Egg prices are once again spiraling out of control in the U.S., with the Producer Price Index for &#8220;eggs for fresh use&#8221; surging 55.6% month-over-month in November and a staggering 80.2% year-over-year, according to <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42467265/stocks-fall-as-producer-inflation-spikes-jobless-claims-jump-what-is-happening-here">official data released Thursday. </a>



The Bureau of Labor Statistics highlighted that this single commodity&#8217;s price jump accounted for nearly a quarter of November's overall rise in the prices of final-demand goods.



While consumers could soon bear the brunt of these producer price increases at their local grocery stores, higher retail prices could translate into stronger profit margins for egg producers. This fact hasn't gone unnoticed by investors.



Shares of leading U.S. egg producer Cal-Maine Foods Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CALM#NASDAQ">CALM</a>) soared to all-time highs on Thursday, extending a five-day winning streak. Year-to-date, CALM's stock has skyrocketed 87%, far outpacing the broader market, as represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which is up 28% as of Dec. 12.



Meanwhile, smaller competitor Vital Farms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VITAL#NASDAQ">VITAL</a>) has seen an even greater rally, surging 142% year to date.



<h3 class="wp-block-heading">Chart: Egg-Linked Stocks Far Outperformed The US Stock Market In 2024</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="475" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12150125/image-107-1024x475.png" alt="" class="wp-image-690203" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12150125/image-107-1024x475.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12150125/image-107-300x139.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12150125/image-107-768x356.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12150125/image-107-1536x713.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12150125/image-107.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Why You'll Likely Pay More For Eggs At The Grocery Store Soon</h3>



When producer costs rise, consumers often feel the effects soon after. 



The PPI, which tracks changes in prices received by producers for their goods, typically serves as a leading indicator for the Consumer Price Index—the measure of what consumers pay.



In November, the CPI showed the average price for a dozen Grade A large eggs in the U.S. was $3.64, marking a sharp 70.7% increase from a year earlier. But even that pales in comparison to the January 2023 all-time high of $4.82 per dozen, when the year-over-year increase hit an unprecedented 150%.



This massive spike in consumer egg prices followed a period of relentless increases in producer costs. 



From September 2022 to December 2022, the PPI index for eggs saw monthly gains of 16.6%, 15%, 26%, and 24.5%, with year-over-year increases exceeding 200% by the end of the year. 



A similar pattern could be unfolding now, foreshadowing even steeper grocery store prices in the coming months.



<h3 class="wp-block-heading">What's Driving Egg Prices Higher?</h3>



The surge in egg prices can be attributed to a combination of factors, including the devastating effects of avian influenza (bird flu), seasonal demand, and rising production costs.



<ol>
<li>Bird Flu Outbreaks: The U.S. poultry industry has been grappling with ongoing outbreaks of avian influenza, which have led to the culling of millions of laying hens. The reduced flock size has caused a significant supply shortage, pushing prices higher.</li>



<li>Seasonal Demand: During the holiday season, egg consumption typically spikes due to increased baking and cooking. Eggs are also viewed as a relatively affordable protein alternative to meat, keeping demand robust even as prices climb.</li>



<li>Production Costs: Higher feed and transportation costs are squeezing producers, further inflating wholesale egg prices.</li>
</ol>



These compounding factors have created a perfect storm for the egg market, leading to the recent surge in both producer and consumer prices.



The current trajectory of egg prices bears a striking resemblance to late 2022, when producer costs surged for several consecutive months before consumer prices peaked in January 2023. At that time, retail prices shattered records, with some grocery store shelves even running out of stock.



If history repeats itself, the worst may be yet to come for U.S. consumers. 



Read now: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42468190/defense-stocks-face-headwinds-as-trumps-doge-targets-spending-cuts-goldman-sachs-downgrades-general-dynamics-to-sell">Defense Stocks Face Headwinds As Trump&#8217;s DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics</a></li>
</ul>



Photo: Melnikov Dmitriy/Shutterstock.com

Macro Economic Events

Mid Cap

Small Cap

Econ #s

Economics

CALM

VITAL

Egg Hyperinflation Could Spike Grocery Prices: Why Cal-Maine, Vital Farms Are Soaring

China may be playing its <a href="https://www.benzinga.com/topic/china">biggest economic card yet. </a>



According to sources cited by Reuters this week, Chinese policymakers are considering allowing the yuan to weaken significantly in 2025 to counter the economic impact of a potential 60% tariff on Chinese imports by the United States. 



This move would mark a major shift in Beijing's currency strategy as the country grapples with mounting economic pressures.



But will it actually work? 



<h3 class="wp-block-heading">A Weaker Yuan: A Double-Edged Sword?</h3>



President-elect Donald Trump's proposed tariffs—10% on all imports and a massive 60% on Chinese goods—have prompted Beijing to consider devaluation as a buffer. A weaker yuan could theoretically make Chinese exports cheaper and offset the sting of U.S. tariffs.



Yet, Beijing is walking a tightrope. 



According to Lynn Song, an analyst at ING, the People's Bank of China is expected to &#8220;mount a strong defense&#8221; of the yuan. The central bank is acutely aware that if the renminbi falls too sharply, it could trigger even harsher retaliatory measures from Washington.



In response to the rumors, Financial News, a PBOC-affiliated publication, insisted the yuan remains on solid footing and predicted the currency could stabilize and strengthen by the end of the year.



<h3 class="wp-block-heading">China's Real Problem: A Balance Sheet Recession</h3>



Tariffs aren't China's only problem. 



The country is facing a multi-front economic battle, with a housing market that's imploding, a weak stock market, and slowing consumer activity.



"The gentle de-leveraging of the housing market that policymakers had in mind turned into a vicious balance sheet recession," said Alfonso Peccatiello, chief investing officer at Palinuro Capital and founder of The Macro Compass. 



"Trillions in wealth tied to real estate have been wiped out since 2021."



A balance sheet recession is brutal. In this scenario, consumers and businesses prioritize repairing their finances over spending or investing, rendering typical monetary policy tools like interest rate cuts or currency devaluation largely ineffective.



This type of economic slowdown recalls the eurozone debt crisis of 2011-2012, when fiscal austerity measures rendered monetary policy largely ineffective in stimulating the real economy.



<h3 class="wp-block-heading">Beijing's Response So Far</h3>



China&#8217;s policy response thus far has lacked courage, to say the least. 



Authorities have floated mentions of small-scale fiscal stimulus, though these efforts lack the size and scope to move the needle. 



The government has also set up mechanisms to deter investors from shorting Chinese stocks, aiming to stabilize markets. Additionally, the central bank has slashed interest rates aggressively to boost liquidity. 



Despite these interventions, the economy has failed to gain meaningful traction, leaving analysts and investors skeptical about Beijing's strategy.



The iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) – a key benchmark tracking Chinese equities – continues to remain nearly 50% below its record highs achieved in February 2021. 



<h3 class="wp-block-heading">Why a Weaker Yuan Won't Fix This</h3>



The idea of weakening the yuan might sound like a magic bullet, but economists aren't sold on the effectiveness of this strategy.



"In a balance sheet recession, consumers and corporates can&#8217;t be encouraged to spend more by cutting interest rates or weakening the currency," Peccatiello said. 



"They are bleeding, and they see their net worth declining due to continued weakness in the property market."



Simply put, a weaker currency won&#8217;t rebuild shattered wealth or restore confidence among Chinese households and businesses.



<h3 class="wp-block-heading">What's The Real Solution?</h3>



For Peccatiello, the solution for China may lie in implementing a large, targeted fiscal stimulus.



Rather than broad, unspecific measures, some suggest that the government could consider directing significant spending toward struggling corporations and consumers.



The question remains: Will Beijing take substantial steps toward fiscal stimulus?



Read now: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42468190/defense-stocks-face-headwinds-as-trumps-doge-targets-spending-cuts-goldman-sachs-downgrades-general-dynamics-to-sell">Defense Stocks Face Headwinds As Trump&#8217;s DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics</a></li>
</ul>



Photo: Shutterstock

Analyst Color

Asia

ETFs

MCHI

China Eyes Yuan Devaluation To Counter Trump's Tariffs: Will It Work?

Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) reported its fourth-quarter results after Thursday's closing bell. Here's a look at the key <a href="https://www.benzinga.com/news/earnings/24/09/40741225/broadcom-q3-earnings-revenue-beat-eps-beat-continued-strength-in-ai-solutions-and-vmware-2024-ai-gu">figures from the quarter.&nbsp;</a>



The Details: Broadcom reported quarterly earnings of $1.42 per share, which beat the analyst consensus estimate of $1.38. Quarterly revenue came in at $14.05 billion, which slightly missed the consensus estimate of $14.09 billion and is an increase over sales of $9.295 billion from the same period last year.



The company reported non-GAAP net income of $6.965 billion for the fourth quarter and cash from operations of $5.604 billion for the fourth quarter, less capital expenditures of $122 million, resulting in $5.482 billion of free cash flow. 



&#8220;Broadcom&#8217;s fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware,&#8221; said Hock Tan, CEO of Broadcom Inc.



