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Stock Market Highlights: December 4, 2024 – A Day of Mixed Signals and Anticipation
As the stock market closed on December 4, 2024, investors were left with a mix of optimism and caution, reflecting the complex interplay of economic indicators, corporate earnings, and geopolitical developments.
Indian Markets: Steady Gains and Sectoral Performance
In India, the benchmark Sensex continued its upward trajectory for the fourth consecutive day, closing 110.58 points higher at 80,956.33, a 0.14% increase. The Nifty 50, however, saw more subdued gains, ending nearly flat at 24,467.45, up a mere 10.30 points or 0.04%[1].
The top gainers on the NSE included HDFC Life, which surged 2.52%, followed by HDFC Bank with a 1.67% rise, Bajaj Finserv up 1.42%, Apollo Hospitals increasing by 1.38%, and NTPC gaining 1.37%. On the flip side, Bharti Airtel led the losers with a 2.28% drop, followed by Cipla down 2.21%, Bajaj Auto declining 1.77%, Tata Motors falling 1.63%, and Adani Ports slipping 1.62%[1].
The Nifty Bank index showed significant strength, rising to 53,000 and trading at 53,033, up 0.63%. This bullish trend was supported by a favorable advance/decline ratio, indicating further potential gains during the day[1].
U.S. Markets: Awaited Jobs Data and Fed Commentary
Across the Atlantic, U.S. markets were characterized by a sense of anticipation and mild volatility. The Dow Jones Industrial Average fell 169.17 points or 0.37% to 44,615.46, while the S&P 500 lost 6.98 points or 0.11% to close at 6,040.22. The Nasdaq Composite, however, managed a slight gain of 22.13 points or 0.12% to 19,427.37, briefly touching an all-time high[2].
Investors were keenly awaiting the private-sector hiring data and the crucial monthly payrolls figures scheduled for release later in the week. These numbers are pivotal in determining the Federal Reserve's interest rate trajectory. Additionally, comments from Federal Reserve officials, including Fed Chair Jerome Powell, were closely watched for any hints on future monetary policy[2][3].
Corporate Earnings and Key Movements
Salesforce ($CRM) stole the spotlight with a stellar performance, its stock surging 13% in premarket trading after the company reported better-than-expected third-quarter results and raised its full-year outlook. Salesforce's revenue grew 8% year-over-year to $9.44 billion, and its earnings per share (EPS) jumped to $1.58, exceeding analyst estimates[3].
Palantir Technologies ($PLTR) also made significant gains, adding to its all-time highs after its entire product suite received approval for use in processing sensitive federal workloads. This development further solidified Palantir's position as a top contender for inclusion in the Nasdaq 100 index[3].
On the other hand, Campbell's ($CPB) stock took a hit, dropping more than 3% after the company announced weaker-than-expected first-quarter results and the departure of its CEO, Mark Clouse, who is leaving to join the NFL's Washington Commanders. Despite this, Campbell's has a history of beating earnings expectations in previous quarters[3][4].
Economic Indicators and Geopolitical Influences
The U.S. labor market continued to show signs of a slow but orderly slowdown. A Labor Department report indicated that job openings increased moderately in October, while layoffs declined. This data, along with the upcoming jobs report, is crucial for investors trying to gauge the Fed's next moves on interest rates[2].
Geopolitical tensions also played a role, particularly with the declaration of martial law in South Korea by President Yoon Suk Yeol, which led to a 3% drop in the iShares MSCI South Korea ETF ($EWY)[2].
Sectoral Performance and Notable Stocks
In the tech sector, Tesla ($TSLA) saw its stock slip 1.5% following a report that its sales of China-made electric vehicles fell 4.3% year-over-year to 78,856 in November. Zscaler ($ZS) dropped 5.7% after its second-quarter revenue forecast failed to impress analysts[2].
U.S. Steel ($X) suffered a significant decline of 7.9% after former U.S. President Donald Trump reiterated his opposition to Nippon Steel's planned $15 billion purchase of the company. Trump's recent election victory and his potential plans for tax cuts and deregulation have been seen as positive for stocks, though concerns about tariffs and inflationary pressures remain[2].
Market Sentiment and Future Outlook
The overall market sentiment remains cautiously optimistic. The advance/decline ratios on both the NYSE and Nasdaq indicated more declining issues than advancers, but the S&P 500 and Nasdaq Composite still managed to post new 52-week highs, suggesting underlying strength in the market[2].
Investors are advised to wait for dips to go long, as the current trend indicates further potential gains. However, the flip side of this optimism is the concern that evaluations may not support anything other than a positive scenario, which could lead to a correction if the good news starts to mean too much[1][3].
Conclusion
December 4, 2024, was a day marked by mixed signals in the stock market. While Indian indices showed steady gains, U.S. markets were more subdued, awaiting critical economic data and Federal Reserve commentary. Corporate earnings reports added to the volatility, with some companies like Salesforce and Palantir shining bright, while others like Campbell's and Tesla faced challenges.
As we move forward, investors must remain vigilant, balancing the optimism driven by strong corporate performances and favorable economic indicators with the caution necessitated by geopolitical uncertainties and potential market corrections. The stock market, as always, remains a dynamic and unpredictable arena, and only those who stay informed and adaptable can navigate its complexities successfully.
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