Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is the risk of another partial government shutdown. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown w ...

Trade risk rises as earnings loom for mega capsTariff Anxiety Returns to the TapeRenewed fears around a potential Canada-China deal are reviving concerns about additional U.S. tariffs. The issue is not confirmed policy, but positioning, markets remain sensitive to anything that reopens the trade front just as growth expectations stabilize. Even incremental headlines are enough to reprice risk across globally exposed sectors.The sequencing matters. Trade narratives tend to surface when markets are extended, ...

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start January, consider joining Out Fox The Street .Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potenti ...

OpenAI - OpenAI is attempting to raise $100 billion at a valuation of $830 billion, which is a significant increase from a previous valuation of $500 billion just weeks prior [2][4] - The debate around OpenAI's valuation reflects broader discussions about AI spending and the volatility in the shares of data center infrastructure providers like Oracle and CoreWeave, which have seen mixed performance this year [3] NIKE, Inc. - NIKE, Inc. reported $12.43 billion in revenue and $0.53 in earnings, surpassing analyst estimates of $12.22 billion and $0.38, but faced a 17% drop in Chinese revenue leading to a post-earnings share price decline [9][10] - Analysts have cut their price targets for NIKE, with UBS reducing it to $62 from $71, citing the need for the company to adjust its inventory and concerns about performance in China [10] - Cramer remains optimistic about NIKE's turnaround under CEO Elliott Hill, emphasizing the need to focus on the brand's core identity as a sports brand rather than a lifestyle brand [11][12][13] FedEx Corporation - FedEx Corporation reported $23.5 billion in revenue and $4.82 in earnings per share, exceeding analyst expectations of $22.8 billion and $4.12, leading to a positive outlook from analysts [9][14] - BMO Capital raised FedEx's share price target to $290 from $265 following the earnings report, reflecting confidence in the company's business-to-business strategy [14] - Cramer highlighted the importance of the business-to-business segment for FedEx, indicating that it is a more stable revenue source compared to business-to-consumer [14]

Market Overview - The Dow dropped 228 points, the S&P 500 fell by 1.16%, and the Nasdaq decreased by 1.81%, indicating a defensive market breadth with volume slightly above recent averages, suggesting active selling rather than passive drift [1] AI Sector Performance - The AI trade is showing signs of strain, particularly in megacap tech stocks. Oracle's shares fell by 5.4% following reports that Blue Owl Capital will not support a planned $10 billion data center deal, signaling a shift in market sentiment towards AI investments [2] - Nvidia's stock declined by 3.8% and Broadcom's by 4.5%, contributing to a nearly 4% drop in the chip index. Traders are increasingly questioning the sustainability of balance sheet strain in the sector as AI spending appears to be self-reinforcing, with OpenAI at the center of this dynamic [3] - Amazon's shares slipped by 0.6% amid news of potential talks to invest approximately $10 billion in OpenAI, which may enhance its AI capabilities but also serves as a reminder of rising costs in the sector [4] Trader Sentiment - Traders are currently stepping back from chasing dips, with decliners significantly outpacing advancers, particularly on the Nasdaq. This reflects a reassessment of exposure as year-end approaches, rather than indiscriminate selling [5] - Alphabet's shares fell by 3.2% as reports emerged that Google is collaborating with Meta to compete against Nvidia's software dominance. The market is focusing on execution risks and timelines rather than the long-term potential of this initiative [5]

Market Overview - Stocks initially moved higher at the start of trading on Monday but quickly lost ground, with major averages ending the day modestly lower. The Nasdaq fell by 137.76 points (0.6%) to 23,057.41, the S&P 500 dipped by 10.90 points (0.2%) to 6,816.51, and the Dow decreased by 41.49 points (0.1%) to 48,416.56 [1] Sector Performance - Computer hardware stocks continued their sharp pullback from the previous session, leading to a 2.9% decline in the NYSE Arca Computer Hardware Index [4] - Software stocks also experienced considerable weakness, with the Dow Jones U.S. Software Index losing 1.5%. Other sectors such as telecom, networking, and brokerage stocks showed notable declines, while pharmaceutical and healthcare stocks performed strongly [5] Economic Data Impact - Upcoming economic reports, including the monthly jobs report for November and retail sales data for October, are expected to influence market sentiment. A report on consumer price inflation is also scheduled for release, which could affect interest rate outlooks following the Federal Reserve's recent monetary policy announcement [3][8]

