Market Trends & Key Themes - AI remains the most important theme in the market, with upcoming "Garlic" (OpenAI) and "Avocado" (Meta) LLM models expected around Q1, representing a major event for the industry [1][2] - Monetary policy globally will be less dovish in the coming year compared to the current year, although a monetary tailwind for the market and economy is still expected [5][6] - The Santa Claus rally is expected to kick off, with the final trading days of the year typically being seasonally strong [6] Economic Factors & Potential Risks - Large tax refunds are anticipated, potentially providing a tailwind for consumer activity [3] - Incremental Fed stimulus is expected in Q1, including a potential rate cut and ongoing asset purchases of T-bills [4] - Employment is identified as a major wild card, with companies potentially maintaining margins by limiting headcount additions, and AI possibly contributing marginally [11] - Affordability challenges are expected to ease, with housing likely to exert disinflationary pressure [10] - The narrative is expected to shift towards employment concerns, with a potential rise in the unemployment rate and increased job stress in more vulnerable sectors of the economy [12] Sector-Specific Observations - Micron's performance significantly boosted the tech sector, reversing earlier negative trends from Broadcom and Oracle earnings reports [7] - The positive momentum in the tech sector, driven by Micron, is likely to continue in the near term, especially with a relatively light calendar of major events and a seasonally favorable period [8]

Despite pressure from the administration, a rough start to the year, biotech has seen a rebound this year. Our next guest is betting that that recovery will continue into 2026. So joining us now, Salivine Richtor.She is the lead US biotech analyst at Goldman Sachs Research. And Salivine, it's great to have you on the show. Welcome.>> Thank you for having me. What's interesting to me is that these names of these, you know, these stocks of these pharma companies that did inc this deal with the president just ...

Got some breaking news now on Elon Musk. Phil Leau has the details. Phil.>> Well, it's seven years after he was first awarded a record pay package back in 2018, and Elon Musk has been told today by the Delaware State Supreme Court that that pay package must be reinstated. It was worth 56 billion. Remember, there was a chancellor court in Delaware that had invalidated that pay package even though it had twice been approved by shareholders.But now you have the Delaware State Supreme Court saying yes, that pay ...

FRONTRUNNER TO BE LEAD UNDERWRITER FOR WHAT WOULD BE THE LARGEST IPO EVER ON EARTH. >> OR EVEN IN SPACE. YEAH.WELL, TURNING NOW TO APPLE. IT HIT A RECORD HIGH RECENTLY, BUT THE STOCK HAS LAGGED MUCH OF THE YEAR COMPARED TO MAG-7 PEERS. SO WILL IT BREAK OUT OR LAG AGAIN IN 2026.LET'S ASK CRAIG MOFFETT FROM MOFFETT NATHANSON. CRAIG ISN'T WHAT REALLY MATTERS HERE. IF APPLE COMES OUT WITH APPLE INTELLIGENCE THIS TIME AND IF IT DELIVERS AS EXPECTED.>> HEY JOHN, I'M NOT SURE ABOUT THAT, ACTUALLY. LOOK, IT LAGGED ...

Shares of Nike tumbling more than 10% today. That's following earnings uh falling to its lowest level in more than six months. Now, this adds to its years of underperformance.The stock is down 8% over 10 years. Compare that to the S&P 500, which is up more than 240%. For a closer look at the company's problems highlighted in its latest report.Let's bring in Gabrielle Fon Rouge right here on set. I mean, it wasn't so terrible. Well, North America is certainly showing signs of a turnaround here, but China Chi ...

Joining us now is Wells Fargo senior global market strategist Scott Ren along with our senior markets commentator Mike Santoy. We asked him to come back on set. He did it.Yeah. >> Yeah. Uh >> I'm going to start with you on this one and we touched on it at the top of the show, but the fact you had the largest options expiration in history signals what about this market.Well, first of all, just on a basic level, it signals that the size of the market is bigger than it's ever been, and therefore all the deriva ...

Market Trends & Investment Themes - The market is experiencing ebbs and flows, with a resurgence in the AI sector [1] - The engagement of the US consumer and the performance of the holiday season are key factors to watch in early January [2] - AI is expected to remain a significant tailwind, contingent on capex investments from companies beyond the technology sector, including industrials and financials [4] - Healthcare sector price cuts may provide a tailwind [4] Small Cap vs Large Cap - Small caps are favored entering the year, particularly if economic growth strengthens, rates decrease, and liquidity is infused around tax time in April and May, potentially leading to strong performance in the first half of 2026 [5] - The recent rally in small caps has been primarily in lower-quality companies with low or no earnings [5] Interest Rates & Monetary Policy - At least one more interest rate cut is anticipated in the first quarter [6] - The Fed's actions in the second half of the year remain uncertain [6] - The potential for inflation to decrease may lead the Fed to adopt an easier monetary policy in the second half of the year [7] Global Markets - The US market continues to show significant strength [8] - Optimism surrounds the Japanese market, making developed markets excluding the US (Developed XUS) attractive [8] - Emerging markets (EM) are becoming more appealing, despite concerns about the Chinese consumer and real estate [8][9] - Korea is seen as offering opportunities in the next phase of the AI trade [9] - When considering EM exposure, diversification beyond China is recommended [10]

I'm thrilled to be joined by the leaders of nine of the world's largest pharmaceutical manufacturers. All very big names, celebrities in their own right, very very powerful people, and they head some of the most uh admired companies anywhere in the world. It's a great group to announce that they've agreed to offer many of their flagship drugs, really all of their flagship drugs at heavily discounted most favored nations prices.In other words, whatever the drug sells for over the world in the world, whatever ...

Let's ask Tony Pascarello. He is head of hedge fund client coverage at Goldman Sachs. He's back with us at Post 9.Good to see you. Welcome back. >> Thanks, Scott.>> Nice to catch up with you before we get out of here for 2025. You know, there's something to be said for seeing a durable trend, not making things too complicated and staying with the story for a considerable period of time. I just described you because your point of view and your perspective on this market from the notes that I have read consis ...

OpenAI looking to raise more money which could push its valuation to $830 billion. Mackenzie Seagalos here with more behind that big number. Mac, >> hey Scott.So OpenAI's valuation getting marked higher across back-to-back reports. Roughly an $80 billion spread over 24 hours. The journal now says OpenAI's next round could raise as much as hundred billion at an $830 billion valuation.That would be good for cap table names like SoftBank, which recently liquidated its entire Nvidia stake, to go allin on OpenAI ...