S&P 500, Nasdaq close at records to kick off December trading: Live updates

The S&P 500 and the Nasdaq Composite rose to new records to begin December trading as the indexes added to November's hefty gains.

The S&P 500 added 0.24% to close at 6,047.15. The Nasdaq Composite added 0.97% and ended at 19,403.95. Both indexes touched fresh all-time intraday highs and closed at records. The Dow Jones Industrial Average lost 0.29%, or 128.65 points, closing at 44,782.00. The blue-chip index briefly topped the 45,000 level during the day, a key threshold it hit a few times last week.

Shares of Tesla gained about 3.5% following an upgrade to buy from neutral at Roth MKM, with the firm citing CEO Elon Musk's close relationship with President-elect Donald Trump as a catalyst. Artificial intelligence server maker Super Micro Computer surged nearly 29% after a special committee found "no evidence of misconduct" and that the firm's financial statements were "materially accurate." Meanwhile, Amazon added more than 1% amid the start of the holiday shopping season on Cyber Monday.

November marked the best month of 2024 for both the Dow and S&P 500, with the two gaining 7.5% and 5.7%, respectively, for the period. Most of the gains came in a postelection rally after Trump emerged as the winner of the presidential race. Both indexes notched closing highs in Friday's shortened trading session.

Small-cap stocks were also a winner in November as investors saw the group benefiting from Trump's potential tax cuts. The Russell 2000 surged more than 10% in the month, also notching its biggest monthly gain of the year.

December is traditionally a good month for stocks, but Jay Hatfield, founder and CEO of InfraCap, only sees the market range-bound into the end of 2024.

"I think we'll grind higher, but not rocket higher," he told CNBC, citing 6,200 as a potential year-end estimate for the S&P 500. This is less than 3% above where the benchmark closed on Friday. "I think we've priced in the upside from the new, pro-business administration, and now we need to get details — not just tweets — but details of what the policy is."

On Monday, freshly released economic data indicated that the U.S. manufacturing sector improved in November, although it still remained in contraction. That came ahead of the November jobs report, due out Friday morning.

S&P 500, Nasdaq Composite close at new record highs

The S&P 500 and Nasdaq Composite both closed at new records on Monday.

The broad market benchmark added 0.24% to settle at 6,047.15. The Nasdaq Composite gained 0.97%, finishing at 19,403.95. On the other hand, the blue-chip Dow Jones Industrial Average lost 128.65 points, or 0.29%, to close at 44,782.00.

— Lisa Kailai Han

Oppenheimer says 'more upside for stock prices is likely,' despite high valuations

Oppenheimer sees stocks continuing their current upward streak in the next year, despite prices persisting near their all-time highs.

"Valuations remain a concern among market participants with stocks at current levels and with the S&P 500 sectors and a number of other benchmarks showing forward PE multiples that are higher than their five-year averages," chief investment strategist John Stoltzfus wrote in a Monday note. "That said, the resilience exhibited throughout the year by the economy, business, and the consumer suggests more upside for stock prices is likely notwithstanding a catalyst that could appear and provide opportunity for bears, skeptics and nervous investors to take profits midst a bull market that appears to have legs driven by fundamentals that enable it likely to travel further up the proverbial wall of worry."

Stoltzfus added that his favorite sectors as he positions for the year ahead include information technology, financials, communication services, industrials and consumer discretionary.

— Lisa Kailai Han

Growing consumer confidence in stocks could be a sign of market froth, UBS warns

Consumer confidence that the stock market is rising is at its highest in decades — but that hasn't necessarily translated over to the macroeconomy, according to UBS.

"The holiday season is in full swing and spirits seem bright, at least among investors," the firm wrote in a Monday note. "If anything, it's raising concern about the markets getting frothy, a claim backed up by the latest Conference Board consumer survey showing confidence that stock prices will increase is at a 37-year high. Signs of actual froth are most evident in crypto prices, long positions in S&P 500 futures, and trading volumes in leveraged ETFs."

However, UBS added that while financial markets are frothy, there is still a lack of exuberance regarding the economy, specifically among consumer and business sentiment indicators.

