Markets are higher although weekly losses loom

Dow rose 247, advancers over decliners about 5-2 & NAZ gained 188.  The MLP index was up 2 to 301 & the REIT index recovered 2+ to the 297s.  Junk bond funds were mixed & Treasuries were flattish which kept rates about even.  Oil traded higher in the 73s & gold fell 9 to 2659.

Dow Jones Industrials

Rivian Automotive's (RIVN) 2024 vehicle production & deliveries were in line with the company's previously announced expectations.  The electric vehicle maker produced 49K vehicles last year, including 12,727 trucks & vans during the 4th qtr & delivered 51K vehicles, including 14K models during the last 3 months of the year.  In Oct it lowered its 2024 production target to a range of 47-49K vehicles, down from 57K units.  The company had expected deliveries of 50-52K vehicles.  The company in Oct said the adjusted target was because of a “production disruption due to a shortage of a shared component” for its current vehicles — the R1T pickup, R1S SUV & a commercial delivery van.  The company said the previously discussed shortage “is no longer a constraint on Rivian’s production.”  The stock jumped 2.83 (21%).

Rivian meets its 2024 vehicle production target after lowering projections

Ford's (F) U.S. new vehicle sales increased 4.2% last year to represent the automaker's best year since 2019, led by increased sales of hybrid & all-electric models.  The Detroit automaker reported 2024 sales of 2.08M vehicles, up from just under 2M in 2023.  In 2019, the automaker sold 2.4M vehicles in the US.  For the 4th qtr, the company reported an 8.8% year-over-year increase in sales to 531K vehicles sold.  Full-year sales of its vehicles with traditional internal combustion engines increased 0.2% compared to 2023, while sales of electrified vehicles increased 38.3% year over year.  Electrified vehicles, including hybrids & EVs, represented 13.7% of the automaker's total annual sales.  The stock went up 11¢.

Ford reports best annual U.S. sales since 2019

US manufacturing moved closer to recovery in Dec, with production rebounding & new orders rising further, though factories faced higher prices for inputs as the year ended.  The Institute for Supply Management (ISM) said that its manufacturing PMI increased to 49.3 last month, the highest reading since Mar, from 48.4 in Nov.  A PMI reading below 50 indicates contraction in the manufacturing sector, which accounts for 10.3% of the economy.   Dec was the 9th consecutive month that the PMI remained below the 50 threshold.  The forecast was for the PMI to be unchanged at 48.4.  Manufacturing was battered by the Federal Reserve's aggressive monetary policy tightening in 2022 & 2023 to tame inflation.  But sentiment surveys, including the PMI, have exaggerated the magnitude of the decline in factory production.  Gov data last month showed manufacturing growing at a 3.2% annualized rate in the 3rd qtr & contributing to the economy's 3.1% expansion pace during that period.  The central bank is cutting interest rates, lowering its benchmark overnight interest rate by 25 basis points to 4.25%-4.50% last month.  It was the 3rd consecutive rate cut since the Fed started its easing cycle in Sep.

US manufacturing PMI rises to nine-month high in December

US stocks stepped higher today, looking to shake off a downbeat start to 2025 as Tesla (TSLA), up 3.3%, looked for a comeback.  But hopes are dim for a Santa Claus rally after benchmarks fell again yesterday to notch a 5-session losing streak, the longest since Apr.