The Federal Reserve&#8217;s key inflation measure came in below expectations for November, delivering welcome relief Friday to markets after the central bank warned earlier this week of mounting price pressures heading <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42598354/wall-street-pins-hopes-on-fridays-crucial-fed-inflation-report-yet-a-miracle-is-needed-to-shift-the-narrative">into the new year.</a>



The Personal Consumption Expenditures price index grew by 2.4% in November 2024 on a year-over-year basis, up from 2.3% in October, according to government data. The figure missed economist forecasts of 2.5%, yet it marked the second consecutive monthly increase in this key inflation measure.



On a monthly basis, the PCE index advanced 0.1%, decelerating from October's 0.2%. 



Excluding volatile components like food and energy, core PCE held steady at 2.8% year-over-year, below expectations of 2.9%. On a monthly basis, core PCE growth slowed to 0.1%, down from the prior 0.3% and below expectations of 0.2%.



In tandem with the inflation data, the report also showed that personal income rose 0.3% month-over-month in November, slowing from October's 0.5% increase and missing expectations of 0.4%. Personal spending grew by 0.4%, slightly below forecasts but in line with October's increase, signaling resilient consumer activity heading into the holiday season.



<h3 class="wp-block-heading">Another Reality Check For Markets</h3>



The unexpectedly softer November PCE reading could provide relief after days of heightened market volatility triggered by this week&#8217;s Federal Reserve meeting.



On Wednesday, the Fed signaled a slower pace of rate cuts and raised its inflation projections for 2025 and beyond, reinforcing its hawkish stance.



Policymakers now forecast headline PCE inflation to reach 2.5% next year, up from the September projection of 2.1%, and 2.1% in 2026, compared to the previous 2% estimate. Similarly, core PCE inflation is now expected to hit 2.5% in 2025, up from 2.2%, and 2.1% in 2026, revised from 2%.



Fed Chair Jerome Powell's remarks further dashed market hopes when he announced a "new phase" in monetary policy, signaling caution against easing further as interest rates approach the neutral level.



Prior to Friday's data release, money markets had priced in 65 basis points of cumulative rate cuts for next year. 



<h3 class="wp-block-heading">Dollar Falls, Equity Futures Trim Losses</h3>



<ul>
<li>The U.S. dollar index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – tumbled 0.3%. </li>



<li>Futures on major U.S. indices trimmed premarket losses, with contracts on the S&amp;P 500 down by 0.7% at 8:35 a.m. in New York. On Thursday the S&amp;P 500 – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – closed 0.1% lower, bringing its cumulative decline since the Fed&#8217;s meeting to over 3%.</li>



<li>Gold surged by 0.6% to $2,610 per ounce. </li>



<li>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slightly rebounded after the news to above $95,000 levels, cutting daily losses to 2%. Prior to this week&#8217;s Fed meeting, the largest cryptocurrency had reached an all-time high of $108,364. </li>
</ul>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42611748/us-stocks-to-open-lower-as-traders-brace-for-triple-witching-hour-analyst-says-end-of-the-year-recovery-would-not-surprise-anyone">US Stocks To Open Lower As Traders Brace For &#8216;Triple Witching&#8217; Hour: Analyst Says End Of The Year Recovery &#8216;Would Not Surprise Anyone&#8217;</a></li>
</ul>



Photo via Shutterstock.

Cryptocurrency

Equities

Macro Economic Events

Broad U.S. Equity ETFs

Econ #s

Economics

Federal Reserve

Markets

ETFs

$BTC

Fed's Preferred Inflation Gauge Falls More Than Expected: Markets Breathe Sigh Of Relief

Trump Media &amp; Technology Group Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) experienced a notable decline in its stock value. The company&#8217;s shares fell by 5.31% during pre-market trading on Friday, coinciding with a major decision by&nbsp;Donald Trump.



What Happened: Trump Media &amp; Technology Group Corp saw its shares fall by 5.31% <a href="https://www.benzinga.com/markets/equities/24/12/42609228/trump-transfers-entire-djt-stake-to-revocable-trust-ahead-of-inauguration">during pre-market trading</a> on Friday. according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>. This decline follows Donald Trump&#8216;s decision to transfer his entire stake in the company to his revocable trust.



The transfer involved 114,750,000 shares, which equates to about 53% of the company&#8217;s ownership. The transaction was completed on Tuesday, with Trump named as the sole beneficiary, as per&nbsp;Securities and Exchange Commission filings&nbsp;released on Thursday.



The shares were transferred to the&nbsp;Donald J. Trump Revocable Trust&nbsp;without any monetary exchange. This move comes shortly after Trump participated in ringing&nbsp;the opening bell at the&nbsp;New York Stock Exchange, where&nbsp;DJT&#8217;s stock has more than doubled in value this year.



See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/movers/24/12/42567762/bitcoin-ethereum-dogecoin-fall-after-fed-shows-no-interest-for-piling-btc-top-analyst-says-sentiment-shifting-2025-suddenly-looks-a-lot-less-rosy?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin Fall After Fed Shows No Interest For Piling BTC: Top Analyst Says Sentiment Shifting — &#8216;2025 Suddenly Looks A Lot Less Rosy&#8217;</a>



On Tuesday, the company&#8217;s shares closed at $35.41, putting the value of Trump&#8217;s transferred stake at roughly $4 billion. This transfer follows Trump&#8217;s earlier promise in September&nbsp;not to sell his shares&nbsp;in the Truth Social parent&nbsp;company. At that time, he had criticized Nasdaq for routine trading halts and suggested a possible move to the NYSE.



