It was a record close for the S&P today, making its 39th of the year. And the major averages are also on track for their third straight year of gains. Could this momentum spill over into the new year.Are there risks that are not priced in yet. Joining me now is Patrick Fusetti from Rose Adviserss at High Totower. Patrick Fusetti, uh, thank you for being here.So, you think, uh, inflation is here to stay for the next couple of years and it's not exactly priced in. Why is that. and how do you think the market ...

Core Insights - Investors are anticipating the release of delayed GDP data for the July-September period, which is expected to provide insights into economic performance and growth trends [1] Group 1 - The delayed GDP data is crucial for understanding the economic landscape and may influence investment decisions [1] - Analysts are particularly focused on how the GDP figures will reflect the impact of recent economic policies and global market conditions [1] - The release of this data could lead to significant market reactions, depending on whether the figures meet, exceed, or fall short of expectations [1]

Group 1 - The SPDR Dow Jones REIT ETF (NYSEARCA:RWR) occupies a unique position within the REIT sector, indicating its distinct investment strategy and focus [1] Group 2 - The ETF's performance and characteristics may appeal to investors looking for specific exposure in the real estate investment trust market [1]

Core Insights - US core inflation unexpectedly eased to a four-year low, raising questions among economists about the reliability of the data due to a prior government shutdown [8][14] - ByteDance has signed an agreement to establish a joint venture in the US with majority ownership by American investors [8][14] Market Performance - The A-share market opened lower but closed higher, with the Shanghai Composite Index up 0.16% at 3876.37 points, while the Shenzhen Component fell 1.29% and the ChiNext Index dropped 2.17% [1] - The Hong Kong market also saw fluctuations, with the Hang Seng Index closing up 0.12% at 25498.13 points, while the Hang Seng Tech Index fell 0.73% [1][5] Economic Indicators - The US core Consumer Price Index (CPI) rose by 2.6% year-on-year in November, while the overall CPI increased by 2.7% [14] - The report indicated that core CPI only increased by 0.2% over the last two months, with declines in hotel, leisure, and clothing prices limiting the overall increase [14] Corporate Developments - TikTok announced the establishment of a joint venture with US investors, which will operate independently and manage US data protection and algorithm security [8][14] - China has reportedly ordered 7 million tons of US soybeans, achieving over half of the procurement target set during the Trump administration [8][14]

Core Viewpoint - Dow Inc. is a prominent materials science company facing challenges and opportunities in a fluctuating market environment, with a current stock price of $23.02 and a "Hold" rating from Deutsche Bank [1][2][4]. Group 1: Stock Performance - Dow Inc.'s stock price is currently $23.02, reflecting a slight decrease of 0.24% or $0.055 [2]. - The stock has fluctuated between a low of $22.76 and a high of $23.07 today, with a yearly high of $42.17 and a low of $20.40 [3]. - The trading volume for Dow Inc. is 635,963 shares, indicating active investor interest despite cautious sentiment [4]. Group 2: Market Context - Deutsche Bank has lowered its price target for Dow Inc. from $26 to $25 amid a positive shift in the U.S. stock market, where the Dow Jones index has climbed approximately 400 points [2]. - The company's market capitalization is approximately $16.3 billion, highlighting its significant presence in the chemical industry [3].

Guido Mieth/DigitalVision via Getty Images Listen here or on the go via Apple Podcasts and Spotify Scott Kaufman discusses leading The Dividend Kings, and focusing on dividend growth and value investing (0:25). Key metrics for evaluating dividend stocks (5:00). Digging deeper into LyondellBasell, Dow, and Eastman Chemical Company (8:50). Dividend cut implications (11:40). Baby bonds and preferred securities (15:00). Market sentiment and interest rates (19:20). Transcript Rena Sherbill: Very happy to ...

