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The Key Takeaways
- The S&P 500 added 0.2% on Monday, Dec. 2, as tech, communication, and consumer discretionary stocks helped the index build on last week's record close.
- Super Micro Computer stock soared when the maker of servers said an independent panel had not found any evidence that accounting was wrong.
- Targa Resources, the pipeline operator and other natural gas companies saw their shares fall as a result of the lower prices for gas.
As December began trading, major U.S. equity indexes were mixed. Many households are looking for Cyber Monday bargains as U.S. retail stores wrap up an enormous shopping weekend.
Meanwhile, investors will examine several economic data points this week, culminating in Friday’s release of the November jobs report.
The S&P 500 added 0.2% on Monday, reaching its highest-ever close for the second straight session. Nasdaq closed at a record high of 1%, also on the back of a good day in technology and communication. Dow fell by 0.3%.
Super Micro Computer (SMCI) shares surged 28.7%, leading the S&P 500 higher on Monday. Supermicro announced that an independent review panel had not found any evidence of accounting fraud or misconduct. This was followed by the latest surge in volatile shares. Server maker Supermicro also announced changes in its governance, such as a new Chief Financial Officer, Chief Compliance Officer, and General Counsel.
The stocks of semi-conductor equipment continued to rise after reports indicated that the proposed export restrictions for China might be less strict than originally anticipated. Lam Research shares (LRCX), while Applied Materials stock (AMAT) were up by 4.9% on Monday.
Analysts at Truist have made positive comments about the booking trends and prices in the cruise industry. This has led to gains for shares of cruise operators. Norwegian Cruise Line Holdings’ (NCLH), shares rose by 5.4% following a price increase from Truist. The move indicated that the company was on track to reach the implied guidance it provided during its investor day. Carnival (CCL), Royal Caribbean (RCL), and other cruise lines also saw their shares rise.
Shares of Texas Pacific Land (TPL), which owns significant acreage in the oil-rich Permian Basin, sank 6.1%, losing the most of any S&P 500 stock. The stock enjoyed a boost as it joined the S&P 500 in late November but has reversed those gains heading into December.
PG&E shares (PCG) dropped 5% after the California-based electric utility holding company said it would raise $2.4 billion through public offerings of new common and mandatory convertible preferred stock. PG&E plans to use the proceeds from the offering for general corporate purposes, which could include funding its five-year capital investment plan.
As forecasts of milder weather in winter raised concerns about demand for the main heating fuel, natural gas prices fell. U.S. inventories of natural gas heading into winter have reportedly reached their highest levels since 2016. Shares of natural gas companies were affected by the price drop. Targa Resources shares (TRGP), and Oneok’s (OKE) share prices fell respectively by 4,6% and 2,8%.
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