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
-
The Most Popular Apps for Retirement Planning in 2025A J.D. Power survey ranks retirement planning apps based on customer service and satisfaction. Does your financial app make the cut?
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary FormsStandard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market TodayAnother down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market TodayUnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market TodayApple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Stocks Slip as Job Growth Stalls: Stock Market TodayThe August jobs report came in much weaker than expected, while the unemployment rate ticked higher.
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market TodayThe S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
