December 13, 2024

Markets:

Stock futures were higher Friday morning following a losing session on Wall Street.

Broadcom gained around 17% after posting fiscal fourth quarter adjusted earnings that beat estimates and reporting that artificial intelligence revenue soared 220% for the year. Micron, Nvidia and AMD followed Broadcom higher in early trading.

For the week, the Dow is heading for a 1.6% decline, while the S&P 500 is on pace for slide of 0.6%. The Nasdaq has outperformed, on track for a 0.2% advance for the period.

Thursday’s moves followed a producer price index report for November that came in ahead of expectations. Wholesale prices increased 0.4% last month, higher than the Dow Jones consensus estimate of 0.2%.

The recent rise in equities has fanned some concerns of an overvalued market fueled by a postelection rally, but some on Wall Street think there may still be more room to run.

Fourth-quarter e-commerce trends for Amazon are tracking in-line to slightly above initial estimates, according to Baird. The firm increased its price target on Amazon shares to $260 from $220, implying 13.5% upside from Thursday’s close. Monster upgrade for AMZN.

Portfolio:

We enter the final session of the week – which happens to be Friday the 13th – holding setups in SMR, SOFI, IONQ, and TEVA. Although it's Friday and we typically dislike adding positions on a Friday, we might be forced too based on queue and the ignition taking place this premarket. Market really is setting itself up for a beautiful close to the year but now the runway is building for Q1 in 2025. The first two quarters of the year, we feel, might have the greatest overall potential. We're watching this closely but once again yesterday noticed monster upside call lots being purchased from Jan – May strikes across a number of sectors and names. We're talking 20 to 70% moves in some names we saw. This is massive.

Today, main focus will be watching the semi space and how it holds. As we stated a while ago semi's typically are a great seasonal trade to end the year. Should be in play this year as well now. Be ready today. Stay patient.