But favorite to be next Fed chairman agrees with Trump there is "plenty of room†for cuts in coming months. ...

Kevin Hanks live at the CBOE is with us. He has the pre-bell playbook and good morning to you. Happy Tuesday.Some of your thoughts. >> Good morning, Nicole. Yeah, and you know, as the Fed meeting starts, the markets are jittery, right.The markets are worried about Jerome Pal's comments. The markets are worried about what what they don't know which is is this going to be a hawkish cut like it was at the last Fed meeting or is Jerome Pal going to acknowledge the weakness in the labor market and the positive e ...

Core Insights - Small-cap stocks have rebounded in 2025 due to Fed rate cuts, with benchmarks like Russell 2000 increasing by 13% and S&P 600 by 5.3% year to date [1][10] - Lower borrowing costs from reduced interest rates support small businesses, which typically operate on thin profit margins [2][10] - Small-cap companies have growth potential and are less exposed to international market fluctuations, although they may exhibit higher volatility compared to larger firms [3] Company Summaries - **Allot Ltd. (ALLT)**: A provider of network intelligence and security solutions, with expected revenue and earnings growth rates of 13.3% and 15.9% respectively for next year. The Zacks Consensus Estimate for earnings has improved by 4.2% over the last 30 days [7][8] - **Seanergy Maritime Holdings Corp. (SHIP)**: A pure-play Capesize ship-owner with an expected revenue growth rate of 8.2% and earnings growth rate of 39.1% for next year. The Zacks Consensus Estimate for earnings has increased by 30.9% over the last 30 days [11] - **Isabella Bank Corp. (ISBA)**: A community bank offering personal and commercial lending, with expected revenue and earnings growth rates of 9.4% and 16.3% respectively for next year. The Zacks Consensus Estimate for earnings has improved by 15.4% over the last 60 days [12][13] - **Owlet Inc. (OWLT)**: Provides a digital parenting platform with expected revenue and earnings growth rates of 22% and 79.7% respectively for next year. The Zacks Consensus Estimate for earnings has increased by 27.3% over the last 30 days [14][15] - **Intellicheck Inc. (IDN)**: Develops wireless technology and identity systems, with expected revenue and earnings growth rates of 10.3% and 66.7% respectively for next year. The Zacks Consensus Estimate for earnings has improved by 66.7% over the last 30 days [16][18]

Federal Reserve Insights - The Federal Reserve's stance on interest rates and the US economy will be clarified through comments from Jerome Powell and the Summary of Economic Projections (SEP) [2][4] - Key figures to watch include Jerome Powell, Steven Myron, Michelle Bowman, and Christopher Waller, with a focus on potential dissenters within the FOMC [3][4] - The market anticipates a 25 basis point rate cut, with discussions around the possibility of starting quantitative easing following the end of quantitative tightening [5][6] Earnings Reports - Significant earnings reports are expected from major companies such as Adobe, Oracle, Broadcom, Costco, and Lululemon on Wednesday and Thursday [3][7] - Broadcom is highlighted as a key player in the AI sector, with expectations of strong performance despite Nvidia's recent post-earnings decline [7][8] - Lululemon and Costco's earnings will provide insights into the US consumer market [8] Netflix and Warner Brothers Merger - Netflix has won the bid to move forward with the Warner Brothers acquisition, but the deal is expected to face extensive scrutiny and could take a long time to finalize [10][11] - Paramount Sky has launched a $30 all-cash tender offer for Warner Brothers, raising the stakes in the bidding war [12][13] - The enterprise value of Warner Brothers has escalated to approximately $108.4 billion, indicating a competitive environment for the asset [14][16]

Core Viewpoint - Gold prices have shown stability as investors anticipate a Federal Reserve rate decision, with expectations of a quarter-point rate cut, which could influence gold demand due to lower cash yields [2][3]. Gold Price Trends - The opening price of gold futures on Tuesday was $4,219.60 per troy ounce, slightly up from Monday's closing price of $4,217.70 [1]. - Over the past week, gold prices have decreased by 0.3%, increased by 6% over the past month, and risen by 60.3% year-over-year [7]. Federal Reserve Influence - The Federal Reserve's upcoming meeting will include a Summary of Economic Projections, which will provide insights into GDP growth, unemployment, inflation, and interest rates, with Chair Jerome Powell expected to comment on the interest-rate outlook for 2026 [2][3]. Market Dynamics - Analysts predict two quarter-point rate cuts in 2026, potentially lowering the federal funds target range to 3% to 3.25%, which may increase gold demand as falling interest rates reduce cash yields [3]. Investment Considerations - Gold is viewed as a stabilizer in a diversified portfolio rather than a driver of high returns, with appropriate expectations and allocation being crucial to limit pricing risk [10]. - Investors are advised to consider gold investments as speculative due to the unpredictable nature of commodity prices influenced by various macroeconomic and political factors [11].

Bloomberg Treasuries closed out their worst week in eight months as conflicting economic data challenged expectations for how much the Federal Reserve might cut interest rates next year. US 10- and 30-year yields rose four basis points on Friday to finish a week in which they spiked the most since April, when havoc erupted in global financial markets after the US administration rolled out its tariffs agenda. Most Read from Bloomberg While traders widely expect the Fed to cut interest rates next week, j ...

