Markets News, November 11, 2024: Stocks Close at Record Highs as Post-Election Rally Continues; Tesla, Bitcoin Keep Soaring

Biggest S&P 500 Movers on Monday

Advancers

• Shares of pharmaceutical company Bristol-Myers Squibb (BMY) jumped 10.5%, logging the top daily performance in the S&P 500, after competitor AbbVie (ABBV) reported that its experimental schizophrenic treatment failed to reach the desired goals in a Phase 2 trial. Bristol-Myers Squibb entered the schizophrenia treatment market through last year's acquisition of biopharma firm Karuna Therapeutics, whose drug KarXT received approval from the Food and Drug Administration in September. AbbVie shares plunged 12.6% on Monday.
• Albemarle (ALB) shares jumped 9.6%, continuing their march higher since the world's largest lithium miner released third-quarter results last week. Although Albemarle reported a net loss of $1.1 billion, the company announced a 50% reduction in capital expenditures in 2025, as well as other cost-cutting measures that include laying off around 6% of its global workforce. Analysts suggested these moves could help Albemarle navigate low lithium prices, which the company expects to persist for some time.
• Tesla (TSLA) shares surged 9%, extending a string of gains posted in the wake of last week's election. There are expectations that Elon Musk, Tesla CEO and vocal supporter of President-elect Donald Trump, will play an advisory role in the next administration, where he could advocate on issues like tariffs and tax credits. Analysts at Wedbush lifted their price target on Tesla shares by $100, saying Trump's election could be transformative for the company's automation and artificial intelligence (AI) ambitions.

Decliners

• The weakest performance in the S&P 500 came from shares of Monolithic Power Systems (MPWR), which plummeted 15%. The move followed a report by market analysis firm Edgewater Research indicating that semiconductor behemoth Nvidia (NVDA) could reduce or cancel its use of Monolithic Power's voltage regulation module in its next-generation AI chips. 
• Vaccine maker Moderna (MRNA) reported a surprise third-quarter profit when it released its results last week, but the stock has been moving lower since then, dropping an additional 8.7% on Monday. Despite the strong performance in the recent quarter, analysts expressed uncertainty about future vaccine demand as well as Moderna's ability to maintain market share.

-Michael Bromberg

Dow Closes Above 44K, S&P 500 Above 6K for First Time

The Dow Jones Industrial Average rose 304 points on Monday to finish above 44,000 for the first time.

The S&P 500 tacked on 6 points to finish above 6,000 for the first time in its history.

The S&P 500 has now gained 26% since the start of the year, outpacing the Dow's 18% increase over the period.

What Analysts Think of Home Depot Ahead of Earnings

Home Depot (HD) is set to report earnings before the bell Tuesday after its recent quarters have disappointed, as many Americans put off big purchases and home improvement projects to focus spending on essentials.

Most analysts covering the stock tracked by Visible Alpha hold "buy" ratings, though their average price target isn't much higher than current levels. Of the 18 analysts tracked, there are 14 with "buy" ratings and four with "hold" ratings, with an average price target of $410.94.

Home Depot shares were up about 1% in late trading on Monday at around $409.50.

For the third quarter, analysts expect Home Depot's sales to rise 4% from the same time last year to $39.2 billion, while net income is projected to slip about 6% to $3.6 billion.

JPMorgan analysts suggested Home Depot and rival Lowe's (LOW) could see a bump in sales from hurricanes that affcted parts of the South in the quarter, but costs for the retailers to handle the storm damage themselves could offset the sales boost.

Over the next year, the analysts said the retailers could also get a boost if easing mortgage rates lead the housing market to pick up and consumers take on more renovation or home improvement projects.

The stock has gained 18% since the start of the year, lagging the S&P 500's 25% gain so far in 2024.

-Aaron McDade

Tesla Shares Up More Than 40% Over the Past Week

Tesla (TSLA) shares continued their post-election surge Monday, boosted by hopes of a reduction in regulations by a Trump White House and CEO Elon Musk's ties to the incoming administration as an adviser to the president-elect. 

Shares of Tesla recently were up 8.5% at $348.70 in recent trading. They've added more than 40% since the start of trading on election day and are at their highest levels since early 2022.