"Sentiment measures are rising, but their current pace of improvement implies that they won't approach prior peaks until at least 2026. While this isn't a necessary condition for market frothiness, investor euphoria is hard to achieve and sustain when public sentiment about the economy is not similarly optimistic," the firm said.

— Lisa Kailai Han

December trends point to a strong end to the year

According to Canaccord Genuity, historical December market gains imply stocks can finish the year on a sweet note.

When analyzing 11 prior periods during which the S&P 500 rallied 20% or more in the first 11 months of the year, December's performance improved slightly compared to the all-years median, according to analyst Michael Welch.

"Strength begets strength," Welch wrote in a Monday note.

"After 20%+ gains, the median December performance improved by 63 basis points to 1.96%, and the positivity rate improved to 78.6% from 73.1%," Welch added.

— Hakyung Kim

BofA: 'Ample reason' to stick with stocks over bonds for the long run

Enthusiasm for stocks is sitting at an all-time high, according to Bank of America.

Bank of America's most recent sell-side indicator, which tracks sell-side strategists' average recommended equity allocation in a balanced fund, was unchanged at 56.7% in November. That is its highest level since early 2022, the firm said.

"Although equity sentiment and valuation are currently elevated, we still see ample reason to stick with stocks over bonds for the long-term," Savita Subramanian, head of U.S. equity and strategy, wrote in a Monday note. "For the equal-weighted S&P 500, valuation points to healthy price returns of 5-6% per year over the next decade (and more with dividends). Meanwhile, treasuries face waning foreign demand and growing sovereign risk as U.S. debt/GDP continues to rise."

— Pia Singh

Retail ETF hits all-time high as holiday shopping season continues

The VanEck Retail ETF (RTH) reached record levels as Cyber Monday kicked into full swing.

The fund traded as high as $233.28 in Monday's session, marking a new intraday high. It was last up about 0.1%, putting it on pace for a record close.

Bath & Body Works led the exchange-traded fund higher with a jump of more than 4%. Lululemon and Dollar Tree followed, posting gains of around 4% and 2.5%, respectively.

Target and Kroger were among the stocks restricting gains for the fund, with both sliding more than 1.5%.

The ETF is now up more than 23% this year. Monday's jump to records comes amid a closely watched shopping period, as consumers parse deals and consider what to purchase for upcoming holidays.

— Alex Harring, Scott Schnipper

UBS sees ‘compelling’ upside for Five Below, cites upcoming earnings results as possible catalyst

Some postearnings gains may be in store for Five Below, according to UBS.

Analyst Michael Lasser — who has a buy rating on the retailer and whose price target reflects more than 16% upside from Friday's close — cited the company's third-quarter earnings report after the bell on Wednesday as a possible catalyst for growth.

"We think the shares of Five Below have a compelling set up into the company's print," the analyst said to clients. "While it's widely expected that the retailer will outperform the consensus forecasts in 3Q, we think a solid print will show that some of the fears that have weighed on the stock are overblown."

Aside from that, Lasser thinks the company is positioned to handle any risk posed by President-elect Trump's tariff strategy. This comes as the former president vowed last week to raise tariffs an additional 10% on imports from China — which Five Below has significant exposure to — as well as impose 25% tariffs on goods from Mexico and Canada.

"[I]f it has to absorb some of the risk, we think it's manageable," he continued. "Specifically, we think FIVE's EPS could see only a ~5% headwind for each ~10% tariff it would incur from Chinese imports."

While shares rose about 5% in afternoon trading, they have still fallen more than 54% this year.

— Sean Conlon

Energy stocks underperform, natural gas futures down more than 4%

Energy stocks are underperforming on Monday, with the Energy Select Sector SPDR Fund (XLE) down about 1.3% in afternoon trading.

Among the fund's top holdings, ConocoPhillips was down 2%. ONEOK and The Williams Companies were down 2.6% and 2.9%, respectively.

The drop for energy stocks comes as natural gas prices fell sharply on Monday, with futures down more than 4%. The U.S. is entering the winter with the most natural gas inventory since 2016, according to the U.S. Energy Information Administration. In the oil market, futures for West Texas Intermediate crude were down about a quarter of a percent, trading below $68 per barrel.