Why It Matters: The transfer of&nbsp;Trump&#8217;s&nbsp;stake in&nbsp;Trump Media &amp; Technology Group Corp&nbsp;comes at a time when the company has seen significant growth. Earlier this year, DJT&#8217;s stock value had more than doubled, reflecting investor confidence in the company&#8217;s potential. However, Trump&#8217;s decision to transfer his shares to a revocable trust raises questions about his future involvement in the company.



In September, Trump had publicly criticized Nasdaq for its trading halts, hinting at a potential shift to the New York Stock Exchange. This move was seen as a strategic effort to align with a more stable trading environment. The recent transfer of shares to the trust could be part of a broader strategy to manage his assets while maintaining influence over the company.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42550405/trump-inauguration-could-coincide-with-a-harrowing-dump-for-crypto-arthur-hayes-warns?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Inauguration Could Coincide With A &#8216;Harrowing Dump&#8217; For Crypto, Arthur Hayes Warns</a></li>
</ul>



Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.



Image via Flickr

News

Pre-Market Outlook

General

DJT Stock Plummets Over 5% Following Trump's Stake Transfer: Here's More

On Friday, Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) stock plunged after the company released headline results from the REDEFINE 1 Phase 3 trial in the <a href="https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=915082" target="_blank" rel="noreferrer noopener">global REDEFINE program</a>.



REDEFINE 1 is a 68-week efficacy and safety trial investigating subcutaneous CagriSema (a fixed dose combination of cagrilintide 2.4 mg and semaglutide 2.4 mg) compared to the individual components cagrilintide 2.4 mg, semaglutide 2.4 mg, and placebo, all administered once-weekly.



Also Read: <a target="_blank" href="https://www.benzinga.com/general/biotech/24/12/42467660/novo-nordisks-ozempic-label-expansion-snags-approval-from-european-drug-regulators-advisory-panel" rel="noreferrer noopener">Novo Nordisk&#8217;s Ozempic Label Expansion Snags Approval From European Drug Regulator&#8217;s Advisory Panel</a>



The <a target="_blank" href="https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=915082" rel="noreferrer noopener">trial</a> included 3,417 randomized people with obesity or overweight with one or more comorbidities and a mean baseline body weight of 106.9 kg.



The trial achieved its primary endpoint by demonstrating a statistically significant and superior weight loss with CagriSema versus placebo at week 68.



When evaluating the effects of treatment if all people adhered to treatment, people treated with CagriSema achieved a weight loss of 22.7% after 68 weeks compared to a reduction of 11.8% with cagrilintide 2.4 mg, 16.1% with semaglutide 2.4 mg and 2.3% with placebo alone.



In November, Novo Nordisk said its hybrid drug, CagriSema, aims to reduce weight by 25% without <a target="_blank" href="https://www.benzinga.com/general/biotech/24/11/41706292/as-race-to-best-miracle-obesity-drug-heats-up-ozempic-maker-novo-nordisk-tests-new-hybrid-drug-th" rel="noreferrer noopener">added side effects</a>.



In addition, 40.4% of patients who received CagriSema reached a weight loss of 25% or more after 68 weeks, compared to 6.0% with cagrilintide 2.4 mg, 16.2% with semaglutide 2.4 mg, and 0.9% with placebo.



When applying the treatment policy estimand, people treated with CagriSema achieved a weight loss of 20.4% compared to a reduction of 11.5% with cagrilintide 2.4 mg, 14.9% with semaglutide 2.4 mg and 3.0% with placebo.



In the trial, CagriSema, cagrilintide 2.4 mg and semaglutide 2.4 mg appeared to have a safe and well-tolerated profile. The most common adverse events with CagriSema were gastrointestinal, and the vast majority were mild to moderate and diminished over time, consistent with the GLP-1 receptor agonist class.



The results from the second pivotal phase 3 trial, REDEFINE 2, in adults with type 2 diabetes and either obesity or overweight are expected during the first half of 2025.



In reaction to lower-than-expected trial data, Eli Lilly And Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) stock is trading higher. Lilly&#8217;s own obesity injection containing tirzepatide demonstrated sustained average weight loss of 22.9% (15 mg dose) through the three-year treatment <a target="_blank" href="https://www.benzinga.com/24/11/41985752/eli-lillys-detailed-phase-3-trial-data-show-99-of-patients-on-popular-mounjarozepbound-remained-diabetes-free-for-even-at-three-years" rel="noreferrer noopener">period for the efficacy estimandi</a>.&nbsp;



Recently, Novo Nordisk stock came under pressure when two new studies from the University of Southern Denmark suggested that Ozempic, a diabetes medication, may increase the risk of developing a <a target="_blank" href="https://www.benzinga.com/24/12/42557565/ozempic-maker-novo-nordisks-poised-to-go-under-european-review-for-potential-increased-risk-of-rare-eye-disease" rel="noreferrer noopener">rare eye condition</a>.



