Things to Note Before the Stock Market Opens

5 Things to Note Before the Stock Market Opens

1. Nasdaq 100 Changes Take Effect Today

The Nasdaq 100 welcomes MicroStrategy (MSTR), Palantir Technologies (PLTR), and Axon Enterprise (AXON), whose shares have surged 470%, 370%, and 140% year-to-date, respectively. These additions replace Super Micro Computer (SMCI), Moderna (MRNA), and Illumina (ILMN). This follows other recent index adjustments, including Nvidia’s (NVDA) move to the Dow Industrial Average, replacing Intel (INTC).

2. Mixed Start for US Stock Futures

U.S. stock futures are mixed to start the week. Nasdaq futures are trending slightly higher, while S&P 500 futures remain flat, and Dow futures are lower. Last week ended on a down note due to concerns over the Federal Reserve's rate outlook. The 10-year Treasury yield is up at 4.54%, while oil and gold futures are slightly lower.

3. Auto Merger Talks Between Honda and Nissan

Honda and Nissan confirmed signing a memorandum of understanding to explore a business integration, including forming a joint holding company by August 2026. This merger could focus on shared technology, cost efficiencies, and supply chain improvements. Both companies’ shares gained in Japanese markets following the announcement.

4. Quiet Week Ahead for Markets

With the holidays approaching, the week’s economic and corporate calendar is light. Stock and bond markets will close early on Tuesday and remain closed Wednesday for Christmas. Traders are watching for a possible "Santa Claus Rally," a period historically marked by stock gains in the last five trading days of the year and the first two of the next.

5. Political Clarity from Washington

President Biden signed a stopgap funding bill over the weekend, preventing a government shutdown until March. While this removes some uncertainty, questions remain about Republican opposition to Trump’s policies and the future of the debt ceiling as Trump prepares for his second term.

Keep an eye on these developments as markets gear up for the final trading days of 2024!