Timothy A. Clary / AFP / Getty Images
The stock market reached record levels in November. Wall Street anticipates Donald Trump’s second term as president-elect.
The S&P 500 climbed 5.7%, while the Dow Jones Industrial Average advanced 7.5% and the Nasdaq Composite added 6.2%. The Russell 2000, an index of small-cap stocks, surged nearly 11%, boosted by expectations for faster economic growth and lower taxes under Trump and a Republican-controlled Congress.
The market will likely continue to be focused on Trump in December and his policies. Wall Street, however, will be paying attention to other factors such as the economic forecast for the next few months.
Federal Reserve’s last rate decision is expected to be made on December 18th. The Federal Reserve has said that it is not in a hurry to lower rates. However, traders still expect another quarter point cut in December.
Here are a few companies that we think could have a major price movement in the coming month.
Tesla
No S&P 500 stock has gained more from the re-election of Donald Trump than Tesla (TSLA), whose CEO Elon Musk has embedded himself in the president-elect’s inner circle after spending millions of dollars on his campaign.
The shares of this electric vehicle maker are up nearly 40% in value since Election Day. The surge in the value of the company has been over $1 trillion. However, the Trump Administration has promised to cut back on government incentives for electric vehicles, such as a $7500 tax credit.
Wall Street believes that Tesla will benefit from Elon Musk’s influence with the next President. He could do this as an informal adviser and co-leader of a newly formed Department of Government Efficiency. Trump’s team of transition officials has reportedly already laid out plans for easing self-driving vehicle rules. This could make Musk’s vision to launch a Tesla robotaxi a reality. Musk might also convince Trump to exclude Tesla vehicles from the proposed tariffs for goods imported from China.
Tesla Stock will continue to be in the spotlight this month while Trump staffs and defines his priorities for his incoming government.
Salesforce
The results of Salesforce’s (CRM) earnings report after the close of markets on Wednesday, December 3 could serve as a first test to see if tech can successfully monetize and use artificial intelligence in order to justify high stock prices.
Agentforce is a new generative AI assistant launched by enterprise software company, IBM, on 25 October. Its goal is for AI agents to be used 1 Billion times in 2025. A report claims that Salesforce will hire 1,000 sales agents to help drive the adoption of this new tool.
AI agents have been a hot topic for other software companies. These AI agents operate at a higher level of autonomy than ChatGPT from OpenAI. The executives of Crowdstrike said their AI agent Charlotte, had triple digit growth in the most recent quarter.
The stock of Salesforce has increased by about 25 percent this year, after almost doubling last year. Wall Street is still bullish despite the stock trading at a near-record high. Two thirds of FactSet’s analysts rate it as a “buy”. “Buy.”
Honeywell
Honeywell’s (HON), shares rose by 14% during November after activist investor Elliott Investment Management announced mid-month it owned a stake of $5 billion in the company.
Elliott pushed Honeywell, the conglomerate, to split into two companies that focus on aviation and automation, following in the footsteps of General Electric and 3M.
Wall Street has handsomely compensated these industrial giants with their spin-offs. GE Vernova’s (GEV) shares have soared by about 150% in the last few months since their debut. GE Aerospace has risen almost 80% this year. The stock of 3M (MMM), which spun off the healthcare division Solventum, has risen by 50%.
Honeywell already began to shed businesses before Elliott bought its shares. The company spun off its chemical unit in October. CEO Vimal Kapur explained that the decision reflected their efforts to become more sustainable. “further tighten Honeywell's alignment to three compelling megatrends: automation, the future of aviation, and energy transition.” The company has sold the personal protective equipment division to a private equity group for over $1 billion.
MicroStrategy
Since Donald Trump’s election, shares of MicroStrategy have increased 70%.
MicroStrategy invested more than 20 billion dollars to accumulate a treasury of 386 700 bitcoins valued at more than 37 billion dollars. Microstrategy’s stock is closely linked to Bitcoin as the largest corporation in the world.
The rise of cryptocurrency has been attributed to Donald Trump’s win. Donald Trump is embracing the cryptocurrency industry. He has pledged to create a strategic Bitcoin store. Trump is yet to name the new heads of the Securities and Exchange Commission and Commodities and Futures Trading Commission. Both are expected to have a much more positive attitude towards the crypto sector than their predecessors.
Coinbase CEO Brian Armstrong calls the next Congress as “the Congress”. “most pro-crypto Congress ever,” You can also give priority to passing crypto legislation.
Microstrategy stock may also experience price movement this month. As the details surrounding Trump’s crypto agenda are revealed, it could be similar to Tesla.
Super Micro Computer
Super Micro Computer’s (SMCI), an AI server manufacturer that was a stock market star earlier in the year, will likely remain on its mind as it awaits a decision from Nasdaq regarding whether the company can maintain its listing.
Supermicro’s shares were down 85% by mid-November when the company filed with Nasdaq a plan to comply with its listing requirements. As of the time this article was written, that plan is still being reviewed. Since the company filed the plan, the stock has moved back into positive territory for the year, but it's still down 73% from its all-time high in March.
Supermicro’s troubles began in late August when federal regulators were notified that the company had delayed filing their full-year financial reports. Reports that the Justice Department had opened an investigation into its accounting practices followed in September, and in October Supermicro’s auditor Ernst & Young resigned, citing concerns about accounting and board independence.
Supermicro found a new auditor last month, and without him its compliance plan would likely have died on the spot. Nasdaq might approve Supermicro’s plan by December. This would give the company more time for filing its report. Supermicro has seven days if it rejects its plan to ask for an hearing and contest the decision. This could push the delisting of the company into next year.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
