Bespoke’s Weekly Sector Snapshot — 1/2/25
Chart of the Day – Best and Worst S&P 500 Members
Bespoke’s Morning Lineup – 1/2/25 – A Tale of Two Timeframes
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Happy New Year! After the terrible end of the year for equities, US stocks are on pace to start the year on the right foot. Both the S&P 500 and Nasdaq were indicating gaps up of over 1%, which would have put the S&P 500 on pace for its best opening day since 2013, but they have since pulled back a bit and are both up just under 1%. While US stocks are on pace to start positively, the same can’t be said for international markets. Chinese stocks traded down over 2% after the Manufacturing PMI reading for the world’s second-largest economy came in weaker than expected and just barely in expansionary territory. That decline was the worst opening day for Chinese stocks since 2016.
In Europe, the tone isn’t nearly as weak, but equities in the region are mixed as the STOXX 600 trades modestly lower. The Eurozone Manufacturing PMI decelerated slightly from 45.2 to 45.1. Meanwhile, concerning inflation, ECB President Lagarde commented “We have made significant progress in 2024 in bringing down inflation and hopefully 2025 is the year when we are on target.”
In the US, the only economic reports on the calendar are jobless claims at 8:30 (better than expected on both an initial and continuing basis), the final Manufacturing PMI from S&P for December at 9:45, and then Construction Spending at 10 AM. The ISM Manufacturing Index will be released tomorrow.
December wasn’t a good month for bulls, and the last several days were bad to a historic degree. The chart below shows the performance of the S&P 500 from the close before Christmas to year-end with the S&P 500 down 2.6%. As shown in the chart below, that ranks as the worst performance for the closing days of the year since at least 1952 and the 12th year during that span that it fell over 1%.
Best Performing Stocks of 2024
Below is a look at the 20 best performing stocks in 2024 of current Russell 3,000 members. As shown, each of these stocks gained at least 349% last year, with eleven gaining 500%+ and four gaining 1,000%+.
Below is a one-sentence description of what each of the 20 best performing stocks in the Russell 3,000 in 2024 does to generate revenues:
- GeneDX (WGS): Provides advanced genetic testing and analysis to support precision medicine and healthcare solutions.
- Rigetti Computing (RGTI): Develops cutting-edge quantum computing systems and software for various industries.
- Sezzle (SEZL): Offers “buy now, pay later” financing solutions for e-commerce platforms and retailers.
- Dave (DAVE): A personal finance app designed to help users manage expenses, avoid overdraft fees, and build credit.
- SoundHound AI (SOUN): Develops AI-powered voice recognition and conversational intelligence solutions for businesses.
- D-Wave Quantum (QBTS): Specializes in quantum computing hardware and software to solve complex optimization problems.
- AppLovin (APP): Provides tools and services for mobile app marketing and monetization.
- Intuitive Machines (LUNR): Focuses on lunar exploration technologies and space systems for commercial and government missions.
- Root (ROOT): Offers personalized auto insurance powered by advanced data analytics and telematics.
- Summit Therapeutics (SMMT): Develops innovative therapies for infectious diseases and other critical health challenges.
- Redwire (RDW): Provides advanced space solutions, including manufacturing, infrastructure, and engineering for space exploration.
- RealReal (REAL): Operates a luxury consignment platform for buying and selling pre-owned high-end goods.
- NuScale Power (SMR): Develops modular nuclear reactor technology for clean and efficient energy production.
- Candel Therapeutics (CADL): Focuses on the development of oncolytic viral therapies for cancer treatment.
- Innodata (INOD): Provides data annotation, AI model training, and digital content services for enterprises.
- Janux Therapeutics (JANX): Develops innovative immunotherapies designed to treat various types of cancer.
- MicroStrategy (MSTR): Offers enterprise analytics, business intelligence software, and cryptocurrency-focused solutions.
- Rocket Lab (RKLB): Designs and manufactures launch vehicles and space systems for small satellite deployments.
- Byrna Technologies (BYRN): Produces non-lethal self-defense products and devices for personal and law enforcement use.
- Palantir Technologies (PLTR): Provides data analytics platforms and solutions for government and enterprise use.
The Most Popular Brunch Reads Articles of 2024
There’s been a ton of news this year and Bespoke has covered the biggest headlines. Throughout the year, our weekly Brunch Reads — a linkfest of some of our favorite articles each week — has also shared what we found to be some of the most interesting stories that received less coverage. The links are not only market-related but also cover other interesting subjects. With the year winding down, we wanted to tie a bow on the links that got the most love from Bespoke Sunday Brunch readers, so below, we have provided links to each month’s most popular article. Enjoy!
January
Warren Buffett’s Investment Protégé Grew His Retirement Fund From $70,000 To $264 Million — An Account He Opened When He Earned Just $22,000 Per Year: ‘In A Perfect World, Nobody Would Know About This Account’ (Yahoo Finance)
When he was 22 years old in 1984, Ted Weschler was making $22,000 a year. He opened an IRA and grew it to $70,000 five years later. Weschler left his job as a junior financial analyst started a private equity firm, and then launched a hedge fund in 2000 that delivered a compounded annual return of 22% until 2011. He joined Berkshire in 2012, Throughout his career, and by 2021, that $70,000 exploded to $264 million. Aside from his stock picks, Weschler called on the value of investing in index funds over the long term, especially for average investors over the long term. [Link]
Continue reading this post on the most clicked-on links by Bespoke readers in 2024 by logging in if you’re already a member or signing up for a trial to one of our two membership levels shown below! You can cancel at any time.
The Closer – 60/40, Best and Worst, AI Update – 12/31/24
Log-in here if you’re a member with access to the Closer.
Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we lead off with a look into the performance of 60/40 portfolios (page 1) in addition to other assets (page 2). We then review the best and worst performing equities on the year (page 3) followed by an update of the latest read on home prices (page 4). We round out tonight’s report with some commentary on the quarterly rebalancing and newest changes to our AI baskets (page 5).
See today’s full post-market Closer and everything else Bespoke publishes by starting a 14-day trial to Bespoke Institutional today!