Price Action: NVO stock is down 16.50% at $86.33, and LLY stock is up 8.91% at $825 during the premarket session at the last check on Friday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/biotech/24/12/42600472/your-healthcare-costs-are-soaring-us-spending-reached-5-trillion-in-2023-with-major-increase-in-obesity-and-diabetes-drugs-hospital-services" target="_blank" rel="noreferrer noopener">Your Healthcare Costs are Soaring! US Spending Reached $5 Trillion In 2023 with Major Increase in Obesity and Diabetes Drugs, Hospital Services</a></li>
</ul>



Photo via Shutterstock

Biotech

Large Cap

Health Care

Movers

Trading Ideas

Novo Nordisk's Hybrid Weight Loss Drug Falls Short On Expectations, Stock Plunges

U.S. stock futures declined on Friday, ahead of the &#8220;Triple Witching&#8221; hour, which is expected to see the expiry of about $6.6 trillion options, for the quarter.



This comes after the market fell on Wednesday after the Federal Reserve&#8217;s hawkish cut and ended mixed on Thursday. In Friday&#8217;s premarket, all four major indices were trading lower.



The 10-year and two-year Treasury notes yielded 4.55% and 4.28%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 89.3%, according <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">to</a> CME Group&#8217;s FedWatch tool.



Investors will receive another critical economic data point on Friday with the release of the November personal consumption expenditures (PCE) inflation index. This release follows other inflation indicators that suggest price increases accelerated in November.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-1.12%</td></tr><tr><td>S&amp;P 500</td><td>-0.78%</td></tr><tr><td>Dow Jones</td><td>-0.57%</td></tr><tr><td>Russell 2000</td><td>-1.13%</td></tr></tbody></table></figure>



In premarket trading on Friday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was down 1.16% to $579.30&nbsp;and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 1.23% to $507.83, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Cues From The Last Session



The S&amp;P 500 ended the day essentially unchanged after giving up earlier gains. The Nasdaq 100 fell 0.5%, fluctuating between small gains and losses throughout the session.



However, Dow Jones ended marginally higher, breaking its 10-day losing streak.



Most sectors on the S&amp;P 500 closed on a negative note, with materials, real estate, and energy stocks recording the biggest losses on Thursday. However, utilities and financials stocks bucked the overall market trend, closing the session higher.



Thursday&#8217;s economic data showed a revision upward in one of the Fed&#8217;s preferred inflation measures to 2.2%.



As Fed Chair Jerome Powell has indicated that further easing would require additional progress on inflation, market participants will now focus on the final significant economic data point of the year: November&#8217;s personal consumption expenditures, due out on Friday.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.10%</td><td>19,372.77</td></tr><tr><td>S&amp;P 500</td><td>-0.087%</td><td>5,867.08</td></tr><tr><td>Dow Jones</td><td>0.036%</td><td>42,342.24</td></tr><tr><td>Russell 2000</td><td>-0.45%</td><td>2,221.50</td></tr></tbody></table></figure>



Insights From Analysts



The &#8220;Triple Witching&#8221; hour is a quarterly event that occurs during the final hour of trade on the third Friday of March, June, September, and December. During this period, contracts for stock index futures, stock index options, and stock options all expire at the same time.



According to the Chairman and Founder of Navellier &amp; Associates, Louis Navellier, &#8220;The timing of buying the dip is complicated by options expiration tomorrow and Christmas next week, but a recovery by the end of the year would not surprise anyone.&#8221;



He also said, &#8220;In my opinion, the stock and bond market reactions to the FOMC Statement, dot plot, and Fed Chairman Powell's press conference were grossly overdone and eviscerated all the stock market gains since the Presidential election.&#8221;



According to him, both France and Germany are in the midst of a political crisis and are "headless" until new leadership emerges. &#8220;As a result, I am expecting up to four Fed rate cuts in 2025 as collapsing interest rates in the eurozone also cause U.S. Treasury yields to decline,&#8221; he said.



However, Tom Lee, managing partner and head of research at Fundstrat Global Advisors, thinks <a href="https://www.benzinga.com/markets/equities/24/12/42608297/tom-lee-explains-why-fewer-cuts-in-2025-could-boost-the-market-urges-investors-to-buy-the-dip-amid-recent-volatility#:~:text=What%20Happened%3A%20%E2%80%9CThe%20fewer%20cuts,on%20Thursday%2C%20according%20to%20Fundstrat.&amp;text=%2C%20suffering%20its%20steepest%20one%2Dday%20decline%20since%20September%202022">fewer cuts are better for the economy</a>.



"The fewer cuts [the Fed does] in 2025, it actually is better for this bull market because it provides a lot of future ammunition to protect the economy," he said.



"I know yesterday's (Wednesday&#8217;s) pullback was really painful, but to us, the fundamentals supporting stocks are intact.&#8221;



Carson Research&#8217;s vice president and global macro strategist, Sonu Varghese called 2024 a &#8220;strong&#8221; year for U.S. stocks, even with the recent pullback.



&#8220;The fallout from the Fed meeting wiped out post-election gains across large swaths of the market, including value stocks and mid-cap and small-cap stocks, though looking back over the entire year, almost every major category is up double-digits so far, across style (value – core – growth) and capitalization (large – mid &#8211; small). For comparison the MSCI All-Cap World ex US Net Index is up just 7.2% year to date. That should tell you how strong of a year 2024 has been for US stocks, even with the recent pullback,&#8221; Varghese said in a note.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a>



Upcoming Economic Data



Important data is slated to be released on Friday that will help investors to determine the future course of action.



