AI Stocks Fade, Other Stocks Shine

Group 1: Market Trends - The "Boom vs. Bubble" debate regarding Artificial Intelligence (AI) is intensifying, with a noticeable rotation of money out of AI stocks into other sectors [1][6] - The SPDR Dow Jones Industrial Average ETF (DIA) has outperformed the Invesco QQQ Trust (QQQ), gaining 1.4% compared to a 2.2% loss for QQQ since the end of October [3] - Financial Select Sector SPDR Fund (XLF) rose 3.2% and Industrial Select Sector SPDR Fund (XLI) gained 0.2%, while Technology Select Sector SPDR Fund (XLK) lost 3.1% during the same period [5] Group 2: Economic Indicators - The end of the government shutdown may boost the economy as affected workers receive back pay, potentially increasing spending [7] - There is speculation about new "stimmy" checks, which could further benefit economically sensitive sectors [7] - Corporate profits per employee have reached record highs, indicating no signs of a recession in the near future [9] Group 3: Company Focus - International Paper Corp. (IP) - International Paper Corp. is one of the largest packaging companies globally, holding approximately 25% of the North American containerboard and box market [12] - In Q3, IP's adjusted EBITDA rose 28% from the previous quarter, with margins widening by about 300 basis points, reflecting successful execution of its 80/20 strategy [13] - Despite facing challenges such as softer demand and higher labor costs, IP's focus on efficiency and capital allocation is expected to enhance profitability, with a consensus EPS estimate exceeding $3 by 2027 [14]