Core Viewpoint - Federal Reserve governor Lisa Cook perceives elevated inflation as a greater threat to the economy compared to a weakening labor market, indicating potential skepticism towards rate cuts [1] Summary by Relevant Categories Economic Threats - Elevated inflation is viewed as a significant risk to the economy [1] - The weakening labor market is considered less of a concern in comparison [1] Monetary Policy Implications - Cook's stance suggests she may not support a return to rate cuts in the near future [1]

Core Viewpoint - Kevin Warsh, nominated by President Trump to be the next chair of the Federal Reserve, has a history of raising concerns about inflation while being a data-driven policymaker during his tenure from 2006 to 2011 [2][3]. Group 1: Warsh's Tenure and Philosophy - Warsh served on the Federal Open Market Committee (FOMC) and consistently voted with the committee's consensus, including supporting three rate hikes upon joining in 2006, maintaining rates, and later cutting rates during the financial crisis [3]. - His approach reflects a balance between being an inflation hawk and a practitioner who relies on data to guide policy decisions, as noted by former Atlanta Fed president Dennis Lockhart [2]. Group 2: Concerns About Inflation - During the Fed's April 2008 meeting, Warsh expressed concerns about inflation and the job market, warning that continued rate cuts could lead to a perception of excessive tolerance for inflation, potentially raising inflation expectations [4]. - In September 2009, after the worst of the financial crisis, Warsh cautioned that delaying rate increases until the economy normalized could result in waiting too long, leading to inflation issues [8].

Core Viewpoint - The discussion centers around the impact of tariffs on inflation and housing affordability, with conflicting statements from government officials regarding whether tariffs contribute to inflation and the overall economic burden on American consumers [1][2][4]. Tariffs and Inflation - The San Francisco Federal Reserve asserts that tariffs do not cause inflation, contradicting earlier claims made by government officials [2]. - Despite claims that tariffs are not inflationary, there is evidence suggesting that they have raised prices for consumers across various goods [4][7]. Impact on Housing Market - Tariffs imposed on construction materials such as lumber and steel have exacerbated the housing crisis, resulting in an estimated half a million fewer homes being built [7]. - The Trump administration's tariffs on housing production goods have contributed to increased housing costs, making affordability a significant issue for American consumers [6][8]. Government Response - There are calls for government officials to reconsider the imposition of tariffs that negatively impact American consumers and housing affordability [9]. - The discussion highlights a bipartisan approach to addressing the housing crisis, emphasizing the need for more homes to be built rather than fewer due to tariff-related costs [5][6].

Economic Impact of Tariffs - The discussion highlights the contradiction in statements regarding tariffs and their inflationary effects, with the Secretary previously asserting that tariffs do not cause inflation, while also acknowledging the need to reduce tariffs to lower consumer prices [4][6][7]. - The tariffs imposed by the Trump administration on housing production goods, such as lumber and steel, are cited as a significant factor contributing to the housing crisis, resulting in an estimated half a million fewer homes being built [11][10]. Housing Affordability Crisis - The rising costs of housing are attributed to tariffs on essential construction materials, which have exacerbated the affordability crisis in the housing market [8][11]. - The administration's policies, including tariffs, are criticized for punishing American consumers and hindering home construction, further complicating the housing supply issue [12][11].

Group 1: Market Overview - US stock futures are mixed following a tech-led sell-off, particularly affecting software stocks due to fears of AI disruption [1][5] - Nvidia's CEO Jensen Wong dismissed concerns about AI replacing software, calling such ideas illogical [1][6] - Investors are rotating out of risk assets, with Bitcoin briefly falling below $73,000, marking a 14% decline since the start of the year and a 40% drop from its record high in October [3][4] Group 2: Earnings Highlights - AMD reported fourth-quarter earnings that exceeded estimates, but its first-quarter forecast disappointed investors, leading to a decline in its stock [2][15] - Eli Lilly projected a significant sales increase of up to 27% this year, reaching $83 billion, driven by its diabetes and obesity drugs [8][9] - Uber announced a new CFO amid disappointing earnings forecasts, with adjusted earnings per share expected to be lower than analysts' expectations [10][11] Group 3: Company-Specific Insights - Chipotle's earnings report indicated flat comparable sales for the year, with plans to open 370 new stores to improve performance after a 39% stock decline last year [12][13] - Analysts noted that AMD's strong revenue included $390 million from China, but there are concerns about the sustainability of this revenue [17][19] - The upcoming launch of AMD's Helios system is anticipated to close the performance gap with Nvidia, with significant volumes expected in the fourth quarter [22][25] Group 4: Broader Industry Trends - The AI trade is experiencing reassessment, with concerns about the impact of AI on software businesses leading to significant stock declines [48][49] - Analysts suggest that the selling in the software sector may be overdone, indicating potential for recovery as companies adapt to AI technologies [49][50] - The semiconductor industry is under pressure, with high expectations for companies like Nvidia and Broadcom to meet market demands [27][28]

