Schaeffer's Top Stock Picks for '25

Holiday-Shortened Week Brings Low Volume, Light Action

Auto and tech stocks were in focus during the week

Managing Editor
Dec 27, 2024 at 12:13 PM
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If you took time off around Christmas  you didn't miss much on Wall Street. A Santa Claus rally gave stocks a boost on Christmas Eve, but other than that, the week was defined by low volume trading. With 2025 only two trading days away, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) both have psychologically significant levels at play. And despite holiday sluggishness, all three major indexes could eke out weekly wins.

Planes, Gains, and Automobiles

It's fitting that during on one of the busiest travel weeks of the year, auto and airline stocks take the spotlight. American Airlines (AAL) stock overcame a system outage on Christmas Eve, while Delta Air Lines (DAL) kicks off 2025 in the earnings confessional. Neither of those two names were the best-performing airline stock of 2024, though.

On the ground, traders grappled with the seismic Honda-Nissan merger. We unpacked what it could mean for the auto sector. Additionally, ride-share giant Uber Technologies (UBER) suffered a setback in Taiwan.

Tech Titans Take Control

Even when there's no major news, the tech sector is buzzing. Netflix (NFLX) scored a lofty price-target hike, while options traders loaded up on Advanced Micro Devices (AMD). Semiconductor stalwart Broadcom (AVGO) stayed hot, though Bitcoin (BTC) and crypto-adjacent stocks did not. And if you're looking for a sector brimming with untapped potential, quantum computing stocks are surging to end the year.

All Eyes on 2025

With just two trading days left in 2024, we've been reviewing the best and worst stocks of the year. To start next year year on the right foot, heed Senior V.P. of Research Todd Salamone's advice on Wall Street's "fear gauge", as well as a cautionary tale about index rebalancing

 
 

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