Market Overview

The S&P 500 closed above 6,000 for the first time, marking a 0.1% increase from Friday's record close. The Nasdaq Composite also rose by 0.1%, while the Dow Jones Industrial Average gained 0.7%. The Russell 2000 outperformed with a jump of 1.4%. Small-cap stocks, along with other market segments favored last week, benefitted from optimism surrounding the economy and equity market under the incoming administration and Congress. Additionally, buying activity was fueled by a fear of missing out on further gains.

Market Participation

Many stocks saw upward movements, with advancers leading decliners by a roughly 3-to-2 margin at both the NYSE and the Nasdaq. The Invesco S&P 500 Equal Weight ETF (RSP) increased by 0.5%, and six S&P 500 sectors recorded gains.

Sector Performance

• Consumer Discretionary: This sector led the gains, closing 1.8% higher, driven by a significant rise in Tesla (TSLA), which closed at 350.00, up by 28.78, or 9.0%.
• Financials: The financial sector grew by 1.4%, building on last week's election-related gains.
• Information Technology: This sector faced a 0.9% decline due to weakness in mega caps and chipmakers.

Economic Data

No U.S. economic data was released today. However, this week's calendar includes the October CPI Report on Wednesday, the October PPI Report on Thursday, and the October Retail Sales Report on Friday. On Tuesday, the October NFIB Small Business Optimism survey will be released at 6:00 ET.

Today's News

Shares of Amedisys (AMED, Financial) dropped 4.2% following news that the Department of Justice is likely to challenge UnitedHealth's (UNH, Financial) proposed acquisition. This potential legal action comes after the companies had been in discussions with DOJ officials to prevent such a lawsuit. Amedisys had agreed to a sale at $101 per share to UnitedHealth, with the deal expected to close by year-end.

AbbVie (ABBV, Financial) faced a significant setback after its late-stage trial for the schizophrenia treatment emraclidine failed to meet the primary endpoint. This comes after AbbVie acquired the drug through an $8.7 billion purchase of Cerevel Therapeutics. The company is under pressure to find new revenue streams as patents on some key drugs near expiration.

Zeta Global (ZETA, Financial) shares surged 7% after reporting better-than-expected third-quarter results and raising its guidance for the next quarter. Revenue increased 42% year-over-year, and the company expects continued growth in the fourth quarter, surpassing analyst expectations.

Luminar Technologies (LAZR, Financial) saw a 13.73% rise in shares despite reporting a third-quarter revenue miss. The company anticipates moderate revenue growth in the fourth quarter and significant improvement in gross loss, with year-end liquidity estimated between $230 million and $240 million.

Monolithic Power Systems (MPWR, Financial) shares plunged nearly 20% after Edgewater Research reported potential loss of market share in Nvidia's (NVDA) Blackwell line of GPUs to Renesas and Infineon. However, some analysts remain optimistic, citing no design issues with Monolithic's AI accelerator power solutions.

Hims & Hers Health (HIMS, Financial) reached an all-time high, up 20%, after announcing plans to launch a generic version of Novo Nordisk's (NVO) diabetes drug Victoza in 2025. The stock has been on an upward trend following strong third-quarter results and raised revenue guidance for 2024.

Enterprise Product Partners (EPD, Financial) continued its upward trajectory, marking its seventh consecutive session of gains. Despite missing third-quarter expectations, analysts remain positive due to the company's strong gas volumes and recent agreement with Occidental Petroleum's (OXY, Financial) subsidiary to develop a CO2 transportation network.

Costco Wholesale (COST, Financial) ended its streak of six consecutive gains, closing down 1.16%. Despite strong financial performance, some analysts consider the stock overvalued due to its high P/E ratio and limited growth potential.

WeRide Inc. (WRD, Financial) shares soared 33% to a post-IPO high, driven by strong investor interest and a recent $321 million private placement. The company, known for its autonomous driving technology, has secured driverless permits in multiple countries, positioning it as a leader in the field.

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