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  • 🧘🏼‍♀️ Lululemon’s Comeback Stretch

🧘🏼‍♀️ Lululemon’s Comeback Stretch

+ Chrysler: Once an Icon, Now Running on Empty

December 06, 2024

Good afternoon! Waymo is steering its robotaxis to Miami in 2026, adding Magic City to its growing lineup. The company has been testing its Jaguar I-Pace vehicles there since 2019 and plans to get them road-ready next year before launching through its Waymo One app.

Fleet maintenance will be handled by Moove, an Uber-backed company managing tasks like cleaning and charging. With 150,000 weekly rides across existing cities, Waymo is steadily expanding its driverless empire.

MARKETS

*Stock data as of market close*

  • The S&P 500 edged up 0.25% and the Nasdaq climbed 0.8% on Friday, both notching record closes after a better-than-expected November jobs report. Employers added 227,000 positions, beating forecasts, while unemployment rose slightly to 4.2%, keeping a December rate cut on the table. The Dow slipped 0.3%, weighed down by industrials.

  • Tech stocks stole the show, with Amazon, Apple, and Meta hitting fresh highs and fueling the Nasdaq’s gains. Fed officials urged caution on future cuts, but markets seemed content with steady job growth and a manageable outlook for rates.

STOCKS
Winners & Losers

What’s up 📈

  • Asana soared 43.53% following strong demand for its new AI tool and a better-than-expected Q3 report with a smaller loss and higher revenue than forecasted. ($ASAN)

  • DocuSign surged 27.86% after delivering stellar earnings and issuing upbeat guidance for Q4. ($DOCU)

  • Rubrik jumped 20.44% on a narrower-than-expected Q3 loss and a revenue beat. ($RUBR)

  • Hewlett Packard Enterprise climbed 10.62% thanks to a robust earnings beat, fueled by investments in AI-related servers. ($HPE)

  • Victoria’s Secret rose 11.62% after posting better-than-expected Q3 results and raising its full-year outlook. ($VSCO)

  • Ulta Beauty gained 8.99% after exceeding quarterly expectations and raising its fiscal forecast. ($ULTA)

  • Petco added 7.96% after reporting a smaller-than-expected Q3 loss. ($WOOF)

  • Peloton rose 3.73% following an upgrade from UBS analysts, citing effective cost-cutting measures. ($PTON)

What’s down 📉

  • Smith & Wesson plummeted 20.32% after issuing a profit warning due to decreased consumer spending. ($SWBI)

  • AMC Entertainment dropped 9.04% as the company announced plans to sell up to 50 million shares. ($AMC)

  • Samsara slid 5.19% after issuing lukewarm Q4 guidance, despite exceeding Q3 estimates. ($IOT)

  • Halliburton sank 4.13%, Diamondback Energy fell 3.39%, and Chevron declined 2.57% as Wall Street analysts maintained expectations of a 2025 oil surplus. ($HAL, $FANG, $CVX)

  • UnitedHealth Group lost 5.07%, continuing its decline following the tragic death of UnitedHealthcare CEO Brian Thompson. ($UNH)

EARNINGS
Lululemon’s Comeback Stretch, Biggest Surge Since 2008

Lululemon just turned heads—not with yoga pants, but with its Q3 earnings.

The stock leapt 16% on Friday, its biggest single-day surge since 2018. While it’s still down 22% for the year (compared to the S&P 500’s 28% gain), the strong quarter has investors hoping the brand’s mojo is back.

A Stitch Above Expectations

The numbers don’t lie: Lululemon clocked $2.4 billion in revenue, a 9% year-over-year jump, and earnings per share of $2.87—well above Wall Street’s $2.69 expectations.

And for an encore, the company raised its full-year revenue outlook to as high as $10.49 billion. CEO Calvin McDonald credited the bounce-back to international growth and fresh product tweaks, like looser fits and seasonal colors.

While U.S. sales dipped 2%, Lululemon found its footing abroad with international sales climbing 25%. China stole the spotlight, delivering a whopping 39% growth.

