S&P 500, Dow Fall After Jobs Data Shows Surprising Rise in Unemployment; Nasdaq Ticks Higher to Snap Losing Streak

Elon Musk is on the Verge of $1 Trillion Net Worth

57 minutes ago

Elon Musk, the world’s wealthiest person, is well on his way to becoming a trillionaire.

Musk’s private space exploration company, SpaceX could hand him that superlative as soon as next year—when it will reportedly list on public exchanges, targeting a market valuation of $1.5 trillion. A massive SpaceX initial public offering alone could double his net worth, push him into 13-digit territory.

But wait, as they say: There’s more. Counting Musk’s shares in that startup, tunnel-building firm The Boring Company, brain-mapping startup Neuralink, xAI—and Tesla (TSLA), which recently approved a new pay package for theC—the entrepreneur’s estimated future net worth could swell to a level comparable to some countries’ annual economic outputs.

Read the full article here.

–Crystal Kim

Tesla’s Stock Is Driving Closer to a Record High, After a Year-Long Wait

3 hr 33 min ago

Tesla’s (TSLA) stock is powering up to near what could be its first record high in a year.

The shares were up about 2% around $486 Tuesday afternoon, leaving them less than 1% from the stock’s intraday record of $488.54 and on track to top last December’s closing high at $479.86.

The electric vehicle maker’s stock has been on a strong upward run in recent months, more than doubling from their lows in March as enthusiasm for CEO Elon Musk’s renewed commitment to the company and plans for autonomous driving, robotics, and AI have driven a comeback. 

Over the weekend, Musk posted on social media that Tesla is testing fully autonomous robotaxis, which could be a sign that safety monitors are on their way out. Tesla launched a pilot program of its self-driving robotaxis in Austin, Texas earlier this year, but still had a Tesla employee in the driver’s or passenger’s seat for rides until recently.

Read the full article here.

–Aaron McDade

More Homebuyers Are Using the Mortgage Option That Set Off the 2008 Housing Crisis

3 hr 44 min ago

High mortgage rates have been overwhelming homebuyers for the past three years, and some are turning to a mortgage option that helped fuel the 2008 housing crisis.

Adjustable-rate mortgages (ARMs) offer fixed introductory rates that later adjust—typically to a higher rate—to reflect current market conditions. These loans are becoming more popular with homebuyers as mortgage rates remain persistently above 6%.

While those homeowners risk having a bigger monthly mortgage payment in a few years, housing industry officials said better lending standards are minimizing the dangers of these loans.

“In the current timeline, these buyers still are at minimal to low risk,” said Phil Crescenzo Jr., vice president of the Southeast Division at Nation One Mortgage Corporation, in an email interview.  

Read the full article here.

–Terry Lane

Investing Pros Feel Good About Stocks These Days. That Might Not Be a Good Thing

4 hr 19 min ago

Professional money managers are feeling better about the stock market than they have in years. That may be cause for caution. 

The smart money is more bullish than at any time since July 2021, according to Bank of America’s December Global Fund Manager Survey, which showed optimism about the economic outlook at multi-year highs and cash levels at record lows. That may sound bullish—but the reading has pushed BofA’s “Bull & Bear Indicator” up to 7.9, a tenth of a point away from what the bank considers a “sell signal.”

Why is that? The indicator is premised on the idea that market returns are driven by positioning, profit, and policy. The best time to buy risk assets, according to BofA, is when investor positioning is extremely bearish, profit expectations are recessionary, and policymakers are stimulating the economy—and the best time to exit is when positioning is bullish, profits are expected to skyrocketed, and policy is tightening.

Positioning is extremely bullish today, according to BofA. Fund managers’ cash levels were at a record-low 3.3% when the survey was conducted between Dec. 5 and 11. Investors are more overweight stocks and commodities—a reflection of risk appetite—than any point since February 2022.

Optimism about corporate profits is also running high. Nearly two-thirds of surveyed investors expect global earnings to increase over the next year, the largest share since August 2021. (A FactSet analysis estimates full-year 2025 earnings growth at above 12%, above the 10-year average.) Only 3% of those surveyed expect the global economy to fall into a recession over the next year.

Read the full article here.

–Colin Laidley

Only 27% Think They’ll Survive a Financial Shock in Retirement. These Are the Two Costs That Often Surprise People

5 hr 18 min ago

In life, accidents happen. But when they occur during retirement, it’s important to be prepared—otherwise, you risk running out of money during what should be considered your golden years.

According to a recent T. Rowe Price survey of more than 7,000 retirees globally, more than a quarter (27%) of respondents said they’d be able to withstand a financial shock in retirement.

Investopedia spoke with financial planners who shared what they think are the most common financial shocks retirees face and how people can prepare for them.

“Retirement resilience isn’t about predicting every expense. It’s about having a safety margin with options and a plan that can adapt when life doesn’t follow the script,” said Mike Casey, a certified financial planner (CFP) and founder of AE Advisors.

Read the full article here.

–Trina Paul

Pfizer Stock Falls on Disappointing 2026 Profit, Revenue Projections

5 hr 53 min ago

Pfizer (PFE) was one of the worst-performing stocks in the S&P 500 Tuesday after the pharmaceutical giant gave 2026 guidance that came in below analysts’ expectations.

