US Open: Wall Street starts higher on Monday; SMCI extends gains with Cassava Sciences shares plummeting

• Wall Street with high open on Monday
• Rocket Lab shares surged following a historic achievement of launching two rockets within 24 hours from different hemispheres on November 25, 2024.
• Super Micro Computer shares extending last week's record 80% rally.
• Cassava Sciences shares plummeted after announcing its Phase 3 ReThink-ALZ study of simufilam for Alzheimer's disease failed to meet all endpoints. 

US equity indices are trading higher, led by the US2000 up 1.52% to 2449.8, while other major indices also show gains with US30 up 0.88% to 44779, US500 advancing 0.57% to 6019.9, and US100 rising 0.54% to 20960.19. Latin American markets are slightly lower, with Mexico's MEXComp down 0.06% to 50384 and Brazil's BRAComp declining 0.08% to 129732.

European markets are showing mixed performance. Spain's SPA35 leads gains, up 0.56% to 11752, followed by Warsaw's W20 rising 0.45% to 2213.6 and Germany's DE40 adding 0.23% to 19446.8. UK100 and EU50 post modest gains of 0.06% and 0.02% respectively. Southern European markets are underperforming, with France's FRA40 down 0.10%, Austria's AUT20 falling 0.23%, and Italy's ITA40 declining 0.59% to 33469.

S&P 500 returns per sector. Source: Bloomberg

Sector-wise in the S&P 500, all sectors are trading in positive territory with Consumer Discretionary leading gains at +1.49%. Real Estate and Utilities follow with +0.74% and +0.67% respectively. Communication Services (+0.65%), Financials (+0.55%), and Consumer Staples (+0.52%) show solid gains, while Materials (+0.12%) and Energy (+0.17%) post more modest advances. The overall market breadth is strong with 85.7% of securities trading higher.

Current volatility observed on Wall Street. Source: xStation 

The Nasdaq-100 index, represented by the US100 contract, is trading near the mid-July high of 20,895, now serving as initial support for bulls. Key target levels for bears include the 50-day SMA at 20,464 and the August highs around 19,917, aligning with the 100-day SMA. RSI is gradually diverging higher while MACD is close to bullish crossing. Source: xStation

News:

• Rocket Lab (RKLB.US) shares surged 9.8% to $25.54 following a historic achievement of launching two rockets within 24 hours from different hemispheres on November 25, 2024. The company's 56th Electron mission, "Ice AIS Baby," successfully deployed five satellites for French IoT constellation operator Kinéis. Operating from launch sites in New Zealand and Virginia, Rocket Lab has now delivered over 200 satellites to orbit since 2018, demonstrating operational efficiency and reliability that could attract more clients and partnerships. The Long Beach-based aerospace company's rapid launch turnaround capabilities signal strong growth potential in the competitive launch services market.
• Cassava Sciences (SAVA.US) shares plummeted 83% after announcing its Phase 3 ReThink-ALZ study of simufilam for Alzheimer's disease failed to meet all endpoints. The company is discontinuing its second Phase 3 trial, ReFocus-ALZ, and the Open Label Extension study following disappointing results in cognitive and functional measures over 52 weeks. Despite maintaining a favorable safety profile, simufilam showed no significant reduction in cognitive decline versus placebo. CEO Rick Barry noted unusually low cognitive decline in the placebo group compared to previous AD studies. The company, holding approximately $149.0 million in cash as of Q3 2024, plans to present detailed analyses at an upcoming medical meeting.
• Rigetti Computing (RGTI.US) shares jumped 48% after completing a $100 million at-the-market equity offering initiated in March 2024. The quantum computing pioneer plans to use the funds for working capital, capital expenditures, and advancing its superconducting quantum technology. CEO Dr. Subodh Kulkarni highlighted strong interest from national labs and academic institutions, noting their systems achieve gate speeds of 60-80ns, significantly faster than competing technologies. The company projects its current cash position will sustain operations through 2026 as it continues developing higher qubit count systems and improving 2-qubit gate fidelity.
• Super Micro Computer (SMCI.US) shares jumped 10% to $36.67 extending last week's record 80% rally. The rebound follows its Nasdaq compliance plan submission and positive mention in Nvidia's earnings call. Despite the recovery, SMCI trades 70% below March highs following accounting issues and delayed filings. Technical indicators suggest further upside potential with key resistance levels at $39, $50, and $64, while support holds at $23.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP