ASR Nederland shares climb as UBS upgrades stock to 'buy'

Investing.com -- Stocks dropped sharply on Friday as the post-election rally lost steam and concerns over the trajectory of interest rates weighed on investor sentiment.

The Dow Jones Industrial Average fell 305.87 points, or 0.70%, to close at 43,444.99. The S&P 500 declined 1.32%, ending the session at 5,870.62, while the Nasdaq Composite sank 2.24% to 18,680.12.

The S&P 500’s information technology sector saw the steepest losses, with major names like Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT) all retreating. Tesla (NASDAQ:TSLA), however, stood out among its fellow “Magnificent Seven” stocks, climbing 3% as part of what’s being referred to as the “Trump Trade.”

Pharmaceutical (TADAWUL:2070) stocks added to the pressure on the Dow and the S&P 500, with Amgen (NASDAQ:AMGN) sliding 4.2% and Moderna (NASDAQ:MRNA) dropping 7.3%.

The major indexes had been riding a postelection rally following Trump’s win, with fresh highs reached earlier in the week. However, that momentum has begun to slow.

For the week, the S&P 500 lost 2.1%, the Nasdaq Composite shed 3.2%, and the Dow declined 1.2%.

This week will bring noteworthy economic updates, particularly in housing and manufacturing.

According to Yardeni Research, the latter is likely to signal that economic growth is beginning to expand into the goods sector, which has been subdued since the Federal Reserve began raising interest rates.

The average of regional Federal Reserve banks’ manufacturing PMIs (M-PMIs) closely tracks the national ISM Manufacturing PMI. Last week, the New York Fed’s November M-PMI soared to 31.2, its highest reading since 2021, driven by a sharp increase in new orders.

If similar expansions are reflected in the Kansas City and Philadelphia Fed surveys on Thursday, the national ISM M-PMI could surpass 50.0 for the first time since before the Fed's rate hikes began.

"The New York M-PMI may be the first sign of 'animal spirits' unleashed by the presidential election results,” Yardeni notes.

In housing, mortgage applications, set to be reported Wednesday, are expected to stay subdued due to rising mortgage rates tied to higher Treasury yields over the past two months.

Existing home sales, to be released Thursday, likely remained weak in October, continuing the sector's rolling recession. Housing starts, also due Thursday, were likely held back by hurricane impacts during the month.

Weekly initial and continuing unemployment claims will be published on the same day, with Yarden expecting it to be near record lows again.

“We suspect business owners will become more confident now that the election is over, which could lead to an increase in hiring, while layoffs remain subdued,” the firm notes.

Week of Nvidia earnings

While investors continue to pore over economic data, the third-quarter earnings season continues in full swing.

The most anticipated print for the week will be Nvidia’s on Wednesday, the bellwether of the ongoing AI boom.

Wall Street analysts remain optimistic about the chipmaker’s prospects, even as heightened market expectations introduce the potential for short-term volatility.

Last week, analysts at Raymond (NS:RYMD) James highlighted that Nvidia’s days of inventory (DoI) has hit a four-year low, reflecting challenges stemming from the complexity of its new systems and extended production cycles. These constraints may temporarily limit shipments of Nvidia’s Blackwell GPUs.

However, the firm anticipates a significant increase in Blackwell shipments during the first half of 2025, driven by strong demand for Nvidia’s Spectrum-X networking technology.

It raised its price target from $140 to $170, emphasizing that “any pullback due to high expectations [is] an opportunity.”

Other high-profile companies to report earnings this week include Walmart (NYSE:WMT), Palo Alto Networks (NASDAQ:PANW), Baidu (NASDAQ:BIDU), Snowflake (NYSE:SNOW), and Nio (NYSE:NIO), among others.

What analysts are saying about US stocks

RBC Capital Markets: “Over the past week we’ve become increasingly convinced the S&P 500 may have already begun to experience another 5-10% drawdown or garden variety pullback.”

“We don’t think a drawdown in the US equity market would exceed 10% since declines more than that tend to be associated with growth scares or recessions. GDP forecasts have been firming up for both 2024 and 2025, while US economic surprises have been positive. While that could change, it gives us comfort for now that any further downside will be limited.”

Evercore ISI: “Trump’s decisive 11/6 win brought certainty, a Red Sweep. Volatility dropped and equities roared. Near term though, too much certainty has bred a degree of complacency. The urgency by President-Elect to ‘Move Fast, Break Things’ is creating turbulence. The percieved drags from tariffs/immigration could exacerbate the equity market pullback, which has -5% to -9% near term downside. A Fed not in a hurry to cut rates is an additional headwind, as is higher U.S. 10 year yield. A conclusive move into 4.5% resistance has capped the SPX rally after touching our 6,000 PT. A move toward 4.75% to 5% could catalyze a deeper selloff especially as valuations are extended.”