Core Insights - The chemical industry is currently at the bottom of its cycle, with expectations of gradual recovery driven by global economic growth and demand increase [2][5][20] - The report emphasizes the importance of supply-side dynamics, noting the retreat of foreign investment and the slowdown of domestic capacity expansion, which may lead to a turning point for the industry [2][5][36] - Key recommendations include focusing on cyclical resilient and growth sectors such as industrial silicon, organic silicon, PTA, spandex, caprolactam, soda ash, and chlor-alkali, as well as high-demand products like refrigerants and potassium fertilizers [2][5][6] Demand Side Analysis - The chemical industry is closely tied to global economic performance, with a projected global GDP growth of 3.09% in 2026, driven mainly by developing countries like India [22][25] - China's GDP growth is expected to be 4.16% in 2026, indicating robust domestic demand [22][25] - Emerging sectors such as new energy and AI are expected to drive material consumption, with significant growth in electric vehicle sales and energy storage capacity anticipated [27][29] Supply Side Dynamics - The report highlights the challenges faced by foreign chemical giants due to rising energy costs and increased competition, leading to significant profit declines [36][41] - Major foreign companies are closing high-cost production facilities in Europe, which may create opportunities for domestic players [36][41][47] - Domestic chemical companies are experiencing pressure on investment returns, leading to a slowdown in capital expenditure growth and a pause in new capacity plans [49] Investment Strategy - The report suggests a focus on cyclical resilient products and growth sectors, with specific attention to high-quality companies that possess competitive advantages [6][36] - The potential for price increases or stable prices with volume growth in bottom-tier products is emphasized, particularly in industrial silicon and organic silicon [6][36] - The report also identifies opportunities in the tire and civil explosives sectors, particularly as companies expand internationally [7][36] Emerging Opportunities - New material sectors, including humanoid robots and AI materials, are highlighted as areas of potential growth, driven by domestic policy support and the need for localized supply chains [8][36] - The report notes the increasing importance of domestic production capabilities in high-end materials due to international trade tensions [8][36]

Group 1 - The tech sector has performed well in 2025, with the VanEck Semiconductor ETF (SMH) leading with a 44.6% year-to-date gain, despite recent overvaluation concerns [1] - The Dow Jones Industrial Average (DJI) is on track for its third consecutive year of positive performance, with Caterpillar Inc (CAT) being the best-performing stock, achieving a 61.8% lead for 2025 [2][3] - Caterpillar Inc is experiencing its best annual performance since 2017, with a recent peak stock price of $626.21 on December 12 [3] Group 2 - Despite the strong performance of CAT, the options market shows a higher put/call volume, ranking above 85% of annual readings, indicating a potential discrepancy in market sentiment [5] - Investors are encouraged to consider adding Caterpillar stock to their portfolios, as its Schaeffer's Volatility Index (SVI) of 30% suggests low volatility expectations, and CAT has historically outperformed these expectations [6]

Core Viewpoint - The recent price increases of MDI (Methylene Diphenyl Diisocyanate) by major chemical companies are driven by rising raw material costs, production disruptions, and increased demand for lightweight materials in various industries [3][4]. Price Increases - Major chemical companies including BASF, Huntsman, Wanhua Chemical, and Dow Chemical have announced significant price hikes for MDI products across Europe, Asia, and Africa, with increases reaching up to €350 per ton [3]. - Specific price adjustments include BASF raising prices by $200 per ton in South Asia, Wanhua Chemical increasing prices by $200 per ton in Southeast Asia and South Asia, and Huntsman announcing a €350 per ton increase in Europe, Africa, and the Middle East [3]. Reasons for Price Increases - The price hikes are attributed to several factors: fluctuations in international oil prices raising core raw material costs, increased transportation and energy costs, and compliance pressures [4]. - Additionally, 45% of China's MDI production capacity is undergoing maintenance, which includes major plants from Wanhua and BASF, leading to reduced output [4]. - The demand for MDI is also supported by trends in building insulation materials, a recovery in home appliance exports, and the growing need for lightweight materials in the electric vehicle sector [4]. Capacity Expansion - Wanhua Chemical is accelerating its MDI capacity expansion project in Fujian, expected to add 700,000 tons of capacity by Q2 2026, potentially increasing its global market share to 42% [4]. - Mitsui Chemicals announced plans to further increase its MDI production capacity by 10,000 tons per year, following a recent expansion that brought its total capacity to 610,000 tons [5]. Environmental Considerations - Mitsui Chemicals is also focusing on reducing greenhouse gas emissions by utilizing a recovery system during its capacity expansion, aligning with global efforts to improve building insulation performance and combat climate change [5]. Supply Chain Developments - The production process for MDI at Mitsui Chemicals has been enhanced through the implementation of advanced technology, which has improved the efficiency of chlorine production and reduced waste [6].

Core Viewpoint - Dow Inc. (NYSE:DOW) is viewed as a hold by Jim Cramer, who acknowledges its recent performance but suggests limited upside potential in the short term [1]. Company Overview - Dow Inc. develops chemical and material products utilized in various sectors including packaging, construction, transportation, and consumer industries [1]. Recent Performance - The last quarter was reported positively by CEO Jim Fitterling, indicating that the stock has the potential to increase further [1]. Investment Recommendations - Cramer suggests holding onto Dow Inc. stock, indicating confidence in its stability and potential for growth [1]. - Cramer also mentions Solstice, a recent spin-off from Honeywell, as a promising investment opportunity [1]. Comparative Analysis - While Dow Inc. shows potential, there are AI stocks identified as having greater upside potential and lower downside risk, suggesting a shift in focus for investors seeking high returns [1].