<ul>
<li>On Friday, personal income and spending data along with core and headline PCE index data for November will be released at 8:30 a.m., ET.</li>



<li>Consumer sentiment data for December will be released at 10:00 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Psyence Biomedical Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PBM#NASDAQ">PBM</a>) was up 105% in premarket after it inked an IP licensing and mutual exclusivity agreement with Optimi Health Corp., a Canadian psychedelics pharmaceutical manufacturer.</li>



<li>Humacyte Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HUMA#NASDAQ">HUMA</a>) was up 52.31% in premarket after it received FDA approval for SYMVESS, a bioengineered human tissue designed as a universally implantable vascular conduit for arterial injury treatment.</li>



<li>Nike Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) was down 3.37% after issuing <a href="https://www.benzinga.com/24/12/42610441/nikes-new-ceo-says-we-lost-our-obsession-with-sport-as-he-rebukes-old-strategies-on-performance-marketing-isolation-of-wholesalers-aims-to-create-demand">lower revenue guidance</a> and additional gross margin pressure given the higher demand creation expenses.</li>



<li>FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) was 7.33% higher after it posted stronger-than-expected results for its second quarter. The company also announced that it has decided to pursue a full separation of FedEx Freight through the capital markets, creating a new publicly traded company.</li>



<li>BlackBerry Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) was down 5.03% as it expects fourth-quarter revenue in the range of $126 million to $135 million versus the estimates of $161.49 million.</li>



<li>Winnebago Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WGO#NYSE">WGO</a>) was up 2.04% as analysts expect it to post quarterly earnings at 20 cents per share on revenue of $672.23 million before the opening bell.</li>



<li>Carnival Corporation. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) fell 1.11% as it is expected to report quarterly earnings at 8 cents per share on revenue of $5.93 billion before the opening bell.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were lower in the early New York session by 2.75% to hover around $68.66 per barrel.



The gold spot index was up by 0.42% to $2,619.24 per ounce. The Dollar Index was down 0.16% to 108.239 level.



Asian markets declined on Friday, as Hong Kong&#8217;s Hang Seng, South Korea&#8217;s Kospi, Japan&#8217;s Nikkei 225, India&#8217;s S&amp;P BSE Sensex, China&#8217;s CSI 300 and Australia&#8217;s ASX 200 index fell. Most European markets were also in the red in early trading.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42610958/expecting-up-to-four-fed-rate-cuts-in-2025-says-this-analyst-despite-hawkish-powell-saying-it-was-close-on-the-decision-to-cut-or-not-heres-why">Hawkish Powell Aside, This Analyst Expects 4 Fed Rate Cuts In 2025: Here&#8217;s Why</a></li>
</ul>



Photo courtesy: Wikimedia

Earnings

Futures

HUMA

US Stocks To Open Lower As Traders Brace For 'Triple Witching' Hour: Analyst Says End Of The Year Recovery 'Would Not Surprise Anyone'

After the Federal Reserve chair Jerome Powell delivered <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">hawkish commentary </a>along with a 25 basis points rate cut on Wednesday, the markets have slipped for two consecutive days. Even as the Fed's December dot plot projects only two additional 25-basis-point cuts in 2025, this analyst expects up to four rate cuts in 2025.



What Happened: Chairman and Founder of Navellier &amp; Associates, Louis Navellier said, &#8220;In my opinion, the stock and bond market reactions to the FOMC Statement, dot plot, and Fed Chairman Powell's press conference were grossly overdone and eviscerated all the stock market gains since the Presidential election.&#8221;



He added that Powell&#8217;s comment that the Fed's year-end inflation forecast has "kind of fallen apart" did not inspire confidence.



Navellier thinks that the Fed could possibly follow the falling interest rates in the Eurozone as Europe&#8217;s largest economies, Germany and France, are slipping into recession.



&#8220;The European Central Bank will be cutting key interest rates 4 to 5 times in 2025 until key interest rates are at 2% to 1.75%. Most Fed watchers and the FOMC itself do not see all these global dominos falling in the eurozone as the recession in its largest economy, Germany, gets worse. The second-largest economy in the eurozone, France, is also slipping into a recession.&#8221;



See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">Fed&#8217;s Powell Shocks Markets After Interest Rate Cut: &#8216;It&#8217;s A New Phase&#8217;</a>



Why It Matters: According to Navellier, both France and Germany are in the midst of a political crisis and are "headless" until new leadership emerges. &#8220;As a result, I am expecting up to four Fed rate cuts in 2025 as collapsing interest rates in the eurozone also cause U.S. Treasury yields to decline,&#8221; he said.



Pointing out one of the first things that Powell said was &#8220;it was close&#8221; on the decision to cut or not. Navellier described this as &#8220;the most telling thing&#8221; about his speech as 95% of the market bet was for a cut.