Shares fell 5% after the New York-based company projected 2026 adjusted earnings of $2.80 to $3.00 per share, while analysts surveyed by Visible Alpha were looking for $3.06 per share.

In addition, the midpoint of Pfizer’s projected revenue range between $59.5 billion and $62.5 billion was below the analyst consensus of $61.6 billion.

Pfizer also revised its 2025 revenue guidance to about $62.0 billion from the prior range of $61.0 to $64.0 billion.

Shares of Pfizer entered the day fractionally lower on the year.

Ford Is Rolling Back Some of Its EV Plans. Here’s What You Need to Know

6 hr 13 min ago

Ford’s (F) electric vehicle strategy is changing gear.

The automaker announced a major shift in its EV plans late Monday, with the company expecting to take on about $19.5 billion in one-time charges to account for the costs of a restructuring plan that will see the automaker focus more on hybrid and plug-in vehicles, while pulling away from pure EVs. Ford said it plans to recognize most of the $19.5 billion in charges during the fourth quarter, with about $5.5 billion in cash effects to be paid through 2027.

“This is a customer-driven shift to create a stronger, more resilient and more profitable Ford,” Ford CEO Jim Farley said in a statement. “The operating reality has changed, and we are redeploying capital into higher-return growth opportunities.”

The next generation of Ford’s F-150 Lightning electric truck will now be an extended-range EV rather than a fully electric vehicle. Ford said its plans to start introducing smaller, more efficient and affordable EVs remain on track for 2027.

Read the full article here.

–Aaron McDade

Rising Unemployment Adds Pressure on the Fed to Consider More Rate Cuts

6 hr 33 min ago

An unexpected jump in the unemployment rate Tuesday kept pressure on the Federal Reserve to rescue the job market by cutting interest rates.

Fed officials—concerned about the health of the labor market and left with limited data to go on during the government shutdown—opted to cut the central bank’s key interest rate last week for the third time in as many meetings.

Tuesday’s jobs report kept those worries alive when it showed the unemployment rate rose to 4.6% in November from 4.4% in September, reaching a fresh high since 2021.

Fed officials have been divided over how best to pursue the central bank’s dual mandate from Congress to keep inflation low and employment high, at a time when the economy isn’t cooperating with either objective.

One faction prefers to keep interest rates higher for longer to crush inflation that’s still over the Fed’s goal of a 2% annual rate. Another prefers faster rate cuts to prevent unemployment from rising severely. The federal funds rate influences borrowing costs on short-term loans, allowing the central bank to discourage spending with high, “restrictive” rates or encourage it with lower ones.

Read the full article here.

–Diccon Hyatt

There’s a Proposed ETF for People Who Think Bitcoin Performs Better at Night

7 hr 23 min ago

The early bird may get the worm. But does the night owl eat its lunch?

That question is at the core of a proposed exchange-traded fund from Nicholas Wealth called Bitcoin and Treasuries AfterDark. (Approval and launch under the ticker “NGHT” are expected next year.) The strategy aims to capture the performance of the world’s largest cryptocurrency while U.S. stock markets are closed, on the belief that bitcoin’s (BTCUSD) performance is better in the evenings.

“In a market like we’re in now, a lot of the losses have [been] overnight,” David Nicholas, president and founder of Nicholas Wealth, told Investopedia. “But in a bull market for bitcoin—that’s actually when we see the biggest outperformance.”

For investors who have been unhappy with the coin’s not-so-hot returns lately, an actively managed strategy could be appealing, and there is some research that suggests bitcoin’s overnight performance can exceed the day’s. But other numbers suggest that the strategy isn’t a slam dunk.

Read the full article here.

–Crystal Kim

Energy Stocks Lead S&P 500 Decliners Tuesday Morning

8 hr 49 min ago

With oil prices at seven-month lows, energy stocks are leading S&P 500 decliners Tuesday morning.

The S&P 500 Energy Sector was down 2.3% in recent trading, by far the worst of the 11 industries tracked by the benchmark index.

APA (APA), Diamondback Energy (FANG), Phillips 66 (PSX), and Halliburton (HAL) were among the worst-performing individual stocks in the S&P 500 an hour after the opening bell, with shares down between 3.5% and 4%.

West Texas Intermediate futures, the U.S. crude oil benchmark, fell more than 2% to $55.50 a barrel, its lowest level since May.

Why December Is One of the Best Times to Buy a Used Car, According to Experts

9 hr 21 min ago

December is often one of the better times to shop for a used car, according to Carfax. The leading provider of vehicle history information and buying guidance notes that the used-car market—where inventory varies widely and pricing is more flexible—can give buyers meaningful leverage as the year wraps up.

A major factor is year-end sales pressure. Dealerships often push their sales staff to meet annual goals in December, which can make managers more open to negotiating on used vehicles that have lingered on the lot. Carfax notes that this dynamic intensifies in the final days of the month, with New Year’s Eve standing out as one of the strongest days of the year to make a deal. As sales teams close out their books, buyers may see price adjustments or more willingness to negotiate than earlier in the season.

