Dow rises 150 points to clinch third straight winning day as stocks' December hot streak resumes: Live updates

Stocks closed higher on Monday, clinching a third-straight session of gains.

The Dow Jones Industrial Average added 157 points, or 0.4%, to close at 36,404.93. The S&P 500 climbed 0.39% to finish the session as 4,622.44, while the Nasdaq Composite gained 0.2% to 14,432.49.

— Brian Evans

Bank stocks are cheap but unlikely to rally so long as investors anticipate a surge in bad loan losses in 2024, Morgan Stanley analysts led by Manan Gosalia wrote to clients Monday.

Current stock prices reflect an assumption that loan loss provisions will reach 1% of average loan ratios "across the group for 2024, which is 2x levels seen during the Tech Bubble and 3x [the] 2015-2016 peak," and twice Morgan Stanley's own assumptions for next year, the analysts said.

Warning signs are piling up. Nonaccrual commercial real estate loans for banks covered by Morgan Stanley jumped 40% in the third quarter compared with the second, and about 140% year-to-date. At the same time, "defaults on high-yield bonds have begun to rise. Given that [net charge-offs] have historically moved in tandem with HY bond defaults," that's likely to mean net charge-offs on commercial and industrials loans "will rise in the coming quarters."

More worrying still is that easier monetary policy in 2024 won't help, because in past credit cycles, net charge-offs by banks "have continued to increase even after the Fed begins to cut" interest rates, Morgan Stanley said. The bearish bottom line for investors is that bank stocks don't win higher price-to-earnings multiples "when credit is deteriorating."

— Scott Schnipper, Michael Bloom

Investors appear to be shifting some cash into municipal bond funds as they square their books for the end of the tax year.

According to FactSet, the municipal bond ETF category has seen nearly $3 billion of net inflows over the past month. The iShares National Muni Bond ETF (MUB) has led the way, with nearly $1 billion of inflows, and has also seen its share price rise by more than 3% over that time period.

The cash could be coming from investors who are selling out of their losing positions for tax purposes. Read more about how municipal bond funds can fit within a tax-loss harvesting strategy on CNBC Pro.

— Jesse Pound

A slew of S&P 500 names reached their highest levels in a year Monday, as the market tried to keep its six-week winning streak going. Overall, 52 S&P 500 components made new 52-week highs. Here's a look at some of them:

• T-Mobile traded at all-time highs back to the MetroPCS IPO in April, 2007
• Booking Holdings traded at all-time highs back to its IPO in April 1999
• Chipotle Mexican Grill traded at all-time high levels back to its IPO in January 2006
• D.R. Horton traded at all-time high levels back to its IPO in June 1992
• Lennar traded at all-time high levels back to when it began trading in 1971
• Lululemon traded at all-time highs back to its IPO in July 2007
• Marriott International traded at all-time high levels back through its spin-off from Marriott Corp in 1993
• NVR, Inc. traded at all-time high levels back to post-bankruptcy IPO in Nov 1993
• Royal Caribbean trading at levels not seen since Feb, 2020
• Boeing trading at levels not seen since June, 2021
• Cintas trading at all-time high levels back to its IPO in 1983
• Fastenal trading at levels not seen since Jan, 2022
• FedEx trading at levels not seen since Aug, 2021
• WW Grainger trading at all-time high levels back to when it began trading in 1967
• Huntington Ingalls trading at levels not seen since Nov, 2022
• Howmet Aerospace trading at all-time highs back to its Alcoa spinoff in Nov, 2016
• Ingersoll-Rand trading at all-time high levels back through our history to 1972

— Fred Imbert, Chris Hayes

Oil prices were were little change Monday as investors navigate growing production with softening demand.

The West Texas Intermediate contract for January rose 9 cents, or .13%, to settle at $71.32 a barrel. The Brent crude contract for February gained 19 cents, or .25%, to settle at $76.03 a barrel.

