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📈 Nuclear's $1B Federal Power Play
Tesla slides on delivery miss, Neumora Therapeutics stock craters after trial failure, Carvana shares tank after Hindenburg accusations, Apple to pay $96M to settle claims on Siri eavesdropping, Constellation Energy lands $1B nuclear deal
Evelio Silvera
January 03, 2025
Good morning.
⚡ The Fast Five → Tesla slides on delivery miss, Neumora Therapeutics stock craters after trial failure, Carvana shares tank after Hindenburg accusations, Apple to pay $96M to settle claims on Siri eavesdropping, Constellation Energy lands $1B nuclear deal
🔎 Market Trends → Wall Street ends lower on first trading session of 2025; US Futures Flat After Weak Start to 2025
And now…
⏱️ Your 5-minute briefing for Friday, January 3, 2024:
MARKET BRIEF
Before the Open
As of market close 01/02/2024.
Pre-Market
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Fear & Greed
Markets in Review
Markets Start 2025 Softly as Tesla Stumbles, Energy Shines
The Nasdaq and S&P 500 fell 0.2%, closing at 19,280.8 and 5,868.6, respectively. The Dow slipped 0.4% to 42,392.3, as consumer discretionary stocks led declines while energy posted gains.
The Big Picture:
The new trading year began with mixed signals as Tesla's delivery miss weighed on major indexes, while energy stocks provided a bright spot. Constellation Energy (CEG) surged on a government contract win, reflecting confidence in the sector's resilience and growth prospects.
Economic data showed manufacturing remains under pressure, with declines in output and sentiment, yet labor market indicators offered a glimmer of hope. Weekly jobless claims fell unexpectedly, though analysts remain cautious due to seasonal volatility.
Oil climbed 2% to $73.13/barrel, driven by a smaller-than-expected drop in US crude stockpiles. Gold gained 1.2% to $2,671.50/oz, and silver jumped 2.6% to $29.99/oz, signaling investor interest in hedging strategies amid uncertainty.
Market Movers:
Tesla (TSLA): Dropped -6.1%, the worst performer on the Nasdaq and S&P 500, after reporting a decline in 2024 vehicle deliveries that missed Wall Street expectations.
Constellation Energy (CEG): Rose +8.4%, boosted by an $840 million federal contract, making it the Nasdaq’s best performer.
Nvidia (NVDA): Gained +3% after reports highlighted its $1 billion investment in AI companies, reinforcing its leadership in the sector.
Boeing (BA): Fell -2.9%, continuing its slide amid lingering concerns over global regulatory scrutiny and operational challenges.
What They’re Saying:
"Energy stocks are poised to benefit from stable demand and supportive policy tailwinds, while tech’s AI investments remain a key growth lever for 2025," said analysts at Oxford Economics.
WHAT WE’RE WATCHING
Events
Today: Institute for Supply Management - Manufacturing ISM Report On Business - 10:00am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
Earnings Reports
Today: Hurco Companies, Inc
Monday: Commercial Metals Company
MARKET BRIEF
Leading News
Nuclear's $1B Federal Power Play Signals New Dawn for Clean Energy Bulls
Why it matters:
Uncle Sam just placed a trillion-dollar bet on nuclear power's renaissance, potentially reshaping the clean energy landscape for institutional and retail investors alike.
Zoom Out:
The federal government's landmark $1 billion nuclear power contract with Constellation Energy isn't just another utilities deal – it's a paradigm shift in how Washington views atomic energy. After decades in the wilderness, nuclear power is staging a remarkable comeback, backed by an unlikely alliance of climate hawks and national security buffs.
Think of it as the government giving nuclear energy its "Tesla moment" – a seal of approval that could trigger a broader revaluation of the sector. The deal's fixed-price structure offers what value investors crave most: predictable cash flows stretching into the 2030s.
Key Insights:
Follow the smart money: Major tech firms have been quietly stockpiling nuclear power purchase agreements to fuel their AI ambitions. This federal move validates their thesis that nuclear remains the only scalable source of carbon-free baseload power.
The efficiency kicker: Beyond the headline $840 million power contract, Constellation secured $172 million for energy efficiency upgrades. Translation: They're getting paid to modernize their assets while expanding capacity by 135 megawatts – a classic win-win.
Risk-adjusted returns: While regulatory hurdles remain, the contract's decade-long term provides a government-backed floor for earnings, potentially reducing the risk premium on nuclear utilities.
Market Pulse:
"We're seeing a seismic shift in how institutions value nuclear assets," says Constellation CEO Joe Dominguez. "This isn't your grandfather's utility sector anymore."
Bull’s Take:
Smart investors should view this as more than a one-off deal – it's the opening salvo in nuclear power's second act. For those seeking exposure to the clean energy transition with government-backed revenue streams, established nuclear operators like Constellation (CEG) deserve a fresh look.
Headlines
Tesla stock slides after Q4 delivery miss, first yearly sales decline (link)
Neumora Therapeutics’ stock craters after trial of major depressive disorder fails to meet main goals (link)
Carvana shares tank after short-seller Hindenburg accuses firm of ‘grift for the ages’ (link)
Google’s antitrust woes spark analyst downgrade of Alphabet’s stock (link)
Apple to pay $95 million to settle claims it used Siri to eavesdrop on customers (link)
Wall Street banks exit climate alliance as Trump 2.0 nears (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to Consulting Comedy