However, he thinks the current pullback in the market could become a buying opportunity &#8220;if earnings continue to rise as expected.&#8221;



Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) has fallen by 3.33% over the last five trading sessions, while Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) has slipped 3.06% in the same period. On a year-to-date basis, both the ETFs are up 24% and 27.72%, respectively.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/24/12/42569883/quantum-computing-rigetti-d-wave-skyrocket-up-to-300-in-5-sessions-after-google-unveils-willow-chip-but-analysts-urge-caution-not-every-tiktok-guitarist-is-the-next-taylor-swift">Quantum Computing, Rigetti, D-Wave Skyrocket Up To 300% In 5 Sessions After Google Unveils Willow Chip, But Analysts Urge Caution: &#8216;Not Every TikTok Guitarist Is The Next Taylor Swift&#8217;</a></li>
</ul>



Photo courtesy: Federal Reserve

Analyst Color

Hawkish Powell Aside, This Analyst Expects 4 Fed Rate Cuts In 2025: Here's Why

In a recent presentation at the Petersen Automotive Museum on Tuesday, Tesla Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) chief designer Franz von Holzhausen hinted at the possibility of introducing new vehicle forms for the <a href="https://www.benzinga.com/topic/cybercab">company&#8217;s robotaxi lineup</a>.



What Happened: Von Holzhausen's cryptic comment suggests that Tesla may expand its robotaxi offerings beyond the already known Cybercab model.



"We have other vehicles in our lineup, and future vehicles coming that will basically take multiple passengers," he said during an overview of the Cybercab at the Petersen Automotive Museum.



Von Holzhausen&#8217;s comments have fueled speculation about Tesla&#8217;s future robotaxi models, potentially addressing market needs for larger passenger groups. Tesla&#8217;s strategy involves using existing vehicles as robotaxis, but the Cybercab&#8217;s two-seat design aims to optimize costs and storage for typical ride-hailing trips.



Earlier,&nbsp;Travis Axelrod,&nbsp;Tesla&#8217;s Head of Investor Relations, informed&nbsp;Deutsche Bank that 2025 would&nbsp;be a pivotal year for the company&#8217;s product launches. This includes the&nbsp;unofficially-named &#8220;Model Q&#8221; and a&nbsp;long wheelbase Model Y tailored for the Chinese market.



Axelrod also mentioned that the latter half of 2025 would see the introduction of &#8220;other new vehicles.&#8221;



See Also: <a href="https://www.benzinga.com/markets/equities/24/12/42575664/tesla-reportedly-in-talks-with-austin">Tesla Reportedly In Talks With Austin To Bring Autonomous Vehicles To Texas Roads: Elon Musk-Led EV Giant Rises 3% In Pre-Market</a>



Why It Matters: Tesla&#8217;s ambitions for its robotaxi fleet are gaining momentum, with recent developments indicating a significant push towards autonomous vehicle deployment.



The company is reportedly in <a href="https://www.benzinga.com/markets/equities/24/12/42575664/tesla-reportedly-in-talks-with-austin">early discussions with Austin city officials</a> to test its autonomous vehicles on Texas roads by 2025. This move could bolster Tesla&#8217;s driverless vehicle ambitions if the discussions prove fruitful.



Von Holzhausen also recently <a href="https://www.benzinga.com/tech/24/12/42548657/tesla-design-chief-says-ev-giant-was-looking-to-create-future-version-of-nycs-yellow-cabs-with-gold-cybercab-it-feels-right">shared insights</a> into the aesthetic choices for the Cybercab, describing it as a &#8220;future version&#8221; of New York City&#8217;s iconic yellow cabs. The choice of gold paint reflects a modern take on the traditional yellow cab, aiming to create something more expressive and up-to-date.



Analysts at Wedbush Securities foresee <a href="https://www.benzinga.com/24/12/42455654/wedbush-securities-sees-tesla-touching-2-trillion-market-cap-by-2025-end-apple-microsoft-nvidia-to-join-4-trillion-market-cap-club-next-year-says-analyst">Tesla potentially reaching a $2 trillion market cap</a> by the end of 2025, driven by its autonomous vehicle initiatives, including the launch of the Cybercab. The firm&#8217;s bullish outlook underscores the importance of Tesla&#8217;s autonomous strategy in achieving this milestone.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="The FIRST Cybercab @ The Petersen! Presented by Tesla chief designer: Franz von Holzhausen" width="500" height="281" src="https://www.youtube.com/embed/5jqJM7-tC0k?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Price Action: Tesla stock closed at $436.17 on Thursday, lower by 0.90%. It fell another 1.9% in after-hours trading. Year-to-date, the Tesla stock is up 75.6%, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



The overall <a href="https://www.benzinga.com/quote/TSLA/analyst-ratings">consensus rating</a> on the Tesla stock is currently ‘Buy' with the highest price target being $515, implying an 18% upside.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/TSLA/analyst-ratings"><img loading="lazy" decoding="async" width="472" height="352" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20005530/Tesla-rating.jpg" alt="" class="wp-image-700970" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20005530/Tesla-rating.jpg 472w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20005530/Tesla-rating-300x224.jpg 300w" sizes="(max-width: 472px) 100vw, 472px" /></a></figure>



Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/government/regulations/24/12/42546578/spacex-lost-ground-control-on-dragon-spacecraft-during-polaris-dawn-mission-due-to-power-outage-at-california-facility-report?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">SpaceX Lost Ground Control On Dragon Spacecraft During Polaris Dawn Mission Due To Power Outage At California Facility</a></li>
</ul>



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: Tesla

Tech

TSLA

Elon Musk's Robotaxi Ambitions Are Sending TSLA Stock Soaring: Could Tesla Have More Cybercab Models Planned For 2025?

