Markets News, December 27, 2024: Stocks Slide as Tesla Leads Big-Tech Slump; Major Indexes Hang on to Gains for the Week

Biggest S&P 500 movers on Friday

1 hr 21 min ago

Decliners

• Shares of server maker Super Micro Computer (SMCI) fell the most of any S&P 500 stock, tumbling 5.2%. The Nasdaq granted an extension earlier this month for Supermicro to file its delayed annual report, but questions persist about the company’s accounting practices and capacity to meet the updated deadline.
• Tesla (TSLA) shares sank 5%, extending losses posted Thursday. The electric vehicle giant is expected to release quarterly production and delivery figures next week. Based on current consensus estimates for fourth-quarter vehicle deliveries, Tesla’s 2024 totals could fall short of last year’s results.
• Palantir Technologies (PLTR) stock fell 3.7%, reversing some of this week’s push higher. Shares of the data analytics software provider debuted on the Nasdaq 100 Index on Monday, and later in the week, Wedbush analysts highlighted Palantir as a top pick among artificial intelligence software firms alongside Salesforce (CRM).

Advancers

• Lamb Weston Holdings (LW) shares rose 2.6%, posting the strongest gains in the S&P 500 Friday, following reports that activist investor Jana Partners is collaborating with another former company executive as it advocates for a transformation of the frozen potato provider. Jana recently called for changes to the board of directors or a sale of the company after Lamb Weston posted a loss and named a new CEO.
• Crude oil prices ticked higher as the U.S. Energy Information Administration reported a weekly inventory drop. Shares of oil and gas exploration and production company APA Corp. (APA) added 1.1%.
• Shares of chocolate maker Hershey (HSY) ticked 0.9% higher on Friday. Hershey stock surged earlier this month on the possibility of a combination with snack food giant Mondelez (MDLZ) but gave back those gains in recent weeks. Following the reports, Mondelez announced an additional $9 billion share repurchase and affirmed its focus on bolt-on acquisitions, omitting discussion of any major move, but TD Cowen analysts recently said this does not entirely negate the potential for a deal with Hershey.

–Michael Bromberg

Major Indexes Cling to Gains for the Week

1 hr 49 min ago

Major U.S. stock indexes on Friday gave back most of the gains they’d generated earlier in the week but managed to finish in positive territory for the week.

The Nasdaq Composite added 0.8% this week, while the S&P 500 and Dow Jones Industrial Average tacked on 0.7% and 0.4%, respectively. Stocks were rebounding from the previous week, when all three major indexes fell, the first time in more than a month that they recorded concurrent weekly losses.

With two trading days left in December, the Nasdaq is up 2.6% for the month, while the S&P 500 and Dow are down 1% and 4.3%, respectively.

For the year to date, the Nasdaq has gained 31%, while the S&P 500 is up 25% and the Dow has added 14%.

What to Expect in the Crypto Markets in 2025

2 hr 56 min ago

Bitcoin has soared this year, boosted by the approval of spot bitcoin ETFs and the bitcoin halving event, as well as optimism surrounding the election of Donald Trump as U.S. president.

In 2025, attention will turn to the Trump administration’s attempts to provide regulatory clarity for the crypto industry.

Some analysts say bitcoin could rise to $200,000 by the end of next year, amid growing demand from institutional investors, though history would suggest the market may be due for a correction.

Read the full article here.

–Kyle Torpey

Lamb Weston Shares Rise as Activist Jana Pushes for Change

4 hr 50 min ago

Shares of Lamb Weston Holdings (LW) rose Friday after activist investor Jana Partners added another former company executive to its lineup of board candidates as it seeks to shake up the frozen potato maker.

In a regulatory filing, Jana showed that Jeffery DeLapp had 458 voting shares. DeLapp had been president of Lamb Weston, as well as rival potato provider McCain Foods USA.

Former Lamb Weston Executive Chair Timothy McLevish had already aligned with Jana, which now has six food-industry executives who could challenge for a position on the board. Jana took a more-than-5% stake in the company in October. 

Shares of Lamb Weston were recently up about 4%. Even with today’s advance, Lamb Weston shares have lost more than a third of their value this year.

Jana last week blasted the company after Lamb Weston reported an unexpected quarterly loss and cut its guidance. The company cited softening demand for frozen potatoes, which it sees continuing into 2026. Lamb Weston also said CEO Tom Werner would be replaced on Jan. 3 by COO Michael J. Smith.

In a statement, Jana called the results “disastrous,” and said the decision to trade its CEO “for another long-standing Lamb Weston executive complicit in its widespread operational and strategic debacles is just the latest stick in the eye from a Board that has completely failed shareholders.”

Saying “enough is enough,” it demanded a significant board change and said if that doesn’t occur, the company should be sold.

–Bill McColl

Amedisys, UnitedHealth Extend Deadline to Complete Merge

6 hr 3 min ago

UnitedHealth Group (UNH) and Amedisys (AMED) agreed to extend the deadline to complete their $3.3 billion merger, after the U.S. Department of Justice moved to block it.

The deal was announced in June of last year and had been expected to be completed this week, but the Department of Justice and state regulators moved last month to block it, arguing it could give UnitedHealth much control in the market for home health and hospice services.

The case is currently in front of a federal judge in the District of Maryland.

In a regulatory filing Friday, Amedisys said the two firms waived their right to terminate the agreement until the 10th business day following the final order of the court, or Dec. 31, 2025, whichever comes first.

The new waiver includes a regulatory breakup fee of $275 million, which could go as high as $325 million, if the companies fail to divest certain assets by May 1.

Amedisys shares were up nearly 5% in early-afternoon trading Friday, while UnitedHealth shares were down 0.5%.

–Bill McColl

What’s Ahead for the Federal Reserve in 2025?

7 hr 21 min ago

The Federal Reserve’s plans for interest rate cuts in 2025 are up in the air as officials wait to see what policy President-elect Donald Trump will impose and what effect it has on the economy.

In particular, Trump’s plans to impose tariffs have raised eyebrows at the central bank because they could push up inflation.

The year ahead could bring conflict between Trump and Fed Chair Jerome Powell, who has resisted Trump’s suggestion that the president should have a say in monetary policy decisions.

Read the full article here on the outlook for the Fed in the year ahead.

–Diccon Hyatt

Major Indexes on Track to Post Weekly Gains

8 hr 52 min ago

Major U.S. stock indexes came into Friday’s session on track to post weekly gains, rebounding from last week’s downturn.

The Nasdaq Composite was up 2.3% for the week through Thursday’s close, while the S&P 500 and Dow were both up more than 1%.

The indexes fell last week, the first time in five weeks that they had done so concurrently. The Dow would break a three-week losing streak if it hangs on to gains this week, while the S&P 500 would snap a two-week losing run. The Nasdaq fell last week for the first time in five weeks.

Futures Point to Lower Open for Major Indexes

10 hr 2 min ago

Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were each down 0.4% about an hour before Friday’s opening bell. The indexes, however, remain on track to post weekly gains, rebounding from last week’s downturn.

Dow Jones Industrial Average Futures

S&P 500 Futures

Nasdaq 100 Futures