&#8220;Semiconductor revenue was a record $30.1 billion driven by AI revenue of $12.2 billion. AI revenue which grew 220 percent year-on-year was driven by our leading AI XPUs and Ethernet networking portfolio,&#8221; Tan added. 



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: Broadcom Q4 2024 Earnings Call &#x7C; $AVGO" width="500" height="281" src="https://www.youtube.com/embed/CFJjPNvHdLk?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Read More: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42440681/markets-have-the-green-light-to-rally-after-novembers-yawner-inflation-report-experts-say">&#8216;Markets Have The Green Light To Rally&#8217; After November&#8217;s &#8216;Yawner&#8217; Inflation Report, Experts Say</a>



Outlook:&nbsp;Broadcom sees first-quarter revenue of approximately $14.6 billion, versus the $14.612 billion estimate. The company also issued adjusted EBITDA guidance of approximately 66 percent of projected revenue for the first quarter. 



AVGO Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Broadcom shares are up 5.27% after-hours at $190.54 at the time of publication Thursday.&nbsp;



Read More:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/24/12/42374462/robinhood-markets-grows-into-best-in-class-brokerage-analyst-says">Robinhood Markets Grows Into &#8216;Best-In-Class&#8217; Brokerage, Analyst Says</a></li>
</ul>



Photo: Shutterstock

Earnings

News

Guidance

After-Hours Center

Movers

Tech

AVGO

Broadcom Reports Mixed Q4 Results: EPS Beat, Revenues Miss, Q1 Guidance In Line With Estimates

The U.S. defense sector is bracing for turbulence in 2025 as Goldman Sachs downgraded a key player in the industry and reiterated a bearish outlook on other defense stocks, citing risks tied to a slowing Pentagon <a href="https://www.benzinga.com/topic/donald-trump">budget and margin pressures.</a>



The defense budget, which has more than doubled over the past decade, could see deceleration — or even contraction — under the watch of Donald Trump's newly formed Department of Government Efficiency led by Elon Musk and Vivek Ramaswamy. 



"We remain cautious on defense stocks as we see decelerating and potentially negative growth in the forward U.S. Department of Defense budget," Goldman Sachs analyst Noah Poponak said in a note Thursday. 



Goldman downgraded General Dynamics Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) from Neutral to Sell, citing fundamental challenges across all four of its business segments.



<h1 class="wp-block-heading">Can The Defense Budget Escape DOGE Spending Cuts?</h1>



Goldman warned that defense spending may have peaked, creating "tough compares" for future growth. 



Historically, defense spending has moved in decade-long cycles, and the current high base of investment means the next phase could be one of contraction. 



Poponak also highlighted the incoming Trump administration appears eager to wind down U.S. involvement in foreign conflicts, further reducing the case for large-scale defense spending.



Poponak indicated the Pentagon's procurement efficiency as "imperfect," which could make defense spending an attractive target for cuts. Given that defense represents a significant chunk of the federal budget, trimming it may be unavoidable as DOGE seeks to deliver cost savings.



&#8220;If DOGE wants to substantially reduce total U.S. government spending, it is hard to avoid DoD,&#8221; Goldman Sachs wrote.



<h1 class="wp-block-heading">Structural Margin Pressures And Valuation Risks</h1>



Beyond the potential for lower top-line growth, defense contractors are grappling with long-term pressures on profitability. Over the past few years, the Pentagon has tightened contractual terms, effectively shifting cost risks to contractors.



"While the rate of decline may be slowing, we think margins are now structurally lower moving forward vs. the last decade," Poponak said.



DOGE could exacerbate this trend by advocating for more fixed-price contracts, even in the early stages of programs, a move that would further constrain profitability. 



Yet despite these challenges, defense stocks as a group continue to trade above their historical valuation averages. 



"Defense stocks trade above their historical average valuation level as a group, with some individual names at their high-end and a premium to the equity market," Poponak commented. 



<h1 class="wp-block-heading">Goldman Sachs Reiterates Sell Recommendations On Defense Contractors</h1>



According to Goldman Sachs, the General Dynamics downgrade reflects weaker-than-peer growth in its Technologies division, margin pressures in Marine shipbuilding, reduced supplemental funding at Combat, and delivery challenges at Gulfstream that are weighing on profitability.



"While General Dynamics trades at a discount to Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>), valuation is at a level where it could derate if earnings power is disappointing the market," Poponak said.



Goldman Sachs also trimmed the 12-month price target on General Dynamics from $283 to $245. 



Lockheed Martin, often seen as the bellwether of the defense industry, also remains on the Sell list from Goldman Sachs. 



The analyst flagged risks related to the F-35 program, which has already been named as a potential target by DOGE leadership. 



"LMT currently has a large positive net pension benefit in its free cash flow, and we expect free cash to be near flat the next several years," Poponak said, adding that the company trades at 23 times estimated 2025 earnings, a steep premium for a stock facing margin and spending risks.



Northrop Grumman holds a similar Sell rating, with Goldman expressing concerns about slowing growth in its flagship B-21 bomber program. Poponak highlighted that NOC trades at 20 times the estimated 2025 earnings and warned of "incremental margin risk" ahead.



Huntington Ingalls Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) is also struggling under margin pressures. Its shipbuilding business, plagued by labor shortages and cost overruns, could see profitability erode further, according to the investment bank. 



The company's recent results revealed weaker recurring margins than previously assumed, with guidance pointing to near-term margins as low as 5%, far below historical levels.



Goldman also reaffirmed its Sell ratings on L3 Harris Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>) and Mercury Systems Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRCY#NASDAQ">MRCY</a>), citing slower growth, operational risks, and valuation concerns.



<h1 class="wp-block-heading">Market Reactions</h1>



Shares of General Dynamics fell 1.01% on Thursday, while the broader industry — as tracked by the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>) – fell 0.64%.



Lockheed Martin fell 1.52%, hitting lows last seen on July 23, 2024.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/travel/24/12/42450095/us-airlines-set-to-fly-high-in-2025-analyst-says-perfect-storm-of-tailwinds-will-propel-industry-gains">US Airlines Set To Fly High In 2025, Analyst Says: &#8216;Perfect Storm Of Tailwinds&#8217; Will Propel Industry Gains</a></li>
</ul>



Photo: Courtesy General Dynamics

Equities

Government

Large Cap

Sector ETFs

Downgrades

Price Target

MRCY

Defense Stocks Face Headwinds As Trump's DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics

Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) will be reporting its fourth-quarter earnings on Thursday. Wall Street expects $1.38 in EPS and $14.10 billion in revenues as the company reports<a href="https://www.benzinga.com/calendars/earnings?tickers=AVGO" target="_blank" rel="noreferrer noopener"> after market hours</a>.



The stock is up 70.85% over the past year, 20.28% over the past six months.



<h1 class="wp-block-heading">Apple Partnership Builds Bullish Momentum</h1>



Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is reportedly partnering with Broadcom to develop its first AI-focused server chip, code-named Baltra, expected to enter mass production by 2026.



According to The Information, Apple plans to leverage Taiwan Semiconductor Manufacturing Co.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) advanced N3P process for production. This move aligns with a broader trend among tech giants, including Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google, Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), to design proprietary AI chips, reducing reliance on third-party suppliers like Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).



This partnership highlights Broadcom's growing role in the AI ecosystem as it prepares to report its fourth-quarter earnings. Let&#8217;s look at what the charts indicate for Broadcom stock and how the stock currently maps against Wall Street estimates.



Read Also: <a href="https://www.benzinga.com/24/12/42460178/how-to-earn-500-a-month-from-broadcom-stock-ahead-of-q4-earnings">How To Earn $500 A Month From Broadcom Stock Ahead Of Q4 Earnings</a>



<h1 class="wp-block-heading">Broadcom Stock Strongly Bullish Ahead Of Q4 Earnings&nbsp;</h1>



Broadcom stock exhibits a strongly bullish trend, with its share price of $183.20 consistently trading above the five-, 20- and 50-day exponential moving averages, signaling sustained buying pressure.



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121224&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="493" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12111952/Screenshot-2024-12-12-at-9.49.34-PM.png" alt="" class="wp-image-689778" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12111952/Screenshot-2024-12-12-at-9.49.34-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12111952/Screenshot-2024-12-12-at-9.49.34-PM-300x235.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121224&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>



Broadcom stock is technically bullish, supported by multiple bullish signals across key moving averages: the eight-day SMA at $175.08, the 20-day SMA at $168.81, the 50-day SMA at $173.84 and the 200-day SMA at $154.41.



Additionally, the Moving Average Convergence Divergence (MACD) indicator stands at 1.62, reinforcing the bullish outlook. With a Relative Strength Index (RSI) of 56.28, AVGO stock remains comfortably within bullish territory, indicating further potential for upward momentum.



<h1 class="wp-block-heading">Broadcom Analysts See 18.5% Upside</h1>



Ratings &amp; Consensus Estimates:<a href="https://www.benzinga.com/quote/AVGO/analyst-ratings" target="_blank" rel="noreferrer noopener"> The consensus analyst rating</a> on Broadcom stock stands at a Buy currently with a price target of $1,047.81. The latest analyst ratings from Rosenblatt, Citigroup and UBS imply an 18.46% upside for Broadcom stock with an average price target of $215.