Oil futures have booked seven straight week of losses amid record production in the U.S., a weakening economy in China, and a lack of confidence in the ability of OPEC+ to balance the market.

— Spencer Kimball

Semiconductor-focused funds were surging on Monday despite the top stock in the sector struggling.

The iShares Semiconductor ETF (SOXX) was up 3.2% in afternoon trading. The VanEck Semiconductor ETF (SMH) climbed 2.2%.

The gains for chip funds came even as Nvidia slumped more than 2%. Broadcom and Advanced Micro Devices helped offset Nvidia, rising 8.8% and 3.8%, respectively.

— Jesse Pound

Check out some of the companies making headlines in midday trading.

Macy's — Shares jumped 21% after Macy's, according to sources, received a buyout offer for $5.8 billion from two investment firms. Other department store chains also rose on the report, with shares of Nordstrom and Kohl's each gaining more than 5%.

Cigna Group, Humana — Cigna Group reportedly ditched its attempt to acquire competitor Humana after the two failed to agree on price. Cigna shares advanced 16%, while Humana shares slid 1.6%.

Shake Shack — Shares of Shake Shack jumped 7.4% after the company announced CEO Randy Garutti will retire from his position in 2024.

Read the full list here.

— Brian Evans

Zepbound, Eli Lilly's recently approved obesity drug, can help patients lose a substantial amount of weight, but once treatment is stopped those pounds are likely to creep back, according to the findings of a study published in the Journal of the American Medical Association.

Eli Lilly shares tumbled more than 3% on Monday after the publication of the full results of the study even though the company had previously discussed some of the trial's key findings.

In the study, patients were first given Zepbound for 36 weeks. After that initial phase, a random group was given a placebo. At 88 weeks into the study, those taking the placebo had gained back 14.8% of the weight they initially lost.

In a statement, Lilly said the results of the trial speak to the idea that "obesity is a chronic disease that often requires ongoing treatment."

—Christina Cheddar Berk

Broadcom shares jumped more than 8% after Citi on Monday resumed coverage of the semiconductor maker with a buy rating. The Wall Street firm cited strength in Broadcom's core business from its VMware acquisition, as well as the growth prospects of its artificial intelligence business.

"Broadcom reported strong F4Q23 results driven by AI which is expected to double from $4.0 billion in F23 to more than $8.0 billion in F24," analyst Christopher Danely wrote. "We believe its AI business will offset the correction in the semi business."

The analyst's $1,100 price target implies 16% upside from Friday's close. Shares are up 83% this year.

— Sarah Min, Michael Bloom

Shares of Shake Shack jumped 9.5% on Monday after the company announced that its chief executive officer Randy Garutti will retire from his position in 2024 after 24 years in the role.

The company has begun its search for Garutti's successor, led by the consulting firm Korn Ferry. In a press release on Monday, Garutti wrote that he will remain in his position as the company's board searches for a new CEO, and that he intends to transition to an advisory role for Shake Shack through next year to help with the leadership transition.

Shares of the fast-food burger and fries chain are up more than 60% this year. The company is on track to generate $1 billion in revenues this year, according to data from Technomic.

— Pia Singh

Shares of crypto-related equities tumbled on Monday as the price of bitcoin headed for its worst day since August.

Crypto exchange operator Coinbase and bitcoin proxy Microstrategy fell about 6% each while bitcoin miners dropped double digits. Riot Platforms and Marathon Digital, the largest mining stocks, lost 12% and 11%, respectively. Wall Street favorite CleanSpark and Iris Energy were down by 15% and 11%, respectively.

Bitcoin slid 4.8% to $41,793.00, according to Coin Metrics, after topping $44,000 last week for the first time since April 2022.

— Tanaya Macheel

The decades-old "Dogs of the Dow" investing strategy is poised to see a shakeup to its list when the calendar turns.

As of last week, Coca-Cola was set to join the group, which consists of the 10 Dow stocks with the highest dividend yield, according to Capital Wealth Planning. Goldman Sachs could be another new entrant, with JPMorgan and Intel exiting the group.

