DAILY UPDATE: The Gap is Down but Stock Markets are Up

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🟢 What’s up

  • Meta Platforms popped 3.62% on a report in the Wall Street Journal that the company is going all-in on using AI to create advertisements.
  • Applied Digital skyrocketed 48.46% after the data center operator announced two 15-year leases with CoreWeave that will bring in $7 billion in new revenue. CoreWeave rose 7.99%.
  • BioNTech soared 18.05% on news of a multibillion-dollar collaboration with Bristol Myers Squibb to develop cancer treatments. Bristol Myers Squibb rose 1.06%.
  • Moderna gained 1.84% thanks to the FDA’s approval of its new Covid vaccine, though it’s only for certain patients.
  • Blueprint Medicines exploded 26.09% after the biopharma company agreed to be acquired by Sanofi for $9.5 billion.

What’s down

  • Tesla slipped 1.09% after vehicle deliveries across Europe continued to drop, including a 67% decline in France last month.
  • Auto stocks suffered from fears of higher pricing thanks to President Trump’s steel tariff hike. General Motors tumbled 3.87%, Ford fell 3.86%, and Stellantis slid 3.55%.
  • Sports-betting stocks took a loss after Illinois lawmakers decided to tax the companies $0.25 per wager made on their apps. DraftKings lost 5.99%, and Flutter Entertainment dropped 2.74%.
  • Advertising stocks sank on Meta Platforms’ announcement of AI advances in its advertisements. Omnicom Group lost 4.02%, and WPP Group fell 2.45%.

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Markets: Stocks closed out a winning month Friday with the S&P 500 having its best one since 2023. But the markets are still rattled by the trade war, and stocks wavered during the day after President Trump accused China of breaching its recent trade deal with the US. Investors declined to fall into the Gap after the retail chain said tariffs would cost it up to $150 million this fiscal year.

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Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: Inflation Down but Old Navy and the Gap are Up as Altman Goes to Microsoft

By Staff Reporters

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News last week that inflation eased more than expected in October solidified the view that the Federal Reserve is done with its most aggressive rate-hike campaign in four decades. And that could be a boon for the stock market and your 401(k).

Over the last 10 rate hike cycles dating to 1974, the S&P 500 index rose an average 14.3% in the 12 months following the Fed’s final rate increase, according to an analysis by Ryan Detrick, chief market strategist at Carson Group.

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Stocks climbed to reach their third positive week in a row for the first time since summer, boosted by data showing inflation is on its way down. And, the Gap soared as the retailer reported strong sales last quarter at both Old Navy and its namesake stores.

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DAILY UPDATE: The U.S. Stock Markets

By Staff Reporters

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Here is where the major benchmarks ended on Friday:

  • The S&P 500 Index (SPX) was up 5.78 points (0.1%) at 4,514.02, up 2.2% for the week; the Dow Jones Industrial Average (DJI) was up 1.81 points at 34,947.28, up 1.9% for the week; the NASDAQ Composite was up 11.81 points (0.1%) at 14,125.48, up 2.4% for the week.
  • The 10-year Treasury note yield was down about 1 basis point at 4.439%.
  • CBOE’s Volatility Index (VIX) was down 0.54 at 13.78.

Retail shares were among Friday’s strongest sectors, helped by a nearly 30% surge by Gap (GPS) after the apparel company stronger-than-expected quarterly results. Energy companies were also higher thanks to a nearly 4% rise in WTI Crude Oil futures (/CL). Oil prices are still down 20% from a 2023 peak of more than $95 posted in late September.

In other markets, the U.S. dollar index dropped 1.8% for the week to touch its weakest level since September 1st, reflecting stepped-up expectations that interest rates have peaked.

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