A slow start for stocks Monday turned into a solid finish … for two of the three major indexes, anyway. The blue-chip Dow Jones Industrial Average lagged the S&P 500 and Nasdaq Composite on news Apple will halt sales of certain smartwatches.
Investors are looking ahead to a busy week of economic data in the lead up to the long holiday weekend. As a reminder, both the stock and bond markets will be closed next Monday, December 25, for Christmas.
There's plenty on the docket between now and then, however, including Friday's release of the November personal consumption and expenditures (PCE) index, the Federal Reserve's preferred gauge of inflation that measures consumer spending. Last week, the Fed kept interest rates unchanged for a third straight meeting and forecast three rate cuts next year as the pressure of rising prices lifts.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Apple stock weighs on the Dow
The Fed's long-awaited dovish pivot had all three indexes carving out a seventh straight weekly win, with the Dow Jones Industrial Average finishing Friday at a new record close. Today, the 30-stock barometer lagged its peers, eking out a gain of less than a point to 37,306 – still, a new high.
Apple (AAPL) was one of the worst Dow Jones stocks today, slipping 0.9% after the tech giant said it is preparing to stop selling its Apple Watch Series 9 and Apple Watch Ultra 2 on December 21. The reason for this is an October ruling by the U.S. International Trade Commission that found Apple had violated a patent for the blood oxygen monitors included in these Apple Watch models. The company intends to appeal the ruling.
The S&P 500 (+0.5% at 4,740) and the Nasdaq Composite (+0.6% at 14,904), meanwhile, gained more ground thanks to strong rallies in mega-cap stocks Meta Platforms (META, +2.9%) and Amazon.com (AMZN, +2.7%).
U.S. Steel stock pops on Nippon Steel deal news
In other stock news, U.S. Steel (X) shot up 26.1% after the steelmaker agreed to be bought by Japan's Nippon Steel in an all-cash deal valued at $14.1 billion, or $55 per X share. Nippon Steel is paying roughly a 40% premium to U.S. Steel's December 16 closing price.
The buyout premium "is a positive surprise," says CFRA Research analyst Matthew Miller (Strong Buy), considering rumors circulated last week for several offers in the $40 to $45 per-share range.
Miller adds that the deal is expected to close in the second half of next year, subject to shareholder votes and regulatory approval. It is "unlikely to receive any pushback from regulators from an antitrust standpoint (as Nippon has a very small footprint currently in North America), but a non-U.S. company could face higher regulatory risk from CFIUS (U.S. Committee on Foreign Investment)," the analyst says.
Related content
- Analysts Call Uber a "Strong Buy" as It Makes Its S&P 500 Debut
- Southwest Airlines Fined $140 Million for 2022 Holiday Failures
- Best Investing Moves to Make Before the End of the Year
-
I'm a Government Employee and Need to Get By Until the Shutdown Ends. What Can I Do?The second-longest shutdown in history is leaving many federal workers with bills due and no paycheck to cover them. Here's what you can do to get by.
-
Grant Cardone Tells Us the Biggest Retirement Mistake You Can MakeThe entrepreneur, real estate investor and motivational speaker tells us why people should never stop working.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
Honeywell Leads Dow Higher: Stock Market TodayOil prices got a lift after the Treasury Department announced new sanctions on Russia's two largest oil companies.
-
Dow Beats 334-Point Retreat on Tech Bite: Stock Market TodayInvestors, traders and speculators wonder whether this remains a Magnificent 7 market and how long this AI-driven bull run will last.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
3M, GM, Blue Chips Lead to the Upside: Stock Market TodayThe S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Dow Adds 516 Points on Broad Optimism: Stock Market TodayEasing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
