Post-Bell | US Stocks End Lower. Tesla, Netflix Fall 3%; Marvell down 7%; Nvidia up 2%; Broadcom Rises 3%; WBD Climbs 4%; Confluent Surges 29%

Wall Street's main indexes closed lower on Monday, with most S&P 500 industry sectors in the red, while Treasury yields gained as investors waited nervously for the Federal Reserve monetary policy update due in two days.

Market Snapshot

The Dow Jones Industrial Average fell 215.67 points, or 0.45%, to 47,739.32, the S&P 500 lost 23.89 points, or 0.35%, to 6,846.51 and the Nasdaq Composite lost 32.22 points, or 0.14%, to 23,545.90. Broadcom up 3%; NVIDIA Taiwan Semiconductor Manufacturing up 2%; Tesla Motors, Netflix fell 3%.

Market Movers

Warner Bros. Discovery climbed 4.4% after Paramount Skydance launched a hostile bid for the entertainment company. The development came just days after Warner Bros. struck an agreement with Netflix. Paramount Global jumped 9%, while Netflix dropped 3.4%.

Meanwhile, President Donald Trump said Sunday that streaming giant Netflix's $72 billion deal to buy Warner Bros. "could be a problem" because it would give Netflix a much larger market share.

Tesla fell 3.4% to $439.58 following a downgrade at Morgan Stanley. Andrew Percoco, the bank's new analyst covering the electric-vehicle maker, downgraded the stock to Equal Weight from Overweight, pointing to slower EV adoption and a volatile trading outlook for the next 12 months. Percoco hiked his price target to $425 from $410.

Lucid dropped 4.9% to $12.76 after the fellow EV maker was downgraded at Morgan Stanley to Underweight from Equal Weight with a $10 price target, down from $30. Rivian also was downgraded with a $12 price target, sending shares down 1.9% to $17.61.

Confluent, Inc. surged 29% to $29.87 after International Business Machines struck a deal to acquire the data-infrastructure company. IBM will acquire all of Confluent's issued and outstanding common shares for $31 a share, or an enterprise value of $11 billion. The transaction is expected to close by the middle of 2026, and is subject to approval by Confluent shareholders, the companies said. IBM stock was 0.4% higher.

Kymera Therapeutics, Inc. soared 42% after the biopharmaceutical company released "positive results" from a Phase 1b clinical trial for KT-621, its anti-inflammatory drug candidate.

U.S.-listed shares of Structure Therapeutics skyrocketed 102%. Mid-stage data for the drugmaker's weight-loss drug candidate, released Monday, appeared comparable to that of one of Eli Lilly's experimental treatments, orfoglipron. Eli Lilly shares fell 1.3%.

Marvell Technology fell 7%. Benchmark Research downgraded the stock to Hold from Buy and withdrew its price target, citing a "high degree of conviction" that the company had lost both Amazon's Trainium 3 and 4 designs to Taiwanese rival Alchip Technologies.

CoreWeave fell 2.3%. The cloud computing company said it planned to offer $2 billion worth of convertible senior notes due 2031 in a private placement, with an option for initial buyers to purchase up to an additional $300 million.

Used-car retailer Carvana climbed 12%, building materials provider CRH gained 5.9%, and HVAC and plumbing company Comfort Systems USA fell 1.2%. The three stocks will be joining the S&P 500 on Dec. 22, as part of the benchmark index's quarterly rebalancing, S&P Dow Jones Indices said Friday.

Separately, BofA Securities reiterated a Buy rating on Carvana stock Monday while raising its price target to $455 from $385, suggesting slight upside to Monday's price of $452.65. Analyst Michael McGovern said he expects Carvana to surpass rival CarMax in quarterly units sold "at some point in 2026.".

Major Bitcoin holder Strategy rose 2.6%. The company disclosed Monday that it had acquired 10,624 digital tokens in the period between Dec. 1 and Dec. 7, for an aggregate purchase price of $962.7 million.

Market News

Google Aims to Monetize Gemini Through Ads

Alphabet could be bringing ads to Gemini in an effort to monetize its AI chatbot, according to industry sources cited by AdWeek.

In calls with advertising clients, Google reportedly plans to roll out ads on Gemini next year, although details surrounding pricing and content were not disclosed.

Berkshire Shakes up Team Ahead of Buffett Handover, Boosting JPMorgan Investment Project

Berkshire Hathaway shook up its management on Monday, weeks before Warren Buffett hands control to Greg Abel, with its key investment manager, Todd Combs, departing for JPMorgan to support the bank's $1.5 trillion project to finance and invest in strategically-placed U.S. companies.

The changes at Berkshire showed Abel making his mark on the company before taking the reins in the New Year. Abel's transition to CEO on Jan. 1 closes Buffett's extraordinary six decades heading Berkshire Hathaway, where he became a household name, a multi-billionaire and an American success story. Warren Buffett, the 95-year-old investor, is known for his market instincts and long-held nickname "the Oracle of Omaha."

Trump Approves Nvidia H200 Chips for Sale to China

President Trump on Monday announced that he will greenlight the sale of NVIDIA's more powerful H200 chips to China.

Trump previously lifted restrictions on the sale of Nvidia's China-specific H20 AI chips, which have less processing capacity than the H200, to the country, but China halted imports of the reduced units.