Joining me now here at the death at the New York Stock Exchange, Jay Woods, chief global strategist, Freedom Capital Markets. So Jay, one of the things you've been paying attention to is the leadership rotation. What does that tell us about where things stand in terms of this bull run we've been paying attention to.>> Yeah, it's healthy, but it's not going to really take us to the heights that we were hoping for. When you look at the headlines, what are making headlines. It's always those Max 7 names, alway ...

Market Overview - The S&P 500 and Dow Jones Industrial Average are experiencing significant gains, with the Dow surpassing 50,000 and the S&P 500 nearing record levels, indicating a strong market performance [1] - There is a healthy market breadth emerging, with increasing sector participation, particularly in industrials and financials, which are showing strong earnings results [2] Technology Sector - The technology sector is currently taking a breather, which is not surprising given previous high valuations; this pause is viewed as a healthy correction [3] - Despite the recent downturn, technology companies are still considered high-quality investments with solid balance sheets and strong earnings growth prospects [5][7] Consumer Wealth and Stock Ownership - Consumer net worth has reached $173 trillion, with consumers now owning more stocks than real estate for the first time since the late 1990s, indicating a shift in investment preferences [6] Investment Strategy - The current investment strategy emphasizes "quality at a reasonable price," suggesting a focus on midcap stocks as a diversifier from the tech-heavy portfolios [8] - There is a preference for high-quality bonds, including treasuries and investment-grade corporate bonds, as yields remain elevated despite moderating inflation and a weaker labor market [16][19] Economic Indicators - Upcoming economic data, including jobs and inflation reports, are being closely monitored, with recent labor market indicators showing signs of cooling, such as a significant number of layoff announcements and a decrease in job openings [10][12] - The bond market is currently experiencing confusion, with yields not reflecting the moderating economic conditions, but there is an expectation that bond yields will decrease as the market adjusts [18][19] Defensive Sectors - There is a growing interest in defensive sectors such as utilities, healthcare, and infrastructure, which are seen as essential in the current market environment, especially with the demand driven by AI and data center buildouts [21][22]

'Dow Theory' Sends a Buy Signal as Transportation Stocks Rally - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# 'Dow Theory' Sends a Buy Signal as Transportation Stocks RallyByPaul R. La MonicaShareResize---ReprintsIn this article[ALK][DAL][ ...

Airline stocks such as Southwest are propelling the Dow Jones Transportation Average to new highs. ...

I want to bring in Caleb Silver, chief business editor, People and editor-inchief of investoria, friend of the network for just a broad look across markets this week. So, it's been bumpy this week and I know you've had these conversations expecting this year to be volatile and it's already showing up that way. A lot going on at Davos.You had headline risk all week setting the tone for the market. Uh you say everyone's bullish and buying. Tell me more about that.Yeah, if you looked at what the trends that we ...

The Dow Jones Transportation Average (DJT) has surged roughly 10% over the past month, leaving it less than half a percent below its all-time high set in November 2024. Under Dow Theory, that should bode well for the broader stock market. A core tenet of Dow Theory is that the DJT should confirm the stock market trend. In other words, when the Dow Jones Industrial Average (DJI) is reaching new highs, the DJT (which ships goods the DJI makes) should be hitting new highs as well. Otherwise, you wouldn't be ...

Market Overview - Stocks are currently higher, with the market showing resilience despite recent fluctuations [1][2] - The Dow is close to its all-time highs, with discussions around the potential for reaching 50,000 in the future [3] Investment Strategy - Emphasis on building wealth over short-term trading; investing should focus on long-term growth rather than speculative trading [4][5] - Successful investing requires time, patience, and a willingness to accept mistakes [6][10] Stock Picking - The importance of stock picking is highlighted, with a distinction made between intelligent investing and merely following trends [7][10] - Long-term holding of stocks is recommended, with some stocks held for over 20 years [9] Market Indicators - The Dow transports are making new highs, which is seen as a positive indicator for the market's direction over the next 3 to 6 months [12] - Seasonal trends suggest buying undervalued stocks in December, despite the risks associated with tax selling [13] Sector Focus - A shift in market focus from tech to other sectors is noted, with airlines and financials being favored due to current market conditions [16][17] - Airlines are seen as a favorable investment due to low energy prices and high passenger traffic [17] - Financials, particularly Bank of America, are considered undervalued [18] - Interest in healthcare stocks, including big pharma and CVS, is also expressed, with a focus on dividend-paying stocks [18] Specific Stock Recommendations - Meta is highlighted as a stock to continue buying despite recent challenges [19]

