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S&P 500 Rises 1% on Christmas Eve, Tech Stocks Drive Gains: Live Updates

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The U.S. stock market saw a strong performance on Christmas Eve, with the S&P 500 gaining 1.1% to close at 6,040.04. The Dow Jones Industrial Average also rose by 0.91%, adding 390.08 points to reach 43,297.03, while the Nasdaq Composite climbed 1.35% to finish at 20,031.13. A significant contributor to the Nasdaq’s rise was a 7.4% increase in Tesla’s stock price, alongside gains in Amazon and Meta Platforms, which each rose over 1%.

The New York Stock Exchange closed early at 1 p.m. ET, and the bond market followed suit, closing at 2 p.m. The market will remain closed on Wednesday for Christmas Day.

Tuesday’s gains marked the beginning of the “Santa Claus rally,” a seasonal trend in which the market tends to see stronger performance during the last five trading days of the year and the first two days of January. Historical data from LPL Research shows that since 1950, the S&P 500 has averaged a 1.3% return during this period, far outpacing the typical seven-day return of 0.3%.

Despite the upbeat performance, experts advise caution. Paul Hickey, co-founder of Bespoke Investment Group, mentioned on CNBC’s “Squawk Box” that while the market shows positive momentum, it’s important to temper enthusiasm, as the market has already rallied significantly.

Over the past two days, the S&P 500 has gained 1.8% for the week, with the Dow up about 1%. The Nasdaq has surged 2.3% week-to-date, fueled by strong gains in megacap tech stocks. Additionally, the S&P 500 has turned positive for the month, rising by 0.1%. The tech-heavy Nasdaq has seen an impressive 4.2% increase in December, with major players like Google’s parent Alphabet up 16%, Apple up nearly 9%, and Tesla soaring by about 34%. However, the blue-chip Dow remains down by around 3.6% for the month, on track for its worst monthly performance since April.

On the corporate front, American Airlines experienced fluctuations in its stock price on Tuesday after the airline temporarily grounded all flights in the U.S. due to a technical issue during one of the busiest travel days of the year. Despite the disruption, the stock ended the session up 0.6%.

In other retail news, analysts at Jefferies expressed optimism about toy sales this holiday season. Their store checks indicated high traffic and lower inventory levels compared to earlier in the season. Board games, in particular, were reported as strong sellers both in-store and online. Jefferies also noted that discounts were lower than the peak Black Friday levels.

In the toy sector, Mattel and Hasbro stocks showed mixed results. While Mattel’s shares are down over 5% year-to-date, Hasbro has seen a more significant gain of 11%. However, Hasbro has faced recent declines, with its stock down nearly 13% month-to-date, while Mattel’s shares have fallen 6%.

 

Talen Energy to Appeal FERC’s Rejection of Amazon Data Center Deal

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Talen Energy (TLN.O) announced plans to appeal the Federal Energy Regulatory Commission’s (FERC) rejection of an amended interconnection agreement for an Amazon data center at its Susquehanna nuclear plant in Pennsylvania. Earlier this year, Talen Energy sold a data center connected to the plant to Amazon (AMZN.O), aiming to increase its capacity from 300 megawatts to 480 megawatts.

However, the deal faced opposition from major utilities American Electric Power (AEP.O) and Exelon (EXC.O). FERC sided with these companies in a November 1 ruling, blocking the interconnection agreement. Talen Energy requested a rehearing in December, but FERC’s failure to issue a decision within 30 days has made the ruling eligible for appeal to a U.S. Circuit Court of Appeals.

The company stated it will pursue an appeal to challenge the rejection. Despite the regulatory setback, Talen’s shares have surged over 200% this year, and were up 0.6% in afternoon trading.

 

Amazon Launches 15-Minute Delivery Pilot in India, Enters Quick Commerce Market

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Amazon India has officially launched its quick commerce service, entering the competitive market for hyperlocal delivery in India. This new service promises to deliver groceries and daily essentials in 15 minutes or less, catering to the growing demand for faster delivery options. The move marks Amazon’s entry into the quick commerce sector, joining the ranks of other established players like Zomato-owned Blinkit, Swiggy Instamart, and Zepto, which dominate the space.

Initially, the service is being rolled out as a pilot in Bengaluru, one of the country’s largest urban centers. Customers in select areas of the city will be able to place orders for items such as groceries, snacks, and household products, all of which will be delivered within the promised 15-minute window. Amazon’s quick commerce service aims to provide a convenient solution for people who need essential items immediately, without the long wait times typically associated with standard delivery options.

The launch of Amazon’s quick commerce service comes as part of the company’s strategy to strengthen its presence in India’s rapidly growing e-commerce market. Quick commerce has become a significant trend in India due to the increasing demand for on-demand delivery, driven by the fast-paced lifestyle of urban consumers. While players like Blinkit and Zepto have already captured a large share of the market, Amazon is hoping its extensive infrastructure and large customer base will allow it to carve out its own niche.

With the initial rollout in Bengaluru, it remains to be seen whether Amazon will expand its service to other cities in the coming months. The success of this service will depend on its ability to meet the delivery times and customer satisfaction levels set by its competitors. However, with Amazon’s vast logistical network and resources, the company is well-positioned to compete in the quick commerce market and possibly disrupt the current market dynamics.