Business and Finance News - 12.13.24

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Tesla shares hit a record high of $424.77, driven by a 71% gain in 2024, with most growth following Donald Trump’s election. Analysts attribute the surge to Musk’s support for Trump, expanding Tesla’s market appeal and boosting confidence in demand and autonomous vehicle prospects. (CNBC)

Key Insight → Tesla’s recent stock surge to an all-time high is significant for both investors and the broader market, reflecting a combination of political influence and strategic growth prospects. Elon Musk’s alignment with Donald Trump and his active role in the political sphere have not only expanded Tesla’s fanbase but also heightened investor confidence in the company’s future demand potential, particularly as regulatory discussions around autonomous vehicles gain traction. This event underscores how external factors, such as political alliances and market perception of leadership, can profoundly impact a company's valuation and signal broader trends in the interplay between business, innovation, and governance.

U.S. jobless claims rose to 242,000 last week, the highest in two months but still low by historical standards, indicating a cooling but resilient labor market. Continuing claims increased to 1.89 million, while the four-week average rose to 224,250, reflecting ongoing stability despite elevated interest rates and inflation adjustments. (AP News)

Key Insight → The rise in U.S. jobless claims to their highest level in two months indicates a gradual cooling in the labor market, though levels remain historically low. This trend suggests that businesses are cautiously adjusting hiring amid higher interest rates, yet the market remains resilient overall. For the broader economy, it reflects a balancing act between maintaining employment and managing inflation, which may influence future Federal Reserve policy decisions.

Warner Bros Discovery will split its cable TV business and streaming operations into separate units by mid-2025, potentially facilitating a sale or spinoff of its declining cable networks. This move responds to industry shifts toward streaming, with the company seeking to manage its $40.7 billion debt and enhance growth opportunities. (Reuters)

Key Insight → Warner Bros Discovery's decision to split its cable TV business from its streaming and studio operations highlights the accelerating shift from traditional television to streaming. This restructuring, aimed at maximizing value and enabling a potential sale, reflects broader industry challenges as media companies adapt to changing consumer preferences and declining cable revenue. For the larger market, it signals continued consolidation and restructuring as firms seek financial stability and competitive positioning in the evolving entertainment landscape.

The Producer Price Index rose 3% year-over-year in November, exceeding expectations and marking the highest increase since February 2023, with core inflation also remaining elevated. While inflation is not surging, its persistent levels suggest a prolonged journey toward the Federal Reserve's 2% target, potentially limiting future interest rate cuts. (Yahoo! Finance)

Key Insight → The higher-than-expected increase in the Producer Price Index (PPI) highlights persistent inflationary pressures, even as the Federal Reserve aims for a 2% target. This signals a slower path to reduced inflation, likely leading to fewer interest rate cuts in 2025 than initially anticipated. For the broader market, it underscores continued economic uncertainty, potentially affecting consumer costs, investment strategies, and monetary policy adjustments.

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Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 43,914.12 -234.44 (-0.53%)

• S&P 500: 6,051.25 -32.94 (-0.54%)

• Nasdaq Composite: 19,902.84 -132.05 (-0.66%)

• Russell 2000: 2,361.08 -33.08 (-1.38%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.748T]: 247.96 +1.47 (+0.60%)

• Nvidia (NVDA) [3.363T]: 137.34 -1.97 (-1.41%)

• Microsoft (MSFT) [3.342T]: 449.56 +0.57 (+0.13%)

• Alphabet (GOOGL) [2.35T]: 191.96 -3.44 (-1.76%)

• Amazon (AMZN) [2.408T]: 228.97 -1.29 (-0.56%)

• Meta Platforms (META) [1.592T]: 630.79 -1.89 (-0.30%)

• Tesla (TSLA) [1.342T]: 418.10 -6.67 (-1.57%)

Here’s how Bitcoin and Ethereum did yesterday:

• Bitcoin (BTC): $99,698.34 (7:15PM PST on 12/12/24)

• Ethereum (ETH): $3,907.58(7:15PM PST on 12/12/24)