And speaking of risks, here comes a new one for the AI trade from Washington. Dearraosa has more in today's tech check. Hi Deerra.So Kelly, this is why it's a risk. It's because political pressure can raise costs very quickly. States, they can require more upfront.They can lock in longer power contracts, even create special rate classes that shift more of the cost back to big tech. And that pressure is building. Three Democratic senators, Elizabeth Warren, Chris Van Holland, and Richard Blumenthal.They sent ...

Core Viewpoint - The market is expected to experience increased dispersion among MAG7 stocks in 2026, with a shift in focus from AI infrastructure providers to adopters of AI technology [1]. Market Performance - Over the past 6 months, only 17% of S&P constituents outperformed the index, but this figure rose to 61% in the last month, indicating improved market breadth [2]. - Small-cap stocks, represented by the Russell 2000, have shown the best improvement in breadth compared to both 50-day and 200-day moving averages [3]. Economic Indicators - Recent flash PMI data has been disappointing, suggesting potential challenges for the market narrative [4]. - The economy is showing signs of slowing, which is expected to continue into 2026, although earnings have not yet weakened significantly in line with macroeconomic data [5]. Earnings and Valuation - Since August, there has been a halt in aggressive multiple expansion, with earnings growth continuing to accelerate [6]. - The Russell 2000 index has seen a significant increase in unprofitable stocks, which are up 62% since April 8, compared to a 29% increase in profitable stocks [8]. Investment Strategy - It is recommended to avoid unprofitable lower-quality segments within small caps and to focus on higher-quality profitable segments [9].

Group 1 - The article emphasizes the importance of income-focused investing, particularly in the context of market volatility and the "AI trade" showing signs of instability [2] - iREIT+HOYA Capital provides investment research on various income-producing asset classes, including REITs, ETFs, closed-end funds, preferreds, and dividend champions, targeting dividend yields up to 10% [2] - The service aims to help investors achieve dependable monthly income, portfolio diversification, and inflation hedging [2] Group 2 - The S&P 500 has traditionally been viewed as a means for broad market diversification, but current market conditions may require a shift towards more defensive stock options [2] - The investment group focuses on high-yield, dividend growth investment ideas, catering to investors with a medium- to long-term horizon [2]

Before when we were bringing you on uh we were talking to you about some of that delayed data that's coming up later today. The October November jobs report. The combination of that we're looking at potentially the estimate at least 50,000 jobs added unemployment ticking up to 4 and a.5% highest level since October of 2021.I want to ask you does that matter to the markets. Does it matter to the Fed when we know there's going to be a lot of twist and turns before that next Fed meeting. Well, there'll definit ...

Morning. Christina Parts Neville joins us with how Wall Street sees the AI trade right now and Sim Modi has a closer look at how some of these widening bond yields for Oracle and some other hyperscalers might be a warning sign for a bubble. Let's begin with KP. Morning KP. >> Good morning Carl. Well, the Magnificent 7's grip on the market is loosening through November. The mega cap tech cohort accounted for roughly 43% of the S&P 500 gains, but that influence is fading. Investors are questioning the sustain ...

So Steve and I were just both talking about it, the potential market moving reports we're getting. The jobs one seems to be the one with the most potential at least coming up on Tuesday. Uh how are you viewing it. What do you see it. What do you see it potentially impacting.>> Well, we're finally getting the government data back and that's most important for just guidance. I we're talking about the Fed and oh by the way, there's a 100% chance that it's going to be a Kevin for the Fed chairmanship moving for ...

All right, let's talk about the change in retail investor sentiment when it comes to the Mag 7. So, right now they're driving about a third of the action, a third of the volume when it comes to the Mag 7, but you say that's down quite a bit from the levels that we were at last year and the year before. What does that say about the thoughts that this is a bubble. What does that say about retail investor confidence in the AI trade.>> Well, we're we're still only like, you know, one 2% off all-time highs. So, ...

Joining us now, Tom Lee, Funstrat, head of research. Tom, great to have you with us. Um, there's a lot of things to talk about with you in terms of the skepticism now around the AI trade, skepticism around Bitcoin.Are they in fact related, do you think. >> Uh, related, but not related. Yeah.You know, I I think the AI trade, I mean, it's been a juggernaut, and we know that the visibility for the next few years is really good, but now investors are just trying to figure out how much to discount. You know, wha ...

Market Overview - The markets are experiencing a nervous sentiment as 2025 approaches its end, with the S&P 500 remaining close to all-time highs, raising concerns about potential weaknesses in the AI sector due to significant corporate spending [1] Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into current industry trends. He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, with his articles also appearing on popular trading platforms like Robinhood [1]

Group 1 - Palo Alto Networks is identified as a lagging company this year, but there is significant potential for growth in its security ecosystem [1] - Adobe is experiencing a positive momentum shift, with expectations of a bounce back after a recent decline of almost eight percent [2]