AVGO Price Action: Broadcom stock is down 1.78% at $179.93 on Thursday at publication.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42449581/broadcoms-ai-edge-apples-to-oranges-comparison-shows-asics-outgrowing-gpus-says-analyst">Broadcom&#8217;s AI Edge: &#8216;Apples-to-Oranges Comparison&#8217; Shows ASICs Outgrowing GPUs, Says Analyst</a></li>
</ul>



Photo: Shutterstock

Technicals

Previews

Trading Ideas

AAPL

AMZN

GOOG

GOOGL

MSFT

NVDA

Broadcom: Bullish Momentum Builds As Q4 Earnings, Apple Partnership Take Center Stage

Risk sentiment soured on Thursday following hotter-than-expected producer inflation data, which dampened optimism for aggressive interest rate cuts in 2025. Adding to the uncertainty, an unexpected rise in jobless claims cast doubt on the resilience <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42467265/stocks-fall-as-producer-inflation-spikes-jobless-claims-jump-what-is-happening-here">of the U.S. labor market.</a>



Major U.S. stock indices were in the red during midday trading in New York. The Nasdaq 100 slipped 0.4%, retreating from its record highs reached in the previous session, while small caps underperformed as the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) dropped 1%.



The Producer Price Index surged to 3% year-over-year in November, its highest level since February 2023, outpacing both forecasts and the upwardly revised 2.6% from October. On the labor front, weekly jobless claims rose by 17,000 to 242,000, exceeding consensus estimates of 220,000.



Treasury yields ticked higher, with the 10-year benchmark yield climbing 4 basis points to 4.31%, as investors placed greater emphasis on the robust inflation reading. However, expectations for a 25-basis-point rate cut at the upcoming Federal Reserve meeting remained intact, with Fed futures pricing in a 98% probability.



In currency markets, the U.S. Dollar Index, as measured by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), edged up 0.1%, while gold prices slid more than 1%.



Natural gas prices soared nearly 5%, reaching levels not seen since late October 2023, after a steep storage draw fueled buying momentum.



In cryptocurrencies, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) traded modestly higher, up 0.3% to $101,500, while Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) gained 3.1%.



<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>S&amp;P 500</td><td>6,073.41</td><td>-0.2%</td></tr><tr><td>Dow Jones</td><td>44,020.82</td><td>-0.3%</td></tr><tr><td>Nasdaq 100</td><td>21,687.46</td><td>-0.4%</td></tr><tr><td>Russell 2000</td><td>2,371.79</td><td>-0.9%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 1:15 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121224&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) eased 0.1% to $606.65.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.2% to $441.69.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.2% down to $528.71.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.9% to $235.90.</li>



<li>The&nbsp;Consumer Staples Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, up by 0.5%; the&nbsp;Health Care Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 0.5%.</li>
</ul>



<h2 class="wp-block-heading">Thursday&#8217;s Stock Movers</h2>



<ul>
<li>Adobe Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>) tumbled by over 12%, despite beating Street&#8217;s profit and revenue estimates last quarter, as the company lowered guidance for the first quarter of 2025. </li>



<li>Nordson Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NDSN#NASDAQ">NDSN</a>) tumbled 9%, while Ciena Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) rose 16% in reaction to earnings.</li>



<li>Major companies slated to report earnings after the close include Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Costco Wholesale Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>).</li>
</ul>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42466189/trump-talks-stocks-bitcoin-ai-economy-with-jim-cramer-youre-going-to-see-some-very-good-days-ahead">Trump Talks Stocks, Bitcoin, AI, Economy With Jim Cramer: &#8216;You&#8217;re Going To See Some Very Good Days Ahead&#8217;</a></li>
</ul>



Photo: Shutterstock

Cryptocurrency

Bonds

Broad U.S. Equity ETFs

Commodities

Federal Reserve

$BTC

$ETH

ADBE

CIEN

COST

NDSN

Stocks Slip On Hot Inflation Data, Adobe Tumbles, Natural Gas Hits 1-Year High: What's Driving Markets Thursday?

Wall Street faced a murky morning on Thursday as fresh data revealed a jump in wholesale prices alongside a sharp rise in jobless claims. These conflicting signals rattled investors, casting doubt on the trajectory of the economy and the Federal <a href="https://www.benzinga.com/topic/interest-rates">Reserve&#8217;s interest rate strategy.</a>



The S&amp;P 500 index – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – fell by 0.2%, while the tech-heavy Nasdaq 100 – tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – dropped 0.4%. Small caps fared worse, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) shedding 0.9%. 



Meanwhile, the U.S. dollar index – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – strengthened after an initial dip.



<h3 class="wp-block-heading">Wholesale Inflation Soars: PPI Hits 3%, Highest Since February 2023</h3>



The Producer Price Index (PPI) surged to 3% year-over-year in November, the steepest increase since February 2023. This marked a jump from October&#8217;s revised 2.6% and exceeded economists&#8217; forecasts of 2.6%. On a monthly basis, PPI rose 0.4%, doubling market expectations.



Core PPI inflation, which strips out volatile food and energy prices, climbed 0.2% for the month (meeting estimates) and hit 3.4% annually.



These numbers come on the heels of November's Consumer Price Index (CPI) report, which showed a 2.7% year-over-year increase, as expected.



Six out of the last seven PPI inflation reports have been revised higher, as The Kobeissi Letter highlighted on social media X 



"CPI, PPI, and PCE inflation are all officially back on the rise in the United States. What is happening here?"



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">BREAKING: The US Bureau of Labor Statistics has revised October PPI inflation HIGHER, from 2.4% to 2.6%. Also, Core PPI inflation for October has been revised HIGHER from 3.1% to 3.4%. This means that 6 out of the last 7 PPI inflation reports have now been revised higher. With… <a href="https://t.co/hOiCV1Cy8u">pic.twitter.com/hOiCV1Cy8u</a>&mdash; The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1867202075102204303?ref_src=twsrc%5Etfw">December 12, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Jobless Claims Climb</h3>



Adding to the turbulence, initial jobless claims jumped by 17,000 last week to 242,000, smashing expectations of 220,000. This marks the sharpest increase since October. Continuing claims, which measure people still receiving unemployment benefits, climbed to 1.886 million, nearing the three-year high of 1.908 million recorded last month.



Jobless claims rose significantly in states like California, up by 14,800, Texas, up by 9,500, and New York, up by 9,200.



This outcome may challenge the idea that the U.S. labor market remains tight. 



As highlighted by Nick Timiraos, chief economics correspondent at the Wall Street Journal, continuing claims for unemployment insurance are now running slightly above levels seen in 2018-2019.



<h3 class="wp-block-heading">Economist Reactions: What&#8217;s Next For The Fed? </h3>



&#8220;Look for these numbers to fuel something I&#8217;ve been posting about for a while: the likelihood of relatively sticky inflation, and, associated with that, the choice that the Fed will face in its policy deliberation on the &#8220;last mile&#8221; to its inflation target of 2%," economist Mohamed El Erian wrote on X. 



Clark Bellin, president of Bellwether Wealth, said, "While Thursday&#8217;s PPI was stronger-than-expected, we believe the Federal Reserve will still proceed with its expected 25 basis-point rate cut in December."



Yet, persistent inflation and a weakening labor market may limit the Fed&#8217;s flexibility in 2025. "The trajectory for interest rates remains uncertain," Bellin added.



Bank of America&#8217;s economist Stephen Juneau offered a more tempered view, stating: "We expect core PCE to rise by 0.1% m/m in November, with risk of rounding up to 0.2%. This would leave the y/y rate at 2.8%."



&#8220;This would be welcome news for the Fed after core PCE rose by 0.3% m/m in October and September,&#8221; he added. 



Bank of America expects the Fed to cut in December and then two more times next year in March and June for a terminal of 3.75%-4.00%.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42464081/trump-wins-time-person-of-year-rings-nyse-opening-bell-highlights-growth-ahead-the-economy-i-believe-is-going-to-be-very-strong">Trump Rings NYSE Opening Bell, Says Economy &#8216;Is Going To Be Very Strong&#8217;</a></li>
</ul>



Photo: Shutterstock

Stocks Fall As Producer Inflation Spikes, Jobless Claims Jump: 'What Is Happening Here?'

Shortly after ringing the New York Stock Exchange <a href="https://www.benzinga.com/24/12/42464081/trump-wins-time-person-of-year-rings-nyse-opening-bell-highlights-growth-ahead-the-economy-i-believe-is-going-to-be-very-strong">opening bell Thursday</a>, Donald Trump shared his thoughts on the stock market, crypto, AI and more during an impromptu interview with CNBC host Jim Cramer.



"I think you're going to see some very good days ahead," Trump <a href="https://www.cnbc.com/2024/12/12/watch-the-full-video-of-donald-trump-talking-with-jim-cramer-at-nyse.html">told</a> Cramer.



Trump&#8217;s appearance at the NYSE coincided with his being <a href="https://www.benzinga.com/media/24/12/42450651/donald-trump-to-be-named-time-person-of-the-year-beating-out-harris-musk-middleton-netanyahu-report">named Time Person of the Year</a> Thursday for the second time — the first being in 2016. 



