Weekly Recap: 12/23/24-12/27/24
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Market Summary:
MAJOR INDICES:
All three major indices finished in the green this week, with SPX up +1.77% ($5,970.84), DJI up +1.54% ($42,992.21), and NDX up +1.72% ($21,473.02). The RUT was up +1.04% ($2,244.59). The VIX decreased to 15.95.
SECTORS & STOCKS:
Healthcare (XLV) increased +0.69% while Consumer Staples (XLP) fell -0.80%. Toyota (TM) jumped +10.00% to $199.52/share. Tesla (TSLA) fell -6.60% to $431.66/share.
INTERNATIONAL EQUITIES:
The MSCI EAFE ETF (EFA) increased by +1.06% ($76.11), and the MSCI Emerging Markets ETF (EEM) added +0.48% ($42.30). The MSCI Japan ETF (EWJ) rose +2.02% ($67.73), while the MSCI India ETF (INDA) fell -1.25% ($53.10).
US MACRO:
DXY decreased -0.28% ($107.95). The 10-year Treasury Note Yield rose +2.10% (4.6190%).
GLOBAL MACRO (last 7 days):
USD/CHF increased by +1.05% (0.9014), and AUD/USD fell -0.27% (0.6232). The Japan 10-year yield rose +6.20% (1.113%), while China’s 10-year yield fell -4.29% (1.697%).
COMMODITIES:
Gold added +1.02% ($2,638.90), and WTI Crude Oil increased +2.04% ($70.65/barrel). BTC fell -5.71% ($93,624.28).
(as of 8:57 PM, 12/29/24)
Sources:
https://www.tradingview.com/markets/
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MACRO: Brazil’s Economy Stays Persistent
Brazil continues to struggle with inflation despite hiking rates. Domestic equities have waned, requiring companies in the Ibovespa Index to announce “at least 54 buyback this year”, which is almost two times the amount in each of the last two years. As of today, the Selic rate is 12.5%, and two more large rate hikes are expected by March. The tax system is also undergoing changes, causing uncertainty among both companies and investors. The Brazilian real is down -21% against the dollar this year, making it “the worst-performing major currency”.
Sources:
https://finance.yahoo.com/news/buybacks-surge-brazil-high-rates-134951477.html
https://finance.yahoo.com/news/brazil-inflation-unexpectedly-slows-more-121402312.html
https://www2.deloitte.com/us/en/insights/economy/americas/brazil-economic-outlook.html
https://www.bcb.gov.br/en/monetarypolicy/selicrate
PUBLIC MARKETS: Airline Stocks Adjust To Demand
The S&P Supercomposite Airlines Index rose +57% this year, compared to the SPDR S&P 500 ETF Trust’s +26%. Due to an increase in demand from “revenge travel” after the pandemic, airlines had to quickly adjust their capacity to meet demand. Now, airlines have been experiencing an oversupply as demand moderates. Some companies haven’t made it, like Spirit Airlines, which filed for bankruptcy earlier this year. United stood out due to it seeing the oversupply “headwind coming," prompting it to make changes to capacity proactively.
Sources:
https://www.investors.com/news/airline-stocks-cruise-lines-travel-industry-rally-2025-outlook/
https://finance.yahoo.com/news/airline-stocks-had-incredible-2024-174800316.html
https://finance.yahoo.com/news/trumps-win-debut-spot-etfs-190014174.html
https://apnews.com/article/spirit-airlines-bankruptcy-debt-losses-782c7fb892adf1d2f366411bab955668
PRIVATE MARKETS: Seven and I Attempts To Fend Off Canadian Convenience Store
Seven and I, owner of the 7-11 convenience store chain, is looking to take its non-core assets, which include its “supermarket food business, specialty store, and other businesses," to create a holding company called York Holdings. This comes as Canadian convenience store company Alimentation Couche-Tard has submitted a proposal to buy all outstanding shares of the company, which Seven and I has deemed too low and rejected. Bain Capital and KKR have submitted first-round bids for the newly created York Holdings company and have both been moved into the next round. Seven and I has also discussed pursuing an IPO for York Holdings.
Sources:
https://www.cspdailynews.com/mergers-acquisitions/seven-i-sharpening-focus-c-stores-fend-couche-tard
https://www.privateequitywire.co.uk/kkr-and-bain-advance-in-seven-i-sale/
https://csnews.com/seven-i-holdings-accelerate-growth-north-american-c-store-channel
https://en.wikipedia.org/wiki/Alimentation_Couche-Tard
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