Market Pulse: Stocks Steady, Bitcoin Pulls Back, and Earnings Surprises
Presidential Election Aftermath
The US stock market is holding steady, with futures little changed after major indexes hit new highs following the presidential election of Donald Trump. Yesterday, the Dow Jones Industrial Average surged over 300 points, closing above 44,000. The S&P 500 and Nasdaq futures also ticked lower in early trading, building on their record highs.
Bitcoin’s Brief Retreat
After nearing the $90,000 mark, bitcoin (BTCUSD) is currently trading 2% lower at around $87,000. This decline is weighing on other cryptocurrency-related investments, with Coinbase Global (COIN), Marathon Digital parent MARA Holdings (MARA), and Riot Platforms (RIOT) all experiencing losses in premarket trading.
Tesla’s AI-Driven Surge
Shares of Tesla (TSLA) are down 1% in premarket trading, following a nearly 9% surge in the prior session to hit a price of $350. The electric vehicle maker continues to ride high on enthusiasm around CEO Elon Musk’s ties to the incoming administration as an adviser to President-elect Donald Trump. Wedbush analysts have raised their price target on Tesla to $400 from $300, citing the autonomous vehicle and artificial intelligence (AI) opportunities as worth $1 trillion for the company.
Home Depot’s Strong Quarter
Home Depot (HD) shares are rising 1.5% in premarket trading after the retailer posted better-than-expected results for the third quarter and lifted its 2024 sales outlook. The company reported quarterly profit of $3.65 billion on revenue of $40.22 billion, exceeding analyst estimates. Home Depot also upped its fiscal-year projected revenue growth to about 4%, up from 2.5% to 3.5% previously.
Bayer’s Agricultural Headwinds
Shares of Bayer are plummeting 11% in German trading after the conglomerate lowered its full-year earnings target amid a challenging agricultural market. The Monsanto parent now expects 2024 EBITDA before special items of between 10.4 billion euros ($11.05 billion) and 10.7 billion euros ($11.37 billion), down from its previous range. The agricultural sector has been hit by larger Latin American corn harvests and bumper U.S. crops, which have hurt grain prices this year.
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