Regarding his first steps as president in 2025, Trump said, &#8220;We have to conclude a couple of bad wars,&#8221; seemingly referring to the conflicts between Ukraine and Russia, as well as Israel and Hamas. 



Trump On Crypto: President-elect Trump also addressed the potential for a Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) strategic reserve. "We're going to do something great with crypto," he added.



Trump emphasized that the U.S. must be a &#8220;leader&#8221; in cryptocurrency and artificial intelligence. 



A portion of his commentary was also on the U.S. engaging Chinese President Xi Jinping. 



"I think we're going to do very well all around,&#8221; he said.



Did You Know?



<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent121124">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



What's Next: Trump said the U.S. has been abused as a country both economically and militarily, without citing specifics.



"We just can't let that happen," Trump said.



Thursday's bell ringing ceremony saw many business leaders and announced picks for Trump's cabinet in attendance. Cramer pointed out that Tesla CEO Elon Musk was not there.



Trump didn't share a reason why Musk wasn't present. Instead, he praised the billionaire for being a "great guy,&#8221; citing how his <a href="https://www.benzinga.com/news/management/24/12/42444955/elon-musk-first-person-worth-400-billion-as-tesla-stock-hits-new-all-time-highs-how-2024-election-helped-could-lead-to-future-gains">stock has done well </a>since the 2024 election.



The president-elect said he wants everyone to do well, including Musk and other billionaires like Mark Zuckerberg and Jeff Bezos.



Trump said Zuckerberg has already "been over to see me" and shared that he is meeting with Bezos next week.



"We want them to do well," Trump said.



Cramer echoed former President Ronald Reagan who famously <a href="https://www.reaganlibrary.gov/archives/speech/remarks-brokers-and-staff-new-york-stock-exchange-new-york-new-york">said </a>it was time to put the bear into hibernation and let the bull run when he appeared at the NYSE in 1985. Reagan referred to a bull market where stocks go higher versus a bear market where stocks go lower.



"Sounds perfect,&#8221; Trump responded to the analogy. &#8220;I can't do any better than that.&#8221;



Price Action: 



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500, trades at $606.12 Thursday versus a 52-week trading range of $464.12 to $609.07. The ETF is up 28.2% year-to-date.



Trump Media &amp; Technology Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) shares are up 2% to $36.86 on Thursday. The media company was co-founded by Trump and owns the Truth Social platform where Trump actively posts.



Bitcoin trades at $101,413.83 Thursday, up 1% over the last 24 hours. The leading cryptocurrency recently surpassed the $100,000 level — one of several all-time highs since Trump won the 2024 election.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41798981/jim-cramer-calls-trumps-return-to-white-house-a-huge-win-for-the-stock-market">Jim Cramer Calls Trump&#8217;s Return To White House A &#8216;Huge Win For The Stock Market&#8217;</a></li>
</ul>



Image: Courtesy of the New York Stock Exchange

Politics

Trump Talks Stocks, Bitcoin, AI, Economy With Jim Cramer: 'You're Going To See Some Very Good Days Ahead'

President Joe Biden announced the largest single-day act of clemency by a U.S. president, commuting the sentences of nearly 1,500 individuals and pardoning 39 others convicted of nonviolent offenses. 



The measure, announced on Thursday, comes two weeks after after <a href="https://www.benzinga.com/24/12/42258387/biden-grants-full-and-unconditional-pardon-to-hunter-i-hope-americans-will-understand">Biden pardoned his son</a>, Hunter Biden.



"As President, I have the great privilege of extending mercy to people who have demonstrated remorse and rehabilitation, restoring opportunity for Americans to participate in daily life and contribute to their communities, and taking steps to remove sentencing disparities for non-violent offenders, especially those convicted of drug offenses," Biden said in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/12/12/statement-from-president-joe-biden-on-providing-clemency-for-nearly-1500-individuals-on-home-confinement-and-pardons-for-39-individuals-convicted-of-non-violent-crimes/#:~:text=These%20commutation%20recipients%2C%20who%20were,steps%20in%20the%20weeks%20ahead.">statement</a>.



Most of those granted commutations were people incarcerated when the COVID-19 pandemic began and were moved to home confinement as prisons became hotspots for the virus. Since then, their advocates and family members expressed concern that these individuals might be forced back into jails after some GOP lawmakers pushed for legislation to mandate their return to prison.



<h1 class="wp-block-heading">Cannabis Prisoners?</h1>



Among the pardons are people convicted of nonviolent crimes, including possession of small amounts of marijuana. Biden has taken steps in the past to <a href="https://www.benzinga.com/markets/cannabis/23/12/36361671/biden-pardons-thousands-convicted-of-cannabis-possession-calls-on-governors-to-do-the-same">pardon federal cannabis prisoners</a> convicted for possession or use. 



&#8220;We are heartened to see the President using his clemency power more robustly, and are eager to see more action before he leaves office," Sarah Gersten, executive director of the Last Prisoner Project (LPP) <a href="https://www.lastprisonerproject.org/biden-announces-record-clemency-grants">said</a> in a statement. "It&#8217;s clear from the White House&#8217;s statement that the administration sees nonviolent drug offenders, and particularly those impacted by unjust cannabis offenses, as a critical category of clemency recipients deserving relief.&#8221;



The announcement comes amid increasing pressure for Biden to use his clemency powers more broadly, including commuting death sentences and addressing long-standing disparities in drug-related convictions. According to the LPP, an estimated 3,000 people are still serving time in federal prisons for cannabis offenses and up to 40,000 in local and state facilities. 



<h1 class="wp-block-heading">Pardons Are Popular</h1>



A&nbsp;<a href="https://today.yougov.com/politics/articles/44053-most-americans-approve-bidens-pardons-federal-conv" target="_blank" rel="noreferrer noopener">YouGov poll</a>&nbsp;released in August showed Biden&#8217;s cannabis pardons were one of the most popular policies of his entire administration.&nbsp;



Biden also said on Thursday he would take more steps in the weeks ahead. "My administration will continue reviewing clemency petitions to advance equal justice under the law, promote public safety, support rehabilitation and reentry, and provide meaningful second chances."



The New York Times, citing people familiar with the discussion, <a href="https://www.nytimes.com/2024/12/12/us/politics/biden-pardons-commutes-1500.html?nl=from-the-times&amp;regi_id=195144927&amp;segment_id=185527">reported</a> that debate among the Biden team is underway about whether the president should issue blanket pardons for those who are apparently on President-elect <a href="https://www.benzinga.com/news/24/10/41563454/trumps-escalating-threats-to-rivals-100-and-counting">Donald Trump's growing perceived enemies list </a>in order to protect them from threats of retribution.



Read Now: • <a href="https://www.benzinga.com/news/legal/24/12/42397872/biden-considers-blanket-pardons-amid-trump-retribution-threats-will-cannabis-prisoners-benefit">Biden Considers Blanket Pardons Amid Trump Retribution Threats: Will Cannabis Prisoners Benefit?</a>



Photo: Shutterstock

Cannabis

Legal

Biden Commutes 1,500 Sentences, Grants 39 Pardons — Pot Prisoners Included — Marks Single-Day Record

President-elect Donald Trump rang the New York Stock Exchange opening bell Thursday, marking a high-profile appearance after <a href="https://www.benzinga.com/topic/2024-election">winning the 2024 election.</a>



Trump also used the occasion to thank TIME magazine for naming him the 2024 <a href="https://www.benzinga.com/media/24/12/42450651/donald-trump-to-be-named-time-person-of-the-year-beating-out-harris-musk-middleton-netanyahu-report">Person of the Year.</a>



What Happened: Flanked by key picks for his incoming White House administration, Trump rang the opening bell after expressing his gratitude to TIME magazine.



"TIME magazine, getting this honor for the second time, I think I like it this time better," Trump said.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Donald Trump is TIME&#39;s Person of the Year <a href="https://t.co/IjP5W2otV5">https://t.co/IjP5W2otV5</a> <a href="https://t.co/CVHX9o0DB3">pic.twitter.com/CVHX9o0DB3</a>&mdash; TIME (@TIME) <a href="https://twitter.com/TIME/status/1867187660814504285?ref_src=twsrc%5Etfw">December 12, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Trump said he had a great first presidential term, adding, "The media's tamed down a little bit, they're liking us much better now."



Speaking about the economy, Trump said he plans to incentivize companies to return to the United States and prioritize the production of products in the country.



"We're going to give tremendous incentive like no other country has. We're cutting your taxes."



Trump said the country is a leader in oil and gas and he is going to make the country "number one plus," promising to bring gas prices down.



"The economy, I believe, is going to be very strong."



Did You Know? 



<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



Why It's Important: Trump was surrounded by members of his campaign and also leading businessmen like CEOs of financial companies located near the NYSE.



"We see this [opening bell] every day, it's never been like this," CNBC anchor Carl Quintanilla said.



CNBC anchor Jim Cramer said this might be the first time that many business leaders were there for an opening bell ringing.



"This is very different," Cramer said.



