Stocks stay alive despite the Dow's 9-day losing streak

Traders will work at the New York Stock Exchange on December 17, 2024.

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This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open gives investors access to everything they need to know, wherever they are. Like what you see? You can subscribe here.

What you need to know today

Automakers, unite
Nissan motor shares appeared 23.7% on Wednesday after a Tuesday's report that the Japanese automaker consider a union with Honda Motors. Both companies are also planning to bring Mitsubishi Motors – in which Nissan owns 24%, making it the main shareholder – under the latter holding company. Nissan has been struggling lately: its second quarter operating profit dropped 85%.

Dow falls for ninth day
On Tuesday, the Dow Jones industrial average lost 0.61%, indicating a nine day losing streak. The S&P 500 has fallen 0.39% and Nasdaq Composite back to 0.32 %. Asia-Pacific Markets mixed trade wednesday. Japan 225 lost about 0.4% as investors weighed the country's November trade deficit in November, while awaiting the Bank of Japan's interest rate decision this week.

New enthusiasm for new listings in Hong Kong
After three consecutive years of decline, this year's new listings on the Hong Kong stock exchange increase in terms of contract valuesaccording to data from Dealogic. The 63 deals this year raised $10.65 billion, more than 80% higher than the combined value in 2023. It's a sign that Chinese lawmakers ' guarantee support for the Hong Kong market is coming into effect.

What to expect from the Fed
The US Federal Reserve will conclude its two-day rate setting meeting later on Wednesday. In spite sticky inflation and a stable labor marketthe Fed is widely lower rates are expected by 25 basis points. But a CNBC survey of 27 respondents, including economists, strategists and asset managers, showed that only 63% believe this is the right move for the Fed.

(PRO) When to take profit
Nvidia shares may have fallen 1.2% yesterday, pushing it deeper into the realm of correctionbut the chipmaker is still up 163.3% year to date. That suggests some investors may have been profiting from Nvidia's surprising rally. Using charts, CNBC Pro analyzes when is best for investors sell the best performing stocks.

The bottom line

In February 1978, the Bee Gees' song “Stayin' Alive” was the top Billboard song of the month. It was also an anthem for the Dow Jones industrial average, which was struggling with nine straight days of losses.

Almost fifty years on, the Dow has been ignited in a nine-day losing streak again. To take another look from the Billboards chart, every investor wants for Christmas the Dow to stop bleeding red.

That said, it's not a huge injury for a 30-stock index, despite the scary numbers.

The pull the heaviest on the Dow yes United Healthwhich contributed to more than half of the index's decline over the past eight sessions, noted CNBC's Yun Li. The health insurance company was robbed by a fatal shooting of its CEO Brian Thompson as well as wider sales in the industry.

Outside of the Dow, the stock market remains buoyant. Despite the S&P and the Nasdaq also slipping in their last trading session, both indexes are approaching their records. This suggests that it is mostly Dow constituents – “old-economy” stocks such as industrials, financials and consumer discretionary – that are failing.

“Wall Street is waking up to the fact that a Trump presidency may not be as good for stocks as some had hoped,” said David Russell, head of global market strategy at TradeStation. that they must now face higher rates and trade uncertainty, and health care is facing the greatest political risks in recent memory.”

In addition, the losses for the Dow may be consecutive, but the slope is not so steep. The index is just 3.6% off its all-time high, and its 50-day moving average is still rising.