The retailer’s strategic plan to hit $12.5 billion in annual revenue by 2026 seems less of a stretch now, thanks to its focus on men’s gear, global markets, and expanded e-commerce.

The Takeaway: Lululemon proved it can still flex in a crowded athleisure market, but challenges remain. U.S. consumers are feeling the pinch, and rivals are churning out leggings at lower prices. For now, the brand is balancing its domestic hurdles with international gains, showing it might just be the comeback kid Wall Street didn’t see coming.

NEWS
Market Movements

  • 📈 Meta Shares Rally on TikTok Ban Developments: Meta shares climbed 2.4% to close at a record high after a court upheld a law requiring ByteDance to sell TikTok’s U.S. operations or face a ban. Meta’s market cap is now nearing $1.6 trillion, driven by strong year-to-date gains of 77%. Amazon shares also hit a record, with both stocks bolstering the Nasdaq Composite to a new high. ($META, $AMZN)

  • 🌟 Workday Joins S&P 500, Shares Surge: Workday shares jumped 9% on news of being added to the S&P 500, replacing Amentum Holdings. It ended the day up 1.42%. The cloud software company, valued at $70 billion, has transitioned from losses to profitability, reporting $193 million in net income for Q3. The inclusion highlights Workday’s growth trajectory, with projected subscription revenue growth of 14% in fiscal 2026. ($WDAY)

  • 🚀 Super Micro Gets Nasdaq Extension: Super Micro secured a Nasdaq extension to file its overdue financial reports by February, avoiding a potential delisting. The server maker, a key supplier of Nvidia-based AI systems, has faced accounting scrutiny but aims to stabilize its operations following internal reviews and leadership changes. ($SMCI)

  • 💼 Jobs Data Fuels Fed Rate Cut Speculation: November saw 227,000 new jobs added, slightly above expectations, while unemployment ticked up to 4.2%. Traders now see a 91% chance of a Fed rate cut at the December meeting. However, Fed officials signaled a cautious approach for 2025 amid persistent inflation and a resilient labor market.

  • 📦 Dollar General Tests Same-Day Delivery: Dollar General launched same-day delivery at 75 stores, planning to scale to thousands with in-app ordering and 1-hour delivery. Shares rose 2.14% as the company eyes competition with Walmart ($WMT) and Amazon ($AMZN). ($DG)

  • 📖 Swift’s Eras Tour Book Sells Big: Taylor Swift’s self-published "Eras Tour Book" sold 814,000 copies in its first weekend, second only to Barack Obama’s "A Promised Land" in nonfiction debuts. Exclusively sold at Target ($TGT), the release bypassed Amazon ($AMZN) and bookstores. ($TGT, $AMZN)

  • ✈️ Boeing Plea Deal Rejected: A judge tossed Boeing's DOJ plea deal over the 737 Max crashes, criticizing the $487M fine and safety investments as inadequate. Boeing faces delays in 737 MAX production resumption after a recent strike. ($BA)

AUTO
Chrysler: Once an Icon, Now Running on Empty

Once the pride of American automaking, Chrysler is now hanging on by a thread—and that thread is a minivan.

The Pacifica, Chrysler’s sole remaining product, is watching its sales spiral downward, dropping 44% last quarter. Minivans might have been cool in 2000, but today, they’re about as relevant as Blockbuster.

A Parent Problem

Chrysler’s struggles are just one piece of the chaos at Stellantis, its parent company. Stellantis owns Jeep, Dodge, and Ram too, but it’s having a rough year. U.S. sales nosedived 20% last quarter, and its stock has tanked 40% year-to-date.

The company's average car price hovers near $55,000—making it a tough sell for price-sensitive buyers. Even after lowering prices, Stellantis has been bleeding market share and goodwill.

Tariffs Could Break the Minivan

Adding insult to injury, President-elect Trump’s proposed 25% tariff on Canadian imports could put the final nail in the Pacifica’s coffin. Built in Ontario, the minivan could become wildly expensive—or unprofitable to produce.