Adding to that enthusiasm was a huge increase in the Tesla price target by Wedbush to $400 from $300. The analysts wrote in a note to clients that they believe the Trump victory "will be a gamechanger for the autonomous and AI story for Tesla and Musk over the coming years."

The analysts said that they estimate the autonomous vehicle and artificial intelligence (AI) opportunities will be worth $1 trillion for the company. They added that they fully expect "these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era."

The analysts noted that they feel Tesla "remains the most undervalued AI play in the market today." Wedbush maintained its "outperform" rating on the stock. 

-Bill McColl

AbbVie Sinks on Drug Trial Results; Bristol Meyers Squibb Soars

Shares of AbbVie (ABBV) plummeted Monday after the company said its schizophrenia drug Emraclidine missed key goals in a pair of Phase 2 clinical trials.

AbbVie said the trials did not show a statistically significant improvement in symptoms compared with the placebo group at week 6.

"While we are disappointed with the results, we are continuing to analyze the data to determine next steps," AbbVie Chief Scientific Officer Dr. Roopal Thakkar said.

Abbvie's shares were recently down 11%. Meanwhile, shares of Bristol Myers Squibb (BMY), makers of recently approved schizophrenia treatment Cobenfy, jumped 12%.

-Aaron Rennie

Bitcoin, Crypto Related Stocks Continue Surging

The cryptocurrency euphoria that followed Donald Trump's victory in the U.S. presidential election continued Monday, with everything tied to the digital currency industry powering ahead.

Bitcoin once again traded at an all-time high, surpassing $84,000. Shares of companies in the sector, including Robinhood Markets (HOOD), which was up 10%. Coinbase Global (COIN), Riot Platforms (RIOT), and Marathon Digital parent MARA Holdings (MARA) all soared 17% or better.

Crypto exchange-traded funds (ETFs), such as iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC), also jumped about 10% each.

The enthusiasm has been driven by Trump's previous comments about his support of cryptocurrencies, at one point saying he wants the U.S. to be "the crypto capital of the planet."

In addition, MicroStrategy (MSTR), the largest corporate holder of bitcoin, announced that it had purchased an additional 27,200 bitcoin for $2.03 billion. MicroStrategy shares recently were up 17%.

-Bill McColl

Humana Slumps, Cigna Rises as Deal Talks Off

Humana (HUM) shares were down 5% Monday morning after The Cigna Group (CI) said it is not pursuing a combination with its smaller health insurance rival. Cigna stock, meanwhile, was up more than 6%.

Cigna reportedly called off its plans to buy Humana late last year after neither side could agree on financial terms. Bloomberg reported last month that the two companies had revived informal talks about a deal, with discussions in the early stages.

"In light of recent and persistent speculation, The Cigna Group expects to communicate that the company is not pursuing a combination with Humana Inc.," Cigna said in a press release Monday,

"The Cigna Group remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close," the Bloomfield, Conn.-based company added.

Cigna said it had bought $6 billion of stock this year, including $1 billion so far in the fourth quarter, and will continue to "actively" repurchase shares into next year. It said it would use the bulk of proceeds from the sale of its Medicare businesses to fund the buybacks.

Humana shaves have lost 40% of their value this year, while Cigna is up about 15%,

-Nisha Gopalan

S&P 500 Levels to Watch as Index at Record High

The S&P 500 (SPX) closed at a record high Friday after briefly crossing the 6K level for the first time, as stocks have rallied following the U.S. presidential election.

Through Friday’s close, the S&P 500 has gained around 25% this year.  The index broke above a rising wedge pattern on above-average volume last week, setting the stage for further potential gains in the week ahead.

A measured move, which calculates the distance between the rising wedge's two trendlines near their widest point and adds that amount to the initial breakout area, projects a price target in the S&P 500 of 6,500.

Investors should watch important support levels on the index's chart around 5,900 and 5,670.

Read the full technical analysis piece here.

-Timothy Smith

Stock Futures Point to Higher Open for Major Indexes

Futures tied to the Dow Jones Industrial Average were up 0.4%.

S&P 500 futures also were up 0.4%.

Nasdaq 100 futures were up 0.5%.