To The Moon

Thursday trading session was rather muted, with major indices hovering around their previous closing levels. The Russell 2000 index outperformed others, closing 0.9% higher, indicating some speculative buying in a thinly-traded market following the holiday break.

DJIA was in the green with a modest 0.07%, while NASDAQ and S&P 500 ended the session with negative 0.05% and 0.04% respectively. Mega-cap stocks had a choppy performance which led to mixed results across the three major indices.

The Vanguard Mega Cap Growth ETF (MGK) fluctuated between a high of +0.1% and a low of -0.7% during the session.

Significant Stocks News

$Palantir Technologies Inc.(PLTR)$ and Salesforce (CRM) are positioned to lead in AI application monetization, according to Wedbush. As AI spending increases, Palantir's expanding use cases and partnerships are expected to drive growth. The company's potential to evolve into a major player like Oracle (ORCL) is noted, with significant demand for its enterprise-scale AI solutions.

This is the reason why I am holding Palantir for the long term and there are also some other AI stocks which we can take notice, because these AI stocks could be into AI application monetization next, and this might be a good time to buy at their current price. $C3.ai, Inc.(AI)$ $BigBear.ai Holdings(BBAI)$

Economic Data Review

The key takeaway from the latest economic data is that layoff activity remains low. However, securing a new job is becoming more challenging for those who have lost their employment.

S&P 500 Sector Muted Performance

The S&P 500 sectors experienced muted price action, with none moving more than 0.6% in either direction. The financial sector and health care sector both gained more than 0.2%, making them the top performers. Conversely, the consumer discretionary sector recorded the largest decline, falling 0.64%.

Note Yield Gains Due To Strong Demand From $44 billion 7-year Note Auction

Market rates were already elevated, and selling increased following a better-than-expected initial jobless claims report. Weekly initial jobless claims for the week ending December 21 came in at 219,000, below the consensus of 232,000. Continuing jobless claims for the week ending 14 December reached 1.910 million, the highest since 13 November 2021.

Despite this, Treasuries ended with gains after a $44 billion 7-year note auction saw strong demand. The 10-year yield briefly reached 4.64% after the jobs data but settled at 4.58%, one basis point lower than Tuesday.

Stocks To Watch

Elon Musk has expressed a preference for Eli Lilly's (LLY) weight loss drug Mounjaro over Novo Nordisk's (NVO) Ozempic, citing fewer side effects and greater efficacy. This endorsement comes as Musk, dressed as Santa Claus, humorously referenced Ozempic in a social media post. The drugs, both part of the GLP-1 class, are used for diabetes treatment and weight loss. Musk's comments could influence public perception and market dynamics of these pharmaceutical products.

$Amazon.com(AMZN)$ plans to reduce spending on products from ZT Systems, which is being acquired by Advanced Micro Devices (AMD) for $4.9 billion. Despite this, AWS will continue its business relationship with ZT Systems as it focuses on developing in-house data center components. The acquisition is expected to enhance AMD's capabilities in AI and data center systems, potentially boosting its market position.

Boeing (BA) has been praised by Elon Musk for its new leadership under CEO Kelly Ortberg, following a safety crisis. Musk's comments highlight Ortberg's technical expertise in aerospace, which is seen as a positive shift for Boeing's future direction. The company continues to address safety concerns and operational challenges in the aviation industry.

$MicroStrategy(MSTR)$ plans to issue more shares to purchase additional Bitcoin (BTC-USD), despite a recent price drop. The company's aggressive Bitcoin acquisition strategy underscores its commitment to cryptocurrency investment. Bitcoin's momentum has slowed after a significant year-to-date increase, highlighting the volatile nature of digital assets.

Starbucks (SBUX) has ended a five-day strike by baristas, organized by the Workers United union, over contract negotiation delays. The union's demands for significant wage increases were deemed unsustainable by Starbucks. The labor dispute highlights ongoing challenges in labor relations and contract negotiations within the company.

SEALSQ (LAES) has regained compliance with Nasdaq's minimum bid price requirement after maintaining a share price above $1.00 for ten consecutive days. This compliance ensures the continued listing of SEALSQ shares, reflecting the company's efforts to meet market standards and investor expectations.

Summary

I am expecting the Santa rally to continue today (27 Dec) as we have only two more trading days before we approach 2025.

It is time to prepare your strategy as the latest labor data could signal that rate cut of two might not happen so early in the year.

Appreciate if you could share your thoughts in the comment section whether you think market would continued in a muted performance while investors re-organize their portfolios.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.