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Last Updated: 17-Dec-25 09:04 ET | Archive
Buy-the-dip crowd is stirring
Briefing.com Summary:
*Warner Bros. Discovery Board of Directors recommends shareholders reject Paramount's tender offer.
*President Trump ordered a blockade of sanctioned oil going in and out of Venezuela.
*Amazon.com is reportedly considering a $10 billion+ investment in OpenAI.
Hot off record closing highs last week, the S&P 500 and Russell 2000 have now posted three straight losing sessions. Notably, there hasn't been much buying interest overall in the mega-cap space, notwithstanding yesterday's record high for Tesla (TSLA), the small-cap space, or any space, for that matter, so far this week.
Be that as it may, the buy-the-dip crowd looks to be stirring today.
The S&P 500 futures are up 20 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 88 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 125 points and are trading 0.2% above fair value.
These are not robust indications. That speaks to the reserve market participants have shown, as they contemplate the notion of the Fed being close to the end of its easing cycle, valuations still sitting at lofty levels, and the S&P 500 showing some possible double-top posturing at a time when the BofA global fund manager survey revealed cash levels are at a record low of 3.3%.
It is enough to keep buyers in a somewhat guarded state as they also take in reports reminding them that December is typically a good month for the stock market.
Some noise on the line today, however, includes a disappointing earnings report and outlook from homebuilder Lennar Corp (LEN), weak mortgage application activity, and President Trump announcing a blockade of sanctioned oil tankers going in and out of Venezuela, which he also declared to be a foreign terrorist organization.
Those headlines have been offset to a certain degree by some AI trading enthusiasm, with The Information reporting that Amazon.com (AMZN) is discussing a $10 billion investment in OpenAI; medical supplies company Medline (MDLN) pricing its upsized IPO at $29.00 per share, which is the high end of the expected $26-30 range; and General Mills (GIS) posting better-than-expected results.
Another corporate headline standing out above most others is Warner Bros. Discovery's (WBD) Board of Directors unanimously recommending shareholders reject Paramount Skydance's (PSKY) tender offer, saying it remains inferior to the Netflix (NFLX) offer.
Shares of WBD are down 1.0%, while shares of PSKY and NFLX are down 2.1% and up 1.6%, respectively.
Those indications are a microcosm of the broader market, which has been mixed up lately, alternating between concerns about valuations and concentration risk and optimism about seasonal trends and impending tax refunds.
