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US stocks drifted lower on Thursday as investors waited for Friday's crucial jobs report and bitcoin (BTC-USD) slid after reaching a new high of over $103,000.
All three major averages were lower on Thursday after closing at records the day before. The Dow Jones Industrial Average (^DJI) lost about 0.5%, while the S&P 500 (^GSPC) fell 0.2%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) was also off about 0.2%.
Investors are counting down to Friday's monthly jobs report for a reality check on Jerome Powell's upbeat take on the strength of the US economy. While the Federal Reserve Chair said that means policymakers can move cautiously, he stopped short of challenging the market's belief in a December rate cut.
Traders have slightly pared their bets on easing, pricing in a 74% chance the Fed will cut by 25 basis points on Dec. 18, per the CME FedWatch tool. That compares to around 77% on Wednesday and 67% a week ago.
A strong print in November's nonfarm payrolls report on Friday could upend those bets. On Thursday, fresh data from the Department of Labor showed 224,000 initial jobless claims were filed in the week ending Nov. 30, up from 215,000 the week prior. The previous reading had been the lowest total of weekly claims since April.
Meanwhile, bitcoin (BTC-USD) rose to around $103,000 after breaking through the key $100,000 level late on Wednesday, before reversing course and trading around $99,000. The token's surge past the key level came after President-elect Trump picked Paul Atkins to chair the Securities and Exchange Commission.
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All eyes on the November jobs report
After a calm day for stocks on Thursday, the November jobs report is set to highlight the final trading day of the week.
The report is expected to show hiring rebounded last month after hurricanes and a strike by Boeing (BA) workers weighed heavily on the October report. The Bureau of Labor Statistics' monthly jobs report, slated for release at 8:30 a.m. ET on Friday, is projected to show nonfarm payrolls rose by 215,000 in November while the unemployment rate held steady at 4.1%, according to consensus estimates compiled by Bloomberg.
In October, the US economy added just 12,000 jobs amid various disruptions to economic activity while the unemployment rate stood at 4.1% for a second straight month.
Ulta stock soars after better-than-expected quarterly results
Ulta Beauty (ULTA) stock rose about 9% in after-hours trading as the company's third quarter earnings per share of $5.14 handily topped Wall Street's forecast for $4.53.
Meanwhile, Ulta's third quarter revenue was a narrower beat, with sales for the quarter hitting $2.53 billion, above the $2.5 billion analysts had projected.
Lululemon shares pop after earnings beat
Lululemon (LULU) stock rose as much as 7% in after-hours trading before paring back gains after the company reported better-than-expected third quarter results.
Here's how Lululemon performed compared to Wall Street's expectations, according to Bloomberg consensus estimates:
For the full year, Lululemon forecasted net revenue in a range of $10.45 billion to $10.49 billion. Analysts had been expecting $10.42 billion. Meanwhile, the retailer said it expects earnings per share in a range of $14.08 to $14.16, meeting the high end of Wall Street's forecasts.
Tesla stock rises as Giga Austin visit has BofA bullish
Shares of Tesla (TSLA) rallied more than 3% on Thursday on the back of bullish commentary from Bank of America Securities lead analyst John Murphy.
“The trip gave us increased confidence that TSLA is well-positioned to grow in 2025+ with its core EV business and launch of its robotaxi offering, and longer-term from its investments in Optimus,” Murphy wrote in a note to investors.
Murphy reiterated his Buy rating for Tesla and upped his price target to $400 from $350.
Elon Musk's DOGE takes Capitol Hill
Yahoo Finance's Ben Werkschul reports from Washington:
Elon Musk and Vivek Ramaswamy received a rapturous welcome to Capitol Hill Thursday as questions piled up about exactly what the goals are for their extra-governmental "Department of Government Efficiency" (DOGE).
Musk wasn’t overly interested in clarifying as he moved between meetings on Capitol Hill Thursday.
At one point, as he passed, a reporter shouted out “What’s DOGE?” The world's richest man didn't stop and only offered a chuckle in response.
Smaller cryptocurrencies are outperforming bitcoin since the election
Bitcoin (BTC-USD) eclipsed $100,000 per coin for the first time ever on Wednesday night, sparking a rally across the cryptocurrency.
The latest move higher in bitcoin came after President-elect Donald Trump picked Paul Atkins to chair the Securities and Exchange Commission. Atkins has been seen as a crypto-friendly pick for the position.
