AI stocks soared Thursday after memory chip maker Micron (MU) reported quarterly results far stronger-than- expected. That offered tech investors a glimmer of hope after weeks of disappointing performance for AI stocks. Key Takeaways Related Education Guide to Selecting the Best Artificial Intelligence Stocks The Basics of Tech Stocks: 10 Tips Every New Investor Needs To Know Investors are increasingly demanding evidence that AI investments are delivering tangible benefits or will soon. Oracle (ORCL) tumble ...

Core Insights - The S&P 500 is expected to finish 2026 at 7500, indicating a 10% rise from current levels, with two interest-rate cuts anticipated from the Federal Reserve next year [1][4][6] - Prediction markets suggest a higher probability of three interest-rate cuts by December 2026, with expectations of rates decreasing by three-quarters of a percentage point next year [2] - Concerns are rising regarding potentially lower annual returns for stocks, particularly as the S&P 500's valuations have been driven by artificial intelligence-linked stocks [4][5] Interest Rate Expectations - JPMorgan's analysts predict that further interest rate cuts could lead to an 18% gain for the S&P 500, matching its recent year-to-date rise [1][4] - The Federal Open Market Committee would need to implement more than a half-percentage point cut to significantly boost the benchmark stock index [6] Market Dynamics - The average annual return of the S&P 500 has been around 10% since the late 1950s, and JPMorgan's outlook suggests another year of double-digit gains is possible [4][6] - The concept of "FOBO" (Fear of Becoming Obsolete) is driving corporate and government spending on artificial intelligence, which is expected to yield results by the end of 2026 [5]

Core Insights - Lululemon is in search of a new CEO following the announcement of Calvin McDonald's departure at the end of January, with investor Elliott Investment Management proposing Jane Nielsen as a candidate [1][4][7] Group 1: CEO Search and Candidate Proposal - Elliott Investment Management, which holds a stake of over $1 billion in Lululemon, has suggested Jane Nielsen, a former CFO at Ralph Lauren, as a potential CEO [2][3] - Nielsen's previous experience includes successful turnarounds at Ralph Lauren and Coach, and she is currently a board member at Mondelz International [4][7] - The market reacted positively to the news, with Lululemon shares rising more than 4%, although they remain down over 40% for the year [4] Group 2: Company Performance and Strategy - Lululemon has experienced a slowdown in U.S. sales as it expands its product offerings beyond its traditional yoga-focused items to include golf, tennis gear, and men's apparel [6] - The company aims to revitalize its American business by introducing new products in the spring and enhancing its design and production processes [6]

Core Insights - Chipotle Mexican Grill has introduced a "high-protein menu" to cater to the growing consumer demand for protein-rich options, which includes a new 4-ounce snack bowl priced below $4 and options for double meat in regular-sized bowls and burritos [1][5] - The trend towards high-protein diets among Americans is supported by a survey indicating it as the "top diet pattern" this year, reflecting a broader industry movement towards incorporating more protein in various food and beverage products [3][4] - Chipotle aims to revitalize customer engagement as it faces declining frequency of visits, with recent revenue figures falling short of expectations and a forecast reduction for same-store sales [5] Industry Trends - The food and beverage industry has increasingly focused on protein, with various companies introducing protein-enhanced products, including protein-infused drinks and snacks, indicating a sustained consumer interest in high-protein offerings [2][6] - Other brands, such as Starbucks, have also embraced this trend by incorporating protein into their products, showcasing a widespread shift in consumer preferences towards protein-rich diets [4][6] - The introduction of celebrity-inspired meals by Chipotle targets specific consumer segments, including athletes and those focused on weight loss and wellness, further emphasizing the industry's adaptation to consumer health trends [4]

Core Insights - Instacart is under investigation by the Federal Trade Commission (FTC) for its use of AI-driven pricing tools that reportedly charge customers different prices for the same items [1][8] Pricing Practices - An investigation revealed that prices for approximately 75% of surveyed items on Instacart varied by up to 23% among users shopping simultaneously, potentially costing the average household an additional $1,200 annually [2][8] - Instacart claims that its pricing strategies are controlled by retail partners and that the company does not employ dynamic or surveillance pricing, but rather conducts randomized A/B testing [3][5] Regulatory Response - The FTC has expressed concern over the pricing practices reported in the media and has issued a civil investigative demand regarding Instacart's Eversight pricing tool, which is designed to help retailers test consumer reactions to different prices [4][5] Market Impact - Instacart's parent company, Maplebear (CART), has seen its shares decline by about 1% recently and has lost approximately 9% of its value since the beginning of the year [7]

Corporate News - Shares of Broadcom (AVGO) and Oracle (ORCL) rebounded more than 1% in premarket trading after closing down 4.5% and 5.4% respectively [3] - AI chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD) also saw a recovery, with shares up more than 1% in premarket trading after finishing down 3.8% and 5.3% [3] - Micron Technology (MU) shares surged over 10% following earnings that exceeded analysts' expectations, driven by increased demand for AI hardware [4] - Tesla (TSLA) shares advanced about 1.5% in premarket trading after a 4.6% drop the previous day [4] - Nike (NKE) and FedEx (FDX) shares rose 0.8% and 0.6% respectively ahead of their quarterly results scheduled for later today [4]