Company Overview - Snap Inc. is a prominent social media platform and technology company that specializes in augmented reality (AR) [1] - The company has a substantial user base, with 477 million daily users and 943 million monthly users, primarily aged between 13 and 34 [1] Investment Insights - The article reflects a beneficial long position in Snap's shares, indicating confidence in the company's future performance [2] - The author emphasizes a disciplined and analytical investment approach, focusing on swing trading undervalued small companies [1] Market Context - Snap's focus on augmented reality positions it well within the growing tech landscape, appealing to a younger demographic that is increasingly engaged with social media [1]

Core Viewpoint - Capri Holdings, owner of Jimmy Choo, reported lower third-quarter sales but exceeded earnings and free cash flow expectations due to a significant reduction in net debt [1][6] Financial Performance - Revenue from continuing operations decreased by 4% year on year to $1.025 billion, or 5.9% at constant currency [1] - Gross profit fell to $623 million, with a margin of 60.8%, down from $674 million and 63.1% previously [2] - Operating margin improved to 4.5% from 2.4%, and net income from continuing activities rose to $57 million from $6 million a year earlier [1][2] - Diluted earnings per share from continuing operations increased to $0.47 from $0.05, with adjusted diluted EPS rising to $0.81 from $0.63 [2] Cash Flow and Debt - Operating cash flow reached $271 million, generating $252 million in free cash flow after $19 million of capital expenditure [2] - Cash and cash equivalents totaled $154 million, with borrowings of $234 million, resulting in net debt of $80 million, down from $1.17 billion a year earlier [3] Brand Performance - Michael Kors reported revenue of $858 million, down 5.6% on a reported basis and 7.3% in constant currency, with an operating income of $119 million and a margin of 13.9% [3] - Jimmy Choo generated revenue of $167 million, up 5% reported and 1.9% in constant currency, with an operating profit of $3 million, recovering from a $6 million loss [3] Regional Sales - Americas sales declined to $646 million from $696 million, EMEA sales increased to $268 million from $256 million, and Asia sales slipped to $111 million from $116 million [4] Year-to-Date Performance - For the nine months ending December 27, 2025, Capri reported revenue of $2.67 billion, down from $2.79 billion in the prior year, with net income attributable to the group reaching $141 million after a $537 million loss previously [4] Future Guidance - Capri issued adjusted guidance for fiscal 2026, projecting revenue of approximately $3.45 billion to $3.475 billion from continuing operations [5] - For Michael Kors, anticipated revenue is around $2.86 billion to $2.87 billion with an operating margin in the high single digits, while Jimmy Choo is forecasted to generate $590 million to $600 million in sales with a negative low single-digit operating margin [5] Management Outlook - The company remains exposed to global macroeconomic conditions, potential tariff increases, inflation, weaker consumer sentiment, and currency fluctuations [6] - Capri Holdings' chairman and CEO expressed confidence in the third-quarter performance and the strategies in place to support a return to growth in fiscal 2027 [6]

Core Insights - The article discusses the current state of money market accounts (MMAs) and highlights the importance of finding competitive rates as interest rates decline following recent Federal Reserve rate cuts [1][4]. Group 1: Current MMA Rates - The national average interest rate for money market accounts is 0.56%, while top rates can exceed 4% APY, comparable to high-yield savings accounts [2]. - Quontic Bank currently offers the highest money market account rate at 4.1%, which is over seven times the national average [7]. Group 2: Interest Rate Trends - Money market account rates are influenced by the federal funds rate set by the Federal Reserve; when the Fed lowers its rate, deposit account rates typically decrease [3]. - Following three rate cuts by the Fed, money market rates are expected to continue declining, suggesting that now may be a critical time for savers to secure higher rates [4]. Group 3: Considerations for MMA Investment - Money market accounts are appealing for savers seeking safety, liquidity, and better returns than traditional savings accounts, especially in the current environment of elevated interest rates [5]. - Factors influencing the decision to invest in MMAs include liquidity needs, short-term savings goals, and individual risk tolerance [6].

Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4% APY from Marcus by Goldman Sachs for a 1-year term, requiring a minimum deposit of $500 [2] - CD rates today are significantly higher than traditional savings accounts, indicating a favorable environment for investors seeking fixed returns [2] Group 2: Historical Context - CD rates experienced a decline following the 2008 financial crisis, with average one-year CDs paying around 1% APY by 2009 and five-year CDs at less than 2% APY [3] - The trend of falling CD rates continued into the 2010s, with average rates on 6-month CDs dropping to about 0.1% APY by 2013 [4] - A slight improvement in CD rates occurred between 2015 and 2018 as the Federal Reserve began increasing rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Recent Developments - Following the pandemic, inflation prompted the Federal Reserve to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [6] - As of September 2024, the Federal Reserve started cutting the federal funds rate, leading to a steady decline in CD rates from their peak, although they remain high by historical standards [7] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offer higher interest rates, but the current highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [8] - Factors to consider when choosing a CD include goals for locking away funds, type of financial institution, account terms, and inflation considerations [9]

Core Insights - A weaker dollar and increased imports of lower-priced goods could lead to lower-than-expected inflation, which may influence the European Central Bank to consider cutting interest rates [1] Group 1 - The depreciation of the dollar is expected to contribute to a decrease in inflation rates [1] - Increased imports of lower-priced goods are anticipated to further push inflation down [1] - The potential for lower inflation may prompt the European Central Bank to lower interest rates [1]