Stocks started Monday on a strong note, but the enthusiasm waned as the session wore on. Still, two of the three main benchmarks added to their year-to-date gains thanks to a big rally in the technology sector. Meanwhile, Walt Disney's (DIS) latest venture created plenty of tailwinds for communication services stocks.
While DIS stock slipped 0.1% following news the media and entertainment giant will merge its Hulu + Live TV business with fuboTV (FUBO), FUBO shares more than tripled. The merger will creat a combined streaming business that will trade under the FUBO ticker on the New York Stock Exchange. Disney will retain a 70% stake in the new business, with FUBO shareholders owning the rest.
The deal will also end a legal dispute initiated by Fubo to block the formation of Venu Sports, a sports-focused streaming venture between Disney, Warner Bros. Discovery (WBD, +2.5%) and Fox (FOX, +0.8%). This lifted shares of WBD and FOX.
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.
CFRA Research analyst Kenneth Leon recently upgraded Disney to Hold from Buy, saying he is "confident" the company's direct-to-consumer (DTC) streaming unit and Experiences (theme parks and cruise lines) segment will strengthen this year.
"Experience offers durable, recurring revenue streams to generate operating and free cash flow, even though leisure spending is sensitive to the economy," Leon wrote in a December 26 note. "In our view, DTC has turned the corner to profitable growth with healthy subscriber growth. Sports are a core franchise for live entertainment that needs advertising sponsors to offset sports rights."
Nvidia gains $122 billion in market value
While Disney was one of several Dow Jones stock to finish lower on Monday, Nvidia (NVDA) jumped 3.4% to gain $122 billion in market value amid a broader rally in semiconductor stocks. Micron Technology (MU, +10.5%), Taiwan Semiconductor (TSM, +5.5%) and Advanced Micro Devices (AMD, +3.3%) were also notable gainers today.
The rally comes ahead of CES 2025, which kicks off tomorrow and runs through the end of the week. Nvidia CEO Jensen Huang is scheduled to take the stage later today to give his outlook on artificial intelligence (AI).
"AI will likely be a key theme at the conference, with companies highlighting plans to integrate augmented capabilities across a broadening set of consumer and edge products," says BofA Securities analyst Vivek Arya. He'll also be looking for "color on the recovery timeline for automotive and industrial semiconductor end markets," as well as new growth opportunities in electric and self-driving vehicles.
At the close, the Nasdaq Composite was up 1.2% at 19,864, the S&P 500 was 0.6% higher at 5,975, and the Dow Jones Industrial Average had slipped 0.06% to 42,706.
As a reminder, the stock market will be closed on Thursday, January 9, in observance of a national day of mourning and state funeral for former President Jimmy Carter. The bond market will close at 2 pm Eastern Standard Time.
Related content
- Kiplinger's Economic Calendar for This Week (January 6-10)
- Earnings Calendar and Analysis for This Week (January 6-10)
- When Is the Next Jobs Report?
-
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.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
Dow Adds 472 Points After September CPI: Stock Market Today
IBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and Commentary
The October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.
-
New Opportunity Zone Rules Triple Tax Benefits for Rural Investments: Here's Your 2027 StrategyNew IRS guidance just reshaped the opportunity zone landscape for 2027. Here's what high-net-worth investors need to know about the enhanced rural benefits.
-
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.
-
The OBBB Ushers in a New Era of Energy Investing: What You Need to Know About Tax Breaks and MoreThe new tax law has changed the energy investing landscape with expanded incentives and permanent tax benefits for oil and gas production.
-
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 Buffet become people like Warren Buffet by following basic rules and being disciplined. Here's how to accumulate real wealth.