Trump&#8217;s approach to the podium to ring the bell was met with loud applause, followed by chants of "USA."



Investors likely hope the stock market performs like it did during Trump's<a href="https://www.benzinga.com/general/politics/24/10/41584466/these-10-stocks-were-the-best-s-p-500-performers-in-2017-when-trump-was-president-will-history-r" target="_blank" rel="noopener">&nbsp;first years</a> in the White House.



The bell ringing comes with the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), trading near all-time highs. The SPDR S&amp;P 500 ETF is up over 6% from the opening price on election day (Nov. 5) with a price of $606.12 at the time of writing.



SPY, DJT Price Action: The SPY trades at $606.12 Thursday, versus a 52-week trading range of $464.12 to $609.07. The ETF is up 28.2% year-to-date.



Trump Media &amp; Technology Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) shares are up 2% to $36.86 on Thursday. The media company was co-founded by Trump and owns the Truth Social platform where Trump actively posts.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/politics/24/11/41783357/how-did-s-p-500-sectors-perform-during-trumps-first-term-could-this-time-be-different">How Did S&amp;P 500 Stock Sectors Perform During Trump&#8217;s First Term? Could This Time Be Different?</a></li>
</ul>



Photo courtesy of NYSE Group.

Trump Rings NYSE Opening Bell, Says Economy 'Is Going To Be Very Strong'

The inflation measured on U.S. producer prices rose more sharply than anticipated in November, marking its second consecutive increase and casting a shadow over the broader outlook for<a href="https://www.benzinga.com/topic/inflation"> disinflation in the economy.</a>



In November, the producer price index increased by 3% year-over-year — the highest since February 2023 — marking a significant uptick from October&#8217;s upwardly revised 2.6% and economist forecasts of 2.6%, as tracked by TradingEconomics.



This official data, released on Thursday, follows a rise in the consumer price index inflation to 2.7% annually last <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42436676/inflation-rises-as-expected-in-november-sustain-hopes-for-next-weeks-fed-interest-rate-cut">month, aligning with estimates.</a>



On a monthly basis, the PPI climbed 0.4%, exceeding both the previous month&#8217;s upwardly revised 0.3% and the forecasted figure of 0.2%. 



Excluding volatile items such as food and energy, the core PPI rose by 3.4% annually, matching an upwardly revised 3.4% in October and above expectations of 3.2%. This marks the fifth consecutive increase in underlying producer prices, with inflation reaching its highest level since June 2024.



On a monthly basis, the core PPI increased by 0.2%, a slight decline from October&#8217;s 0.3%, meeting projections.



Simultaneously, jobless claims rose more than expected to 242,000 for the week ending Dec. 7, surpassing estimates of 220,000. 



<h3 class="wp-block-heading">Producer Prices Are Rising: Why It Matters</h3>



Before the release of the PPI report, investors were nearly fully pricing in an interest rate cut at the Federal Reserve&#8217;s monetary policy meeting next week.



While the robust PPI data is unlikely to halt the widely expected 25-basis-point interest rate cut, it could draw attention during Fed Chair Jerome Powell's press conference, potentially prompting more cautious commentary.



Policymakers aim to maintain consumer prices near the 2% target, but a stronger-than-expected increase in producer input prices could eventually pass through to consumer prices if the trend continues.



<h3 class="wp-block-heading">Market Reactions</h3>



The U.S. Dollar Index (DXY), tracked through the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rose 0.1% following the report. 



Session gains for the greenback were further supported by an interest rate cut from the European Central Bank. 



The ECB reduced its interest rate by 25 basis points to 3%, as widely anticipated. This decision drove the euro-dollar exchange rate below the 1.05 level.



Treasury yields remained steady after the PPI report, as the upward impact from hotter inflation was simultaneously counterbalanced by downward pressure from rising jobless claims. 



U.S. equity futures turned negative in premarket trading in New York. Futures contracts for the S&amp;P 500 fell 0.4%, reflecting heightened investor caution.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42456905/us-stocks-to-open-lower-despite-strong-probability-of-upcoming-fed-rate-cut-market-breadth-skewed-in-the-favor-of-bears-over-the-last-seven-session">Wall Street Poised To Open Lower A Day After Nasdaq&#8217;s Record Close Above 20,000: Expert Flags &#8216;Deterioration Under The Surface&#8217; As 117 S&amp;P 500 Stocks Hit New Monthly Lows</a></li>
</ul>



Photo via Shutterstock.

Eurozone

Currency ETFs

Treasuries

Markets

Producer Inflation Rises More Than Expected To 3% In November: All Eyes On The Fed's Interest Rate Call

Editor's Note: This article has been updated to include comments from ECB President Christine Lagarde.



The European Central Bank on Thursday lowered the deposit rate by 25 basis points. The widely-anticipated move marks the ECB&#8217;s fourth interest <a href="https://www.benzinga.com/news/24/10/41379867/european-central-bank-lowers-interest-rates-again-first-back-to-back-cuts-in-13-years">rate cut of the year. </a>



The Details: The Governing Council lowered the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility to 3.00%, 3.15% and 3.40% respectively.&nbsp;



&#8220;Financing conditions are easing, as the Governing Council's recent interest rate cuts gradually make new borrowing less expensive for firms and households,&#8221; the ECB said in a<a href="https://www.ecb.europa.eu/press/pr/date/2024/html/ecb.mp241212~2acab6e51e.en.html"> press release.</a>&nbsp;



&#8220;But they continue to be tight because monetary policy remains restrictive and past interest rate hikes are still transmitting to the outstanding stock of credit.&#8221;



ECB President&nbsp;Christine Lagarde&nbsp;held a press conference following the rate cut decision and spoke about slowing economic activity in the current quarter.



"Surveys indicate that manufacturing is still contracting and growth in services is slowing. Firms are holding back their investment spending in the face of weak demand and a highly uncertain outlook. Exports are also weak with some European industries finding it challenging to remain competitive," Lagarde said.



Lagarde said that the labor market remains resilient, but the demand for labor continues to weaken.



"The economy should strengthen over time, though more slowly than previously expected," Lagarde added.



Read More: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42436676/inflation-rises-as-expected-in-november-sustain-hopes-for-next-weeks-fed-interest-rate-cut">Inflation Rises As Expected In November, Sustains Hopes For December Interest Rate Cut</a>



The ECB said its staff now expect a slower economic recovery than in its September projections, with survey indicators suggesting growth has slowed in the current quarter.&nbsp;



ECB Staff now see the Eurozone economy growing by 0.7% in 2024, 1.1% in 2025, 1.4% in 2026 and 1.3% in 2027.&nbsp;



The Governing Council said that it will follow a "data-dependent and meeting-by-meeting approach" as it remains determined to ensure inflation stabilizes at its 2% target. It also stressed that it is not committing to any particular rate path going forward.&nbsp;



Markets React: European markets are steady on Thursday as traders assess the ECB&#8217;s interest rate cut. The pan-European Stoxx 600 index was down 0.06% at around 1:30 p.m. London time. Investors will be watching the Xtrackers MSCI Europe Hedged Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBEU#NYSE">DBEU</a>) and the SPDR Portfolio Europe ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPEU#NYSE">SPEU</a>) to gauge the U.S. market reaction to the cuts.&nbsp;



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/24/12/42370672/sofi-makes-spacex-accessible-for-retail-investors">SoFi Unlocks SpaceX Exposure For Retail Investors: Here&#8217;s How</a></li>
</ul>



Image: Shutterstock&nbsp;

Global

DBEU

SPEU

European Central Bank Lowers Interest Rates, Fourth Cut In 2024 (UPDATED)

President-elect Donald Trump is set to ring the New York Stock Exchange opening bell Thursday, just months after threatening to move his company Trump Media &amp; Technology Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) <a href="https://www.benzinga.com/markets/equities/24/12/42447434/democratic-congressman-bought-djt-stock-after-2024-election-months-after-saying-donald-trump-unfit-to-serve">from Nasdaq to NYSE over trading halts</a>.



What Happened: The ceremony comes as DJT stock has surged 107.62% year-to-date, closing at $36.23 on Wednesday with a market capitalization of $7.25 billion.



The former president publicly criticized Nasdaq in September when his company&#8217;s shares faced routine trading halts. &#8220;Why is NASDAQ halting the sale of DJT?&#8221; Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/113132456877184604">wrote</a> on Truth Social. &#8220;I am going to hold NASDAQ, and maybe the SEC, liable for doing what they are doing. If they do it again, we will move the stock to the New York Stock Exchange,&#8221; Trump added.



The stock has seen a volatile performance, with prices ranging from $11.75 to $79.38 over the past 52 weeks. The company&#8217;s shares saw significant movement in September following Trump&#8217;s announcement that he wouldn&#8217;t sell his stake in the company.