Chrysler’s response? A reboot of the lower-cost Voyager minivan next year. It’s a bold move for a dying category, but it might just buy the brand some time.

Here’s the kicker: Chrysler’s dealerships also sell Jeep, Dodge, and Ram vehicles, making a shutdown relatively painless for Stellantis. Analysts expect the incoming Stellantis CEO to start with a full brand audit—and with only one fading minivan to its name, Chrysler’s place on the roster looks shaky.

The Bottom Line: Chrysler went from an industry titan to a brand with one lonely minivan struggling to stay afloat. With SUV-loving consumers, mounting tariffs, and Stellantis in turmoil, Chrysler’s survival will depend on a near-miraculous turnaround—or it could join Pontiac and Plymouth in the automotive graveyard.

Calendar
On The Horizon

Next Week

Things are cooling down on the economic front, but there are still a few noteworthy reports to watch. Tuesday kicks off with the Small Business Optimism Index, while inflation takes center stage midweek with the Consumer Price Index (CPI) dropping Wednesday, followed by the Producer Price Index (PPI) on Thursday. These inflation reports are the final clues the Fed will have before its two-day meeting starting December 17, where it’ll decide whether to deliver a parting rate cut for the year.

Earnings:

As we edge closer to the holidays, the earnings schedule is winding down, but a handful of notable players are stepping into the spotlight.

  • Monday: Oracle ($ORCL), C3 .ai ($AI), Toll Brothers ($TOL), Vail Resorts ($MTN)

  • Tuesday: GameStop ($GME), AutoZone ($AZO), Stitch Fix ($SFIX), Dave & Busters Entertainment ($PLAY)

  • Wednesday: Adobe ($ADBE), Vera Bradley ($VRA)

  • Thursday: Broadcom ($AVGO), Costco Wholesale ($COST)

  • Friday: A snooze fest—nothing major expected.

NEWS
The Daily Rundown

  • 👨‍⚖️ Musk and Ramaswamy Push Radical Federal Cuts: Elon Musk and Vivek Ramaswamy pitched their plan for the Department of Government Efficiency (DOGE), proposing $2 trillion in spending cuts, a 75% workforce reduction, and the elimination of agencies like the Consumer Financial Protection Bureau. Lawmakers remain skeptical about its feasibility.

  • 🔍 Manhunt for UnitedHealth CEO Shooter Intensifies: Police are searching for the suspect in the targeted killing of UnitedHealth CEO Brian Thompson. Bullet casings at the scene included notes referencing denied insurance claims, reigniting debates about the U.S. healthcare system and CEO safety.

  • 🌊 California Quake Triggers Tsunami Warning: A 7.0-magnitude earthquake off the Northern California coast led to brief tsunami warnings in Berkeley and San Francisco. While warnings were later canceled, the quake caused power outages and heightened concerns about regional seismic activity.

  • 🍺 Guinness Gains Popularity Among Gen Z: Guinness is booming with younger drinkers, fueled by trends like “splitting the G” and efforts to rebrand it as light and accessible. Exceptional demand has led to shortages in some regions, signaling its rising cultural significance.

  • 📉 Nvidia CEO Saves $8B in Taxes Using Loopholes: Nvidia CEO Jensen Huang is avoiding $8 billion in estate taxes through a network of legal trusts. Critics highlight the need for stronger enforcement, as federal tax losses reportedly exceed $120 billion annually.

  • 🌯 McDonald’s Brings Back Snack Wraps: Snack Wrap fans, rejoice! McDonald’s confirmed the beloved menu item will return to U.S. locations in 2025, marking a nostalgic comeback for the fast-food chain.

  • 💍 Oura Rings Spot Illness Early: The Oura smart ring now includes a feature to detect early signs of respiratory illness, offering users a proactive tool for monitoring their health during flu and cold seasons.

RESOURCES
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