— Jesse Pound

Bank of America reiterates buy rating on Citigroup, sees 27% upside

Bank of America reiterated its buy rating on Citigroup on Monday, saying President-elect Donald Trump's policy should be a "net positive" for the bank.

Shares of Citigroup jumped more than 10% in November on the back of Trump's victory, but the performance still lagged many of its peers such as JPMorgan, Goldman Sachs and Morgan Stanley.

Bank of America analysts said the underperformance was because of the investor perception that Citi is much more globally exposed relative to peers, which makes it vulnerable under Trump's protectionist policies.

However, Bank of America believes that the potential for deregulation is beneficial for the bank, seeing the stock reaching $90 per share in the next 12 months, or a 27% upside.

"Our expectations for a more balanced/predictable regulatory environment should serve as a significant positive for Citigroup," the firm said. "Most notably, this should improve visibility around the pace of capital return. The headline risk tied to an asset-cap should also get eliminated under the new agency heads."

— Yun Li

Communication services sector leads broader market gains

The communication services sector advanced 1.3% Monday, leading the S&P 500's 0.2% rise.

The only two other sectors positive on the day were information technology and consumer discretionary, which rose around 1.1% each.

Meanwhile, rate-sensitive sectors of the market such as utilities and real estate pulled the broader market lower. Utilities declined 1.7%, while real estate fell 1.4%.

— Hakyung Kim

Strong November bodes well for stocks over next 12 months, historical data shows

If history is any guide, the returns seen in the most recent month can offer good news on what's to come for markets.

The S&P 500 finished November climbing more than 5%. Looking back to 1950, the S&P 500 has gone on to gain an average of 12.8% over the next 12 months after finishing a November higher by at least 5%, according to Carson Investment Research.

Of those periods after November finished at least 5% up, the S&P 500 has been higher a year out nearly 77% of the time.

— Alex Harring

Stocks making the biggest moves midday

Check out some of the companies making headlines in midday trading:

• Super Micro Computer — Shares advanced more than 30% after a special committee said it found "no evidence of misconduct" on the part of the artificial intelligence server maker.
• Intel — The chipmaker gained 4% following the retirement of CEO Pat Gelsinger. Executives said David Zinsner and Michelle Johnston Holthaus will serve as interim co-CEOs. Intel shares have had a rocky year, off roughly 50% in 2024.
• Tesla — The electric vehicle stock gained more than 3% after a Roth MKM upgrade to buy from neutral. The firm cited President-elect Donald Trump's close ties with CEO Elon Musk as a positive catalyst for Tesla's brand.

Read the full list here.

— Brian Evans

10 stocks in the S&P 500 trade at new 52-week highs

During Monday's trading session, 10 stocks in the S&P 500 reached new 52-week highs.

Of these names, five stocks traded at new all-time highs. These included:

• Deckers Outdoor trading at all-time highs back to its initial public offering in October 1993
• Royal Caribbean trading at all-time-high levels back to its IPO in April 1993
• Walmart Stores trading at all-time-high levels back to when it first began trading on the New York Stock Exchange in August 1972
• Visa trading at all-time-high levels since its IPO in March 2008
• Apple Inc. trading at all-time-high levels back to its IPO in December 1980

On the other hand, LyondellBasell was the only stock in the index to trade at new 52-week lows.

— Lisa Kailai Han, Christopher Hayes

Morgan Stanley upgrades Cloudflare and Okta amid possible near-term risks to security stocks

Morgan Stanley is getting bullish on two security stocks despite taking a more cautious view of the sector heading into 2025.

Shares of Cloudflare rose nearly 7% in morning trading after analyst Hamza Fodderwala upgraded shares to overweight from equal weight. His updated price target implies more than 30% upside from Friday's close.

The move comes as the analyst sees several near-term risks ahead for the space more generally, such as a tough spending environment, a less favorable U.S. fiscal backdrop and security stocks' premium valuations when compared to broader software names.