<figure class="wp-block-image aligncenter size-large is-resized"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12023338/Screenshot-2024-12-12-at-12.59.49%E2%80%AFPM-1-1024x675.png" alt="" class="wp-image-688981" style="width:535px;height:auto"/></figure>



See Also: <a href="https://www.benzinga.com/24/12/42452165/bitcoin-ethereum-dogecoin-spike-after-inflation-data-matches-expectations-top-analyst-foresees-new-btc-ath-if-it-stays-above-this-level">Bitcoin, Ethereum, Dogecoin Spike After Inflation Data Matches Expectations: Top Analyst Foresees New BTC ATH If It Stays Above This Level</a>



Why It Matters: The bell-ringing ceremony carries particular significance as Trump faces legal challenges, including <a href="https://www.benzinga.com/news/legal/24/12/42405278/trump-plays-presidential-immunity-card-in-truth-social-lawsuit-battle">attempts to invoke presidential immunity</a> in a lawsuit against Trump Media &amp; Technology Group. 



Previous presidents, including Ronald Reagan, have used similar NYSE appearances to <a href="https://www.benzinga.com/politics/24/12/42445514/trump-to-open-nyse-thursday-as-markets-surge">promote their economic agenda</a>.



Trump&#8217;s appearance at the exchange comes amid <a href="https://www.benzinga.com/markets/equities/24/12/42452127/nasdaq-breaks-20000-milestone-as-tech-rally-rate-cut-hopes-fuel-market-optimism">broader market optimism</a>, with major indexes reaching record highs following the November election. 



The stock&#8217;s current technical indicators show a Relative Strength Index of 62, suggesting moderate buying momentum as Trump makes his first NYSE bell-ringing appearance.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/12/42452127/nasdaq-breaks-20000-milestone-as-tech-rally-rate-cut-hopes-fuel-market-optimism">Nasdaq Surges Past 20,000 For First Time, Driven By Tech Gains And Rate Cut Hopes</a></li>
</ul>



Image via Shutterstock



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Social Media

DJT Stock In Focus As Trump Set To Ring NYSE Bell Today: Here's Why President-Elect Once Threatened To Shift Trump Media From Nasdaq

SpaceX&#8216;s valuation reportedly hit $350 billion after the company and its investors agreed to purchase $1.25 billion of insider shares. Now, founder Elon Musk has revealed that almost none of the existing investors wanted to sell their holdings.



What Happened: The company and its investors agreed to buy insider shares at $185 a share, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-12-10/spacex-share-sale-is-said-to-value-company-at-about-350-billion">reported</a>, citing an internal email. SpaceX alone is offering to buy as much as $500 million in common stock as part of the offer, the report added.



The new valuation represents a 67% surge from the company&#8217;s <a href="https://www.benzinga.com/news/24/06/39519229/elon-musk-dismisses-rumors-of-spacex-ipo-as-it-reportedly-seeks-210b-valuation-pressure-for-short-te">previous valuation of $210 billion</a> it hit in a secondary share sale in June. 



The new valuation makes SpaceX the most valuable private startup in the world. Its valuation, in fact, trumps the valuation of listed rival Boeing Co. Boeing has a market cap of only $122.78 billion as of last close.



Why It Matters: SpaceX is privately held, unlike Musk's Tesla which is a publicly listed company. The secondary offering gives employees and shareholders the choice of selling shares they hold in the company and generating liquidity.



&#8220;What's really crazy about this is that almost no investors wanted to sell shares even at a $350B valuation! SpaceX reduced the amount of shares it bought back from employees in order to allow some new investors in,&#8221; SpaceX CEO Elon Musk said on Wednesday about the insider share sale, confirming the new valuation.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">What's really crazy about this is that almost no investors wanted to sell shares even at a $350B valuation! SpaceX reduced the amount of shares it bought back from employees in order to allow some new investors in.&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1866789126814699824?ref_src=twsrc%5Etfw">December 11, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Musk has <a href="https://www.benzinga.com/news/24/06/39519229/elon-musk-dismisses-rumors-of-spacex-ipo-as-it-reportedly-seeks-210b-valuation-pressure-for-short-te" target="_blank" rel="noreferrer noopener">previously dismissed</a> the possibility of a SpaceX initial public offering (IPO), citing the intense pressure for short-term results faced by publicly listed companies.



Despite SpaceX being private, investors can leverage Destiny Tech100 Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXYZ#NYSE">DXYZ</a>) and Cathie Wood‘s Ark Venture Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARKVX#NASDAQ">ARKVX</a>) to participate in the Musk-led space company's growth.



Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/tech/24/12/42432727/lucids-gravity-gets-official-range-estimate-higher-than-teslas-model-x-but-lower-than-its-own-air-sedan" target="_blank" rel="noreferrer noopener">Lucid's Gravity Gets Official Range Estimate: Higher Than Tesla's Model X, But Lower Than Its Own Air Sedan</a></li>
</ul>



Photo courtesy: Shutterstock

SPACE

DXYZ

ARKVX

SpaceX Hits $350 Billion Valuation In Insider Share Sale: CEO Elon Musk Says 'No Investors Wanted To Sell Shares'

U.S. stock futures declined on Thursday in premarket hours after hitting fresh highs on Wednesday. The futures of all the four major indices were trading lower.



November inflation data was in line with analyst expectations, shooting up the probability of a further 25 basis point rate cut in December rose to 98.6% versus 58.75% probability a month ago, according to <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME Group&#8217;s FedWatch tool</a>. Federal Reserve officials are currently in a quiet period ahead of their December meeting.



Traders now await the producer price index data, which will be released later today. The 10-year and two-year Treasury notes yielded 4.30% and 4.18%, respectively



<figure class="wp-block-table"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.24%</td></tr><tr><td>S&amp;P 500</td><td>-0.16%</td></tr><tr><td>Dow Jones</td><td>-0.19%</td></tr><tr><td>Russell 2000</td><td>-0.18%</td></tr></tbody></table></figure>



In premarket trading on Wednesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was down 0.12% to $606.71 and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) declined 0.20% to $528.87, according to <a href="https://www.benzinga.com/pro/">Benzinga Pro data</a>.



Cues From The Last Session



The Consumer Price Index (CPI) for November climbed 2.7% year-over-year, aligning with expectations. 1 Core inflation, excluding volatile food and energy costs, held steady at 3.3%.  



The Magnificent Seven's combined <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42445451/nasdaq-100-rallies-to-record-highs-magnificent-7-market-cap-tops-17-trillion-bitcoin-soars-to-100000-whats-driving-markets-wednesday">market cap hits $18.2 trillion,</a> with five giants reaching all-time highs on Wednesday. The Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), a closely watched benchmark for the group&#8217;s market performance, surged 3.03% on Wednesday, setting a new all-time high.



The Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) surged 3.03%, its best performance since early November. 



The broader market also participated in the rally. The S&amp;P 500 climbed 0.82%, nearing its all-time high. Small-cap stocks added 0.48%, while the Dow Jones Industrial Average ended 0.22% lower.



<figure class="wp-block-table"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>1.77%</td><td>20,034.90</td></tr><tr><td>S&amp;P 500</td><td>0.82%</td><td>6,084.19</td></tr><tr><td>Dow Jones</td><td>-0.22%</td><td>44,148.56</td></tr><tr><td>Russell 2000</td><td>0.48%</td><td>2,394.16</td></tr></tbody></table></figure>



See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42445451/nasdaq-100-rallies-to-record-highs-magnificent-7-market-cap-tops-17-trillion-bitcoin-soars-to-100000-whats-driving-markets-wednesday">Nasdaq 100 Rallies To Record Highs, Magnificent 7 Market Cap Tops $17 Trillion, Bitcoin Soars To $100,000: What&#8217;s Driving Markets Wednesday?</a>



Insights From Analysts



Despite the S&amp;P 500 Index nearing record highs on Wednesday, its breadth was skewed in the favour of the bears.



&#8220;117 stocks in the S&amp;P 500 made a new monthly low yesterday, the most since 139 on Halloween. 211 made a 10-day low, most since Sept 6,&#8221; said Ryan Detrick, the chief market strategist at Carson Group.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">117 stocks in the S&amp;P 500 made a new monthly low yesterday, the most since 139 on Halloween. 211 made a 10-day low, most since Sept 6. Not end of world stuff, but clearly some deterioration under the surface taking place.&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1866927212479590411?ref_src=twsrc%5Etfw">December 11, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The breadth has been skewed for the last seven days. &#8220;Since 2010, only happened two other times. Aug &#8217;11 and Dec &#8217;18. Small sample size yes, but not the worst times for bulls going forward,&#8221; added Detrick.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">7 consecutive days there have been more decliners than advancers on the S&amp;P 500. Since 2010, only happened two other times. Aug &#39;11 and Dec &#39;18. Small sample size yes, but not the worst times for bulls going forward.&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1866929220540305836?ref_src=twsrc%5Etfw">December 11, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Talking about balancing growth amid policy shifts, Andrew Pease, the chief investment strategist at Russell Investments said, &#8220;Tax cuts and deregulation could provide a meaningful growth boost, particularly to domestic and cyclical sectors.&#8221;



&#8220;Given lower valuations and improving sentiment, we are more positive on U.S. small-cap equity than we have been in prior years. Large-cap dominance in both earnings and price appreciation will require a catalyst to shift returns in the small-cap direction,&#8221; he added.



