Happy Tuesday! Dow Jones shakeups in 2024 added Amazon, Nvidia and Sherwin-Williams, replacing underperformers like Walgreens and Intel. Here’s how these changes could drive stronger returns in 2025. Also, why there’s a solid case for buying compelling stocks on discount.

—Josh Enomoto

Plus, if you’re interested in learning more about market cycles and patterns, check out today’s sponsor.

MARKET RECAP

Yesterday: Stocks slid Monday, with the S&P 500 down 1.1% as all sectors ended in the red, following last week’s risk-off sentiment. Bond yields dipped, with the 10-year Treasury falling to 4.54%, reflecting cautious trading. Investors may be locking in profits after a strong year of equity gains, while housing data showed signs of improvement.

On Our Radar: Following the New Year’s holiday break, analysts will dissect Thursday morning’s release of initial jobless claims.

TOP STORY

Dow Jones 2024 Scoreboard: Top 5 Winners, Losers — And How Amazon, Nvidia Could Reshape 2025

Amazon, Nvidia, and Sherwin-Williams replaced underperformers in the Dow, positioning the index for stronger growth in 2025.

Here’s what could drive these stocks higher — and why they might lead the next market rally.

SPONSORED CONTENT

Stock Trader's Almanac 2025 Predicts More Upside For Stocks

The stock market is poised for double-digit gains of 8% to 12% in 2025, according to the latest edition of the Stock Trader’s Almanac. The go-to guide for traders, investors and money managers – now in its 58th year – shows investors stock market cycles and trends and patterns, all laid out in a calendar format. 

This handy tool has been an institution since the late 1960’s when Yale Hirsch, a veteran investor, created a way to help the average investor by organizing a slew of data points on a calendar basis. Hirsch was fascinated with stock market history, cycles and patterns and discovered early on that some days of the week and days of the month are better for stocks than others. 

He later passed the torch to his son Jeffrey Hirsch who made his own accurate predictions about the performance of stocks. Ready to get your copy of the Stock Trader’s Almanac 2025? Click here. 

This is a paid ad. Please see 17b disclosure here for more information.

FIVE ZINGERS

First Down: Content streaming giants Netflix and Amazon are challenging traditional TV networks regarding live sports broadcasting. Read why Rosenblatt analyst Barton Crockett thinks this will be huge for these stocks.

Free Speech: President-elect Donald Trump is taking aim at censorship protocols enforced by large tech firms. Discover the broader implications for social media giants Meta Platforms and Alphabet.

Market Retreat: The major indices suffered another rough outing, with certain biotech names suffering steep losses. However, one part of the economy offered a bright spot.

Under Pressure: Embattled aerospace manufacturer Boeing is back in an unfortunate spotlight due to South Korea's JejuAir crashing at Muan International Airport. Here are the implications behind the tragic incident.

Safety First: Secure solutions provider SuperCom saw its shares skyrocket on Monday following the company's deal with South Dakota Sheriff agencies. Learn about what these new contracts entail.

SPECIAL OFFER

The Insider Report: Ending the Year on a High Note with Nasdaq and Holiday Cheer

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

In light of recent tech developments surrounding quantum computing, we may have a new craze on our hands going into 2025. For years, we've been hearing about Nvidia and their importance when it comes to A.I. chips, but is that going to soon be a thing of the past?

Look, I'm not saying AI is old news. It's just starting to permeate our everyday lives, but markets are operating in the future. I think the next big thing in tech is quantum computing and AI is going to improve it tremendously.

Google came out with the Willow chip, but will there be other competitors in the space? Check out this ratio between quantum stocks (QTUM) and semiconductors (SMH). We've seen quite the pop and it could be starting a new bull trend here. At some point, I expect there to be some overlap between the two sectors.

To keep reading and to find out how investors can prepare for the coming shift in Fed policy, sign up for Benzinga Edge here.

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Last Chance: 65% Off Benzinga Edge Before the Year Ends!

Kick off 2025 with smarter trades. Unlock daily trade setups, insider picks, and lightning-fast alerts. This is your last chance to save 65%—our End-of-Year Sale ends December 31!

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