"We believe Cloudflare can sustain, if not accelerate, topline growth over the next few years given multiple product cycles, improving sales execution and emerging tailwinds as an Edge AI network," he wrote. "A premium valuation is warranted for premium growth, in our view."

The stock has seen meaningful gains this year, rallying around 28% year to date and almost 22% over the past month.

Fodderwala likewise upgraded shares of Okta to overweight from equal weight, pointing to a stabilizing demand environment, easing competitive headwinds and newer product cycles starting to take hold. Its updated target reflects around 25% upside from Friday's close.

While that stock rose around 4% in the wake of the upgrade, shares have still fallen about 11% this year.

— Sean Conlon

Cyber Monday sales expected to set a new record

Online sales are expected to break a record on Cyber Monday as retailers tee up discounts on electronics, clothing and a variety of other items, according to Adobe Analytics.

Consumers are expected to spend $13.2 billion during the follow-up to Black Friday, an increase of $750 billion, or 6.1%, from the event in 2023. Adobe expects electronics to sell at a 30% discount, with pronounced markdowns also for toys (26%), apparel and TVs (both 23%) and computers (22%).

The projected huge sales — $15.7 million every minute — follow blockbuster Black Friday receipts of $10.8 billion and Thanksgiving sales of $6.1 billion, up 10.2% and 8.8%, respectively, from a year ago.

"Discounts have exceeded expectations beginning on Thanksgiving, and Cyber Monday has essentially become 'last call' for shoppers looking to get the best deals this season," said Vivek Pandya, lead analyst at Adobe Digital Insights.

— Jeff Cox

Super Micro Computer pops 15% after special committee finds 'no evidence of misconduct'

Super Micro Computer popped more than 15% after a special committee said it found "no evidence of misconduct," and the embattled artificial intelligence server company appointed a new chief accounting officer.

The company also appointed a new chief accounting officer and said it is searching for a new chief financial officer.

— Samantha Subin

ISM manufacturing index tops forecast

Activity in the U.S. manufacturing sector improved in November though it remained in contraction, the Institute for Supply Management reported Monday.

The ISM's manufacturing index rose to 48.4, above the 0.5 reading in October and better than the Dow Jones estimate for 47.5. The index measures the percentage of companies reporting expansion, so anything below 50 indicates contraction.

Within the monthly survey, inventories, new orders and employment all showed gains while the prices index dropped 4.5 points to 50.3, an indication that inflation pressures are easing.

— Jeff Cox

Morgan Stanley double upgrades NextEra Energy Partners

The postelection sell-off for clean energy stock NextEra Energy Partners has gone too far, according to Morgan Stanley.

Analyst Robert Kad upgraded the stock to overweight from underweight. Kad said in a note to clients that the company, which holds an interest in several different types of renewable energy projects and a natural gas pipeline, will likely be insulated from policy changes under the Trump administration.

"While the recent US election has raised uncertainty around federal clean energy policy likely to serve as an overhang until IRA revisions are clearer, we see limited impacts for renewable infrastructure and double upgrade NEP to OW," the note said.

The stock is down roughly 15.5% since the election.

In addition to being a prospective rebound trade, the company is also conducting a strategic review that should be completed over the coming months, according to Kad.

"Uncertainty around NEP's longer-term strategy and growth potential makes us reluctant to make more than a short-term call for now, but holding a long position into the announcement would allow for participation in a positive outcome in which growth and sponsor support are reinstated," Kad said.

Shares of NextEra Energy Partners rose more than 3% in premarket trading.

— Jesse Pound

Stocks open slightly higher

Stocks opened slightly higher to start the new trading month.

Both the S&P 500 and Dow Jones Jones Industrial Average added 0.2%. The tech-heavy Nasdaq Composite advanced 0.4%.

— Lisa Kailai Han

Gap, Tesla among stocks making biggest premarket moves

Check out the companies making headlines before the bell:

• Gap — The clothing retail stock jumped 4.7% after JPMorgan upgraded shares to overweight. The firm cited a strong start to the holiday shopping season and a multiyear growth outlook.
• Stellantis — Shares sank 9% after CEO Carlos Tavares stepped down from his role at the automaker, effective immediately. The company cited "different views" between Tavares and the board of directors as the reason for the departure.
• Tesla — Shares of the electric vehicle maker gained 2.2% after Tesla's vice president of artificial intelligence software tweeted on Saturday night that version 13 of Tesla's "Full Self-Driving" driver-assistance software has started rolling out to some customers.

