US stocks rose on Friday after snapping a recent losing streak, as signs of cooling inflation and waning AI worries buoyed Wall Street optimism toward the tail end of a topsy-turvy week. The S&P 500 (^GSPC) put on 0.8% and the Nasdaq Composite (^IXIC) gained over 1.3%, building on Thursday's roaring rally. The Dow Jones Industrial Average (^DJI) climbed 0.3%. With the late-week rebound, the S&P 500 and Nasdaq booked weekly wins, rising 0.1% and 0.4%, respectively, in the last full week of trading in 202 ...

Core Insights - US Treasuries experienced their first weekly gain since late November, driven by lower-than-expected inflation and a rise in the unemployment rate, leading to expectations of at least two rate cuts by the Federal Reserve next year [1][3] - The 10-year Treasury rate fell by four basis points over the week, while the two-year yield also decreased by a similar amount, indicating a more dovish outlook for 2026 [1][3] Market Reactions - The US unemployment rate reached a four-year high, and core inflation was reported at its slowest annual pace since early 2021, which contributed to a more optimistic market sentiment regarding future rate cuts [3] - Money markets are now pricing in two quarter-point cuts next year, with a 40% probability of a third cut, widening the gap between two-year and 10-year yields to 67 basis points, the largest since January 2022 [3] Investor Sentiment - With major data releases not expected until January, investors are adopting a cautious stance as they approach the new year, reflected in the ICE BofA MOVE Index, which indicates the lowest expected bond-market volatility since 2021 [4] - Analysts from TD Securities noted that uncertainty in data will keep investors alert, with ongoing labor market concerns suggesting potential downside risks to rates [5]

Let's check in on the bond markets now. While the US is cutting rates, the Bank of Japan raised interest rates to 30-year highs. And that has yields on the move globally, pushing its 10 and 30-year to multi-deade highs, as you can see there.Rick Santelli is tracking all the action in the bond report. Rick, what can you tell us. >> Absolutely.And we'll get to the foreign global interest rates in a second, but you know, this morning, University of Michigan sentiment, it was definitely weak. current uh situati ...

Let's check in on the bond markets now. While the US is cutting rates, the Bank of Japan raised interest rates to 30-year highs. And that has yields on the move globally, pushing its 10 and 30-year to multi-deade highs, as you can see there.Rick Santelli is tracking all the action in the bond report. Rick, what can you tell us. >> Absolutely.And we'll get to the foreign global interest rates in a second, but you know, this morning, University of Michigan sentiment, it was definitely weak. current uh situati ...

Market Overview - Value stocks have shown signs of life, outperforming the market in the current quarter, with S&P value leading [1][2] - Only two of the FAANG stocks have outperformed the market this year, indicating a shift in market dynamics [2] Investment Strategy - Investors are advised to stay invested and avoid trying to time the market, focusing on less popular sectors that are not leading the market [3][5] - Healthcare is highlighted as a favorable sector due to its affordability and lower economic sensitivity, making it a good option if the economy slows [3][5] Stock Picks - UPS and Kimberly Clark are identified as attractive investment opportunities, both down nearly 50% from their highs, with Kimberly Clark offering a PE of 12 compared to its usual 19 and a safe dividend yield of 5% [6][10] - UPS has seen a significant drop of 60% from its highs, but the company is moving away from its reliance on Amazon, which could improve its performance [11] Market Trends - There is a belief that the current inflationary environment will persist, similar to trends seen in the 1970s, which could benefit materials and commodities [13]

Food Price Trends - The analysis suggests food prices will not remain as high as in 2025 due to the anticipated easing of certain commodity prices and tariff dynamics [1][2][3] - Companies like General Mills and PepsiCo are already lowering prices, raising the question of whether these price reductions will be sustainable [5] - The unwinding of COVID-era inflation is contributing to savings for consumers on grocery items [6] Consumer Behavior & Economic Impact - The report highlights a "K-shaped" economy, emphasizing the impact of pricing on low-income consumers' consumption of daily use consumer staples [7][8] - High-income consumers' consumption of daily use categories is less sensitive to economic conditions compared to low-income consumers [8] - Volume drag from low-income consumers will be a key indicator in 2026 [8][9] Top Picks & Investment Opportunities - Top picks for the next year include Coke, Monster, and Vitita Cocoa (coconut water) [9] - Vitita Cocoa benefits from structural growth as a workout and recovery drink, and from tariff exemptions [9][10] Company Performance - Lamb Weston's margin improvement and outlook, particularly in international markets, have been disappointing [12] - Lamb Weston's sales were in line with expectations, but margin improvement was the key issue [12][13]

Eurozone consumer sentiment unexpectedly weakened in December despite cooling inflation and economic resilience against tariffs https://t.co/fFLzXf9Hk5 ...

Definitely things are um a lot more money. >> I mean, I'm going to see family, but as far as like, you know, being able to get like gifts for everybody, that's a little bit difficult right now. >> To me, everything is like a very expensive.There's been a lot of conversations about like, oh, we should do like experience gifts and things like that because um everything is just so much more expensive now. We've always done what we call secondhand Christmas where we try to focus on buying things secondhand to m ...

What were the larger forces that kept inflation down and have they gone away. >> Well, a very important force that was keeping inflation down was globalization. It was the case after China entered the WTO 25 years ago that goods were coming out of China and was holding goods prices down.At the same time, immigration globally also went up. That also messed that the cost of labor and wage inflation was also held down. So those forces were weighing on inflation for literally two decades after 2000 because we s ...

Now to shift gears and get some insights on the news that is shaping the overall markets. For that, we'd like to welcome in Dale Smothers, president and CEO at RDS Wealth Management. Dale, thanks so much for being with us on this Friday.I mean, looking back at the year that was in 2025. Why do you think the this bull market is still met with so much caution. >> Jenny, you're exactly right.It was the uh climbing the wall of worry is an analogy that I like to use. This this market has been resilient. The cons ...