Bitcoin, the world's largest cryptocurrency, is now up more than 40% since the election. But an even more aggressive rally has been taking place in other crypto tokens. Ethereum (ETH-USD) is up almost 60% while smaller tokens like Ripple (XRP-USD), Cardano (ADA-USD), and Dogecoin (DOGE-USD) have rallied triple digits.
CoinDesk Indices head of product Andrew Baehr told Yahoo Finance the larger move in the smaller cryptocurrencies is likely because they have more regulatory hurdles to cross than bitcoin, which already has ETFs attached to it.
"The other assets count more on regulatory pavement," Baehr said. "Think about things like smart contracts, stablecoins, future of finance, Web3, things that will change our lives in the future: They need the regulatory pavement."
Baehr added that for regular investors looking for a small amount of crypto exposure in the broad portfolios, that doesn't mean buying into the risk-on rally in smaller coins is the way to go.
"You really have to be in the weeds to track [the smaller coins]," Baehr said. "And timing is almost impossible."
Uber, Lyft slide after Waymo announces plans to launch in Miami
Shares of both Uber (UBER) and Lyft (LYFT) were under pressure on Thursday after Waymo, an upstart self-driving rideshare company, announced plans to expand to Miami.
Waymo said it expects to have its rides available to all customers in Miami by 2026. Waymo, seen as a competitor to the two ridesharing giants, already provides over 150,000 trips per week across Phoenix, Los Angeles, San Francisco, and Austin, per a press release.
Uber and Lyft shares were both down about 10%.
Playing Trump trades can be a 'loser's game'
Since Donald Trump won the 2024 presidential election, various trades have had fits and starts as the president-elect names Cabinet members and discusses potential economic policies.
For instance, small caps took off right after Trump's win before cooling off and then eventually reaching record highs. The same could be said for a vaccine stock like Moderna (MRNA). Shares tanked when Trump nominated known anti-vaccine advocate Robert F. Kennedy Jr. to head the Department of Health and Human Services, but are now back near the same levels they were trading at before the nomination.
These jerky stock moves are just one example of how market participants remain uncertain on the difference between what Trump says will happen and what will actually happen.
"There will be traders that will try to play every sentence, every move, and I think that's kind of a loser's game because he can change his mind," AlTi Tiedemann Global chief investment officer Nancy Curtin told Yahoo Finance. "In concept, he'll do what he said he would do. But the actual implementation remains to be seen."
Curtin's advice for longer-term investors is to stay focused on the current trends that are more likely to definitely be intact in 2025.
"We think the fundamentals look pretty good," said Curtin, who noted she's optimistic about US equities in 2025. "Earnings look pretty good. And by the way, a little animal spirits, M&A, IPOs, would also enhance trajectory."
Meme stocks pop after 'Roaring Kitty' social media post
Meme stocks AMC (AMC) and Gamestop (GME) each popped more than 5% on Thursday afternoon after the X account linked to investor Keith Gill, also known as "Roaring Kitty," posted for the first time since early September.
The account posted a picture of what appeared to be a fake Time Magazine cover with no clear reference to any individual stock.
Back in May, Gill started a meme stock revival as he returned to his popular YouTube stream for the first time since the frenzy of 2021. The rally reversed as Gamestop issued more stock and Gill's accounts have been largely quiet since.
But GameStop shares have quietly picked up steam again in the past month, rising nearly 30%.
What to watch in Luluemon's earnings after the bell
Quarterly results from Lululemon (LULU) are expected to be a highlight after the bell on Thursday.
With shares down more than 30% this year, analysts are looking for signs of a rebound for the popular retailer.
Here's what Wall Street expects from the report, according to Bloomberg consensus estimates:
Mortgage rates move lower
Yahoo Finance's Claire Boston reports:
Mortgage rates dropped again this week, spurring more potential homebuyers to submit applications as the 2024 buying season wanes.
The average 30-year mortgage rate fell to 6.69% from 6.81% a week earlier, according to Freddie Mac data. Fifteen-year mortgage rates dropped to an average of 5.96% from 6.1% last week.
“Despite just a modest drop in rates, consumers clearly have responded as purchase demand has noticeably improved," Sam Khater, Freddie Mac’s chief economist, said in a statement. "The responsiveness of prospective homebuyers to even small changes in rates illustrates that affordability headwinds persist.”
Mortgage applications for home purchases rose 6% in the week through Friday, marking the fourth straight week of gains, according to the Mortgage Bankers Association (MBA). The week included an adjustment for the Thanksgiving holiday.