Morgan Stanley (NYSE:MS): “We raise our [S&P 500] base case 12-month price target to 6,500.”

“The market will likely need more positive growth data to move to our year-end 2025 base case price target of 6,500; we see this playing out, but believe that it will likely take time, particularly given the overbought conditions and uncertainty of how new policies will be sequenced and interpreted.”

UBS: “We see the S&P500 ending 2025 at 6,400 (~6%), with returns being backloaded. After a rally this year through Trump’s cabinet appointments, we see mild downside in equities in H1 next year amid a step down in US growth. Once earnings estimates have fallen to more realistic levels, H2 ’25 should be better.”

Goldman Sachs: “ We are entering a benign part of the cycle; interest rate cuts that coincide with economic growth tend to be supportive for equities. Nevertheless, global equities have already risen 40% since October 2023 leaving them more vulnerable to any disappointments. Equity valuations have increased and leave little room for further valuation expansion. We expect index returns to be driven largely by earnings growth.”

Investing.com -- Stocks dropped sharply on Friday as the post-election rally lost steam and concerns over the trajectory of interest rates weighed on investor sentiment.

The Dow Jones Industrial Average fell 305.87 points, or 0.70%, to close at 43,444.99. The S&P 500 declined 1.32%, ending the session at 5,870.62, while the Nasdaq Composite sank 2.24% to 18,680.12.

The S&P 500’s information technology sector saw the steepest losses, with major names like Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT) all retreating. Tesla (NASDAQ:TSLA), however, stood out among its fellow “Magnificent Seven” stocks, climbing 3% as part of what’s being referred to as the “Trump Trade.”

Pharmaceutical (TADAWUL:2070) stocks added to the pressure on the Dow and the S&P 500, with Amgen (NASDAQ:AMGN) sliding 4.2% and Moderna (NASDAQ:MRNA) dropping 7.3%.

The major indexes had been riding a postelection rally following Trump’s win, with fresh highs reached earlier in the week. However, that momentum has begun to slow.

For the week, the S&P 500 lost 2.1%, the Nasdaq Composite shed 3.2%, and the Dow declined 1.2%.

This week will bring noteworthy economic updates, particularly in housing and manufacturing.

According to Yardeni Research, the latter is likely to signal that economic growth is beginning to expand into the goods sector, which has been subdued since the Federal Reserve began raising interest rates.

The average of regional Federal Reserve banks’ manufacturing PMIs (M-PMIs) closely tracks the national ISM Manufacturing PMI. Last week, the New York Fed’s November M-PMI soared to 31.2, its highest reading since 2021, driven by a sharp increase in new orders.

If similar expansions are reflected in the Kansas City and Philadelphia Fed surveys on Thursday, the national ISM M-PMI could surpass 50.0 for the first time since before the Fed's rate hikes began.

"The New York M-PMI may be the first sign of 'animal spirits' unleashed by the presidential election results,” Yardeni notes.

In housing, mortgage applications, set to be reported Wednesday, are expected to stay subdued due to rising mortgage rates tied to higher Treasury yields over the past two months.

Existing home sales, to be released Thursday, likely remained weak in October, continuing the sector's rolling recession. Housing starts, also due Thursday, were likely held back by hurricane impacts during the month.

Weekly initial and continuing unemployment claims will be published on the same day, with Yarden expecting it to be near record lows again.

“We suspect business owners will become more confident now that the election is over, which could lead to an increase in hiring, while layoffs remain subdued,” the firm notes.

Week of Nvidia earnings

While investors continue to pore over economic data, the third-quarter earnings season continues in full swing.

The highlight of the week will be Nvidia’s report on Wednesday, widely seen as a key indicator of the ongoing AI boom.

Wall Street analysts remain optimistic about the chipmaker’s prospects, even as heightened market expectations introduce the potential for short-term volatility.

Last week, analysts at Raymond (NS:RYMD) James highlighted that Nvidia’s days of inventory (DoI) has hit a four-year low, reflecting challenges stemming from the complexity of its new systems and extended production cycles. These constraints may temporarily limit shipments of Nvidia’s Blackwell GPUs.

However, the firm anticipates a significant increase in Blackwell shipments during the first half of 2025, driven by strong demand for Nvidia’s Spectrum-X networking technology.

It raised its price target from $140 to $170, emphasizing that “any pullback due to high expectations [is] an opportunity.”

Other high-profile companies to report earnings this week include Walmart (NYSE:WMT), Palo Alto Networks (NASDAQ:PANW), Baidu (NASDAQ:BIDU), Snowflake (NYSE:SNOW), and Nio (NYSE:NIO), among others.

What analysts are saying about US stocks

RBC Capital Markets: “Over the past week we’ve become increasingly convinced the S&P 500 may have already begun to experience another 5-10% drawdown or garden variety pullback.”

