Before the Bell: Tech Takes the Lead Again

Oil stocks run out of energy as crude prices sink. Inflation and interest rates may head lower as well.

After a weak start to December, Wall Street returned to gains yesterday, with the S&P 500 up 0.2% and the Nasdaq rising 0.9%. Technology once again took the lead, adding just over one percent. Oil stocks were, as so often this year, stuck at the bottom of the leaderboard. Brent crude fell 1,2% to just 58.6 dollars per barrel — the lowest level in five years.

It comes as little surprise, then, that eurozone inflation for November landed at 2.2%, close to the ECB’s 2% target. Belgian inflation, at 2.6%, is higher, and it remains to be seen whether the government can implement an automatic wage indexation as quickly as it hopes. And despite all the political signalling, a capital gains tax is still far from settled — several legal hurdles remain. European markets were broadly unchanged from Monday’s close. There were, however, some striking individual movers, mainly among long-time underperformers. Bayer jumped 12% after the Trump administration introduced a measure that could curb the avalanche of Roundup-related lawsuits. Boeing climbed 10% after its CFO projected positive free cash flow next year and hinted that production volumes may gradually return to pre-crisis levels. A weaker dollar could also help the company compete against rival Airbus. The European aircraft manufacturer did lower its delivery target for the year, but kept its full-year financial guidance intact.

In China, equities trade between half a percent and more than one percent lower this morning; Japan’s Topix is down 0.2%. In the United States we receive labour market data later today, and Salesforce reports its quarterly results. The stock has fallen sharply on fears that AI will intensify competition in the market for sales software. Analysts expect revenue to rise 8.8%.

Danish Group: Shoot First, Ask Questions Later

Another Danish market star tumbled yesterday: ISS fell 7.7%. ISS, a global facility-management company with 325,000 employees, is responsible for managing the residential tower in Hong Kong that caught fire over the weekend, killing more than 150 people. The company stated it had no role in selecting renovation contractors or in fire safety arrangements, as these are legally required to be handled by specialised firms. Analysts insist that only an official investigation can determine responsibility. But investors often shoot first and ask questions later — especially when it comes to Danish stocks.

What Happens When Three Dogs Fight Over a Bone?

According to The Wall Street Journal, the takeover battle for Warner Bros. Discovery (+2.8%) is far from over. Netflix (+0.2%), Paramount’s Skydance, and Comcast have all reportedly submitted higher offers. The stock has already doubled from the level before interest from bidders emerged, though it had been heavily weighed down by the post-pandemic slump, Hollywood labour strikes, and challenges facing traditional TV networks such as CNN and TNT. But superhero franchises and blockbuster IP — from Harry Potter to Superman and Batman — are strategic assets in the race for the strongest content portfolio. For Netflix, it would be the company’s first meaningful acquisition. That is why some observers doubt its intentions, suspecting it may simply wish to gain insights into Warner Bros. Discovery’s business through due diligence.

Did you know…

Tubize has far outperformed UCB this year? The holding company above the pharma group is up 50% year-to-date, while UCB gained only 25.5%.

This article was translated from Dutch and was originally published on Spaarvarkens.be.