Carfax also says slower showroom traffic can work to a shopper’s advantage. Weekdays—especially mid-day visits—tend to be quieter, giving buyers more time to compare vehicles and more attention from sales staff. Also, in regions with cold weather or snowfall, these events can keep casual shoppers home, creating conditions where serious buyers may find more negotiating room.

Taken together, these factors make December—and especially its final stretch—a time when used-car shoppers may find more motivated dealers, more flexible pricing, and a better chance of securing the vehicle they’ve been watching.

Read the full article here.

–Sabrina Karl

Job Slump Deepened in October and November, Belated Report Shows

9 hr 59 min ago

Job creation slowed and the unemployment rate rose this autumn, according to data delayed by the government shutdown.

The U.S. economy lost 105,000 jobs in October and added 64,000 in November, the Bureau of Labor Statistics said Tuesday. The unemployment rate rose to 4.6% in November from 4.4% in September, reaching a fresh high since 2021.

November’s job creation and the unemployment rate were both higher than forecasters anticipated, according to a survey of U.S. economists by Dow Jones Newswires and The Wall Street Journal.

The report, which had been delayed by the government shutdown, showed a continuation of the trends that began this summer: a sharp slowdown in hiring due to uncertainty among business leaders about tariff policy, as well as from President Donald Trump’s crackdown on immigration. October was the third month this year in which the economy lost jobs. Before June, U.S. employers had added jobs every month since the pandemic.

The report also highlighted the impact of deferred government layoffs made earlier in the year when President Donald Trump took office and began slashing federal programs and jobs, offering many of them deferred buyouts that took effect in October.

–Diccon Hyatt

Here’s How Much Traders Expect Micron Stock to Move After Earnings Wednesday

10 hr 24 min ago

Micron Technology is set to report earnings after the market closes Wednesday, with traders expecting a big move in the memory chip maker’s stock.

Options pricing suggests traders expect Micron (MU) shares could swing up to 9% in either direction by the end of the week. At the high end, a move of that size from Monday’s close at $237.50 would push the stock above $258, near its all-time high reached last week. At the low end, however, the stock could slip to roughly $217, where it was late last month.

Micron, which makes memory components for leading AI chipmakers such as Nvidia (NVDA) and Advanced Micro Devices (AMD), has seen its sales surge to new highs this year on strong demand for its memory chips. Its stock has nearly tripled in value in 2025, making it one of the best-performing stocks in the S&P 500 for the year so far.

Wall Street analysts expect Micron to report a 48% year-over-year jump in revenue to a record $12.93 billion, while adjusted earnings per share are projected to more than double to $3.96 for the first quarter of fiscal 2026, according to estimates compiled by Visible Alpha.

Read the full article here.

–Aaron McDade

Kraft Heinz Names New CEO Ahead of Planned Split

11 hr 19 min ago

Kraft Heinz (KHC) will have a new chief executive ahead of its planned split next year.

Kraft Heinz on Tuesday said Steve Cahillane will become its CEO, effective Jan. 1. Cahillane, who served as Kellanova’s chief executive until its recent acquisition by Mars, also will join its board and serve as CEO of “Global Taste Elevation Co.” following its planned split into two independent, publicly traded companies.

Carlos Abrams-Rivera “will step down January 1 and serve as an advisor to the Company until March 6, 2026, to ensure a seamless leadership transition,” Kraft Heinz said. Abrams-Rivera originally was supposed to lead the post-split grocery business, “North American Grocery Co.,” but no longer. Kraft Heinz’s board will “initiate a global search for a CEO” for the grocery business, it said.

“Global Taste Elevation Co.” is the bigger of the two planned companies, housing brands including Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese. “North American Grocery Co.” will include Oscar Mayer, Kraft Singles, and Lunchables. 

Kraft Heinz announced in September that it planned to break up, undoing a merger that was just a decade old.

“I’m confident the planned separation will accelerate the Company’s ability to compete and win in today’s environment and unlock the immense opportunity in front of us,” Cahillane said.

Frontier Airlines’ Parent Replaces CEO

11 hr 51 min ago

Frontier Group Holdings (ULCC) decided to make a change at the top.

The parent of ultra-low-cost carrier Frontier Airlines announced after markets closed Monday that longtime CEO Barry Biffle was being replaced on an interim basis by company president James Dempsey.

Biffle, who had served as Frontier’s CEO 11 years, will remain in an advisory role through the end of the year.

“With 13 bases and a strong cost advantage, I believe Frontier is well positioned to deliver unrivaled value to customers across the United States,” said Dempsey, who joined Frontier in 2014 as CFO. “I look forward to partnering with our team to write Frontier’s next chapter as we strive to create long-term value for all stakeholders.”

Ultra-low-cost carriers like Frontier and Spirit Airlines have struggled mightily in recent years, as bigger airlines offer more premium offerings and international flights, as well as more robust loyalty programs. Frontier attempted to combine with Spirit three years ago but was outbid by JetBlue, a merger that ultimately was rejected by the Biden administration. Spirit has filed for bankruptcy twice in just over a year.

Frontier’s shares have lost 19% of their value this year entering Tuesday.