This morning, U.S. stock futures are taking a small dip as markets are still feeling the effects of last week’s downturn and high Treasury yields. Boeing finds itself in a precarious situation as its stocks slide in premarket trading after one of its 737-800 planes tragically crashed in South Korea. Meanwhile, Tesla is witnessing a drop in share value as it prepares to unveil its delivery report later this week. Additionally, expectations are set for a slowdown in November’s pending home sales compared to the previous month, and firms dealing with bitcoin like MicroStrategy, Coinbase Global, Riot Platforms, and MARA Holdings are all witnessing a decline as the cryptocurrency unexpectedly drifts below $94,000. Let’s delve into the crucial updates investors need to consider today.
As investors gear up for a week shortened by holidays, U.S. stock futures show a downward trend after last week’s disappointing close. Nasdaq futures dipped by 0.2%, following a 1.5% drop on Friday. Similarly, Dow Jones Industrial Average and S&P 500 futures have also sagged after notable declines. With sentiment waning around the anticipated Santa Claus rally, attention shifts as 10-year Treasury yields remain slightly below their high of around 4.6%. It’s worth noting that bond trading will close early on Tuesday, while both stock and bond markets will be shuttered on Wednesday due to New Year’s Day celebrations.
Boeing shares took a hit, falling approximately 3% in premarket actions, as news spread of a crash involving its 737-800 jet in South Korea, which resulted in a tragic loss of 179 lives out of 181 on board the Jeju Air flight. This incident adds to a series of challenges Boeing has navigated this year, including a machinists’ strike and another unfortunate incident involving a door plug detachment during an Alaska Airlines flight. The company was still reeling and trying to rebound from past 737 MAX crashes, which occurred in 2018 and 2019, contributing to a 30% drop in its stock value this year, despite some recovery signs in December.
Tesla’s stock saw a 2% decline in premarket trading following losses in the previous two sessions. Investors are eagerly anticipating the electric vehicle giant’s fourth-quarter delivery numbers expected later in the week. Analysts forecast deliveries of about 510,000 units, translating to a 10% rise from the previous quarter and a 5% increase compared to the same period last year. Post the Nov. 5 presidential elections, Tesla’s shares enjoyed a 70% surge amid speculation that CEO Elon Musk’s connections with President-elect Donald Trump could prove advantageous for the company. Yet, by Friday, Tesla’s stock closed at $431.66, marking a nearly 12% drop from its peak of $488.54 reached in mid-December.
Even with the upcoming abbreviated trading week, investors still have economic data to monitor closely. The National Association of Realtors is expected to release the Pending Home Sales Index, which might show a modest 0.7% rise for November at 10 a.m. ET today, a step down from October’s more robust 2% increase. Additional data releases to keep an eye on include the S&P Case-Shiller Home Price Index on Tuesday and construction spending statistics anticipated on Thursday.
Bitcoin remains below the $94,000 threshold after slipping from $100,000 last week. Some experts are bullish about its potential to surpass $200,000 as we head into 2025, expecting favorable policies from the Trump administration. Nonetheless, the current slump is weighing down companies linked to cryptocurrency. Pre-market figures show a 2% drop for MicroStrategy’s stock, following a 3% dip on Friday. Similarly, companies like Riot Platforms, MARA Holdings, and Coinbase Global are facing declines.
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