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The Key Takeaways
- The S&P 500 added 1.3% on Friday, Jan. 3, ending a streak of five straight down days as stocks looked to regain their momentum to start the new trading year.
- Super Micro Computer shares surged, bouncing back from five straight down days as the server maker aims to move past last year's accounting-related issues.
- Tesla’s stock recovered as well from its recent loss, after it announced that the company had set a record sales in China by 2024.
On the final trading day of this holiday-shortened weekend, major U.S. stock indexes surged higher after an initial sluggish start.
The S&P 500 jumped 1.3%, snapping a five-session losing streak that began when the markets returned from Christmas break. A resurgence of tech stocks helped the Nasdaq gain 1.8% and the Dow industrials 0.8%.
Following five straight days of declines in line with the drops in the benchmark index, Super Micro Computer (SMCI) shares roared back on Friday, bouncing 10.9% to lead the S&P 500 higher. Stocks of the server manufacturer’s company had a volatile year in 2024 due to accounting issues that delayed its annual report. Supermicro CEO assures investors that they will have the filing completed by Nasdaq’s updated deadline of February 25. He downplays the risk that exchange may delist stock.
As the trading year begins, the demand for nuclear energy continues to rise. The increased use of artificial intelligence data centers is helping the power producers’ outlook. Vistra’s (VST), a Texas-based utility, saw its shares surge 8.5%. Shares of NRG Energy also rose 6.2%.
Tesla’s (TSLA), stock soared by 8.2% after a session of heavy losses. Tesla (TSLA) reported lower-than-expected deliveries of electric vehicles for the quarter. Full-year 2024 delivery numbers are also below those for 2023. The carmaker did say that Tesla’s sales in China reached a new record last year. This is a positive sign for the largest auto market in the world, which faces fierce competition from local EV manufacturers.
Dollar Tree (DLTR) shares dropped 4.1% on Friday, losing the most of any S&P 500 stock. Dollar Tree, which already has minimal profit margins in its stores, launched same day delivery to help it compete better with online retailers. But the move may have the opposite effect, as the discounter’s profits could be affected. Analysts also voiced concerns over Dollar Tree’s move to a multiple-price-point format. They noted that this change hasn’t yielded expected results for growth in same-store sales and highlighted management’s lower forecasts.
Stocks of alcohol beverage manufacturers were under pressure following U.S. Vivek Dr. Murthy is the Surgeon-General of India. He warned against increased cancer risks due to alcohol consumption. According to the top official in the health sector, alcohol should be labeled with additional cancer warnings similar to those on tobacco packages. The shares of Molson Coors tumbled by 3.4%.
Celanese shares fell 3.4%, to their 52-week lowest. In November’s most recent earnings release, Celanese, which produces specialty chemicals, missed profit and sales estimates due to a lack of demand across various markets. These included paints, construction and coatings. Celanese had also cut its dividend, with effect from the first quarter in 2025.
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