The cryptocurrency market cracked further Thursday as risk sentiment remained low following the Federal Reserve&#8217;s hawkish statements.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-3.30%</td><td>$97,251.29</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-6.08%</td><td>$3,425.34</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-12.28%</td><td>$0.3159</td></tr></tbody></table></figure>



What Happened: Bitcoin rallied to $102,000 in the early hours but gave up gains as the day progressed, dipping below $96,000 for the first time in over a month.



Similarly, Ethereum lifted above $3,700 only to crash below $3,400 by late afternoon. The world's second-largest cryptocurrency was down over 11% over the week.



Over $1 billion was liquidated from the cryptocurrency market in the last 24 hours, with long liquidations accounting for $860 million.&nbsp;



Bitcoin's Open Interest plunged 4.24% in the last 24 hours, alongside a drop in spot price. That said, the percentage of Binance traders taking long positions for the cryptocurrency rose sharply to 61%, against 38% betting against the asset, according to the Long/Short Ratio.



The "Greed" sentiment weakened in the market, according to the Cryptocurrency Fear &amp; Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Movement (MOVE)</td><td>+21.14%</td><td>$0.7626</td></tr><tr><td>Bitget Token (BGB)</td><td>+6.55%</td><td>$4.46</td></tr><tr><td>Mantle (MNT)</td><td>+6.50%</td><td>$1.17</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.33 trillion, following a contraction of 4.91% in the last 24 hours.



The Dow Jones Industrial Average snapped out of its 10-day losing streak Thursday but only just, gaining 0.04%, to close at 42,342.24. The S&amp;P 500 slipped 0.09% to end at 5,867.08, while the tech-heavy Nasdaq Composite dropped 0.10% to 19,372.77.



These moves come a day after the stock market got hammered <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">after the Federal Reserve signaled a hawkish outlook</a>, with fewer rate reductions in 2025 than expected.



The benchmark 10-year Treasury yields increased to 4.55%, the highest since May 30.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Widely followed cryptocurrency analyst and trader Ali Martinez commented on Bitcoin's latest moves, stating that if the apex cryptocurrency loses $96,000 as support, it could dip further to $90,000 and $85,000.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Keeping it simple, just based on the Fib, if <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> loses $96,000, the next point of focus becomes $90,000 and $85,000. <a href="https://t.co/yJ1Hq2PNe2">pic.twitter.com/yJ1Hq2PNe2</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1869851163061039116?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Rekt Capital, another influential analyst, stated that if Bitcoin goes below the weekly support level of around $97,800, the 5-week uptrend will be reversed and the coin will enter a corrective phase.



"If this blue weekly support region fails and so does the 5-week uptrend (orange)&#8230; then BTC will probably transition into a correction."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> The Bearish Engulfing Candle persists And the Weekly level at $101.2k is struggling to hold as support If this blue Weekly support region fails and so does the 5-week uptrend (orange)&#8230; Then BTC will probably transition into a correction<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://t.co/KnIptVe958">https://t.co/KnIptVe958</a> <a href="https://t.co/7oYdQ5v2r6">pic.twitter.com/7oYdQ5v2r6</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1869808384574402864?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42601193/senator-lummis-introduces-strategic-bitcoin-reserve-proposal">Senator Lummis Introduces Strategic Bitcoin Reserve Proposal</a></li>
</ul>

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Retreat Further As Crypto Liquidations Top $1 Billion: Analyst Lays Out Scenario For BTC Losing $96K Support

U.S. stock markets could benefit from fewer interest rate cuts in 2025 despite recent volatility, according to Fundstrat&#8216;s head of research Tom Lee, who sees the Federal Reserve&#8217;s hawkish stance as <a href="https://www.benzinga.com/24/12/42599089/us-stocks-edge-up-micron-suffers-worst-day-since-march-2020-bond-yields-surge-whats-driving-markets-thursday">potentially beneficial for investors</a>.



What Happened: &#8220;The fewer cuts [the Fed does] in 2025, it actually is better for this bull market because it provides a lot of future ammunition to protect the economy,&#8221; Lee said on Thursday, according to Fundstrat.



The comments followed a tumultuous period in markets, with the Dow Jones Industrial Average as tracked by the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) struggling through its longest losing streak since 1974 and the S&amp;P 500 tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), suffering its steepest one-day <a href="https://www.benzinga.com/markets/equities/24/12/42567950/jim-cramer-warns-of-incredible-panic-as-jerome-powells-cautious-rate-cuts-send-us-stocks-into-freefall">decline since September 2022</a>.



The selloff was triggered after the Federal Reserve cut rates by 25 basis points to 4.25%-4.5% but signaled just two rate cuts for 2025, down from <a href="https://www.benzinga.com/24/12/42599089/us-stocks-edge-up-micron-suffers-worst-day-since-march-2020-bond-yields-surge-whats-driving-markets-thursday">four projected in September</a>.



The central bank&#8217;s shift rattled investors who had been counting on more aggressive rate cuts. However, recent economic data continues to show resilience, with third-quarter GDP growth revised upward to 3.1% and weekly jobless claims falling to 220,000, below expectations of 230,000.



