The tech-led selloff in US equities deepened Friday morning with key benchmarks dipping below support levels and mounting concerns the Federal Reserve may not cut rates at its next meeting https://t.co/cS3Ssfgwu1 ...

Asian stocks were primed to track Wall Street lower Friday, as optimism linked to the US government reopening were tempered by uncertainty over interest rates and equity valuations https://t.co/yT4pkQbdeO ...

Housing Market & Affordability - The home affordability crisis is impacting monetary policy, financial markets, and American politics [1] - High interest rates contribute to an erosion of home affordability, as higher mortgage rates reduce the number of people who can afford to own a home [1] - Solving the housing crisis presents an economic opportunity for companies in the real estate market [1] - Building more housing, regardless of type, is presented as a solution to drive down housing costs [2][4] - Increased housing supply leads to lower prices, following basic economic principles [2] Investment & Financial Markets - Open Door's stock price increased from around $0.50 per share to $9.37 per share [1] - Lenar's year-to-date performance is down 2%, Dr Horton's is up 6%, and NVR is down nearly 9%, while Pyroup is up nearly 13% this year [1] Economic Policy & Principles - Milton Friedman's recipe for economic success includes cutting government spending, restrained monetary policy, and eliminating regulations [16] - Cutting taxes and regulations, maintaining near-zero money supply growth, and stable monetary policy are advocated [17] - Free markets are considered better for the economy than government intervention [18] Warren Buffett's Investing Principles - Warren Buffett's average annual return is 20% since 1965, nearly double the S&P's average [6] - An $18 investment with Buffett would have grown to $750,000 by 2025, a return of over 5.5 million percent [6] - Timeless investing principles, as demonstrated by Warren Buffett, can lead to wealth [10]

All right, it is a riskoff day for bonds as well. The government reopens and bond yields, they're going back higher, back above 4.1%. Let's get more now with Rick Santelli in Chicago.You can comment on the Fed bond market as you prefer, my friend. Well, let's start with the 30-year bond auction. It was the last of a three-part series of Treasury supply releases.the 30-year 25 billion completed 125 billion of coupon supply on Monday, Wednesday, and today. Look at the six-hour chart right straight up at 1 Eas ...

We're joined this morning at here at Post9 by Alan Rexoffen, senior portfolio manager for UBS Global Wealth. Talk about sort of the week we've had riding coming off of some record highs at least on the Dow. What do you think's happening now that the shutdown is finally over.>> Yeah, I think that it's and thank you for having me back. I think it's exciting to be able to see what the next phase of this bull market is because we are in a in a position where we have the Fed on a track to lower interest rates. T ...

Core Insights - The current earnings season has shown strong performance, particularly among hyperscalers, indicating a positive trend in capital expenditure (CapEx) and returns [2][6][20] - Investors are increasingly focused on understanding the pace of CapEx and its impact on future revenues, with a particular emphasis on companies like NVIDIA [7][8][20] - There is a growing concern among investors regarding the sustainability of high CapEx levels and whether they represent a one-time investment or a long-term trend [21] Group 1: Earnings and Performance - Earnings reports have been exceptionally good, supporting the recent market run-up [1] - Hyperscalers are experiencing growth and improved ad effectiveness due to advancements in AI, validating their spending [2] - Investors are questioning the necessity and timing of significant spending, particularly in light of large CapEx commitments [4][5] Group 2: Investor Sentiment and Market Dynamics - Investors are seeking clarity on how CapEx will translate into revenue and competitive positioning [8][20] - There is a psychological impact from key figures in the industry, such as Jensen Huang of NVIDIA, influencing market expectations [9][10] - The market is currently experiencing pockets of weakness, but there are opportunities in segments with fundamental strength [11][13][14] Group 3: Interest Rates and Economic Outlook - The Federal Reserve's interest rate policies are crucial for market liquidity and capital pricing, affecting investor sentiment [17][18] - Recent data suggests a potential hold on interest rates, creating uncertainty in the short term [18] - Long-term expectations indicate that interest rates may eventually decline, influenced by economic performance [19][20]

Earnings and Market Performance - Earnings have been notably strong, justifying the recent market rally [1] - Hyperscalers are demonstrating growth and returns on their capital expenditure (CapEx), particularly with AI enhancing ad effectiveness [2] - NVIDIA's $4.7 trillion market cap and 56-57% top-line growth in data centers highlight its significance [6] Capital Expenditure (CapEx) and Investment - Investors are scrutinizing the pace and returns of CapEx, questioning if it's a one-time event or a long-term trend [4][5][7][21] - Meta's increased debt and CapEx commitments initially concerned investors [3] - The market is keen to understand how NVIDIA plans to maintain its revenue trajectory amidst significant CapEx [8] Macroeconomic Factors - Interest rates significantly impact technology investments by discounting the present value of future cash flows [15] - The Federal Reserve's (The Fed) actions and liquidity influence capital pricing in the market [17] - The potential for interest rates to remain on hold creates countervailing winds in the short term [18][19] Investment Strategy and Opportunities - Investors should focus on their competitive advantages, such as understanding market dynamics to identify winners and losers [10] - Market weakness in fundamentally strong areas may present buying opportunities [13] - Speculative areas like quantum stocks, lacking revenue, are not necessarily buying opportunities [14]

Government Shutdown Impact - The government shutdown negatively impacted the current quarter GDP, preventing it from reaching its expected potential [2] - The shutdown led to a plunge in consumer confidence in the government [5] - The reopening of the government is expected to restore confidence and provide crucial economic data for policymaking [5] Economic Outlook - The economy was robust, with over 4% growth in both the second and third quarters, excluding the federal sector [4] - The administration is optimistic about real GDP growth in 2026 [6] - Lowering interest rates is crucial for increasing affordability, with mortgage rates already at 52-week lows [11] Fiscal Policy & Spending - Federal spending has decreased, with 74% of last year's fiscal deficit occurring under the current administration [10] - Republicans aim to maintain fiscal discipline to lower interest rates [11] - Discussions involve subsidies, including those related to Obamacare, with concerns about eligibility and potential misuse [9][10] Government Funding & Negotiations - A continuing resolution (CR) is expected to pass, providing short-term funding and preventing another shutdown in January [8] - Negotiations are ongoing, with potential disagreements on spending levels and priorities [8][9]

Meanwhile, some movement on the housing front with demand for mortgages ticking up last week. Diana Ol has the numbers for us. Hi, Diana.>> Hey, Court. Yeah, even though we're heading smack into the slowest season for housing, home buyers seem to be making maybe one last gasp, likely because of more supply on the market and softening prices. Mortgage applications to buy a home rose 6% last week to their strongest pace since September, according to the Mortgage Bankers Association.Now, volume was 31% higher ...

ExodusPoint expects the European Central Bank to cut interest rates twice more in the first half of next year — a contrarian call given markets favor no more reductions. https://t.co/IX5BWYoLrH ...