US EQUITY OPEN: Stocks mixed in quiet trade ahead of the holiday break

Analysis details (14:40)

OPEN: US indices opened the penultimate trading session before Christmas mixed, with the tech-heavy Nasdaq 100 (+0.6%) outperforming and supported by gains in the mega-cap names. Sectors are predominantly in the red with Communication Services, Technology, and Consumer Discretionary the only ones in the green with Utilities and Consumer Staples the laggards. Stock specific highlights include Nvidia (NVDA) (+2%) resolving production issues with Blackwell chip, FDA approving Eli Lilly’s (LLY) (+1.5%) Zepbound for moderate-to-severe obstructive sleep apnea in adults with obesity, and the US jury ruling Qualcomm (QCOM) (+2.5%) did not breach a licensing agreement with Arm (ARM). Newsflow has been very light, with very little scheduled for the rest of the session. The Dollar is firmer with havens lagging, the crude complex is slightly lower, and Treasuries are lower across the curve ahead of the 2yr auction.

STOCK SPECIFICS:

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  Eli Lilly (LLY): Zepbound received FDA approval as the first prescription treatment for moderate-to-severe obstructive sleep apnea in adults with obesity. Of note for ResMed (RMD) and Inspire Medical Systems (INSP).


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  Honda (HMC): Honda and Nissan have signed a basic agreement to explore integration, aiming to create the world's third largest automaker.


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  Xerox (XRX): To acquire Lexmark, for a deal valued at USD 1.5bln; to be immediately accretive to EPS and FCF.


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  Despegar (DESP): To be acquired by Prosus for USD 1.7bln or USD 19.50/shr. Note, DESP closed Friday at USD 14.65/shr.


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  Nvidia (NVDA): Resolved production issues with its Blackwell chip, with shipments set to begin in Q4 2024, and a full ramp-up expected in 2025, according to DigiTimes.


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  TSMC (TSM): Expanding its capacity to meet strong demand for sub-7nm processes and CoWoS packaging, according to DigiTimes.


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  Qualcomm (QCOM): A US jury ruled Qualcomm did not breach a licensing agreement with Arm over chip technology acquired via Nuvia.

23 Dec 2024 - 14:40- EquitiesResearch Sheet- Source: Newsquawk