Markets mixed as Dow perks up and Nasdaq slumps

Dow went up 135, decliners over advancers 4-3 while NAZ sank 262.  The MLP index was up 3+ to the 305s & the REIT index was steady in the 382s.  Junk bond funds drifted lower & Treasuries saw limited selling which raised yields a little (more below).  Oil jumped 2+ to the high 78s & gold gave back a big 30 to 2684.

Dow Jones Industrials

Moderna (MRNA) lowered its 2025 sales guidance by roughly $1B due to a few potential headwinds later this year, as the biotech company continues to cut costs & expand its portfolio.  MRNA now expects 2025 revenue to come in at $1.5-2.5B, most of which will come in the 2nd ½ of the year.  The majority of those sales will come from its Covid shot & newly launched vaccine for respiratory syncytial virus.  The guidance is down from a prior forecast of $2.5-$3.5B issued in Sep.  At the time, the company said it expects to break even on an operating cash basis in 2028, pushed back from 2026 with $6B in revenue.  “As we head into 2025, there are a handful of uncertainties that we are planning for,”CFO Jamey Mock said.  “As of this time period, we are planning for them to be headwinds. They could be tail winds, but right now we’re seeing them as headwinds.”  Mock pointed to 4 factors that could weigh on sales, including increased competition in the Covid market.  He said MRNA's share of the US retail market for Covid shots fell to 40% at the end of 2024 from 48% in 2023, & the company is preparing for another decline this year.  He noted Sanofi will co-commercialize Novavax's (NVAX) Covid vaccine worldwide under a new agreement, which could potentially make that shot more competitive.  Mock said the 2nd factor is falling vaccination rates, which were down around 7% overall in the US retail market in fall 2024 compared with the same time in 2023.  The last 2 factors are timing around manufacturing contracts with a handful of countries, & uncertainty around what advisors to the Centers for Disease Control & Prevention will recommend for RSV revaccination.  But Mock noted that the company expects to reduce 2025 cash cost expenses by $1B, with plans for additional 2026 cost reductions of $500M.  “We are taking the right amount of cost to preserve our cash,” Mock said.  “We’re excited to invest and diversify our portfolio.”  The stock dropped 4.57% (3%).

Moderna stock plunges 20% after company lowers 2025 sales forecast by $1 billion

Nvidia's (NVDA) top customers are delaying orders of the AI chip leader's latest 'Blackwell' racks due to overheating issues, the Information reported.  The US gov also said earlier in the day it would further restrict AI chip & technology exports, potentially hurting NVDA's sales. The first shipments of racks with Blackwell chips have been overheating & exhibiting glitches in the way chips connect to one another, the Information reported.  A rack, used in data centers, is a structure that houses chips, cables & other essential equipment.  The hyperscalers had each placed Blackwell rack orders worth $10B or more.  Some of the customers are waiting to snag a later version of the racks or plan to purchase the company's older AI chips, according to the report.  The stock tumbled 9.05 (21%).

Nvidia's top customers delay orders of latest AI racks: Report

The 10-year Treasury yield touched a fresh 14-month high as investors looked ahead to key inflation results.  The yield on the 10-year Treasury was last marginally higher at 4.78%, the highest level since Nov 1, 2023.  This followed the 10-year Treasury yield's jump on Fri following a hotter-than-expected jobs report.  The 2-year Treasury yield also slipped less than 1 basis point at 4.394%.  1 basis point is equal to 0.01% & yields & prices move in opposite directions.  Global bond yields are climbing, as traders broadly anticipate a slower pace of interest rate cuts this year.  That is being led by expectations that the Federal Reserve will act with caution, amid signs of both potential economic strength & uncertainty delivered by the policies of Pres-elect Trump.  Attention is turning to inflation data, with the producer price index report expected tomorrow & the consumer price index due out on Wed.

10-year Treasury yield touches 14-month high ahead of key inflation reports

Techs led a slide in stocks, while the $ & bond yields climbed amid fading hopes for interest rate cuts ahead of this week's key consumer inflation report.  Stocks are shaping up for another rough session after Fri's plunge, which wiped out all year-to-date gains for this year's major gauges.  A hot Dec jobs report rattled markets, spurring concern that signs of strength in the economy will encourage the Federal Reserve to keep rates higher for longer.