Group 1: Federal Reserve and Economic Outlook - U.S. consumer sentiment is rising for the first time in five months, indicating a potential shift in economic momentum as traders prepare for Federal Reserve actions amidst concerns over central bank independence [1][2] - The bond market is anticipating a dovish bias from the Federal Reserve, with expectations of rate cuts increasing, particularly for three cuts in 2026, which are now at a 25% likelihood [3][4] - There are doubts regarding Kevin Hassett's credibility as a potential Federal Reserve chair, which could impact the committee's consensus and the overall direction of monetary policy [4][5][6] Group 2: Market Dynamics and Debt Issuance - December is projected to be one of the busiest months for debt sales, with $27 billion already sold, marking the highest amount for the first week of December since 2021 [17] - High-yield markets are seeing significant activity, with 12 borrowers raising over $12 billion, indicating a robust environment for capital raising despite economic concerns [18] - The overall net issuance for the year has decreased by nearly 10%, but significant issuance is expected in 2026, particularly driven by AI capital expenditures [21][22][23] Group 3: Investment Strategies and Opportunities - Investors are advised to be selective in their approach, focusing on companies that can leverage secular trends, particularly in technology and AI, to navigate the upcoming credit cycle [19][27] - The importance of due diligence is emphasized, especially in identifying strong collateral and appropriately priced opportunities in the evolving market landscape [32][33] - The potential for volatility in the high-yield market is acknowledged, with a focus on maintaining liquidity and being prepared for market shifts [30][34]

Core Viewpoint - Silver prices have reached a record high, driven by strong inflows into exchange-traded funds (ETFs) and increasing industrial demand, indicating a shift in market dynamics away from gold [1][4]. Group 1: Price Movements and Market Dynamics - Silver rose by as much as 3.9% to a new record of $59.33 an ounce, marking its second weekly gain [1]. - Silver prices have approximately doubled this year, significantly outpacing gold's 60% rise [3]. - The recent rally in silver has been fueled by a historic squeeze in London, although supply constraints are now emerging in other markets, particularly with Chinese inventories at a decade low [3]. Group 2: Investor Sentiment and Economic Indicators - Strong inflows into silver-backed ETFs have been recorded, with the highest additions for any full week since July, reflecting robust investor appetite [1]. - The Federal Reserve's anticipated interest rate cuts are expected to support silver prices, as lower borrowing costs typically benefit non-yielding precious metals [4]. - Despite recent positive US employment data, market expectations for Fed rate cuts remain strong, indicating a resilient investment sentiment towards silver [4]. Group 3: Future Projections and Industrial Demand - Analysts from Citigroup predict silver could rise to $62 an ounce in the next three months, driven by Fed cuts, strong investment demand, and a physical deficit [5]. - Silver's value extends beyond investment, as it is essential in various applications, including circuit boards, solar panels, and medical device coatings, with global demand outpacing mine output for five consecutive years [5].

Core Insights - Interest rate cuts enhance the attractiveness of high-yield dividend stocks by reducing competition from fixed-income investments [1] - Lower borrowing costs for companies support both the sustainability of dividends and the appreciation of stock prices [1] Summary by Categories - **Interest Rate Impact** - Interest rate cuts make high-yield dividend stocks more appealing due to decreased competition from fixed-income investments [1] - **Company Financials** - Lower borrowing costs for companies contribute to the sustainability of dividends and facilitate stock price appreciation [1]

Core Insights - The article discusses the anticipated economic environment in 2026, highlighting expected interest rate cuts and the impact on various sectors, particularly mortgage REITs and pharmaceutical companies. Group 1: Interest Rates and Mortgage REITs - Interest rates are projected to decline, with Fed Chair Jay Powell having already implemented two rate cuts, and more expected under Kevin Hassett's leadership [3][4] - Mortgage REITs like Annaly Capital (NLY) and Dynex Capital (DX) are well-positioned to benefit from falling rates, with yields of 12.3% and 14.7% respectively, and potential for significant price appreciation [4][5] - The easing of mortgage spreads, which are crucial for profitability, indicates a favorable environment for these mortgage REITs as they hold government-backed securities [5][6] Group 2: Pharmaceutical Industry and AI - The pharmaceutical industry is set to experience accelerated drug discovery cycles, potentially reducing the time from development to market from 10-15 years to 3-6 years due to AI advancements [7][8] - Companies like BlackRock Health Sciences Term Trust (BMEZ) are positioned to benefit from this trend, yielding 8.6% while investing in innovative drug development firms [9] - Danaher (DHR) is highlighted as a key supplier in the life sciences sector, providing essential tools and consumables for drug development, which are expected to see increased demand due to AI-driven research [11][12] Group 3: Consumer Goods - Hershey Foods - Hershey Foods (HSY) is noted for its strong brand portfolio and resilience despite rising cocoa prices, with management implementing efficiency plans and price increases to maintain cash flow [14][15] - The company has raised its dividend by 70% over five years, indicating a strong commitment to shareholder returns and positioning for a rebound as input costs stabilize [15]