“We don’t think a drawdown in the US equity market would exceed 10% since declines more than that tend to be associated with growth scares or recessions. GDP forecasts have been firming up for both 2024 and 2025, while US economic surprises have been positive. While that could change, it gives us comfort for now that any further downside will be limited.”

Evercore ISI: “Trump’s decisive 11/6 win brought certainty, a Red Sweep. Volatility dropped and equities roared. Near term though, too much certainty has bred a degree of complacency. The urgency by President-Elect to ‘Move Fast, Break Things’ is creating turbulence. The percieved drags from tariffs/immigration could exacerbate the equity market pullback, which has -5% to -9% near term downside. A Fed not in a hurry to cut rates is an additional headwind, as is higher U.S. 10 year yield. A conclusive move into 4.5% resistance has capped the SPX rally after touching our 6,000 PT. A move toward 4.75% to 5% could catalyze a deeper selloff especially as valuations are extended.”

Morgan Stanley (NYSE:MS): “We raise our [S&P 500] base case 12-month price target to 6,500.”

“The market will likely need more positive growth data to move to our year-end 2025 base case price target of 6,500; we see this playing out, but believe that it will likely take time, particularly given the overbought conditions and uncertainty of how new policies will be sequenced and interpreted.”

UBS: “We see the S&P500 ending 2025 at 6,400 (~6%), with returns being backloaded. After a rally this year through Trump’s cabinet appointments, we see mild downside in equities in H1 next year amid a step down in US growth. Once earnings estimates have fallen to more realistic levels, H2 ’25 should be better.”

Goldman Sachs: “ We are entering a benign part of the cycle; interest rate cuts that coincide with economic growth tend to be supportive for equities. Nevertheless, global equities have already risen 40% since October 2023 leaving them more vulnerable to any disappointments. Equity valuations have increased and leave little room for further valuation expansion. We expect index returns to be driven largely by earnings growth.”

Investing.com-- The S&P500 slipped top to weekly loss Friday, as the post-election rally fizzled out following fresh signs of economic strength that stoked concerns about fewer Federal Reserve rate cuts.

At 4:00 p.m. ET (2100 GMT), the Dow Jones Industrial Average fell 305 points, or 0.7%, the S&P 500 index dropped 1.4%, and the NASDAQ Composite slipped 2.3%.  

Treasury yields climb as deep rate-bets fade after retail sales beat expectations 

US retail sales increased slightly more than expected in October, rising 0.4% last month above the 0.3% expected, and compared with the upwardly revised 0.8% advance in September. Robust consumer spending helped the economy maintain its strong pace of growth last quarter.

 At the same time, US import prices unexpectedly rose in October, rebounding 0.3% last month after an unrevised 0.4% decline in September, the latest indication of lack of progress lowering inflation in recent months.

"The stronger-than-expected showing in retail spending underscores the storyline of a persistently resilient consumer, perpetuating solid economic conditions," Stifel said in a Friday note.

The data eased expectations about the rate-cut path ahead. Fed Chair Jerome Powell warned on Thursday that strength in the U.S. economy will allow the Fed to take its time in deciding how and when to lower interest rates. 

Applied Materials, Alibaba fall; Domino's Pizza gives up gains, Pool climbs on Berkshire stake

Among major market movers, Applied Materials (NASDAQ:AMAT) fell 9% after its quarterly earnings missed some street expectations, with slowing revenue from China a key point of contention amid a challenging demand backdrop for wafer fab equipment.  

"So unless a company is gaining a lot of WFE share next year (like LRCX), we would remain on the sidelines," UBS said in a note.

Domino’s Pizza (NYSE:DPZ) gave up gains to close 1% lower, while Pool Corporation (NASDAQ:POOL) closed modestly higher after Berkshire Hathaway (NYSE:BRKa) took stakes in the two firms. 

Alibaba (NYSE:BABA) stock fell 2% after the Chinese e-commerce giant reported moderate revenue growth in is latest quarter.

Palantir (NYSE:PLTR) said it was moving its listing to the Nasdaq Global Select Market from the New York Stock Exchange, sending its shares 8% higher.

President-elect Trump's cabinet continues to take shape

 (Peter Nurse, Ambar Warrick contributed to this article.)

Investing.com – Netherlands stocks were lower after the close on Friday, as losses in the Technology, Consumer Goods and Industrials sectors led shares lower.

At the close in Amsterdam, the AEX lost 1.37% to hit a new 3-months low.

The best performers of the session on the AEX were ArcelorMittal SA (AS:MT), which rose 2.04% or 0.48 points to trade at 23.99 at the close. Meanwhile, ASR Nederland NV (AS:ASRNL) added 1.42% or 0.63 points to end at 44.94 and Aegon Ltd (AS:AEGN) was up 0.99% or 0.06 points to 6.11 in late trade.

