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In today’s market update, the Dow Jones Industrial Average showed resilience despite challenges to House Speaker Mike Johnson’s debt-plan, while notable investor Cathie Wood made strategic moves amid a 22% stock plunge. Here’s a breakdown of key developments:
1. Dow Jones Performance:
- The Dow Jones Industrial Average experienced modest gains, rising by 55 points or 0.2%.
- Boeing (BA) led the Dow’s performance, gaining 4% after Emirates announced a significant $52 billion order for 95 Boeing aircraft.
- Nike (NKE) and Intel (INTC) lagged the most on the Dow, with Nike falling by 1.8%, and Intel giving up 1.6%.
2. Johnson Debt-Plan Challenges:
- House Speaker Mike Johnson’s two-step plan to avert a government shutdown faces opposition, particularly from conservative lawmakers.
- The proposed continuing resolution, aimed at funding various agencies until specific dates in January and February, is met with resistance, raising concerns about potential Republican chaos and government shutdowns.
- Moody’s Investors Service cutting its outlook on U.S. debt to negative from stable also contributed to early struggles in the market.
3. Cathie Wood’s Strategic Moves:
- Cathie Wood, founder of ARK Invest, demonstrated confidence in buying the dip by acquiring shares of the digital ad firm, Trade Desk (TTD), which experienced a 22% post-earnings plunge.
- Despite TTD showing bearish signals, Wood’s ARK Innovation ETF (ARKK) purchased nearly 543,000 shares of the company, showcasing a bold investment move.
4. Magnificent Seven Stocks:
- Tesla (TSLA) saw positive momentum, rising by 4.2%, following news about restrictions on Cybertruck resale within the first year of ownership.
- Other Magnificent Seven stocks, including Nvidia (NVDA) and Meta Platforms (META), had mixed performances. Nvidia rose by 0.6%, unveiling its H200 AI chip, while Meta Platforms saw a 0.1% increase.
5. Market Indices and Sectors:
- The Nasdaq experienced a slight dip of 0.2%, with notable movements in stocks like Lucid (LCID) and Warner Bros. Discovery (WBD).
- The S&P 500 slipped by 0.1%, with DaVita (DVA) rallying 6.5% despite remaining below recent highs.
- S&P 500 sectors showed mixed results, with energy and health performing well, while real estate and utilities lagged.
6. Breakout Attempts:
- Noteworthy breakout attempts included The Sprott Uranium Miners ETF (URNM), PTC (PTC), and Camtek (CAMT), each testing entry points.
7. Market Outlook:
- The market remains in a confirmed uptrend, and investors are advised to focus on stocks with strong earnings and price performance.
