Tuesday's Final Takeaways: ChatGPT's "Code Red" & Japan's Elevated Bond Yields

AI Industry Developments - Apple is replacing its head of AI with a veteran from Microsoft and Google, who previously led engineering on Gemini [2] - Sam Altman of OpenAI has initiated a "code red" effort to enhance ChatGPT, prioritizing these improvements over other investments in health, shopping, and advertising [3] - French AI startup Mistral has launched a new suite of models, including a large model claimed to be the world's best open-weight multimodal and multilingual [4] Market Trends and Economic Indicators - Japan's 10-year government bond yield has reached its highest level since 2008, while the 30-year yield hit an all-time high of 3.411% [5] - The Bank of Japan's hawkish remarks have increased expectations for an interest rate hike, impacting the yen carry trade and US asset valuations [6][7] - Upcoming retail earnings reports, including Macy's expected revenue of approximately $4.53 billion for Q3, indicate a potential 3-4% year-over-year decline [8] Consumer Spending Insights - American Eagle's stock rose over 10% after issuing positive holiday guidance and raising its full-year forecast [10] - Services PMI data is anticipated to show expansion, with expectations for the ISM reading around 52, indicating growth in the services sector [12] - Key metrics to watch include new orders, employment, and input prices, which are critical for assessing inflationary pressures [13]