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Luke Kawa

Stocks go nowhere; small caps stumble again

The S&P 500 was little changed on Wednesday, while the Nasdaq 100 moved 0.2% lower and the Russell 2000 slumped 0.9%, taking some air out of what has been a popular “Trump trade.”

Two of Tuesday’s beaten-up S&P 500 sectors — real estate and consumer discretionary — were the best performers today, each up 0.8%. No sector ETF finished with a gain or loss of at least 1%.

10-year Treasury bonds initially rallied after the October US CPI inflation report was in line with expectations, only to sell off again when Dallas Fed chief Lorie Logan suggested that the central bank might not need to deliver too many more rate cuts to stabilize the economy.

Super Micro Computer was the second-worst performer in the S&P 500, tumbling 6.3% after delaying its quarterly report following the resignation of its auditor amid allegations of accounting irregularities.

Boeing tumbled 3.6% after Southwest Airlines CEO Bob Jordan said the recent strike at the aerospace company would likely crimp their ability to deliver planes to customers.

Charter Communications rose 3.6% after announcing plans to buy Liberty Broadband in an all-stock deal, consolidating parts of billionaire John Malone’s empire.

A day after hitting its lowest levels since the depth of the March 2020 pandemic-induced market panic, shares of Dollar Tree rebounded with a strong gain of 4.6%.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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