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šŸ“ˆ Stellantis CEO Hits The Brakes

Elon sues to keep OpenAI non-profit, Northern Star to make $3.26B acquisition, Retailers report this week with solid online sales, Meta planning $10B undersea cable network, Stellantis CEO resigns amid sales slump

Author

Evelio Silvera
December 02, 2024

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Good morning.

āš” The Fast Five ā†’ Elon sues to keep OpenAI non-profit, Northern Star to make $3.26B acquisition, Retailers report this week with solid online sales, Meta planning $10B undersea cable network, Stellantis CEO resigns amid sales slump

šŸ”Ž Market Trends ā†’ S&P 500, Dow close at record highs on tech gains; US Futures Hold Steady to Start the Week

And nowā€¦

ā±ļø Your 5-minute briefing for Monday, December 2, 2024:

MARKET BRIEF
Before the Open

As of market close 11/29/2024.

Pre-Market

  • First Solar shares increased 3.5%, among the best performers on the S&P 500.

  • Super Micro Computer saw the steepest decline on the S&P 500 and the Nasdaq, down 6.9%.

Fear & Greed

 

Markets in Review

S&P 500 and Dow Soar to Record Highs, Tech Leads the Charge

The S&P 500 rose 0.6% to close at 6,032.4, while the Dow climbed 0.4% to 44,910.7. The Nasdaq outpaced both, up 0.8% at 19,218.2. November closed with all three indexes firmly in the green.

The Big Picture:

Markets wrapped up November on a high note, fueled by robust consumer discretionary and tech sector gains. Holiday spending met expectations, with online Thanksgiving sales hitting $6.1 billion, bolstering investor confidence.

Meanwhile, bond yields continued their descent, with the 10-year Treasury yield down 6.4 basis points to 4.18%, signaling potential relief for borrowing-heavy industries.

In commodities, WTI crude edged down 0.2% to $68.59 per barrel as traders awaited OPEC+ decisions on supply adjustments. Precious metals glittered, with gold gaining 0.5% and silver jumping 1.7%.

Market Movers:

  • Apple (AAPL) +1.02%: Tech giant's shares climbed on optimism over new AI-powered iPhone 16 features, as highlighted by Wedbush. Expect continued momentum in the AI space.

  • First Solar (FSLR) +3.48%: Solar manufacturers surged on reports of potential new tariffs shielding U.S. players from Southeast Asian imports. A policy boost could further strengthen domestic industry stocks.

  • Applied Therapeutics (APLT) āˆ’76.31%: Shares cratered after the FDA rejected its lead drug, govorestat, casting doubts on future prospects. A harsh reminder of biotech's high stakes.

What Theyā€™re Saying:

ā€œOPEC+ delaying its meeting reflects caution. Markets are watching closely for signals of production cuts extending into 2025 to avoid oversupply risks,ā€ said Saxo Bank in a note.

WHAT WEā€™RE WATCHING
Events

  • Thurs. Nov 27: Institute for Supply Management - Purchasing Managersā€™ Index - 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: Credo Technology Group, Zscaler

  • Tomorrow: Salesforce, Box, Couchbase, Okta

MARKET BRIEF
Leading News

CEO Shakeup at Stellantis

Why it matters:

The surprise resignation of Stellantis (STLA) CEO Carlos Tavares raises questions about the automakerā€™s direction amidst slumping U.S. sales, supply chain challenges, and a shifting EV market. Leadership changes often signal volatility but can also pave the way for new opportunities.

Zoom Out:

Stellantis, the worldā€™s fourth-largest automaker, announced Tavaresā€™ immediate departure following "different views" with the board. Tavares, credited with spearheading the 2021 merger of Fiat Chrysler and PSA Groupe, had been at the helm during a turbulent time for the industry.

Under Tavares, Stellantis delivered cost-saving measures totaling ā‚¬8.4 billion but struggled with key markets, particularly the U.S., where missteps in product innovation and pricing strategy hurt sales. Third-quarter revenue dropped 27%, while global vehicle sales plunged 20% year-over-year, leading to a downgraded annual forecast.

Now, the board must find a leader capable of navigating competitive EV markets, managing labor disputes, and reviving the companyā€™s U.S. performance.

Deep Dive:

  • Leadership transition: An interim committee led by Chairman John Elkann will oversee operations until a new CEO is named, expected in mid-2025.

  • Investor concerns: Stellantis shares have fallen 43% in 2024, driven by U.S. market mismanagement and bloated inventories.

  • Opportunity or risk? Leadership changes often precede strategic shiftsā€”investors should watch for signals of innovation or reorganization.

Market Pulse:

ā€œTavaresā€™ departure signals deeper challenges at Stellantis, but change often drives growth. Investors should be cautiously optimistic,ā€ said an auto sector analyst.

Bullā€™s Take:

While the resignation raises short-term risks, leadership transitions can ignite fresh strategies and market momentum. Stellantisā€™ cost-cutting discipline and portfolio of iconic brands like Jeep and Dodge provide a strong foundation for recovery. Keep an eye on Stellantisā€™ next CEO announcement and early signs of strategy shifts. At a beaten-down price, STLA could present a compelling value play if the new leadership delivers on innovation and market growth.

Headlines

  • Elon Musk Sues to Stop OpenAIā€™s For-Profit Transformation (link)

  • Northern Star to Buy De Grey Mining in $3.26 Billion Stock Deal (link)

  • More retailers report this week, amid signs of solid online holiday spending (link)

  • Forget Bitcoin, MicroStrategy is up 500% this year (link)

  • Meta Reportedly Planning $10 Billion Global Undersea Cable Network (link)

CRYPTO
Fear & Greed

 

Headlines

  • XRP Flips Solana, Topping $2 for First Time Since 2018 (link)

  • Helium grows 19% in 24 hours: Will HNT reach $11 soon? (link)

  • Solana co-founder: Execution is the only moat (link)

DAILY SHARE
On the Socials

*Hat-tip to netcapgirl

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