Investment Rating - The report maintains a rating of "Underperform" for the U.S. stock market [4] Core Insights - The overall market is showing a recovery, with small-cap and consumer sectors gaining momentum. The S&P 500 increased by 1.6% and the Nasdaq by 1.9% this week. Small-cap growth stocks outperformed with a 4.7% increase, while small-cap value stocks rose by 4.5% [1] - 21 out of 24 sectors experienced gains, with notable increases in retail (+8.4%), durable goods and apparel (+5.2%), and materials (+4.9%). Conversely, technology hardware and equipment saw a decline of 3.2% [1] - There is a significant inflow of funds into technology giants, with the estimated fund flow for S&P 500 components at +$130.2 billion this week, compared to -$30.2 billion the previous week [2] Summary by Sections 2.1 Investment Returns - The weighted average price return for various sectors shows significant performance, with retail at +8.4%, durable goods and apparel at +5.2%, and materials at +4.9%. In contrast, technology hardware and equipment reported a decline of -3.2% [13] 2.2 Fund Flows - Fund flows indicate a strong interest in semiconductor products and equipment (+$2.756 billion), technology hardware and equipment (+$1.724 billion), and retail (+$1.686 billion). However, sectors like telecommunications experienced outflows of -$0.090 billion [15] 2.3 Earnings Forecast - The earnings forecast for the S&P 500 components shows a slight increase of +0.3% this week, with 17 sectors experiencing upward revisions. Notable increases were seen in semiconductor products and equipment (+0.9%) and materials (+0.6%) [16] 2.4 Valuation Levels - Valuation levels across sectors reflect varying performance, with the semiconductor sector showing a significant increase in earnings expectations, while sectors like telecommunications and durable goods and apparel faced downward adjustments [18]

Group 1 - President Trump proposed a one-year cap on credit card interest rates at 10%, claiming the American public is being "ripped off" [1] - The announcement has received criticism from various political figures, including Sen. Bernie Sanders, who labeled the cap as "unacceptable" [3] - The issue of high credit card interest rates has been a persistent concern, particularly as many Americans lack sufficient emergency savings, leading to financial strain [2] Group 2 - Sanders criticized Trump's proposal, stating it contradicts his earlier commitment to regulate Wall Street and impose a 10% cap on interest rates [3] - Significant profits of large banks have been highlighted, with JPMorgan CEO Jamie Dimon reportedly increasing his wealth by $770 million in 2025 [4] - Sen. Elizabeth Warren criticized Trump's promises regarding the credit card rate cap as empty and accused him of ignoring affordability [4] Group 3 - Hedge fund manager Bill Ackman warned that if credit card lenders cannot charge adequate rates, they may cancel millions of consumer cards, pushing consumers towards loan sharks with worse terms [5]

Core Viewpoint - The JPMorgan U.S. Quality Factor ETF (JQUA) employs a quality-oriented strategy while also focusing on a balanced sector mix and conservative portfolio construction [1] Group 1 - JQUA aims to provide a relatively conservative investment option through its unique strategy [1]

Market Overview - Investors should not overreact to uneventful unemployment data, as it allows for a focus on broader market trends and rallies beyond last year's winners [1] - Money is aggressively rotating into overlooked sectors, particularly data storage stocks, which have seen significant rallies while former market leaders struggle [2] Company Insights - Apple and Nvidia have not performed well despite strong underlying businesses, as they have become sources of funds for investors seeking new opportunities [3] - Upcoming earnings season is expected to start strong with JPMorgan Chase, although caution is advised regarding CEO Jamie Dimon's potential risk emphasis [6] - Delta Air Lines is anticipated to report strong results, with banks like Citigroup, Wells Fargo, Bank of America, Goldman Sachs, and Morgan Stanley also expected to perform well [7] Economic Indicators - The December consumer price index will be more significant than recent labor data, with signs of persistent inflation impacting consumer sentiment and presidential policies [5] - The JPMorgan Healthcare Conference is expected to generate merger-and-acquisition activity, with interviews of pharmaceutical executives planned [4] Sector Focus - Attention is on Taiwan Semiconductor Manufacturing Company, which may influence Nvidia's stock performance [8] - Transport stocks are also in focus, with expectations that a solid report from J.B. Hunt will support a bullish outlook on FedEx [9]