Apart from small-caps, Pease in his note said that &#8220;growth managers targeting high-growth cyclical sectors like software, while value managers identify mergers and acquisitions potential in financials and healthcare. Core managers are balancing cyclical exposure and managing risks in rate-sensitive sectors.&#8221;



Citing rich valuations, Alex Chaloff, the chief investment officer at Bernstein Private Wealth Management said that they are still pro-equities.



&#8220;We&#8217;re optimistic on equities, think that valuations are a little bit rich in a pocket of the market, but there are some opportunities. In bonds, you can clip the coupon even if rates move higher from here, which we don&#8217;t think is our base case,&#8221; he said.



See Also: <a href="https://www.benzinga.com/24/12/42453807/spacex-hits-350-billion-valuation-in-insider-share-sale-ceo-elon-musk-says-no-investors-wanted-to-sell-shares">SpaceX Hits $350 Billion Valuation In Insider Share Sale: CEO Elon Musk Says &#8216;No Investors Wanted To Sell Shares&#8217;</a>



Upcoming Economic Data



This week&#8217;s remaining economic calendar with essential data releases that will help investors shape their future plans and strategies.



<ul>
<li>On Thursday, initial jobless claims data till Dec. 7 and the core and headline producer price index for November will be released at 8:30 a.m. ET.</li>



<li>On Friday, the import price index data will be released at 8:30 a.m. ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Macy's, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/M#NYSE">M</a>) was down 1.03% as its net sales decreased 2.4%. Sales growth at Macy's First 50 locations, Bloomingdale's, and Bluemercury was offset primarily by weakness in Macy's non-First 50 locations, digital channels, and cold weather categories.</li>



<li>Nordson Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NDSN#NASDAQ">NDSN</a>) fell by 5.43% as the company revenue guidance for the fiscal year 2025 was below analyst expectations.</li>



<li>Adobe Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>) declined by 9.99% after its earnings beat estimates but the revenue guidance for the first quarter missed the mark.</li>



<li>Ciena Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) was up 1.08% in the premarket as it is slated to report quarterly earnings before the bell. Wall Street expects it to report quarterly earnings of 66 cents per share on revenue of $1.10 billion.</li>



<li>DBV Technologies SA &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DBVT#NASDAQ">DBVT</a>) rose by 32.83% after the company announced alignment with the FDA on an accelerated approval pathway for the Viaskin peanut patch in toddlers one to three years old.</li>



<li>Amplitech Group Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMPG#NASDAQ">AMPG</a>) gained 39.90% after the company priced its $2.2 million registered direct offering of 1.35 million shares at $1.60 per share.</li>



<li>Nuburu Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BURU#NYSE">BURU</a>) was up 22.62% after the company addressed NYSE compliance violations over 4.6 million share issuance.</li>



<li>Trump Media &amp; Technology Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) is in focus as President-elect Donald Trump <a href="https://www.benzinga.com/general/social-media/24/12/42454492/djt-stock-in-focus-as-trump-set-to-ring-nyse-bell-today-heres-why-president-elect-once-threatened-to-shift-trump-media-from-nasdaq">is set to ring </a>the New York Stock Exchange opening bell Thursday.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were largely unchanged in the early New York session and rose 0.03% to hover around $70.31 per barrel.



The gold spot index fell by 0.37% to $2,746.59 per ounce. The Dollar Index was down 0.12% to 106.581 level.



Asian markets were mixed on Thursday as Australia&#8217;s ASX 200 and India&#8217;s S&amp;P BSE Sensex declined. While, Hong Kong&#8217;s Hang Seng, China&#8217;s CSI 300, Japan&#8217;s Nikkei 225, and South Korea&#8217;s Kospi Index advanced. Most European markets advanced.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42454495/microsoft-expects-800-million-impairment-charge-due-to-gms-cruise-exit-but-analysts-say-its-a-step-in-the-right-direction-for-automaker">Microsoft Expects $800 Million Impairment Charge Due To GM&#8217;s Cruise Exit, Analyst Says It&#8217;s A &#8216;Step In The Right Direction&#8217; For Automaker</a></li>
</ul>



Image Via Shutterstock

Market Summary

Movers & Shakers

Pre-Market Outlook

General

AMPG

BURU

DBVT

MAGS

Wall Street Poised To Open Lower A Day After Nasdaq's Record Close Above 20,000: Expert Flags 'Deterioration Under The Surface' As 117 S&P 500 Stocks Hit New Monthly Lows

The Nasdaq Composite broke through the 20,000-point barrier, reaching 20,034 for the first time on Wednesday. The tech-centric index leaped 1.77%, propelled by <a href="https://www.benzinga.com/news/large-cap/24/12/42447567/magnificent-seven-tech-titans-hit-182-trillion-market-cap-alphabet-amazon-apple-meta-tesla-jointly-notch-all-time-highs">widespread advances in tech stocks</a> and growing optimism about Federal Reserve rate cuts in 2024.



What Happened: The S&amp;P 500 rose by 0.82% to hit 6,084. In contrast, the Dow Jones Industrial Average bucked the trend, falling by 99.27 points to 44,148, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.



Leading the rally were shares of Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), which jumped 2.7%, building on Tuesday&#8217;s 5.3% advance. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) climbed 1.2% to $412, reaching its highest level since November 2021, boosted by Goldman Sachs raising its price target to $345.



The Magnificent Seven combined market capitalization surged to an <a href="https://www.benzinga.com/news/large-cap/24/12/42447567/magnificent-seven-tech-titans-hit-182-trillion-market-cap-alphabet-amazon-apple-meta-tesla-jointly-notch-all-time-highs">unprecedented $18.2 trillion</a>.



See Also: <a href="https://www.benzinga.com/news/earnings/24/12/42449013/adobe-q4-earnings-revenue-eps-beat-on-strong-demand-related-to-ai-shares-slide-following-soft-guidance">Adobe Q4 Earnings: Revenue, EPS Beat On Strong Demand Related To AI, Shares Slide Following Soft Guidance</a>



Why It Matters: The milestone comes as November&#8217;s Consumer Price Index showed inflation rose 2.7% <a href="https://www.benzinga.com/news/econ-s/24/12/42440275/wall-street-gains-tech-rallies-tesla-hits-all-time-highs-as-inflation-data-firms-up-feds-next-interest-rate-cut">year-over-year</a>, slightly above October&#8217;s 2.6% but matching economist forecasts. 



Core inflation held steady at 3.3%, meeting expectations. Following the data, traders increased bets on interest rate cuts, with CME FedWatch showing a 96% probability of a quarter-point reduction at the Fed&#8217;s Dec. 18 meeting, up from 86% before the report.



Treasury yields declined, with the rate-sensitive 2-year yield dropping 4 basis points to 4.10% and the benchmark 10-year yield falling 2 basis points to 4.20%, reflecting market optimism about potential monetary easing.



Overseas markets showed mixed performance, with Japan&#8217;s Nikkei 225 and China&#8217;s Shanghai Composite posting modest gains, while Hong Kong&#8217;s Hang Seng declined 0.8%. European markets moved higher, with France&#8217;s CAC 40 leading gains at 0.4%.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/large-cap/24/12/42447567/magnificent-seven-tech-titans-hit-182-trillion-market-cap-alphabet-amazon-apple-meta-tesla-jointly-notch-all-time-highs">Magnificent Seven Tech Titans Hit $18.2 Trillion Market Cap: Alphabet, Amazon, Apple, Meta, Tesla Jointly Notch All-Time Highs</a></li>
</ul>



Image Via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

TSLA

Nasdaq Surges Past 20,000 For First Time, Driven By Tech Gains And Rate Cut Hopes

Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) CEO Mark Zuckerberg sold approximately $88 million worth of company stock over the past week, according to regulatory filings with the U.S. Securities and Exchange Commission (SEC) on Wednesday.



What Happened: The sales occurred in two tranches, with Zuckerberg divesting $43.82 million in shares last week followed by an additional $44.29 million this week. The transactions were executed at prices ranging from $607.97 to $621.88 per share, the SEC filings show.



The stock sales come amid Meta&#8217;s stellar performance in 2024, with shares surging 82.70% year-to-date. The company&#8217;s stock closed at $632.68 on Wednesday, up 2.16%, though it edged down 0.20% in after-hours trading.



The social media giant&#8217;s robust performance aligns with the broader success of the &#8220;Magnificent Seven&#8221; tech companies. Meta, alongside Apple Inc., Alphabet Inc., Amazon.com Inc., and Tesla Inc., reached new record highs during Wednesday&#8217;s trading session. Together, these tech giants have achieved a <a href="https://www.benzinga.com/news/large-cap/24/12/42447567/magnificent-seven-tech-titans-hit-182-trillion-market-cap-alphabet-amazon-apple-meta-tesla-jointly-notch-all-time-highs">combined market capitalization of $18.2 trillion</a>.



See Also: <a href="https://www.benzinga.com/markets/equities/24/12/42452127/nasdaq-breaks-20000-milestone-as-tech-rally-rate-cut-hopes-fuel-market-optimism">Nasdaq Surges Past 20,000 For First Time, Driven By Tech Gains And Rate Cut Hopes</a>



Why It Matters: Despite the recent share sales, Zuckerberg remains one of the world&#8217;s wealthiest individuals, ranking third on the Bloomberg Billionaire Index with a net worth of $224 billion. 