An equal-weighted portfolio of the dogs have underperformed the broader market in 2024, but could be relatively stronger next year interest rates fall, said Kevin Simpson, founder and chief investment officer at Capital Wealth Planning.

Check out the full preliminary list on CNBC Pro.

— Jesse Pound

Shares of health insurance giant Cigna popped more than 16% on Monday on news the company abandoned plans to pursue an acquisition of rival Humana. That would be the stock's biggest one-day gain since Feb. 5, 2009, when it rallied 18.7%.

— Fred Imbert

Macy's stock is rallying 19% on reports that the department store chain has received a $5.8 billion buyout offer, according to people familiar with the talks.

The department store sector has been particularly hard hit in recent years from changing consumer habits that have resulted in a shift away from traditional shopping malls and to increased purchases online. The new dynamic has resulted in years of declining sales, a number of bankruptcy filings and waves of consolidation. This trend was particularly acute after the pandemic shuttered shopping malls for months in 2020. JCPenney, Neiman Marcus and Lord & Taylor all filed for bankruptcy that year.

Shares of rivals Kohl's and Nordstrom jumped nearly 5% each on Monday. Dillard's gained more than 3%.

—Christina Cheddar Berk

Expectations for inflation over the next year hit their lowest level in more than 2½ years, according to a New York Federal Reserve survey released Monday.

The Survey of Consumer Expectations for November showed the one-year median outlook dipped to 3.4%, a 0.2 percentage point drop from October and the lowest since April 2021. Median expectations at the three- and five-year horizons were changed at 3% and 2.7% respectively.

However, the results jibe with other surveys such as the University of Michigan's Consumer Sentiment reading which showed the one-year outlook plunging to 3.1%, that survey's lowest since March 2021.

As part of the results, the year-ahead expectations for changed in gas prices fell 0.5 percentage point to 4.5%, while the outlook for food costs fell 0.3 percentage point to 5.3%.

—Jeff Cox

There's a "very good chance" the S&P 500 is ready to rally after its close above 4,600 last week, one technical strategist said.

"We do ultimately think there's a very good chance of it, and that would be a bullish long-term development," Katie Stockton, founder and managing partner at Fairlead Strategies, told CNBC's "Squawk Box" on Monday.

CNBC Pro subscribers can read the full story here.

— Sarah Min

Wolfe Research sees a promising long-term set up for gold and believes the precious metal is poised to break out over $2,100.

Gold briefly traded over $2,100 last week, setting an all-time high, before retreating. The level has acted as a price ceiling for four years where investors tend to take profit, analyst Rob Ginsberg said in a note Saturday.

"While this trend may continue, we feel the longer-term setup is simply too strong to keep price contained beneath $2100 for much longer," he wrote. "We would be positioned for a successful breakout through that level, likely in the first half of '24."

Other factors, including a weaker dollar and lower Treasury yields, would need to align for the scenario play out, Ginsberg noted.

—Michelle Fox

The S&P 500 opened lower on Monday with investors on Wall Street turning their attention to the final Federal Reserve meeting of 2023.

The S&P 500 pulled back 0.1% while the Nasdaq Composite ticked down 0.04%. The Dow Jones Industrial Average jumped 67 points, or 0.2%.

— Brian Evans

Check out the stocks making headlines in early morning trading:

• Occidental Petroleum — Shares dipped 1.1% after Occidental Petroleum agreed to buy privately held energy producer CrownRock for $12 billion and also announced that it's raising its quarterly dividend to 22 cents a share from 18 cents a share.
• Pinterest — The stock rallied 3.3% after RBC upgraded Pinterest to outperform from sector perform. Analysts said Pinterest is a way to play the shift of internet-based ad platforms chasing the $241 billion in advertising spending in impulse shopping. 
• Macy's — The retailer popped 16% after reports that the company received a buyout offer. People familiar with the matter told CNBC on Sunday that two investment firms have offered to buy Macy's for $5.8 billion, or $21 per share.