The worst performers of the session were ASML Holding NV (AS:ASML), which fell 5.45% or 36.60 points to trade at 635.00 at the close. Wolters Kluwer (AS:WLSNc) declined 4.56% or 7.25 points to end at 151.65 and ASM International NV (AS:ASMI) was down 4.08% or 21.60 points to 507.60.

Falling stocks outnumbered advancing ones on the Amsterdam Stock Exchange by 61 to 38 and 13 ended unchanged.

The AEX Volatility, which measures the implied volatility of AEX options, was unchanged 0.00% to 21.09.

Crude oil for December delivery was down 1.82% or 1.25 to $67.45 a barrel. Elsewhere in commodities trading, Brent oil for delivery in January fell 1.57% or 1.14 to hit $71.42 a barrel, while the December Gold Futures contract fell 0.21% or 5.40 to trade at $2,567.50 a troy ounce.

EUR/USD was unchanged 0.22% to 1.06, while EUR/GBP unchanged 0.53% to 0.84.

The US Dollar Index Futures was down 0.07% at 106.53.

Thursday's market has seen notable movements in various stocks, with significant price changes in both the mega-cap and large-cap categories. Stocks such as Tesla Motors (NASDAQ:TSLA) and Salesforce Com (NYSE:CRM) experienced declines, while Coach (NYSE:TPR) surged amidst intra-day trading. Here are the key highlights from today's stock movers, spanning from mega-caps to small caps.

Mega-Cap Movers (Market Cap $200B+):

• Tesla Motors (TSLA): -5.48%
• Salesforce Com (CRM): -2.57%
• United Health Group (NYSE:UNH): -2.31%
• Eli Lilly And Co (NYSE:LLY); Treatment with tirzepatide resulted in sustained weight loss: -2.01%
• Google Inc (NASDAQ:GOOGL): -2.25%
• Cisco Sys Inc (NASDAQ:CSCO); CISCO REPORTS FIRST QUARTER EARNINGS: -2.17%

Large-Cap Stock Movers (Market Cap $10B-$200B):

• Tempus AI (TEM): -14.06%
• Rivian Automotive (NASDAQ:RIVN): -12.34%
• Coach (TPR): +12.29%
• Leidos Holdings (NYSE:LDOS): -12.53%
• Tetra Tech (NASDAQ:TTEK); Tetra Tech reports strong Q4 results, raises 2025 outlook: -11.55%
• Parsons Corp (NYSE:PSN): -10.46%
• Super Micro Compu (NASDAQ:SMCI): -10.61%
• Booz Allen Hamilton Holding Corp (NYSE:BAH): -8.15%
• Curtiss-Wright Corp (NYSE:CW); Curtiss-Wright Announces Retirement of Paul J. Ferdenzi: -6.93%
• Mobileye Global (NASDAQ:MBLY): -7.97%

Mid-Cap Stock Movers (Market Cap $2B-$10B):

• Zeekr Intelligent Technology ADR (ZK); ZEEKR Reports Third Quarter 2024 Unaudited Financial Results: -25.62%
• Oaktree Acquisition Corp (NYSE:HIMS): -21.99%
• Oscar Health (OSCR): +17.21%
• Ibotta (IBTA); UBS downgrades Ibotta stock to Neutral: -14.97%
• Dlocal (DLO); DLocal shares surge 10% as Q3 revenue tops estimates: +13.99%
• Scnc App In (NASDAQ:SAIC): -14.27%
• Bilibili Inc (NASDAQ:BILI): -13.61%
• Hillenbrand Inc (NYSE:HI); Hillenbrand shares fall 3% as guidance disappoints: +11.47%
• Dillards (DDS); Dillard's (NYSE:DDS) Q3 earnings top estimates: +11.43%
• Mirum Pharmaceuticals Inc (NASDAQ:MIRM); Mirum Pharmaceuticals to Showcase Data at AASLD's The Liver Meeting: +9.04%

Small-Cap Stock Movers (Market Cap $300M-$2B):

• Wowo Ltd (MFH); Mercurity Fintech shares insights from Nasdaq Forum: -31.56%
• 3D Systems Corporation (NYSE:DDD); 3D Systems Announces Preliminary Q3 2024 Revenue Results: -19.97%
• MiMedx Group Inc (MDXG); MIMEDX's Advocacy Yields Significant Results: +21.89%
• AC Immune Ltd (NASDAQ:ACIU); AC Immune's Parkinson's vaccine shows promise in early trial: +18.53%
• Gambling com Group (GAMB); Gambling.com Group Raises 2024 Guidance: +18.96%
• European Wax Center (EWCZ); European Wax Center Reports Q3 Fiscal Year 2024 Results: -18.53%
• Ispire Tech (ISPR): +16.58%
• Semper Paratus Acquisition (TVGN): -17.22%
• MSTU (MSTU): +3.68%

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