Core Viewpoint - The article discusses the potential for a silver short squeeze driven by major U.S. banks' short positions in silver futures, particularly focusing on the implications of margin calls and the disparity between paper silver contracts and physical silver availability [1][3][17]. Group 1: Market Dynamics - Major American banks, including JPMorgan, hold significant short positions in silver futures, with JPMorgan allegedly covering over 5,900 metric tons (approximately 190 million ounces) of silver that may not exist in physical form [2]. - The concentration of short positions among a few banks raises concerns about market manipulation and the potential for a short squeeze, especially given projected supply deficits of 95-200 million ounces for 2026 [3][7]. - Recent margin hikes on COMEX have strained liquidity, prompting Federal Reserve interventions, including $17 billion in emergency cash to a bank and unlimited repo operations [3]. Group 2: Price Projections - If a severe short squeeze occurs, silver prices could potentially rise to as high as $200 per ounce, driven by the need for banks to cover their shorts amid rising prices [4][17]. - Current silver prices are around $81 per ounce as of January 6, 2026, indicating a significant potential for price volatility [3][18]. Group 3: Paper Silver Issues - The article highlights the "paper silver" problem, where for every ounce of deliverable physical silver, up to 300 ounces of paper contracts are traded, creating a significant mismatch between supply and demand [12][17]. - Historical experiences indicate that bullion banks have manipulated the market by delaying physical deliveries, which could lead to a similar situation in the future as demand for physical silver increases [16][17]. Group 4: Market Sentiment - There is a strong narrative among investors that banks are manipulating silver prices to keep them low, which has led to increased interest in stacking silver bullion to create a short squeeze [7][9]. - The perception of collusion between banks and governments to suppress silver prices is powerful and influences investor behavior [8][9].

Core Viewpoint - Southwest Airlines has been upgraded to Overweight from Neutral by JPMorgan, with a new price target set at $60, significantly higher than the previous target of $36, leading to a 4% increase in shares intraday following the rating change [1] Group 1: Earnings Guidance - There is a meaningful probability that Southwest could issue earnings guidance of $5 per share, which would exceed the current 2026 consensus estimate of $2.98 and all existing individual forecasts [2] - JPMorgan noted that the market may initially be skeptical of such guidance due to Southwest's uneven track record, which has influenced the airline's decision to adopt a more streamlined EPS-based guidance framework [2] Group 2: Stock Valuation - Acceptance of guidance below $5, along with unchanged valuation assumptions, could still push the stock above $50 in the near term, paving the way for a potential valuation of $60 [3] - JPMorgan's analysis led to a double upgrade of the stock to Overweight and the establishment of a new Street-high price target of $60 for December 2026 [3] Group 3: Positive Catalyst Watch - JPMorgan placed Southwest on Positive Catalyst Watch ahead of the upcoming earnings report and 2026 guidance update scheduled for January 29, indicating that the updated financial model supports the revised outlook [4]

We recently published 11 Stocks on Jim Cramer’s Radar.  JPMorgan Chase & Co. (NYSE:JPM) is one of the stocks on Jim Cramer radar. Banking giant JPMorgan Chase & Co. (NYSE:JPM) crossed Jim Cramer’s radar after he discussed a Barclays note for Citigroup. Barclays bumped up Citi’s share price target, and its coverage came after a similar note for JPMorgan Chase & Co. (NYSE:JPM) on January 5th. This note saw the bank hike the share price target to $391 from $342 and keep an Overweight rating on the shares. Ba ...