For the full list, read here.

— Pia Singh

Intel pops 6% amid CEO retirement

Intel shares popped 6% after the chipmaking company announced that CEO Pat Gelsinger has retired.

The company named David Zinsner and Michelle Johnston Holthaus interim co-CEOs.

— Samantha Subin

Black Friday spending up 3.4% from last year

U.S. retail sales, excluding automotive, increased 3.4% on Black Friday compared to last year's Black Friday, data from Mastercard shows.

Most Americans shopped online, with sales rising 14.69% versus last year. In-store sales were up 0.7%. Apparel, jewelry and electronics remained the top gifts.

Shoppers made the most of seasonal deals, Mastercard senior advisor Steve Sadove said in a statement.

"They're more strategic in their shopping … prioritizing promotions that they believe hold the greatest value — opening their wallets, but with more intentional distribution," said Sadove, former CEO of Saks.

— Michelle Fox

Stifel raises Tesla price target over artificial intelligence business

Tesla isn't just an electric vehicle company and shouldn't be viewed as such, according to Stifel analyst Stephen Gengaro.

"TSLA is clearly not just an automaker, as evidenced by its current market cap surpassing the aggregate value of the top 10 global automakers," Gengaro wrote in a Sunday note. "While we have confidence in TSLA's Auto business, the significant value creation potential from its AI-based full self-driving capabilities and Cybercab (Robotaxi) underpin our positive outlook."

The analyst reiterated a buy rating on Tesla stock and raised his price target to $411 from $287, equating to about 19% upside moving forward. Tesla stock has added nearly 39% in 2024.

— Brian Evans

Stellantis sinks 9% as CEO departs

Stellantis shares tanked 9% before the bell after the automaker announced Sunday that its CEO Carlos Tavares has resigned.

The departure, effective immediately, comes as a result of "different views" between Tavares and the board of directors, the company said Sunday.

The Jeep maker established a new interim executive committee led by chair John Elkann as it searches for its new CEO. Stellantis said it expects to finish the search during the second half of 2025.

— Samantha Subin, Mike Wayland

Australia hits fresh closing high as most Asian markets rise

Asia-Pacific markets traded mostly higher on Monday as the region kickstarted a data-heavy week, led by Australian markets.

Australia's S&P/ASX 200 traded up 0.14%, ending at a record closing high of 8,447.9.

However, South Korea's markets were the outlier in the region, as the Kospi slipped marginally to 2,454.48, and the small-cap Kosdaq fell 0.35% to a 23-month low of 675.84.

Japan's benchmark Nikkei 225 was up 0.8% and closed at 38,513.02, while the broad-based Topix was 1.27% higher at 2,714.72.

Hong Kong's Hang Seng index gained 0.65% in its last hour of trade, while mainland China's CSI 300 was up 0.79% to close at 3,947.63.

— Lim Hui Jie

Europe stocks open slightly lower

European stocks opened lower Monday, with the Stoxx 600 index down 0.1% in early deals.

France's CAC 40 index fell 0.77% as investors monitored ongoing political volatility in the country. Germany's DAX was down 0.15%, while the U.K.'s FTSE 100 was flat.

— Jenni Reid

Stocks come off winning week and month

The market is coming off a winning week and trading month, which both concluded with Friday's closing bell. For a refresher, here is how the three major indexes performed:

• The Dow gained 1.4% in the week, pushing its monthly gain up to 7.5%.
• The S&P 500 added 1.1% on the week, finishing November higher by 5.7%.
• The Nasdaq Composite rose 1.1% in the week, ending the month with a 6.2% advance.

Notably, both the Dow and S&P 500 notched their best monthly performances of 2024 in November.

— Alex Harring

Stock futures are little changed

Futures tied to the Dow, S&P 500 and Nasdaq 100 were all near flat shortly after 6 p.m. ET Sunday night.

— Alex Harring