Breakfast News: Ford In Big EV Pivot
December 16, 2025
| Monday's Markets |
|---|
| S&P 500 6,817 (-0.16%) |
| Nasdaq 23,057 (-0.59%) |
| Dow 48,417 (-0.09%) |
| Bitcoin $86,116 (-2.78%) |
1. Ford Changes EV Direction
Ford (F 0.58%) is swerving away from larger EV production and will steer truck development toward gas and hybrid power, against a background of weak EV demand, rising costs, and regulatory changes. The current F-150 Lightning pick-up is canceled, replaced by a hybrid extended range electric vehicle (EREV) version.
- "The operating reality has changed": CEO Jim Farley spoke of "redeploying capital into higher-return growth opportunities," as the company's EV development will now focus on its Universal EV Platform, used for smaller vehicles. EV plants in Kentucky and Michigan will be used to develop a new battery storage system.
- $19.5 billion write-down: Ford expects to take a $12.5 billion hit in the fourth quarter, with an additional $7 billion spread over 2026 and 2027. The stock nudged up 0.4% in morning trading.
2. Nasdaq Eyes Extended Trading
Nasdaq (NDAQ 1.66%) has filed plans for a move to round-the-clock trading with the Securities and Exchange Commission. The proposed trading hours include a day session from 4:00 am to 8:00 pm Eastern Time (ET), with a night session from 9:00 pm to 4:00 am.
- "There's been this trend toward globalization for some time": Nasdaq's Chuck Mack told Reuters the move will serve growing international investor demand. Overseas holdings of U.S. stocks hit $17 trillion last year.
- Bitcoin slides toward $86,000: With markets jittery ahead of the latest jobs figures – Nasdaq futures fell 0.9% this morning, with S&P 500 futures down 0.6% – the probability of a year-end Bitcoin (BTC 0.40%) rally seems to be fading, with the price down 7.6% year to date. Ether (ETH 0.27%) joined the slide, now under $3,000 and down 12% in 2025.
3. Next Up: Jobs, Retail, Homes
Focus turns to the delayed November jobs report, due 8:30 am ET, with anticipation made keener by the lack of an October update caused by the government shutdown. With economists expecting just 50,000 jobs added in the month, pressure for Federal Reserve action is growing as traders factor in two rate cuts next year.
- "September retail sales data pointed to consumers losing steam": Michael Reid at RBC Economics says "we could expect to see more subdued spending heading into the holiday shopping season" as this morning's delayed retail update is predicted to show spending rose just 0.1% in October.
- 49% earnings dip in third quarter: Lennar (LEN 4.36%) will post Q4 earnings after today's market close, after margin pressure and a lower average sales price hit Q3 profitability. At the time, Fool analyst Anthony Schiavone noted "Lennar spun-off its land development business earlier this year," adding "Moving assets off the balance sheet feels like a 'risk off' move to me, in anticipation of a more difficult homebuilding environment."
4. Your Take
Which stocks among the top-performing sectors of 2025 so far – Information Technology (e.g. Corning (GLW 1.63%) or Lam Research (LRCX 4.31%), up 23.5% YTD), and Communication Services (e.g. TKO Group (TKO 0.41%) or Electronic Arts (EA 0.36%), up over 20% this year) – would you feel most comfortable buying and holding now for the next 5 years, and why? Don't limit yourself to the ones mentioned as examples here, of course! Share with friends and family, or become a member to hear what your fellow Fools are saying.
