Business and Finance News - 12.20.24

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Thousands of Amazon workers in the U.S. and Germany are striking for better pay and working conditions, marking the company’s largest strike to date. The protests, led by unions including the Teamsters, come during the critical holiday season and aim to pressure Amazon to negotiate on labor issues. (Quartz)

Key Insight → The Amazon strike is a critical moment for labor relations, highlighting workers' demands for improved pay, safety, and union recognition in one of the world's largest corporations. It underscores growing global solidarity among labor movements, as U.S. and German workers coordinate efforts to address corporate practices they view as exploitative. For the broader market, this represents a potential shift in power dynamics between employers and employees, which could influence wages, working conditions, and corporate responsibility across industries.

President-elect Donald Trump called for abolishing the debt ceiling, describing it as unnecessary and psychological, while some Democrats expressed agreement. He criticized a recent bipartisan funding deal, citing it as a "Democrat trap," and emphasized the need to address legislative challenges before his administration begins. (CNBC)

Key Insight → Donald Trump’s call to eliminate the debt ceiling challenges its traditional role as a safeguard against unchecked government borrowing, framing it as an outdated and largely symbolic constraint. He contends that the debt ceiling's psychological impact causes unnecessary political crises, such as the risk of default, without addressing fiscal responsibility effectively. While abolishing the debt ceiling could streamline borrowing processes and reduce partisan gridlock, it also raises concerns about removing a key mechanism for Congressional oversight, potentially increasing fiscal risks in the absence of structured accountability.

U.S. economic growth for the third quarter was revised up to 3.1%, reflecting stronger exports and consumer spending. This marks continued resilience in the economy, with growth exceeding forecasts and outpacing the prior quarter’s 3% rate, despite challenges in managing inflation. (Axios)

Key Insight → The upward revision of U.S. economic growth to 3.1% for the third quarter underscores the economy's resilience and unexpected strength, despite global challenges. This signals robust consumer spending and export performance, which could boost market confidence but complicate Federal Reserve efforts to manage inflation. For the broader market, sustained economic momentum offers opportunities for growth but raises questions about the long-term impacts of upcoming policy shifts under the new administration.

Micron shares dropped 13% in extended trading after issuing second-quarter guidance below expectations, forecasting $7.9 billion in revenue against analysts' $8.98 billion estimate. Despite this, first-quarter earnings surpassed forecasts at $1.79 per share, and the company highlighted growth opportunities in data centers and AI-related markets. (CNBC)

Key Insight → Micron's 13% share drop following weak second-quarter guidance highlights market sensitivity to forward-looking performance, despite first-quarter results meeting or exceeding expectations. The revenue shortfall underscores challenges in consumer-driven markets, even as Micron eyes growth in data centers and AI sectors. This signals broader volatility in the semiconductor industry, particularly for companies navigating mixed market dynamics and high investor expectations.

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Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 42,342.24 +15.37 (+0.04%)

• S&P 500: 5,867.08 -5.08 (-0.09%)

• Nasdaq Composite: 19,372.77 -19.92 (-0.10%)

• Russell 2000: 2,221.50 -10.01 (-0.45%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.776T]: 249.79 +1.74 (+0.70%)

• Microsoft (MSFT) [3.249T]: 437.03 -0.36 (-0.08%)

• Nvidia (NVDA) [3.20T]: 130.68 +1.77 (+1.37%)

• Amazon (AMZN) [2.348T]: 223.29 +2.77 (+1.26%)

• Alphabet (GOOGL) [2.308T]: 188.51 +0.11 (+0.06%)

• Meta Platforms (META) [1.504T]: 595.57 -1.62 (-0.27%)

• Tesla (TSLA) [1.40T]: 436.17 -3.96 (-0.90%)

Here’s how Bitcoin and Ethereum did yesterday:

• Bitcoin (BTC): $97,328.71 (7:30PM PST on 12/19/24)

• Ethereum (ETH): $3,421.56(7:30PM PST on 12/19/24)