Business and Finance News - 12.12.24

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Albertsons terminated its $25 billion merger with Kroger and filed a lawsuit alleging contract violations, including failure to secure antitrust approvals. The companies are disputing responsibility for legal fees and a $600 million termination fee, following a judge's decision to block the merger. (CNBC)

Key Insight → The termination of the $25 billion Albertsons-Kroger merger reflects the challenges of navigating regulatory scrutiny and antitrust concerns in consolidating major retail sectors. This decision could reshape competition in the grocery market, with both companies now vying to address competitive pressures from giants like Walmart and Amazon independently. The legal battle over responsibility for the failed merger and associated costs underscores the financial and reputational risks of high-stakes corporate deals.

General Motors is ending its Cruise robotaxi program, citing high costs and challenges in scaling the business. The company will merge Cruise with its in-house team to focus on personal autonomous vehicle technology, aiming to reduce costs by $1 billion annually and accelerate progress on advanced driver assistance systems. (Yahoo! Finance)

Key Insight → General Motors' decision to restructure its Cruise robotaxi business highlights the challenges of scaling autonomous vehicle technology amidst high costs and competitive pressures. By focusing on personal autonomous vehicles and integrating Cruise’s work with its in-house team, GM aims to streamline operations and accelerate progress on advanced driver assistance systems. This shift reflects a broader market reality: developing robotaxis requires substantial capital and patience, making it a less feasible path for some companies.

The Consumer Price Index rose 2.7% over the year through November, with core inflation holding at 3.3%, driven largely by housing costs. While inflation has declined from its peak, progress has stalled, raising concerns about sustained inflationary pressures and future Federal Reserve rate decisions. (Axios)

Key Insight → The latest Consumer Price Index (CPI) report reveals that while inflation has declined from its peak, the progress in reducing it further has stalled, raising concerns for consumers and policymakers alike. This signals that persistent inflation, especially in areas like housing, could keep the Federal Reserve cautious about easing monetary policy too quickly. For the larger market, these dynamics could mean prolonged uncertainty around interest rates, impacting borrowing costs, consumer spending, and overall economic growth.

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Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 44,148.56 -99.27 (-0.22%)

• S&P 500: 6,084.19 +49.28 (+0.82%)

• Nasdaq Composite: 20,034.89 +347.65 (+1.77%)

• Russell 2000: 2,394.16 +11.38 (+0.48%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.726T]: 246.49 -1.28 (-0.52%)

• Nvidia (NVDA) [3.412T]: 139.31 +4.24 (+3.14%)

• Microsoft (MSFT) [3.338T]: 448.99 +5.66 (+1.28%)

• Amazon (AMZN) [2.421T]: 230.26 +5.22 (+2.32%)

• Alphabet (GOOGL) [2.392T]: 195.40 +10.23 (+5.52%)

• Meta Platforms (META) [1.597T]: 632.68 +13.36 (+2.16%)

• Tesla (TSLA) [1.364T]: 424.77 +23.78 (+5.93%)

Here’s how Bitcoin and Ethereum did yesterday:

• Bitcoin (BTC): $100,557.40 (10:15PM PST on 12/11/24)

• Ethereum (ETH): $3,928.75(10:15PM PST on 12/11/24)