Metals Market - Gold prices reached a new record of $447,730 per ounce, up nearly 70% since the beginning of the year [1] - Silver prices also hit new highs, currently at $68.90, reflecting a 128% increase year-to-date as investors seek safe havens in metals [2] Space Sector - Optimism in the space sector is rising following President Trump's executive order aimed at US space dominance and establishing a permanent lunar base [3] - Companies like Rocket Lab, Firefly Aerospace, and Intuitive Machines saw stock increases of up to 13%, with Rocket Lab closing up 10% after an 18% rise the previous Friday due to a satellite deal with NASA [4] Technology Sector - Nvidia is in the spotlight as it plans to ship H200 AI chips to China by mid-February, with initial shipments expected to include 5,000 to 10,000 modules, totaling up to 80,000 chips from existing inventory [5] - Nvidia's stock gained 1.5% in the latest session, reflecting its ongoing balancing act between global demand and regulatory challenges [6] - Oracle's shares rose 3.3% after reports of becoming one of TikTok's new US owners, recovering from a significant decline of about 43% from yearly highs [6] Economic Data - The upcoming Q3 GDP report is expected to show growth between 1.9% and 3% annualized, indicating a slowdown from Q2 but still solid growth driven by consumer spending and AI investments [8][9] - The Commerce Department will release October's durable goods orders, with economists predicting a decline of about 0.5%, reversing a previous gain, while core orders are expected to rise modestly [10][11]

Extending the strong upward move seen over the two previous sessions, stocks moved mostly higher during trading on Monday. The major averages all moved to the upside on the day following the mixed performance seen in the previous week.The major averages finished the day off their highs of the session but still firmly in positive territory. The Dow rose 227.79 points or 0.5 percent to 48,362.68, the Nasdaq climbed 121.21 points or 0.5 percent to 23,428.83 and the S&P 500 advanced 43.99 points or 0.6 percent ...

Group 1 - Microsoft, Salesforce, and Oracle are identified as top software stocks for 2026 [1][2]

Group 1: Oracle's Investment in TikTok - Oracle is set to be part of a group of investors acquiring the U.S. operations of TikTok for approximately $14 billion, partnering with Silver Lake and MGX [1][2] - Each investor, including Oracle, is expected to hold a 15% stake in TikTok, while ByteDance will retain a 20% minority ownership [2] - Oracle will be responsible for data security, U.S. user data hosting, and algorithm oversight to comply with U.S. national security requirements, pending approval from Chinese regulators [2] Group 2: Financial Performance - Oracle reported fiscal Q2 revenue of $16.1 billion, reflecting a 14% year-over-year increase, although it fell short of the $16.21 billion consensus estimate [5] - The cloud business generated nearly $8 billion in revenue, marking a 34% growth compared to the previous year [5] - Earnings per share (EPS) reached $2.26, a significant 54% increase year-over-year, surpassing the expected $1.64 [6] - Remaining performance obligations surged by 438% to $523 billion, indicating strong demand and revenue visibility for Oracle's services [7]

Market Overview - The US stock market is experiencing a modest rally, with the Dow up approximately 100 points (about 0.2%), the S&P up nearly 0.5%, and the NASDAQ composite leading the gains [2] - Small-cap stocks have shown a year-to-date increase of about 14.5%, while the S&P has risen closer to 17% [3][4] - Crude oil prices have seen an upward trend due to geopolitical tensions, particularly involving Venezuela, which has also positively impacted energy stocks [4][5] Investment Trends - Emerging markets are expected to lead earnings growth in the coming year, with a notable outperformance compared to US equities [8][11] - The MSCI excluding the US has risen by 28% this year, indicating a shift in equity leadership from US to non-US markets [8][9] - Factors contributing to this trend include global growth, a weak dollar, and a commodity super cycle [10] Sector Insights - The biotech sector is anticipated to continue its positive momentum into 2026, following a strong performance in the latter half of 2025 [106] - The Federal Reserve's stance on interest rates is expected to remain steady, with a focus on inflation concerns rather than labor market conditions [39][41] - The banking sector is experiencing a recovery in earnings, with a return on assets approaching 1.4% for better-performing banks [22][27] Company-Specific Developments - Nvidia shares have increased following reports of plans to ship H200 chips to China early in the new year, positively affecting Tesla and Meta shares as well [7] - Hut 8's stock price target has been raised to $85 due to a significant data center deal, reflecting strong market confidence [69] - Oracle's stock is projected to have nearly 50% upside potential, despite a recent decline of around 40% over the last three months [70] Regulatory and Policy Impacts - The bio-pharma industry is cautiously optimistic about easing tariff concerns and ongoing negotiations with the administration regarding drug pricing [108][109] - The FDA's operational efficiency remains a concern, as any delays in drug approvals could impact investment in the sector [110][111]