AI Adoption and Productivity - The industry anticipates 2026 as a critical year to demonstrate economic upside and productivity gains from AI investments [1][3] - Currently, approximately 55% of American workers report using AI, but this broad adoption has not yet translated into significant productivity improvements reflected in government, private, and university studies [2] - The industry needs to see meaningful depth of AI adoption to validate underlying economic fundamentals by 2026, potentially reflected in margin improvements for healthcare companies and financial institutions [3] - Earnings releases will be the first place to see the impact of AI, but the industry needs to see them show up in a meaningful way to justify valuations [4] Economic Impact of Investment - Capital expenditure (CapEx) spending has served as a macroeconomic stabilizer, surpassing expectations in 2025, even amidst stagnation in other economic sectors [6] - A significant pullback in CapEx spending could have broad-based economic implications extending beyond the tech sector [7] - Economic growth in 2025 is largely dependent on substantial investment plans from a few major tech companies [5] US-China Technology War - Despite trade uncertainties with China, US businesses have generally continued to perform well [8] - Increased decoupling with China could lead to reduced revenue and R&D, with potentially extensive economic implications [9] - Competition dynamics resulting from decoupling could potentially create a win-win situation for the US [9] Market Valuations and Investment - The market is questioning valuations, yet some companies are rising without fundamental support, such as Tesla potentially reaching a new record high since December 2024 [10] - With the end of a rate cut cycle, cash yields become less attractive, requiring careful monitoring of whether investments are directed towards actual infrastructure or alternative investments [12] - Elevated valuations need to be meaningful, with the proof being in the pudding [13]

Group 1 - Futu Holdings (FUTU) experienced a pullback after attempting a breakout at a buy point of 199.86 in October, but the stock has more than doubled year to date [1] - The buy point of 199.86 remains valid, with another potential entry point at 202.53 [1] - The current base for Futu Holdings is in the early stage, which historically yields better results compared to late-stage patterns [1] Group 2 - Upcoming earnings reports from Futu Holdings, Walmart, and Nvidia are being closely monitored [1][2] - The overall market saw a decline, with the S&P 500 and Nasdaq sliding, while stocks like Amazon and Apple rose on earnings [4] - Futu Holdings is highlighted as a stock to watch, alongside other companies like MP Materials and Palantir [4]

Core Viewpoint - Jim Cramer has discussed The Gap, Inc. (NYSE:GAP) in the context of its ongoing turnaround efforts, highlighting both the challenges and potential of the company in the retail sector [2][3]. Company Performance - The Gap, Inc. has seen a modest share price increase of 1.7% year-to-date as it works on its turnaround strategy [2]. - CEO Richard Dickson has been recognized for his efforts in improving the company, with Cramer expressing continued belief in the long-term turnaround potential [2][3]. Turnaround Strategy - Cramer noted that The Gap's flagship brand has shown significant sales increases, with GAP up 7%, Banana Republic up 4%, and Old Navy up 3%, which are nearly double expectations [3]. - The company has a strong financial position with $2.6 billion in cash and a 3% yield, suggesting it deserves a higher valuation [3]. Market Challenges - Despite the positive indicators, Cramer pointed out that The Gap is struggling to gain momentum in the market, referencing external factors that have negatively impacted the stock price [2][3].

Group 1 - Skyworks Solutions, Inc. (NASDAQ:SWKS) is a semiconductor company known for signal processing chips, particularly radio frequency chips, which are believed to be supplied to Apple [2] - The company announced a merger with Qorvo, creating a new entity valued at $22 billion, which positively impacted its stock price, closing 5.8% higher on the announcement day [2] - Jim Cramer discussed the merger and expressed confidence in Skyworks' business despite concerns about its largest customer, Apple, experiencing a slowdown [4] Group 2 - The merger with Qorvo is seen as a strategic move that could enhance Skyworks' position in the semiconductor market, particularly in relation to Apple [2][4] - There is a belief that while Skyworks has potential, other AI stocks may offer greater returns with limited downside risk [4]