See Also: <a href="https://www.benzinga.com/news/earnings/24/12/42606549/blackberry-beats-q3-earnings-estimates-but-soft-guidance-keeps-shares-in-check">BlackBerry Beats Q3 Earnings Estimates, But Soft Guidance Keeps Shares In Check</a>



Why It Matters: &#8220;I know yesterday&#8217;s pullback was really painful, but to us, the fundamentals supporting stocks are intact,&#8221; Lee said. He suggested that recent market declines might be driven by panicked investors selling out of momentum trades as the year ends.



The hawkish Fed outlook has particularly impacted the bond market, with 30-year Treasury yields climbing to 4.75%. Despite these headwinds, Lee maintains a bullish stance, recommending investors &#8220;buy the dip.&#8221;



Wharton Professor Emeritus Jeremy Siegel offered a similar perspective, calling the market&#8217;s reaction a &#8220;healthy&#8221; reality check after what he described as &#8220;overly optimistic&#8221; <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42570219/whartons-jeremy-siegel-calls-stock-sell-off-a-healthy-reality-check-market-was-overly-optimistic">expectations for rate cuts</a>.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/12/42605034/fedex-stock-rallies-on-better-than-expected-q2-eps-freight-spin-off-announcement">FedEx Stock Rallies On Better-Than-Expected Q2 EPS, Freight Spin-Off Announcement</a></li>
</ul>



Image via Shutterstock



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Tom Lee Explains Why 'Fewer Cuts In 2025' Could Boost The Market, Urges Investors To 'Buy The Dip' Amid Recent Volatility

On Thursday, Cathie Wood-led Ark Invest made some significant trades, notably selling off Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) stock.



The Tesla Trade



The ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) reduced its holdings in Tesla Inc. by selling 14,016 shares. This move comes amidst a month where Tesla&#8217;s stock has been on a remarkable upswing, reaching new highs. The Elon Musk-led company&#8217;s stock has risen over 26% in December.



The shares were sold at a closing price of $436.17, totaling approximately $6.1 million in value. This decision follows a <a href="https://www.benzinga.com/24/12/42476448/cathie-woods-ark-invest-dumps-another-15-3-million-tesla-shares-pivots-to-this-flying-taxi-startup">previous sale</a> of Tesla shares by Ark Invest on Wednesday when the firm sold another $9.06 million worth of stock. These sales took place not long after Musk expressed optimism that the stock could touch the $690 mark.



The Palantir Trade



On the same day, Ark Invest sold Palantir stock. The firm sold 33,402 shares of the Alex Karp-led company through ARKK. The transaction was valued at $2.5 million with shares closing at $74.21 on Thursday.



This decision comes on the heels of Palantir&#8217;s recent announcement of a $400.7 million <a href="https://www.benzinga.com/24/12/42572384/palantir-strengthens-army-partnership-adds-ai-and-data-enhancements-in-400-million-deal">contract extension</a> with the U.S. Army, with a total potential ceiling of $618.9 million. The agreement aims to operationalize data across the entire Department of the Army, enabling broader integration of data and AI capabilities. Despite the company&#8217;s stock climbing 350% year-to-date and nearly 18% in December, company insiders have been <a href="https://www.benzinga.com/24/12/42538479/palantir-stock-rockets-350-ytd-but-insiders-cash-out-should-you-follow-suit">selling off shares</a>.



Other Key Trades:



<ul>
<li>ARKG and ARKK bought shares of Tempus AI Inc (TEM). ARKG sold shares of Ionis Pharmaceuticals Inc. (IONS).</li>



<li>ARKG also bought shares of Personalis Inc (PSNL).</li>
</ul>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/12/42545829/mark-cuban-expresses-sympathy-for-hawk-tuah-girl-amid-meme-coin-controversy-wasnt-something-she-fully-understood?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Mark Cuban Expresses Sympathy For &#8216;Hawk Tuah&#8217; Girl Amid Meme Coin Controversy: &#8216;Wasn&#8217;t Something She Fully Understood&#8217;</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKK

PLTR

Cathie Wood's Thursday Moves: Dumps Buzzing Stocks Tesla And Palantir

Nike Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) reported second-quarter financial results for fiscal 2025 after the market close on Thursday. Here&#8217;s a rundown of the <a href="https://www.benzinga.com/pressreleases/24/12/b42604084/nike-inc-reports-fiscal-2025-second-quarter-results">athletic footwear and apparel company&#8217;s report</a>.



Q2 Earnings: Nike reported second-quarter revenue of $12.35 billion, beating analyst&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">estimates</a>&nbsp;of $12.13 billion. The company&nbsp;reported second-quarter earnings of 78 cents per share, beating analyst estimates of 65 cents per share.



Total revenues were down 8% year-over-year. North America sales were down about 8%, Greater China sales were down about 8%, European sales fell 7% and Asia Pacific and Latin American sales were down 3%.



Nike Direct revenues were $5 billion in the quarter, down 13% year-over-year. Nike Brand revenues totaled $12 billion, down 7%, and Wholesale revenues fell 3% to $6.9 billion. 



Inventories came in at $8 billion, flat on a year-over-year basis. The company ended the quarter with $9.8 billion in cash, equivalents and short-term investments.



