Stocks Close Lower, With Energy and Utilities Leading Gains | Wall Street Today

Moomoo Recap US joined discussion · Jan 3 05:09

Stocks Close Lower, With Energy and Utilities Leading Gains | Wall Street Today

Stocks finished lower on Thursday, reversing early gains made at the start of the new year.

At 4:01 p.m. ET, the $Dow Jones Industrial Average (.DJI.US)$ preliminarily closed down 0.35%, while the $S&P 500 Index (.SPX.US)$ fell 0.22%. $Nasdaq Composite Index (.IXIC.US)$ also declined, falling 0.16%.

MACRO

U.S. construction spending was flat in November, missing expectations of a 0.3% rise, following an upwardly revised 0.5% increase in October. Private residential construction edged up 0.1%, driven by a 0.3% gain in single-family homes and a 0.4% rise in remodeling, while multi-family construction dropped 1.3%. Excluding remodeling gains, overall spending dipped 0.1%. Private nonresidential construction remained unchanged, and public construction saw a slight 0.1% decline.

SECTORS

Oil prices rose on Thursday, buoyed by stronger demand expectations, including hopes that China’s efforts to stimulate growth will boost energy needs. U.S. crude inventories fell for the sixth consecutive week, contributing to the rally despite gains in petroleum-product supplies. The forecast for much colder weather across the U.S. further supported the market, including natural gas. West Texas Intermediate crude rose 2% to $73.13 per barrel, while Brent crude gained 1.7%. The EIA’s data showed a decline in crude stocks but significant gains in gasoline and distillates, with cold weather and growing demand expected to keep the energy market strong.

The energy, utilities, and communications sectors ended the day on a positive note, while declines in technology, materials, and consumer discretionary stocks weighed on the market.

MOOVERS

$Tesla (TSLA.US)$ reported weaker-than-expected Q4 deliveries of 495,570 vehicles, missing Wall Street's target of 507,000 and leading to a 6.8% drop in stock price to $376.39 on Thursday, its worst five-day stretch since December 2022. Despite a 1% annual sales decline—the first since 2012—investors remain focused on 2025 growth prospects, including a lower-priced EV and a planned AI-driven self-driving robotaxi service.

$Constellation Energy (CEG.US)$ surged more than 8% on Thursday, after announcing two U.S. government contracts worth approximately $1 billion, including a 10-year, $840 million power supply agreement and a $172 million energy efficiency project. The deals highlight Constellation's growing prominence in nuclear power, which saw its stock rise 91% in 2024 amid soaring demand for clean, reliable energy to support AI-driven data centers.

$Apple (AAPL.US)$ shares fell more than 2% on the first trading day of 2025, as concerns about a sales slump in China, particularly for the iPhone, took center stage. Analysts, including those from UBS, have lowered their iPhone sales estimates, predicting a 5% decline in iPhone revenue for the December quarter, driven by a 28% drop in iPhone sales in China, with Apple offering discounts to boost demand.

$Rigetti Computing (RGTI.US)$ saw a 31% surge in stock price Thursday, following a 445% gain over the past month. The boost comes after the release of its advanced 84-qubit Ankaa-3 quantum computer, which offers improved gate fidelities and faster speeds for applications in cryptography and optimization. The system will be available on major platforms like Amazon Braket and Microsoft Azure in 2025. Rigetti’s strong cash position and debt-free status also support its growth plans, including future quantum systems.

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