For the full list, read here.

— Pia Singh

Occidental Petroleum has agreed to buy CrownRock, a major privately held producer in the oil-rich Permian basin, for $12 billion.

The deal will add 170,000 barrels of oil equivalent per day and 1,700 undeveloped locations to Occidental's operations in the Permian.

Occidental is financing the transaction through $.91 billion in debt and $1.7 billion in stock.

The company said it is raising its quarterly dividend to 22 cents a share from 18 cents a share beginning next year.

— Spencer Kimball

Boeing named Stephanie Pop the company's chief operating officer on Monday, making the 30-year veteran a front runner for the chief executive position once current CEO David Calhoun steps down.

Pope will move to the COO position from a lead position at Boeing Global Services (BGS). Calhoun is expected to continue serving as CEO for at least one more year, according to a report from the Wall Street Journal citing people familiar with the matter.

Boeing stock ticked down 0.2% in premarket trading.

-- Brian Evans

Shares of Macy's were up 18% in the premarket Monday after on news that Arkhouse Management and Brigade Capital Management extended an offer to buy the iconic retailer for $5.8 billion.

According to sources, both firms would be willing to make a larger bid — depending on due diligence.

— Fred Imbert

European shares made a tepid start to the week's trade on Monday.

The pan-European Stoxx 600 index hovered around the flatline in early trade, with financial services adding 0.4% to lead gains while miners continued to suffer, shedding 1.5%.

Shares of Cambodian hotel, gaming and leisure operator Nagacorp plunged to an 11-year low after the company announced the death of founder and senior chief executive officer Chen Lip Keong.

The company's shares tumbled 12.88% to 2.84 Hong Kong dollars on Monday, hitting their lowest level since June 5, 2012.

In a filing on the Hong Kong Exchange, Nagacorp explained that Chen died on Dec. 8, due to illness.

The company said that Chen Yiy Fon, who is the late Chen's son, will take over as the new CEO of the company, and that the elder Chen's death is not expected to have a material impact on the finances of the company.

— Lim Hui Jie

Japan's main stock gauges rose in early Asia trading hours Monday, amid growing hopes the country's central bank may not raise interest rates at its monetary policy meeting next week.

The Nikkei 225 rose 1.68% , while the Topix added 1.28% in the first hour of trading.

"We do not expect the BoJ to tighten policy this month because Japan's economy‑wide wages growth remains subdued at just 1.5%/yr in October," analysts at CBA wrote in a client note.

The Japanese yen weakened after rallying last week, but traded around 145 to a dollar.

Investors will also be keenly watching the U.S. Federal Reserve's monetary policy decision this week and its impact on the dollar/yen pair.

  — Shreyashi Sanyal

China's consumer prices for November declined at their fastest pace in three years, while producer prices remained in negative territory, according to data released over the weekend.

CPI in November dropped 0.5% year-on-year to its lowest level since November 2020 and below the 0.2% fall seen in October.

A Reuters poll of economists was expecting a 0.1% decline in China's CPI. The reading highlighted weak domestic demand in China.

November PPI fell 3.0% year-on-year, more than the 2.6% drop in October and remained in deflationary territory for the 13th straight month. A Reuters poll had estimated it to drop 2.8% in November.

"The decline was mainly driven by falling food prices. Hog production rose even at a time when demand was weaker than usual," analysts at Commerzbank said in a client note.

State-run news outlet Xinhua reported on Friday that the top decision-making body of the ruling Communist Party said the country's fiscal policy "must be moderately strengthened" to stimulate economic recovery.

— Shreyashi Sanyal

Here's how U.S. stock futures opened on Sunday night:

• Futures tied to the S&P 500 edged lower by 0.01%.
• Dow Jones Industrial Average futures gained 7 points, or 0.2%.
• Nasdaq Composite futures slipped 0.08%.

— Pia Singh