Core Insights - The uncertainty surrounding the labor market and tariffs is expected to challenge the Dow Theory in 2026 [1] Group 1 - The labor market's unpredictability may impact economic stability and investor confidence [1] - Tariff policies are likely to influence market dynamics and corporate profitability [1] - The combination of these factors could lead to significant volatility in stock prices [1]

Market Overview - The Dow is up about 100 points, indicating a potential record close after a record yesterday [2][3] - The S&P 500 also closed at a record yesterday but is down about a third today, while the Nasdaq is down about half a percent [3][4] - The S&P equal weight index is outperforming the S&P 500, suggesting broadening participation in the market [4] Federal Reserve Insights - The Federal Reserve cut interest rates by a quarter percentage point, with dissent from three members [8][10] - Chicago Fed President Austin Goulby expressed a desire to wait for more inflation data before further cuts, indicating optimism for significant reductions in rates over the next year [9][10] - Kansas City Fed President Jeff Schmid believes inflation remains too high and the economy shows momentum, suggesting that policy is not overly restrictive [10][11] Technology Sector Performance - Broadcom's disappointing earnings report has significantly impacted the tech sector, contributing to its decline [6][7] - Despite the drop, Broadcom's stock is still up year-to-date due to investor confidence in its AI-related prospects [7] College Athletics and NIL Legislation - The Hustle Act aims to protect college athletes' name, image, and likeness (NIL) earnings by creating tax-advantaged savings accounts and capping agent fees [36] - NIL has become a multi-billion dollar business for college athletes, necessitating legislative measures to provide structure and support [37][38] - The legislation seeks to address the challenges faced by student-athletes in managing their new commercial opportunities while balancing academic commitments [39][41] Corporate Developments - Citigroup received an upgrade to overweight from JP Morgan, citing expected benefits from a solid economy and market activity [60] - Alphabet's price target was raised to $350 by TD Cowan, driven by increased search engagement and the success of its Gemini chatbot [61][62] - FMCC was double upgraded by Wedbush, with expectations of near-term action from the Trump administration to recapitalize the mortgage giant [63] Cryptocurrency Market - Bitcoin is rebounding after dipping below 90,000 earlier in the week, with analysts noting it has been stuck in a range of 85,000 to 95,000 for about a month [64] Electric Vehicle Sector - Rivian's stock is up significantly after NEM raised its price target, citing momentum in AI and autonomous driving [65][66] Banking Sector - UBS shares are rising after Swiss lawmakers proposed easing capital rules, which would lower funding costs for the bank [68]

Market Performance - The Dow and S&P 500 reached record highs, with the Dow up 1.3% or approximately 650 points [1][2] - The Russell 2000 also hit a record high, increasing by 1.3% [2] - The S&P 500 equal weight index performed well, indicating strong market breadth [11] Sector Performance - Cyclical sectors showed strength, with materials up 2%, financials slightly less, and industrials up 1% [4] - Energy and tech sectors experienced declines, each down about 0.5% [3][4] - The NASDAQ 100 struggled due to poor performance from mega-cap stocks, except for Microsoft and Meta [5][6] Economic Outlook - The U.S. economy is perceived to be in a softening phase, with a weakening labor market and cautious consumer behavior [10] - There are signs of potential stabilization and growth heading into the new year, supported by fiscal stimulus and easing monetary standards [12][11] - Earnings expectations for 2026 are moving higher, with anticipated growth of nearly 15% [17] Company-Specific News - Broadcom reported Q4 EPS of $1.95, beating estimates, and net revenue of $18.02 billion, also above consensus [28] - Lululemon announced a CEO succession plan following a period of slowing sales, with CEO Calvin McDonald set to depart at the end of January [31][32] - Concerns for Lululemon include slowed growth in North America and increased competition, but there is potential for growth in international markets [42][43] Investment Implications - Investors are advised to be selective in their investments, particularly in the tech sector, focusing on companies with strong free cash flows [22][23] - Opportunities are emerging in sectors such as transportation, healthcare, and energy, with a recommendation to look for consolidation in uptrends [25][26]