024 for Netflix.

GigaCloud Technology (GCT, Financial) shares rose over 8% after board member Bernes Marshall purchased shares, signaling confidence in the company's prospects. Despite this rise, GigaCloud's shares have underperformed in the tech sector for 2024, reflecting a near 7% decline for the year.

Sangamo Therapeutics (SGMO, Financial) saw its market cap nearly halved after Pfizer (PFE, Financial) terminated their collaboration on a gene therapy for hemophilia A. Despite previous successes in clinical trials, Pfizer's decision to withdraw has led to a significant selloff, impacting Sangamo's stock.

Microsoft (MSFT, Financial) and Nvidia (NVDA, Financial) are highlighted as top tech winners for the AI revolution anticipated in 2025. A report from Wedbush suggests tech stocks could rise by 25% as AI initiatives gain momentum under a more favorable regulatory environment. The analysts foresee robust growth driven by AI capital expenditure.

Tesla (TSLA, Financial) is set to release its Q4 deliveries report, with expectations to surpass its previous record. Analysts predict around 506,763 vehicles delivered, driven by strong demand in key markets like China and various incentives offered by the company.

Procter & Gamble (PG, Financial) plans to focus on digital capabilities and sustainability to enhance its supply chain and shareholder returns. The company is constructing a new manufacturing facility in Arizona, despite facing foreign exchange volatility, particularly with the Brazilian real.

Starbucks (SBUX) is undergoing a strategic shift under new CEO Brian Niccol, focusing on redesigning cafes and simplifying its menu to improve efficiency. The company suspended its 2025 guidance following disappointing financial results, including a decline in revenue and same-store sales.

GuruFocus Stock Analysis

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