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The Key Takeaways
- The S&P 500 lost 0.6% on Monday, Dec. 9, falling from record highs as consumer inflation data is set to take the spotlight this week.
- Omnicom stock fell as soon as it announced that the agency would be acquiring rival Interpublic Group in a deal involving all of its shares.
- Hershey’s shares surged on a report by Mondelez International that it is considering a potential acquisition.
The major U.S. equity indexes fell at the start of the new trading week, which will include the release of some key economic indicators. Particularly, the Consumer Price Index (CPI), which is released Wednesday, may have an impact on Federal Reserve officials, who will be considering whether they should cut interest during their last policy meeting of 2024 scheduled to take place Dec. 17-18.
The S&P 500 and the Nasdaq both closed Monday's session down around 0.6%, retreating from record levels notched last week. Dow dropped 0.5%.
The advertising agency Omnicom announced a deal to buy rival company Interpublic Group. The merger would make it the largest advertising group in the world, if this all-stock acquisition comes through. Omnicom CEO said that the merger would allow the company to take advantage of new technologies, as well as the ongoing changes within the advertising industry. However, Omnicom shares tumbled 10.3% after the announcement, losing the most of any S&P 500 stock on Monday. Interpublic Group’s shares rose by 3.6%.
Comcast shares (CMCSA) dropped by 9.5% following the announcement that the internet-and cable provider expects to shed over 100,000 broadband subscribers during the fourth quarter. The decline is similar to the negative trend seen in the first half year. Comcast’s chief executive cited the tough competition in broadband, especially for consumers worried about spending. Charter Communications’ (CHTR), a cable company, saw its shares fall 9.2%.
The shares of nuclear generators fell Monday. They had seen a large increase in the year 2024 due to optimism about opportunities for powering artificial intelligence data centers. According to reports, the co-chairman of the U.S. Congressional Task Force on AI asked regulators for support. “co-location” Data centers near nuclear plants. Federal Energy Regulatory Commission ruled in favor of Amazon’s (AMZN), a data center proposed for a Talen Energy nuclear facility (TLN) last month. Vistra (VST) shares fell 9.3%.
Axon Enterprise shares (AXON), which manufacture Taser weapons and other police equipment, fell 6.6%. Axon stock tore higher in November after the company posted stronger-than-expected quarterly profits, with a boost from AI offerings and premium product packages. Axon’s stock could also benefit from the next presidential administration. The stock’s Monday drop was a significant retreat from its all-time record highs, after it had reached an intraday mark just under $700 last Friday.
Hershey (HSY) shares skyrocketed 10.9%, gaining the most of any S&P 500 stock, following reports that snack food giant Mondelez International (MDLZ) is evaluating a potential acquisition of the Pennsylvania-based chocolate maker. Hershey shares soared 10.9%, the most of any S&P 500 stock, following reports that snack food giant Mondelez International (MDLZ) is evaluating a potential acquisition of Pennsylvania-based chocolate maker Hershey. Mondelez shares slipped 2.3%.
Enphase Energy shares (ENPH), a solar technology company, rose by 6.8% on the news that it had formed a strategic partnership with NextEnergy of Netherlands. This new partnership will allow owners of Enphase solar systems and battery storage to optimize energy savings while participating in grid-inbalance energy markets.
Albemarle shares (ALB), which are the largest lithium mining company in the world, rose 4.5%. Albemarle’s stock fell in the first days of December, as analysts forecasted that lithium prices will remain low in 2025 due to an elevated level of supply. The shares have since reversed course and recovered most of the losses.
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