Core Viewpoint - Oracle's stock has faced significant challenges over the past three months, but it remains positive for the year, with potential catalysts for recovery identified by analysts [1][4]. Group 1: Analyst Ratings and Price Targets - Wells Fargo has reaffirmed an overweight rating for Oracle, setting a price target of $280, which represents a 46% upside from the recent closing price [2]. - The recent decline in Oracle's stock is viewed as a potential buying opportunity, with analysts suggesting that negative investor sentiment may be overblown [4][5]. Group 2: Market Sentiment and AI Exposure - There is a prevailing caution among market participants regarding Oracle's exposure to the AI sector, particularly in relation to its partnerships and competition [3][5]. - Despite the concerns surrounding AI, Wells Fargo believes that the market is currently pricing in only negative outcomes for Oracle, underestimating potential positive developments [6]. Group 3: Strategic Partnerships and Growth Drivers - A significant growth driver for Oracle is its recent agreement to manage TikTok's U.S. business, which could enhance revenue for Oracle's cloud infrastructure [6][7]. - Projections indicate that Oracle's partnership with OpenAI could contribute 25% to 30% of its earnings for the fiscal years 2028 to 2030, presenting a net positive outlook [8]. Group 4: Stock Performance and Trading Opportunities - Oracle's stock has dropped 42% from its peak in September, but analysts believe this pullback has created opportunities for traders, especially if bullish momentum continues [6][10]. - Short-term trading strategies are being discussed, with key price levels identified for potential breakout points, particularly around $203 [11][18].

Oracle (ORCL) has been under immense pressure in recent weeks after its Q2 earnings confirmed the company's aggressive AI investments aren't immediately translating into bottom-line strength. At the t... ...

Core Viewpoint - Oracle Corporation is advancing its Michigan data center project without Blue Owl Capital, amidst concerns about the sustainability of AI investments and a significant decline in its stock price over recent months [2][3][4][5]. Group 1: Data Center Project - Oracle announced that discussions regarding an equity deal for a major data center project in Michigan are progressing as planned, excluding Blue Owl Capital from the financing [2]. - The development partner, Related Digital, chose a different equity partner from a competitive selection process, indicating that Blue Owl was not selected for this project [3]. Group 2: AI Investment Concerns - Oracle's substantial investments in large-scale data centers to support AI workloads have sparked debates about a potential bubble in AI investments, with investors expressing caution over possible excess capacity [4]. - The stock price of Oracle fell by as much as 3.7% on December 17, and it has decreased nearly 40% over the past three months, reflecting investor concerns despite previous gains from significant computing deals with clients like OpenAI [5]. Group 3: Company Overview - Oracle Corporation specializes in developing and selling enterprise software, cloud computing services, and database technology [5].

For almost a decade, I held research analyst positions in various investment firms, mostly in Toronto. I started in sell-side research with a Canadian bank, then moved to a hedge fund, followed by a family office and then finished my career in wealth management. I was 20 on my first day on Bay Street. I will forever remember. I had worked so hard to get there, from a small French-speaking town in Québec. Getting my CFA and CAIA designations by 25 was another important milestone. I was a young man with a dre ...

Robo Taxi Industry - Uber and Lyft are partnering with BYU to launch driverless taxi trials in London by 2026, leveraging new legislation that assigns liability to self-driving operators [4] - Whimo, owned by Alphabet, temporarily paused its driverless ride-hail service in the Bay Area due to widespread power outages but has since resumed operations [2][3] - Tesla's robo taxis were unaffected by the power outages, highlighting the competitive landscape in the robo taxi sector [3] Honeywell - Honeywell announced a one-time legal charge of approximately $470 million in Q4 related to a long-running litigation with Flexjet, which has affected its profit and revenue guidance [7][9] - The company has lowered its full-year adjusted EPS forecast to between $970 million and $980 million, down from previous estimates, but maintains expectations for strong organic growth of 6% to 10% [9][10] Oracle - Wells Fargo remains bullish on Oracle, reiterating an overweight rating and setting a price target of $280, indicating over 40% upside potential from current levels [11][12] - Concerns about Oracle's dependence on OpenAI and financing issues related to Luau Capital have contributed to recent stock weakness, but Wells Fargo believes the sell-off is overdone [12][13] - Positive momentum is building for Oracle, particularly due to its deal to run TikTok's US operations and OpenAI's recent capital raise, which alleviates some funding concerns [13]