Breakfast News: The Rout Continues
Breakfast News: The Rout Continues
March 11, 2025
Monday's Markets |
|---|
| S&P 500 5,615 (-2.7%) |
| Nasdaq 17,468 (-4%) |
| Dow 41,912 (-2.08%) |
| Bitcoin $79,040 (-4.96%) |
Source: Image created by JesterAI.
1. Worst Day Since 2022
The market slump continued yesterday as President Donald Trump's "period of transition" fuels stagflation fears. It led to the Nasdaq's biggest one-day fall since 2022. The S&P 500 came close to correction territory during the day, down 9.5% from its 52-week high, but still closed on a 12-month gain of 9.6%.
- "I'm not even looking at the market." The president continued his theme from last week, suggesting that short-term pain is needed for long-term gain. Goldman Sachs (GS -5.00%) cut its 2025 gross domestic product (GDP) forecast from 2.4% to 1.7%, saying, "Our trade policy assumptions have become considerably more adverse," and put inflation at 3% by year-end.
- "It's painful to go through it, but it's part of the investing process." Motley Fool Chief Investment Officer Andy Cross said, "Remember that historically markets fall 10%+ about every year. On average it takes 3-4 months to recover."
2. Tesla's Election Gains Gone
Tesla (TSLA -15.43%) continued falling after hours to hit an overall loss of 18% on the day, its worst since 2020, after analysts cut their delivery expectations ahead of fourth-quarter earnings due next month. The stock is down more than 50% since December's record high but still up over 400% in five years. Interviewed on Fox Business, CEO Elon Musk admitted his political activities mean he's running his business "with great difficulty."
- Magnificent 7 mauling: The rest of the Magnificent 7 tech stocks also suffered one-day falls, with only Amazon (AMZN -2.36%) dipping less than 4%, including in after-hours trading.
- Sales up, stock down: Since last year's record high, $1 trillion has been knocked off the value of Nvidia (NVDA -5.07%), even though the company keeps beating earnings estimates. With guidance suggesting $43 billion revenue next quarter, forecasts put the 2025 price-to-earnings ratio at just 25. Tesla's is up at 86.
3. More Market Moves
Protagonist Therapeutics (PTGX 45.89%) bucked the market trend with a 46% jump after an experimental psoriasis drug developed in partnership with Johnson & Johnson (JNJ 0.61%) came out on top in a comparison with approved treatment Sotyktu from Bristol Myers Squibb (BMY 3.31%). J&J now plans to test the new drug, labeled JNJ-2113, against its own Stelara product.
- Up 266% in five years: Interactive Brokers (IBKR -13.02%) lost 13% in the general sell-off. The electronic brokerage company beat Wall Street expectations in its fourth quarter and is planning new products and new global offices.
- Crypto crunch: Coinbase Global (COIN -17.58%) plunged 17% on a day when Bitcoin (BTC -0.71%) fell 5% to end 28% below its all-time high of over $109,000. Ethereum (ETH -9.05%) lost 4.1%.
4. Cloudy Days for Solar
A new report shows 84% of electricity generation capacity in 2024 came from solar energy. The addition of 50 gigawatts of solar capacity was the largest growth of any energy source in more than 20 years, says the report from the Solar Energy Industries Association and energy analyst Wood Mackenzie.
- New administration upheaval: Solar power benefited from former president Joe Biden's climate change policies, but the report suggests the industry faces difficult times under today's different priorities.
- Up 224% in five years: First Solar (FSLR -4.33%) has suffered from the change, down 18% in the past 12 months despite a solid fourth quarter. But it's still gained more than 400% since its initial public offering (IPO) in 2006.
5. Next Up: Earnings Today
Stitch Fix (SFIX -2.36%) will report on Q2 after today's market close. The online personal styling service has posted a 74% stock gain in the past 12 months. Q1 brought a rise in reported revenue per active client despite a drop in active client numbers. That balance could be key.
- Mixed Q3 results: Vitesse Energy (VTS -0.29%), which holds non-operating interests in various oil and natural gas fields, reports Q4 after the closing bell. Earnings beat expectations in the previous quarter, but revenue fell short. Look for signs of increased production in 2025.
- A five-year gain of 123%: Casey's General Stores (CASY -4.28%) also saw an earnings beat but a revenue miss in Q3 and joins those reporting this afternoon. Guidance indicates at least a 10% rise in 2025 EBITDA (earnings before interest, taxes, depreciation, and amortization).
6. Foolish Fun
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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