Core Insights - Apple Inc. has selected JPMorgan Chase as the new issuer of the Apple Card, ending Goldman Sachs' involvement, which significantly alters the consumer finance strategies of all three companies [1][2]. Group 1: JPMorgan Chase's Position - The agreement allows JPMorgan Chase to expand its credit card business, bringing over $20 billion in Apple Card balances to its platform upon completion of the transition [2]. - This deal enhances JPMorgan's competitive stance in the U.S. credit card market and is seen as a strategic win under CEO Jamie Dimon's leadership [4]. Group 2: Goldman Sachs' Transition - The transition marks another step for Goldman Sachs in retreating from consumer banking after experiencing losses and strategic pullbacks [5]. - Goldman Sachs and Apple initially announced their intention to end the partnership in 2023, which began in 2019 [5]. - The Apple Card has struggled to generate sustainable returns for Goldman due to rising costs and regulatory scrutiny in consumer lending [6]. Group 3: Financial Implications - Goldman Sachs anticipates that the transaction will contribute approximately 46 cents per share to its fourth-quarter 2025 earnings, primarily from the release of $2.48 billion in loan-loss reserves [6]. - However, this benefit will be partially offset by a $2.26 billion reduction in net revenue related to the loan portfolio markdown, contract termination costs, and an additional $38 million in expenses [7].

Core Insights - The collaboration between Digital Asset and Kinexys by J.P. Morgan aims to integrate Kinexys products into Digital Asset's Canton Network, focusing initially on the JPM Coin deposit token [1][2] - JPM Coin is a U.S. dollar-denominated deposit token that allows institutional clients to make payments using a digital representation of J.P. Morgan's U.S. dollar deposits on a public distributed ledger [3] - The partnership is expected to enhance the efficiency of capital flow and bridge traditional finance with digital infrastructure while ensuring privacy and compliance [4] Group 1 - The initial focus of the collaboration is on enabling the native issuance of JPM Coin on the Canton blockchain, which is designed for synchronized financial markets [2] - Future plans include exploring the integration of J.P. Morgan's Blockchain Deposit Accounts and other Kinexys Digital Payments products into the Canton ecosystem [2] - The introduction of JPM Coin to Canton will allow institutions to issue and transfer the token nearly instantly, enhancing transaction speed [3] Group 2 - Digital Asset's CEO emphasized that this collaboration represents a vision of regulated digital cash that operates at market speed [4] - Kinexys by J.P. Morgan's global co-head highlighted that JPM Coin combines the security of bank-issued deposits with the speed of blockchain transactions, aiming to unlock liquidity [5] - J.P. Morgan's CEO has expressed commitment to digital holdings, including JPM Coin and stablecoins, indicating a strategic focus on these financial innovations [5][6]

Core Insights - Goldman Sachs has announced an agreement to end its partnership with Apple and transition the Apple Card program to JPMorgan, marking a strategic shift away from consumer banking towards institutional businesses [1][5]. Financial Impact - The transaction is expected to increase Goldman's EPS by 46 cents in Q4 2025, driven by the release of $2.48 billion in loan loss reserves, partially offset by a $2.26 billion reduction in net revenues and $38 million in associated expenses [2][9]. - JPMorgan anticipates a $2.2 billion provision for credit losses in Q4 2025 related to the Apple Card portfolio [2]. Transition Details - Goldman will continue to operate the Apple Card program during a transition period of approximately 24 months, while still recording regular business results from the portfolio [3][9]. Strategic Focus - David Solomon, CEO of Goldman, emphasized that this transaction completes the narrowing of focus in the consumer business, allowing the company to concentrate on core franchises in Global Banking & Markets and Asset & Wealth Management [4][6]. - The exit from the Apple Card program aligns with Goldman's broader strategy to retreat from consumer lending, which has proven costlier than expected, and to focus on higher-margin, scalable businesses [5][6]. Market Performance - Goldman's shares have increased by 70.3% over the past year, outperforming the industry growth of 43.6% [7]. - The company currently trades at a forward P/E ratio of 16.88, above the industry average of 15.35 [11]. Earnings Estimates - The Zacks Consensus Estimate for Goldman's earnings implies year-over-year growth of 20.9% for 2025 and 12.9% for 2026, with upward revisions in estimates over the past week [13].