Core Insights - Trump Media & Technology Group (TMTG) shares have experienced a significant decline, down nearly 70% this year, but saw a recovery of over 35% in morning trading following a merger announcement with TAE Technologies [1][2][4]. Company Overview - TMTG, the parent company of Truth Social, is part-owned by former President Donald Trump and has lost more than half its value this year, significantly dropping from early year highs [2][4][6]. - The company announced a $6 billion all-stock merger with TAE Technologies, a privately owned fusion power company, with shareholders of both companies expected to own about half of the combined entity upon closing [2][7]. Merger Details - The merger is expected to close in mid-2026, with plans to commence construction of the first utility-scale fusion power plant in the same year [5][7]. - The combined company aims to provide economic, abundant, and dependable electricity, which is positioned as crucial for maintaining America's global economic dominance and advancing in the A.I. sector [5][6]. Leadership Structure - Devin Nunes, CEO of TMTG, and Dr. Michl Binderbauer, CEO of TAE Technologies, will serve as co-CEOs of the merged company [5]. Market Performance - TMTG shares reached nearly $80 at their public debut in March 2024 but closed at $10.47 on the last trading day before the merger announcement [6].

Core Insights - A child's first paycheck provides a unique opportunity to contribute to a Roth IRA, allowing for tax-free growth that many adults cannot access [2][4] - Teens often have a federal tax rate of 0%, enabling them to contribute to a Roth IRA without incurring taxes, which is a significant advantage [3][11] - Parents can contribute to their child's Roth IRA, enhancing the potential for long-term wealth accumulation [5][9] Contribution Mechanics - For 2025, the IRS contribution limit for a Roth IRA is $7,000 or the child's total earned income, whichever is less [7] - A Minor Roth IRA must be established for children under 18, with an adult custodian, transitioning to a standard Roth IRA upon reaching adulthood [8] - Contributions can be made by anyone, including family members, up to the child's earned income or the annual limit [12] Timing and Strategy - Contributions for 2025 can be made until April 15, 2026, but many families prefer to contribute at year-end [13] - Establishing a contribution match can help instill saving habits in teens, with various matching strategies available [14][15] - Consistent contributions, even small ones, can lead to significant long-term growth due to the tax-free nature of Roth IRAs [17][18] Flexibility and Access - Contributions to a Roth IRA can be withdrawn anytime without taxes or penalties, providing some liquidity [19] - The true value of a Roth IRA is realized when funds are allowed to grow untouched for an extended period [19]

Core Insights - Buying a new vehicle may become more affordable by late 2026 due to expected easing of price increases, lower borrowing costs, and new tax benefits [1][5][7] Vehicle Pricing Trends - Car prices surged approximately 9% during the pandemic, with the average new vehicle costing about $49,800 in November, reflecting a 1% increase from the previous year [2][4] - Price inflation for 2026 model-year vehicles has been above historical standards, with these vehicles making up about 60% of the current new-vehicle supply [6] Consumer Sentiment and Market Dynamics - Despite improvements in affordability since 2023, consumer sentiment remains negative regarding the timing of vehicle purchases [3][6] - Households are projected to buy 2% to 3% fewer cars in 2026 compared to 2025 [2] Financial Implications - The new tax benefit may provide typical consumers with about $50 more per month, particularly benefiting those with annual incomes up to $100,000 [5][7] - The average monthly payment for a new vehicle currently accounts for 12.8% of median income, which may decrease to 12.3% by late 2026 [6] Market Segmentation - New tax breaks are expected to support sales among middle-income households, while low-income households will likely remain unable to afford new vehicles [7][8]

Core Insights - Ray Dalio and his wife Barbara are donating $250 to Trump Accounts for select children in Connecticut, aiming to educate them about finance and capitalism [1][7] - The Trump Accounts initiative is part of a broader effort to encourage philanthropy and build generational wealth for children [4] Summary by Sections Trump Accounts Overview - Trump Accounts are investment accounts for children under 18, set to be available starting July 5, 2026, established by the "One Big, Beautiful Bill" Act [3] - The federal government will provide a $1,000 initial deposit for children born between 2025 and 2028, with parents needing to check a box on tax form 4547 to claim it [3] Financial Contributions - Certain children in Connecticut will receive a $250 deposit in their Trump Account, in addition to the $1,000 contribution for eligible newborns [2] - The $250 benefit is targeted at children living in ZIP codes with a median income below $150,000, with approximately 87% of Connecticut's ZIP codes meeting this criterion [2] Philanthropic Initiatives - The donation from Dalio is part of the "50 State Challenge," which invites philanthropists nationwide to contribute to Trump Accounts [4] - Michael Dell has also announced a similar donation of $250 to select children under 10 who do not qualify for the federal $1,000 benefit [5] Account Features - Trump Accounts allow contributions from parents, employers, nonprofits, and government entities, with funds invested in U.S. stock mutual funds or ETFs [6] - The accounts have an annual contribution limit of $5,000, indexed to inflation, and funds are inaccessible until the child turns 18, at which point the account converts to an IRA [6]