Index is treading water in its first session after Christmas

The most important US stock indices showed a mixed picture in the first trading session since the Christmas holidays, with the S&P 500 closing only slightly in the red that day.

Labor Department data showed initial jobless claims fell in the week ending Dec. 21 compared to the previous week. This is a sign of labor market resilience that could impact the Federal Reserve as policymakers weigh interest rate cuts in 2025.

The S&P 500 hovered around the zero line for most of the day before closing with a loss of less than 0.1%. The Dow also ended the session slightly in the red, while the Nasdaq posted a small increase.

Walgreens Boots Alliance (WBA) shares rose 5.3%, securing the best daily performance on the S&P 500. The pharmacy operator’s shares rose sharply in early December following reports of takeover talks with a private equity firm that However, shares have been volatile since then.

Shares of discount retailer Dollar Tree (DLTR) rose 3.8%. The stock lost ground following Dollar Tree’s latest quarterly earnings report, released earlier this month, as the company noted continued pressure on consumer spending amid the uncertain economic environment. The company announced last week that CEO Michael Creedon would remain in the role permanently and lead the retailer’s turnaround plan as it navigates consumer headwinds and competition.

Shares of other retailers also rose. Target (TGT) rose 3% as the company announced price cuts and additional promotions to keep its seasonal sales going even after the critical holiday season ends. In its most recent earnings report, Target forecast fourth-quarter comparable sales would be flat year-over-year.

Fair Isaac Corp. shares (FICO), the data analytics firm known for its credit ratings, fell 2%, the largest decline of any S&P 500 stock. Analysts at JPMorgan initiated coverage on Fair Isaac’s stock last week with a “Neutral” rating, noting that price increases could hamper the company’s growth trajectory.

Shares of Tesla (TSLA) fell 1.8%, giving up some of the stock’s pre-Christmas gain. Analysts said that while the electric vehicle maker is expected to report record fourth-quarter deliveries, investors may be more focused on Tesla’s long-term autonomous driving and artificial intelligence capabilities.

Shares of server and data storage provider Super Micro Computer (SMCI) lost 1.7%, giving back some of the gains from Christmas Eve. The stock’s removal from the influential Nasdaq 100 index last week put pressure on Supermicro’s shares, but the company received an extension from the Nasdaq exchange to the end of February to file its delayed annual report, raising some concerns about a possible Delisting scattered.