TSLA
Tesla
-- 410.440 NVDA
NVIDIA
-- 144.470 RGTI
Rigetti Computing
-- 19.0200 PLTR
Palantir
-- 79.890 AAPL
Apple
-- 243.360 
Look 2025 For Good Quality Stocks As Market Close 2024 With Major Indices. Good Quality Stocks Survive!
The stock market closed the year with losses across major indices. The Nasdaq Composite, which surged 28.6% in 2024, fell by 0.9% from the previous day. The S&P 500 declined 0.43%, and the Dow Jones Industrial Average slipped 0.07%, while the Russell 2000 outperformed slightly, ending 0.1% higher.
We continued to see profit-taking in mega-cap stocks, these activities contributed to the overall market’s weakness. The Vanguard Mega Cap Growth ETF (MGK) dropped 1.0% today but achieved a 32.3% gain for the year. In contrast, the equal-weighted S&P 500 dipped 0.2% today, with an 11.1% increase for 2024.
On 31 Dec, we have the October FHFA Housing Price Index which came in at 0.4% while the previous was recorded at 0.7%. October S&P Case-Shiller Home Price Index came in at 4.2% while the previous was at 4.6%.
We will be expecting some key economic data releases on Thursday (02 Jan) in the new year (2025), the weekly initial and continuing claims expected at 8:30 ET, final December S&P Global US Manufacturing PMI expected at 9:45 ET, November Construction Spending expected at 10:00 ET, and weekly EIA Crude Oil Inventories expected at 10:30 ET.
Good Quality Stocks Remains Unfazed By Days Of Selling Off Towards End Of 2024
The importance of conviction in some of the good quality stocks have been shown to me, because despite days of selling off, these stocks remain positive in my portfolio, and the August 2024 sell-off is something we need to keep in mind, as there might be another similar showing in 2025 after the second quarter.
Why is that so? This is because we will be seeing how 2025 would turn out in the H1, and if market did not perform up to expectations (which many expect to see some deregulation to help push market higher), we could see another sell-0ff.
Here are some of my preferred quality stocks which have withstand the sell-off activities during 2024.
S&P 500 Energy Sector Close 2024 With Positive Gains
The energy sector is the only one to close above a positive 1% at 1.35% gain, with five sectors ended in the negative territory.
The information technology (-1.04%) and consumer discretionary (-0.98%) sectors were among the day's weakest performers, despite posting strong gains of 35.7% and 29.1% for the year, respectively.
Note Yield Ended HIgher Despite Buying Interest Waned
Initially, the market rallied at the open after recent declines, but buying interest waned as the 10-year Treasury yield increased. The yield started the day at 4.53% and ended two basis points higher at 4.57%, marking a 69 basis point rise for 2024.
Stocks To Watch
$Netflix (NFLX.US)$ ended the year on a high note, with its Christmas Day NFL games and the second season of "Squid Game" attracting massive audiences. The new season became the streaming service's biggest TV debut, while the first season also saw renewed interest. Additionally, NFL games drew significant viewership, marking a successful end to 2024 for Netflix.
$GigaCloud Technology (GCT.US)$ shares rose over 8% after board member Bernes Marshall purchased shares, signaling confidence in the company's prospects. Despite this rise, GigaCloud's shares have underperformed in the tech sector for 2024, reflecting a near 7% decline for the year.
Microsoft (MSFT) and Nvidia (NVDA) are highlighted as top tech winners for the AI revolution anticipated in 2025. A report from Wedbush suggests tech stocks could rise by 25% as AI initiatives gain momentum under a more favorable regulatory environment. The analysts foresee robust growth driven by AI capital expenditure.
I believe NVDA would be giving some surprise performance in 2025, because the supply of its chips to hyperscaler would also help hyperscaler like Amazon, Google to grow, and hence, there is a need to understand how the demand of chips by hyperscaler is like, not individual mega companies.
I still hold high conviction for NVDA in 2025.
$Tesla (TSLA.US)$ is set to release its Q4 deliveries report, with expectations to surpass its previous record. Analysts predict around 506,763 vehicles delivered, driven by strong demand in key markets like China and various incentives offered by the company.
If you looked at the latest China EV registration number, we are seeing BYD gathering a pretty strong foothold in terms of number of EV in China, I am contemplating changing to BYD EV as have visited the showroom a couple of times.
Procter & Gamble (PG) plans to focus on digital capabilities and sustainability to enhance its supply chain and shareholder returns. The company is constructing a new manufacturing facility in Arizona, despite facing foreign exchange volatility, particularly with the Brazilian real.
Starbucks (SBUX) is undergoing a strategic shift under new CEO Brian Niccol, focusing on redesigning cafes and simplifying its menu to improve efficiency. The company suspended its 2025 guidance following disappointing financial results, including a decline in revenue and same-store sales.
Summary
I would think we could still see some profit taking when market started on 02 Jan 2025, but I personally feel that that should be the time we looked out for stocks which are trading below their intrinsic value.
We do not need to seek getting in at the very low, but as long as we could get in below its intrinsic value, I believe these good quality stocks would give us a good returns in mid to long term.
I have learn this lesson in 2024, hope to repeat the same playlist in 2024.
Appreciate if you could share your thoughts in the comment section whether you think market profit taking would continue on 02 Jan.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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