Stocks rose higher on Monday as investors kicked-off the holiday-shortened trading week. The Dow Jones Industrial Average climbed over 400 points, while the S&P 500 Index and Nasdaq Composite each added about 0.3%.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): +0.30% or +18.03 points to 5,987.37
Dow Jones Industrial Average (NYSE: DIA): +0.99% or +440.06 points to 44,736.57
Nasdaq Composite Index (NASDAQ: QQQ): +0.27% or +51.18 points to 19,054.83
Moving Markets:
Deutsche Bank set its year-end target for the S&P 500 to 7,000, citing continued positive earnings growth momentum into the next year. Separately, Barclays raised its 2025 S&P 500 outlook to 6,600 from 6,500, driven by easing inflation, strong potential Big Tech earnings growth and the continued resilience of the U.S. economy.
"For U.S. equities, we think macro positive outweigh the negative heading into next year," Barclays analyst wrote in a Monday note to clients.
On the Earnings Front:
Macy's (NYSE: M) shares slipped lower on Monday after the retailer delayed the official release of its third-quarter earnings results following an accounting issue -- an employee had intentionally made incorrect accounting entries to hide delivery expenses. The accounting error amounts to between $132 million and $154 million over the course of multiple years, according to a release.
Macy's plans to release results by December 11.
Bath & Body Works (NYSE: BBWI) shares popped higher Monday after the retailer's third-quarter earnings topped expectations despite a cautious consumer environment. The company also updated its full-year net sales outlook to represent a decrease between 4% and 2%.
"This quarter, we continued to invest in fortifying our operating foundation, while building a platform for growth, focused on 5 key strategies elevating the Bath and Body Works brand and product, extending our reach, engaging with customers, enabling a seamless omnichannel experience and enhancing operational excellence and efficiency. We are making good progress on each of these elements," CEO Gina Boswell told analysts during the company's earnings call.
In the News:
Oppenheimer analyst Rupesh Parikh named Target (NYSE: TGT) as a top pick, citing that the retailer's stock is at or near a bottom after its recent underperformance.
"We are adding TGT back to top pick status," Parikh wrote in a note to clients. "In mid-October around the $157 level, we removed TGT from our top pick ranking driven in part by our apparel clearance inventory observations. With the reset out of the way, we see a very compelling risk/reward scenario developing."
"Key attractions for us include in our view: 1) shares appear to be at/near a bottom; 2) negative investor sentiment; 3) achievable Q4 guidance; 4) a path to 6% operating margins remain in play; and 5) potential support from an attractive dividend yield," he added.
Goldman Sachs analyst Tina Hou downgraded Nio (NYSE: NIO) to Sell from Neutral on Monday, citing slow production ramp-up and delivery volume alongside slow demand.
"We expected limited new model pipeline for the Nio brand and slow production ramp-up for Onvo, positioning the company unfavorably into 2025E, with potentially intensified competition starting in the first quarter of the year," Hou wrote in a note to clients.
"In addition, as the company continues to expand the sales network of the Onvo brand, we expect growing S&M expense together with elevated R&D expense to drag down operating losses, hindering the company's path to profitability in the next three years," she adding.
For Tuesday:
Market participants will turn their attention towards consumer sentiment and housing market data on Tuesday, alongside the release of minutes from the Federal Reserve's November FOMC meeting. Key earnings reports include Zoom Video Communications (NASDAQ: ZM), Analog Devices (NASDAQ: ADI) and Best Buy (NYSE: BBY) on Tuesday.