&#8220;After an energizing 60 days of being back with my Nike teammates, our clear priority is to return sport to the center of everything we do,&#8221; said Elliott Hill, president and CEO of Nike.



&#8220;We&#8217;re taking immediate action to reposition our business, so we can get back to driving long-term shareholder value. Our team is ready to go, and I&#8217;m confident you will see more moments of Nike being Nike again.&#8221;



Hill, a longtime Nike veteran, took over for former CEO John Donahoe in October. Executive vice president and CFO Matthew Friend noted the company is accelerating pace and reigniting brand momentum under Hill&#8217;s leadership.



Don&#8217;t Miss: <a href="https://www.benzinga.com/trading-ideas/technicals/24/12/42600598/nikes-earnings-loom-with-bearish-signals-will-the-swoosh-bounce-back">Nike&#8217;s Earnings Loom With Bearish Signals: Will The Swoosh Bounce Back?</a>



Nike noted it returned approximately $1.6 billion to shareholders during the quarter, including $557 million in dividends and $1.1 billion in share repurchases. As of Nov. 30, Nike had approximately $6.7 billion remaining under its four-year buyback approved in June 2022.



Management will further discuss the quarter on a call with investors and analysts at 5 p.m. ET.



NKE Price Action:&nbsp;<a href="http://benzinga.com/quote/nke" target="_blank" rel="noreferrer noopener">Nike shares&nbsp;</a>were down approximately 29% year-to-date heading into the print. The stock was up 8.24% in after hours, trading at $83.50 at the time of publication Thursday, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/24/12/42602214/its-so-boring-but-kevin-oleary-says-this-little-known-real-estate-play-that-sends-him-a-check-every-month">&#8216;It&#8217;s So Boring,&#8217; But Kevin O&#8217;Leary Says This Little-Known Real Estate Play That Sends Him A Check Every Month</a></li>
</ul>



Photo: Courtesy of Nike.

Sports

After-Hours Center

Nike Q2 Earnings: Revenue Beat, EPS Beat, Shares Jump — 'Nike Being Nike Again'

FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) reported its second-quarter results after Thursday's closing bell. Here's a look at the key<a href="https://www.benzinga.com/pressreleases/24/12/b42603607/fedex-reports-second-quarter-diluted-eps-of-3-03-and-adjusted-diluted-eps-of-4-05"> figures from the quarter. </a>



The Details:&nbsp;FedEx reported adjusted earnings of $4.05 per share, beating the $3.91 consensus estimate. Quarterly revenue came in at $22 billion, missing the $22.11 billion analyst consensus estimate. 



The company said its consolidated operating results were negatively affected by lower-than-expected FedEx Freight revenue and profit, as sustained weakness in U.S. industrial production continued to pressure less-than-truckload industry demand. 



The lower FedEx Freight results were mostly offset by cost reduction benefits at Federal Express through its DRIVE program initiatives and higher base yields at each transportation segment.



FedEx Freight segment operating results decreased during the quarter due to fewer shipments, lower fuel surcharges and reduced weight per shipment and were partially offset by higher base yield.



&#8220;Our second quarter results demonstrate that our efforts to transform our operations are working. The Federal Express segment delivered operating profit growth despite several headwinds, including the continued weak U.S. domestic demand environment as well as the expiration of our U.S. Postal Service contract,&#8221; said Raj Subramaniam, FedEx Corp. president and CEO.



Read More: <a href="https://www.benzinga.com/general/social-media/24/12/42598651/mystery-drone-sightings-all-over-the-country-trump-says-what-to-know-about-investigations-lawmakers-reactions">&#8216;Mystery Drone&#8217; Sightings Spark Investigations, Politicians Respond: &#8216;Shoot Them Down,&#8217; Trump Says</a>



FedEx Freight Spin Off: FedEx also announced that it has decided to pursue a <a href="https://www.benzinga.com/pressreleases/24/12/b42603568/fedex-announces-intent-to-separate-fedex-freight-creating-two-industry-leading-public-companies">full separation </a>of FedEx Freight through the capital markets, creating a new publicly traded company. FedEx said the separation is expected to be achieved in a tax-efficient manner for FedEx stockholders and executed within the next 18 months.



&#8220;This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market,&#8221; said Subramaniam. 



&#8220;This announcement is a testament to the strength of the business our team has built, and to our dedication to doing what&#8217;s best for our customers, our team members, and our stockholders. Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholder,&#8221; Subramaniam added. 



Outlook:&nbsp;FedEx now expects approximately flat revenue year-over-year, versus its prior forecast of a low single-digit percentage increase. 



FDX Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, FedEx shares are up 7.29% after-hours at $296 at the time of publication Thursday. 



Read Next:



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42440681/markets-have-the-green-light-to-rally-after-novembers-yawner-inflation-report-experts-say">&#8216;Markets Have The Green Light To Rally&#8217; After November&#8217;s &#8216;Yawner&#8217; Inflation Report, Experts Say</a></li>
</ul>



Image: Shutterstock

FedEx Stock Rallies On Better-Than-Expected Q2 EPS, Freight Spin-Off Announcement

The Symbol LGF was not found. Here are some similar symbols and popular symbols to consider.

Symbol Similar to: LGF

Top Gaining Stocks

뉴스

파트너 / 기고자

벤징가 글로벌