The insider selling activity at Meta has been notable, with company insiders selling 59.63K shares worth $90.71M over the past 30 days, while no insider purchases were reported during the same period.



Meta currently boasts a market capitalization of $1.59 trillion and trades at a price-to-earnings ratio of 29.23. The company&#8217;s stock has traded between $320.00 and $629.79 over the past 52 weeks, with analysts maintaining a positive outlook. 



Based on 41 analyst ratings, Meta has a consensus price target of $639.56, with recent analyses from Piper Sandler, Raymond James, and Wells Fargo suggesting an average upside potential of 4.85%, according to <a href="https://www.benzinga.com/quote/META/analyst-ratings">data from Benzinga Pro</a>.



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/quote/meta/analyst-ratings"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12010037/Screenshot-2024-12-12-at-11.29.54%E2%80%AFAM-1024x373.png" alt="" class="wp-image-688846"/></a></figure>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42453057/palantir-positioned-to-become-the-next-oracle-in-2025-says-dan-ives-messi-of-ai-set-for-breakout-year">Palantir Positioned To Become &#8216;The Next&#8217; Oracle In 2025, Says Dan Ives: &#8216;Messi Of AI&#8217; Set For Breakout Year</a></li>
</ul>



Image Via Shutterstock 



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Mark Zuckerberg Sells Stock Worth $88M As Meta Surges Over 82% In 2024

OpenAI&#8217;s widely-used ChatGPT service is experiencing a major disruption, leaving millions of users worldwide unable to access the platform.



What Happened: The outage on Wednesday has affected both free and premium users, including businesses that rely on OpenAI&#8217;s API.



Monitoring site DownDetector.com had recorded about 30,000 outage reports in the U.S.



See Also: <a href="https://www.benzinga.com/general/social-media/24/12/42406434/meta-and-youtube-remove-accounts-of-luigi-mangione-but-x-reinstates-profile-elon-musk-says-happened-without-my-knowledge?itm_source=parsely-api">Meta And YouTube Remove Accounts Of Luigi Mangione, But X Reinstates Profile: Elon Musk Says, &#8216;Happened Without My Knowledge&#8217;</a>



According to OpenAI, the issue was identified in API, Sora, and ChatGPT, and efforts are underway to restore normal operations.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">We&#39;re experiencing an outage right now. We have identified the issue and are working to roll out a fix. Sorry and we&#39;ll keep you updated!&mdash; OpenAI (@OpenAI) <a href="https://twitter.com/OpenAI/status/1867000372826607627?ref_src=twsrc%5Etfw">December 12, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



At 8 PM ETC OpenAI updated saying, &#8220;We have identified a pathway to recovery and we are starting to see some traffic successfully return. Continuing to work to return service to normal.&#8221;



However, at the time of writing the issues still persisted, with no estimated resolution time provided yet.



Subscribe to the <a href="https://bztechtrends.beehiiv.com/subscribe">Benzinga Tech Trends newsletter</a> to get all the latest tech developments delivered to your inbox.



Why It Matters: The outage comes at a critical time for OpenAI, as the company is conducting its &#8220;12 Days of OpenAI&#8221; event, which <a href="https://www.benzinga.com/tech/24/12/42332451/sam-altman-teases-12-days-of-openai-christmas-magic-users-predict-unveiling-of-sora-o1-reasoning-model-and-more">began on Dec. 5</a>.



Already, OpenAI has introduced <a href="https://www.benzinga.com/tech/24/12/42356469/openai-unveils-200-chatgpt-pro-subscription-inside-the-o1-reasoning-model-and-what-it-means-for-power-users">a new subscription tier</a>, ChatGPT Pro, priced at $200 per month, and Sora, an <a href="https://www.benzinga.com/24/12/42398825/sam-altman-calls-openais-new-video-generator-so-compelling">AI-powered video generation tool</a>, among other things.



The ChatGPT Pro offers unlimited access to all models, including the advanced &#8220;o1&#8221; reasoning model,



Check out more of Benzinga's Consumer Tech coverage by <a href="https://www.benzinga.com/topic/consumer-tech">following this link</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/tech/24/12/42383967/how-to-use-apple-watch-as-a-digital-key-for-your-tesla-car?itm_source=parsely-api">How To Use Apple Watch As A Digital Key For Your Tesla Car</a></li>
</ul>



Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.

Sam Altman's '12 Days Of OpenAI' Christmas Magic Gets Interrupted By Uninvited Outage — ChatGPT Parent Says 'Identified A Pathway To Recovery'

Leading cryptocurrencies rallied Wednesday after in-line inflation data boosted expectations of monetary easing by the Federal Reserve.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+5.03%</td><td>$100,927.86</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+6.42%</td><td>$3,828.77</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+6.38%</td><td>$0.4121</td></tr></tbody></table></figure>



What Happened: Following a minor pullback, Bitcoin reclaimed the $100,000 mark, while Ethereum returned to the $3,800 territory.



Bitcoin's upswing catalyzed the rest of the market, as the altcoin dominance increased by 4.41% over the last 24 hours.



Cryptocurrency liquidations surpassed $240 million in the last 24 hours, with $154 million in leveraged shorts getting wiped out.



Over $400 million in shorts risked liquidation on Binance if Bitcoin rises to $104,000.



Bitcoin's Open Interest surged by 4.90% in the last 24 hours. Interestingly, the number of traders shorting the asset rose dramatically in the last 24 hours, implying a greater expectation of another dip.



Market sentiment returned to the "Extreme Greed" zone, as per the Cryptocurrency Fear &amp; Greed Index, lending credence to the pullback narrative.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Peanut the Squirrel (PNUT)</td><td>+27.97%</td><td>$1.32</td></tr><tr><td>Virtuals Protocol (VIRTUAL)</td><td>+22.87%</td><td>$1.92</td></tr><tr><td>Sui (SUI)</td><td>+21.35%</td><td>$4.47</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.61 trillion, surging&nbsp; 5.02% over the last 24 hours.



The stock market rebounded sharply after consecutive days of losses. The tech-heavy Nasdaq Composite jumped 1.77% to close at a <a href="https://www.benzinga.com/markets/equities/24/12/42452127/nasdaq-breaks-20000-milestone-as-tech-rally-rate-cut-hopes-fuel-market-optimism">record high</a> of 20,034.89. The S&amp;P 500 rallied 0.82%, ending at 6,084.19. The Dow Jones Industrial Average, however, closed another day in the red, slipping 0.22% to 44,148.56.



The tech rally was supported by electric vehicle giant Tesla Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock hitting all-time highs after a 5.93% spike.



Additionally, November's Consumer Price Index <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42436676/inflation-rises-as-expected-in-november-sustain-hopes-for-next-weeks-fed-interest-rate-cut">matched analyst's expectations</a>, prompting traders to <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">raise </a>the likelihood of a 25 basis point rate cut in next week's Federal Reserve meeting to 98.6% from 88.9% a day before, per CME FedWatch data.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Popular cryptocurrency analyst and trader Michaël van de Poppe stated that Bitcoin was headed to new all-time highs in the coming days if it managed to stay above the $97,844 resistance level.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Let&#39;s do some TA on <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>. It broke through a crucial area yesterday. If it holds above that resistance level, likely we&#39;ll see a new ATH in the coming days. We&#39;re back in $100k+ territory. <a href="https://t.co/eiK45s5aNi">pic.twitter.com/eiK45s5aNi</a>&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1866915100935770325?ref_src=twsrc%5Etfw">December 11, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Another widely followed analyst, known by their pseudonym venturefounder, predicted Ethereum to hit $4,900 "very soon" as it reclaimed the $3,800 level as support.



The analyst also set price targets of $5,349, $6,457, and $7,238 by the first quarter of 2025.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> weekly candle not done yet, we are back to $3,800 support level. It took <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> 2 years to complete this cup and handle, and you think it will be shaken out like this? $4,900 very soon. Then it gets explosive, PT are: $5,349 $6,457 $7,238 All this by Q1 2025 the… <a href="https://t.co/9jdbe95uvU">pic.twitter.com/9jdbe95uvU</a>&mdash; venturefounder (@venturefounder) <a href="https://twitter.com/venturefounder/status/1866867327192412544?ref_src=twsrc%5Etfw">December 11, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo by CMP_NZ on Shutterstock



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42430918/italy-backpedals-on-controversial-tax-hike-on-crypto-capital-gains-following-industry-opposition-no-more-prejudices">Italy Backpedals On Controversial Tax Hike On Crypto Capital Gains Following Industry Opposition: &#8216;No More Prejudices&#8217;</a></li>
</ul>

$DOGE

Bitcoin, Ethereum, Dogecoin Spike After Inflation Data Matches Expectations: Top Analyst Foresees New BTC ATH If It Stays Above This Level

The Symbol VIRI was not found. Here are some similar symbols and popular symbols to consider.

VIRI Page Not Found - Benzinga

Symbol Similar to: VIRI

Top Gaining Stocks

Noticias

SOCIO/CONTRIBUIDOR

BENZINGA GLOBAL