BlackRock sees 'exceptionalism' powering US stocks higher in 2025
US stocks have led the equity market in recent years and strategists at BlackRock's Investment Institute don't see that narrative changing in 2025.
"Currently, across all the scenarios in the outlook, the platform is gravitating towards the US corporate strength scenario, which is another way of calling for US exceptionalism," BlackRock Investment Institute chief investment strategist Wei Li said during a media roundtable on Wednesday.
Li cited stronger earnings growth seen in the US this year and the expectation that earnings growth will continue to broaden outside of the "Magnificent Seven" names that have powered the stock market higher over the last two years. This view has been a common refrain from Wall Street firms offering bullish outlooks for 2025 over the last month.
"Earnings is almost everything when it comes to longer-term equity returns," Li said, adding the strongest revisions for next year have come from the US and Japan, where BlackRock is also overweight equities.
Disney boosts cash dividend
Disney (DIS) increased its cash dividend by 33% to $1.00 a share late Wednesday, a sign of confidence from the company after its streaming business built on recent momentum and swung to a profit in its latest quarterly report.
The dividend will be paid in two installments of $0.50 a share on Jan. 16 and July 23, 2025, to shareholders of record as of Dec. 16, 2024, and June 24, 2025, respectively.
"It’s been a highly successful year for The Walt Disney Company, stemming from the extensive strategic work across the company to improve quality, innovation, efficiency, and value creation," Disney CEO Bob Iger said in a press release.
"With the company operating from a renewed position of strength, we are pleased to increase the dividend for shareholders while continuing to invest for the future and drive sustained growth through Disney’s world-class portfolio of assets."
Disney shares have climbed about 29% since the start of the year, slightly outpacing the 27% gain of the S&P 500 (^GSPC) over that same time period.
Bitcoin leaps above $100K in critical milestone
It's the milestone crypto enthusiasts have been waiting for: Bitcoin (BTC-USD) prices have officially crossed $100,000 a token. The achievement occurred late Wednesday, and prices rose again to just around $103,000 a coin early Thursday.
Bitcoin has rallied significantly since the election of Donald Trump, with the administration viewed as generally more friendly to the alternative asset class.
In July, Trump attended a bitcoin conference in Nashville and has since pledged to usher in more supportive regulation. The most recent appointment of Paul Atkins as the next SEC chair supports that push — and likely served as the catalyst for the latest price action.
"This is very, very bullish news for digital asset markets," Perianne Boring, founder of advocacy group The Digital Chamber, told Yahoo Finance's Morning Brief on Thursday. "For many, many years, the industry has really been against significant regulatory headwinds by the SEC as well as the CFTC. ... [Atkins] has been on the frontlines helping to address the regulatory uncertainty."
Trump praised the crypto moves early Thursday, writing on his social media platform Truth Social, "CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU'RE WELCOME!!!"
Stocks near flat at the open
US stocks floated higher on Thursday as investors waited for Friday's crucial jobs report and bitcoin (BTC-USD) posted new all-time highs above the key $100,000 milestone.
After all three major averages closed at records on Wednesday, the Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) were barely in positive territory. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) was up more than 0.1%.
Weekly jobless claims tick higher
Weekly jobless claims just rose more than expected.
New data from the Department of Labor showed 224,000 initial jobless claims were filed in the week ending Nov. 30, up from 215,000 the week prior and above the 215,000 economists had expected. Claims had been at a seven-month low prior to last week's increase.
Meanwhile, the number of continuing applications for unemployment benefits fell to 1.87 million, down from a prior reading of 1.89 million.
Good morning. Here's what's happening today.
Economic data: Challenger jobs cuts (November); Initial jobless claims (week ending Nov. 30)
Earnings: BMO (BMO), Build-a-Bear Workshop (BBW), Dollar General (DG), DocuSign (DOCU), Hewlett Packard Enterprise (HPE), Kroger (KR), Lululemon (LULU), Petco (WOOF), TD Bank (TD), Ulta Beauty (ULTA)
Here are some of the biggest stories you may have missed overnight and early this morning:
'Exceptionalism' set to power stocks in 2025
Nvidia signs AI deal with Vietnamese government
Crypto is getting the SEC boss it wanted
'Musk is right': DOGE-curious Democrats find common ground
Hedge funds make MicroStrategy Wall Street's hottest trade
This financial planning tool could dent the racial wealth gap
Traders game out TikTok scenarios for Meta, Alphabet, Oracle
Bezos says he's optimistic about Trump, can help cut regulations
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