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- 🗞️ Carvana's Wild Ride
🗞️ Carvana's Wild Ride
Big Moves Decoded: Nvidia, AZO, TFX
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Market Performance
S&P 500: 6,840.51 ⬇️ 0.09%
Nasdaq: 23,576.49 ⬆️ 0.13%
Dow Jones: 47,560.29 ⬇️ 0.38%
Carvana Joins the S&P 500
Carvana is joining the S&P 500, just three years after trading at an all-time low of $3.72 and staring down bankruptcy.
The digital car seller will begin trading as a component of the benchmark index on December 22, alongside CRH and Comfort Systems USA.
This is remarkable, given where Carvana was in late 2022. The company's debt had tripled during the pandemic boom, and then the Fed aggressively started hiking rates.
Wall Street analysts were writing obituaries, with short-sellers like Hindenburg Research and Jim Chanos publicly betting against the stock.
The turnaround was driven by aggressive cost-cutting, strategic layoffs, and a crucial debt restructuring deal with creditors that eased the burden of rising interest expenses.
Operating costs declined while efficiency improved—and the stock responded dramatically, soaring over 10,000% in just three years to close at a record $399.77 last Friday.
With approximately $13 trillion indexed to the S&P 500, passive funds will be forced buyers of Carvana stock, providing additional momentum.
The shares jumped another 10% on Monday following the announcement, proving that even the most written-off companies can stage spectacular comebacks.
CVNA stock has a Ziggma score of 68 and ranks above most peers in terms of growth and financial health.
The car retailer has surged more than 9,000% in the past three years and trades at a steep valuation in December 2025.
Our Takeaway
While skeptics remain vocal, Carvana's operational discipline and debt management have turned the crisis into an opportunity.
For investors, this validates that turnaround stories can deliver outsized returns when management executes effectively on restructuring plans.
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Market Overview 📈
The S&P 500 finished virtually unchanged on Tuesday as traders positioned ahead of Wednesday's highly anticipated Federal Reserve interest rate decision.
Markets are pricing in an 87% probability of a quarter-point rate cut—up from just 67% a month ago, according to CME's FedWatch tool.
The anticipated cut helped push the Russell 2000 small-cap index to a fresh all-time intraday high, as lower rates typically benefit smaller companies whose borrowing costs are more sensitive to market rates.
Chairman Powell's commentary and the central bank's economic projections will be critical for setting market tone through year-end.
Investors are balancing sticky inflation, delayed economic data due to the government shutdown, and expectations for future Fed leadership as Powell's term expires in May 2026.
The volatility in rate cut expectations—swinging from near 100% to 30% and back to 90%—suggests the Fed's communication strategy may need recalibration under new leadership.
For now, another quarter-point cut, paired with hawkish forward guidance, appears to be priced in, but any surprises could trigger significant market reactions.
Stock Moves Deciphered 📈
🚗 AutoZone (AZO)
The automotive parts retailer plunged 7.2% after reporting fiscal first-quarter results that badly missed expectations.
Same-store sales growth disappointed, while profit margins compressed amid rising cost pressures, triggering significant selling pressure.
Shares tumbled 4.66% in their largest single-day decline in months after consumer banking chief Marianne Lake disclosed that 2026 expenses will reach $105 billion—well above the $101 billion analysts expected.
The 10% increase over 2025's adjusted expense forecast raised concerns about cost discipline, especially combined with warnings about a "more fragile" consumer environment and rising credit card charge-offs.
🥣 Campbell Soup (CPB)
The food company dropped nearly 6% after reporting a 3% year-over-year decline in net sales to $2.68 billion and a 13% drop in adjusted earnings to $0.77 per share.
Despite beating Wall Street expectations on both metrics, the stock fell to levels not seen since 2009.
Weak guidance for fiscal 2026 overshadowed the earnings beat, projecting significant declines that prompted an analyst downgrade.
🎤 Teleflex (TFX)
Shares jumped 9.54% following the company's announcement that it would sell three business units for $2.03 billion and launch a new $1 billion share repurchase program.
Investors viewed the strategic divestitures as positive steps toward streamlining operations and focusing on higher-growth core businesses.
Headlines You Can't Miss 👀
📊 Russell 2000 hits all-time high as small-cap index surges 0.7% on rate cut expectations, outperforming major indices ahead of Fed decision.
🛢️ Exxon Mobil updated its corporate plan through 2030, now expecting $25 billion in earnings growth and $35 billion in cash flow growth—above previous forecasts.
🥈 Silver futures touched a record high of $61.11 per troy ounce, up over 100% this year—on pace for best performance since 1979.
🏬 Walmart completes historic Nasdaq move, becoming the largest company ever to switch from the NYSE, reflecting a tech-forward strategy after 50+ years on the NYSE.
🌏 Vietnam emerges as an emerging market darling, with VanEck Vietnam ETF surging 62% year-to-date, doubling China ETF gains and outpacing broader EM markets.
💼 Job openings held steady at 7.67 million in October per the JOLTS report, but hiring slowed significantly, with quits falling to the lowest level since August 2020.
📈 Small business price expectations surge to a record high—34% net expecting to raise prices, the biggest single-month jump since the survey began in 1973.
🏡 Trump confirms rate-cut pledge as litmus test for Fed chair nominee, signaling monetary policy will be key consideration for Powell's replacement next year.
Trending Stocks 📊
💸 Ares Management (ARES)
Shares surged 8% following the announcement that the alternative investment manager will join the S&P 500, replacing Kellanova.
The inclusion brings forced buying from index funds and validates the company's growth trajectory in alternative investments.
Ares will benefit from an estimated $13 trillion indexed to the benchmark.
🏥 CVS Health (CVS)
The drugstore giant rallied almost 5% after issuing 2026 profit guidance that exceeded Wall Street estimates and surpassed this year's projected earnings.
The stronger outlook signals steady progress in CVS's turnaround plan and addresses investor concerns about the company's strategic direction and operational efficiency in a challenging retail pharmacy environment.
🇨🇳 Nvidia (NVDA)
Shares gained momentum after President Trump announced approval for Nvidia to sell its more advanced H200 AI chips to "approved customers" in China, with the U.S. government receiving 25% of sales proceeds.
While Beijing may limit access and Nvidia isn't banking on massive China revenue, the development provides optionality and removes a significant overhang on the stock.
What’s Next?
Key market and macro news 👇
💰 Oracle reports Q2 FY2026 results Wednesday after close—analysts expect $1.64 EPS as cloud growth remains in focus.
💸 Broadcom announces earnings Thursday—stock hit an all-time high Monday on reports Microsoft may shift chip business from Marvell.
📊 Consumer Price Index for November releases this week—inflation data will heavily influence expectations for future Fed policy.
📰 Employment Cost Index (Q3) releases, where wage growth pressures will signal inflation risks ahead.
Chart of the Day
Source: Visual Capitalist
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