US Open: Wall Street higher on first trading day of 2025, Tesla skids on delivery miss

• Wall Street advances broadly with US2000 leading gains at +1.50%, US100 up 0.87% to 21,405
• Tesla drops 4.5% to $385.72 after reporting first annual sales decline in decade, Q4 deliveries miss estimates
• Apple launches rare iPhone discounts in China, offering up to 500 yuan ($68.50) amid market share pressure
• Alphabet downgraded at JMP on antitrust concerns, despite 47 of 58 analysts maintaining buy ratings
• Uber added to Goldman Sachs' Conviction List with $96 target on sustainable growth outlook

US equity markets are showing broad strength, with major indices advancing. The US2000 leads the gains, rising 1.50% to 2282.9, followed by the US100 gaining 0.87% to 21405.68. The US30 is up 0.78% to 43208, while the US500 advances 0.71% to 5977.5. Market volatility is declining, with the VIX falling 1.73% to 17.08. Latin American markets are mixed, with MEXComp gaining 0.77% to 50519, while BRAComp declines 0.47% to 121120.

European markets are broadly higher, with Polish W20 leading gains at 1.17% to 2242.6, followed by the UK100 rising 1.02% to 8258.5. The EU50 is up 0.78% to 4917.6, while the Netherlands' NED25 advances 0.69% to 886.86. Germany's DE40 is up 0.62% to 20110.1, and Austria's AUT20 gains 0.55% to 3661. Spain's SPA35 and Italy's ITA40 show modest gains of 0.07% and 0.02% respectively, while France's FRA40 is slightly lower at -0.09% to 7379.4.

Looking at S&P 500 sectors, most sectors are trading in positive territory. Energy leads the gains, rising 1.19%, followed by Health Care (0.77%) and Industrials (0.70%). Materials (0.69%), Utilities (0.60%), Communication Services (0.55%), Financials (0.54%), and Consumer Staples (0.39%) are all higher. Information Technology shows modest gains of 0.23%, while Consumer Discretionary (-0.09%) and Real Estate (-0.11%) are slightly lower. The overall market shows strength with the S&P 500 up 0.41%.

Current volatility observed on Wall Street. Source: xStation 

The Nasdaq-100 index, represented by the US100 contract, is trading below the early December high of 21,668. The mid-November high at 21,255 serves as the initial support level for bulls, with the 50-day SMA at 21,078 closely aligning with the mid-July high of 20,895, providing additional support. Today, the index retested the 100-day SMA and rebounded after touching it, highlighting this as a significant support zone for bulls.

For bears, key downside targets include the 100-day SMA at 20,470 and the August highs near 19,917, which remain critical support levels.

The RSI is nearing a key support level that has historically acted as a retracement zone, potentially signaling a pause or reversal in the current trend. Meanwhile, the MACD continues to expand while maintaining bearish divergence, which advises caution for bullish traders as downward pressure persists. Source: xStation

News

• Tesla (TSLA.US) shares fell 4.5% to $385.72 after reporting its first annual vehicle sales decline in over a decade. Despite reaching record Q4 deliveries of 495,570 vehicles, this fell short of analysts' expectations of 512,277. The company delivered 1.79 million vehicles in 2024, missing both its growth target and consensus estimates. CEO Elon Musk projects 20-30% growth in 2025, citing a new affordable vehicle launch and autonomous technology developments. The company also faced scrutiny after a Cybertruck explosion incident in Las Vegas, which Tesla attributed to cargo in the truck bed.
• Apple (AAPL.US) announced rare iPhone discounts in China, offering up to 500 yuan ($68.50) off its latest models including the iPhone 16 Pro, running from January 4-7. This follows UBS analyst David Vogt's lowered iPhone sales forecast for December due to declining demand and market share in China. The firm maintains a neutral rating with a $236 price target, while consensus among analysts remains bullish with an average price target of $245.27.
• Uber (UBER.US) was added to Goldman Sachs' US Conviction List, with analysts citing the company's ability to deliver on its February 2024 investor day commitments despite the rise of autonomous vehicles. Goldman maintains a Buy rating with a $96 price target, highlighting scaling end markets and rising profitability levels.
• Alphabet (GOOGL.US) was downgraded to market perform from market outperform by JMP Securities, citing antitrust concerns. Analyst Andrew Boone warned of potential severe penalties, including possible forced divestiture of Chrome browser and restrictions on revenue-sharing agreements. Despite the downgrade, 47 of 58 analysts maintain buy ratings, with an average price target of $208, implying 10% upside. The stock gained 37% in 2024.
• Cryptocurrency related stocks rose as Bitcoin gained ground after a bumpy end of year. MicroStrategy (MSTR.US) gained 6.3%, while Coinbase (COIN.US) rises 5%. 

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP