NEW YORK (AP) — Shoppers pulled back the pace of their spending in December from November, closing out the holiday shopping season and the year on a lackluster tone. The report, issued by the Commerce Department on Tuesday, raised questions about shoppers’ ability to spend this year as they worry about a slowing job market and uncertainty around President Donald Trump’s tariffs and their impact on prices. Retail sales were flat in December from November, when business was up 0.6%, according to the Comme ...

Consumer activity slowed sharply for the December holiday shopping season amid a spate of rough weather, tariff impact and persistently higher inflation, the Commerce Department reported Tuesday.Retail sales were flat on the month following a 0.6% increase in November, according to numbers adjusted for seasonality but not inflation. Economists surveyed by Dow Jones had expected an increase of 0.4%. Excluding autos, sales also were unchanged, against the estimate for a 0.3% increase.On an annual basis, sales ...

-- Here's How Much McDonald's Stock Is Expected to Move After Earnings Wednesday [Major Indexes Rise as Tech Stocks Surge][There Was an 'Unmistakeable' Flight to Value Last Week][What's Next for Crypto After a Rough Week?][How Much Coca-Cola Stock is Expected to Move After Earnings]- Top StoriesMcDonald's shares have gained about 6% since the start of the year.Kevin Carter / Getty ImagesClose### Key Takeaways- Options pricing suggests traders see shares potentially climbing to new highs following the result ...

Block, Inc. (XYZ), headquartered in Oakland, California, builds ecosystems focused on commerce and financial products and services. With a market cap of $34.5 billion, the company develops a payments platform aimed at small and medium businesses that allows them to accept credit card payments and use tablet computers as payment registers for a point-of-sale system. Shares of this payments platform have notably underperformed the broader market over the past year. XYZ has declined 37% over this time frame ...

Core Insights - Mastercard reported a higher fourth-quarter profit driven by resilient consumer spending and international travel, with net income rising to $4.06 billion or $4.52 per share, surpassing consensus estimates of $4.25 per share [1] Financial Performance - Net revenue increased by 17.6% year over year to $8.81 billion, slightly above expectations of $8.78 billion [2] - Gross dollar volume rose by 7% during the quarter, indicating steady transaction growth [2] - For the full year, Mastercard reported net revenue growth of 16%, or 15% on a currency-neutral basis [4] Consumer Behavior - Consumer spending remained resilient despite tariff-related uncertainties, with shoppers focusing on essential purchases and promotions during the holiday season [2] - International travel continued to recover, supporting cross-border transaction activity [2] Revenue Drivers - Cross-border spending was highlighted as a higher-yield growth driver compared to domestic volumes, making international transactions a key contributor to revenue growth [3] - Value-added services and solutions revenue increased by 23%, or 21% on a currency-neutral basis [4]

Group 1: Economic Outlook and Consumer Behavior - Bank of America expects further economic growth this year, with a 12% profit increase in Q4 due to rising consumer spending and lower credit card delinquencies [1][2] - Spending on debit and credit cards rose by 6%, while delinquencies over 90 days on credit cards decreased to 1.27% from 1.35% a year ago [1][3] Group 2: Financial Performance - For Q4, Bank of America reported earnings of $7.6 billion, or 98 cents per share, exceeding analysts' expectations of 96 cents per share [5] - Full-year profit reached $30.51 billion, a 13% increase compared to the previous year [5] - Total revenue for Q4 was $28.37 billion, surpassing analyst forecasts, with net interest income rising 10% to $15.8 billion [5][6] Group 3: Market and Investment Banking - Provisions for credit losses were reported at $1.3 billion, a decrease from the previous year [6] - Sales and trading revenue from the markets division increased by 10% to $4.52 billion, while investment banking fees rose to $1.67 billion [6]

Core Insights - The November retail sales report indicates strong consumer spending, suggesting resilience in the economy despite potential headwinds [1] Group 1: Retail Sales Performance - Retail sales increased by 0.6% in November, surpassing expectations and indicating robust consumer demand [1] - Year-over-year retail sales growth stands at 6.5%, reflecting a healthy consumer spending environment [1] - The increase in retail sales was broad-based, with significant contributions from sectors such as clothing, electronics, and online sales [1] Group 2: Economic Implications - The strong retail sales figures may influence Federal Reserve policy decisions regarding interest rates, as consumer spending is a key driver of economic growth [1] - Analysts suggest that sustained consumer spending could mitigate recession fears and support overall economic stability [1] - The data reinforces the notion that consumers remain confident, which is crucial for ongoing economic recovery [1]

Financial Sector Insights - Major banks including JPMorgan, Bank of America, and Goldman Sachs are reporting earnings this week, providing insights into consumer spending, business loan demand, and credit quality trends [1][2] - Key metrics such as net interest margins, loan loss provisions, and deposit dynamics will be critical for assessing bank conditions [1] - Investment banking revenues will shed light on M&A activity and capital markets health, while wealth management results will reflect retail investor sentiment [1] Economic Data Releases - The December CPI report is anticipated to be a significant economic release, indicating inflation trends as 2025 concludes [3] - Both headline and core CPI readings will be closely monitored for signs of inflation reacceleration, which could impact Federal Reserve policy [3] - Retail sales data will provide context on consumer demand strength, influencing pricing power and market sentiment [3] Semiconductor Sector Update - Taiwan Semiconductor's earnings will be crucial for understanding global semiconductor demand, particularly in AI and other end markets [4] - Insights on advanced node utilization and capital expenditure plans will be vital for assessing the sustainability of AI-driven chip demand [4] - TSM's commentary on competition from Samsung and Intel will provide context on industry dynamics and future investment expectations [4] Retail Sector Analysis - The NRF 2026 and ICR conferences will offer significant retailer preannouncements and guidance updates, impacting consumer discretionary sector sentiment [6] - November retail sales data will provide hard evidence of holiday shopping performance, with comparisons to conference commentary being critical for assessing retailer optimism [6] - Existing home sales data will further contextualize consumer behavior in the residential real estate market [6] Healthcare Sector Developments - The JPMorgan Healthcare Conference will gather key players in the pharmaceutical and biotech industries, generating significant news flow [7] - Updates on pipeline developments and regulatory approvals from major drugmakers could substantially influence stock movements [7] - The conference will highlight critical themes such as drug pricing pressures and innovations in oncology and gene therapy [7]

Core Insights - The U.S. economy is exhibiting a "K-shaped" recovery, with spending growth diverging significantly between lower-income and higher-income consumers [1][2] Spending Trends - Higher-income households (top third by income) are experiencing a year-over-year spending growth of approximately 2.6%, while lower-income households are only seeing a growth of 0.6%, indicating a substantial gap [2] - The report highlights that lower-income households had the weakest holiday spending growth leading up to Cyber Monday, despite relatively healthy spending growth compared to previous periods [13] Wage Growth Disparities - Wage growth for higher-income households is around 4%, whereas lower-income households are seeing only about 1.4% growth, marking one of the largest gaps in the last decade [5] - The labor market trends are identified as a key driver of the K-shaped dynamics, with after-tax wage growth for lower-income households lagging behind that of higher-income households [9] Consumer Behavior - Consumers are showing price sensitivity during the holiday season, with spending growth driven by an increase in the number of transactions rather than a significant rise in average spending per transaction [14][15] - Online holiday purchases have seen a transaction increase of about 10%, with total spending up roughly 9%, indicating effective consumer strategies to manage price rises [15][16]

Core Insights - The U.S. economy experienced robust growth in Q3 2025, with an annual growth rate of 4.3%, an increase from the previous quarter's 3.8% [1] - The growth in Q3 was characterized by a healthier and more broad-based foundation compared to earlier in the year, indicating genuine economic vitality rather than technical adjustments [1][2] Economic Composition - In Q2, GDP growth was significantly influenced by a decline in imports, which artificially inflated the growth figure without reflecting true domestic production or consumer well-being [2][3] - The second quarter's real GDP growth of 3.3% was primarily due to decreased imports and increased consumer spending, while investment and exports actually declined, revealing underlying weaknesses [3][4] - In contrast, Q3 growth was driven by increases in consumer spending, exports, and government spending, with a smaller contribution from the decline in imports compared to Q2 [5]