Yes, we are green across the board. So, we're trying to build on that big comeback on Friday. Joe, I said I laid it out.Dow's higher than 50k, S&P equal weight record high. And Edard Denny says you ain't seen nothing yet. He says Dow 70K by 2029.Dow theory remains bullish. the delivery side of the economy, the transports. He says that's confirming that the production side of the economy, the industrials, that the market is still in growth story mode.Well, we tried to speak to that throughout last week as yo ...

Market Overview - The market shows signs of strength as investors focus on upcoming earnings from major tech companies like Amazon and Alphabet [2] - Economic uncertainty is highlighted by a government shutdown delaying the January jobs report, affecting consumer spending patterns [3] Consumer Spending Trends - Research indicates a shift in consumer spending, with increased grocery purchases during lunch hours and decreased restaurant spending, attributed to remote work and cost considerations [5][6] - Spending patterns remain consistent, with approximately 23% of transactions occurring during weekdays and about a third on weekends, showing stability over the past five years [8] - The trend of working from home is expected to persist, influencing consumer behavior and spending habits [9][10] K-Shaped Economic Recovery - A K-shaped recovery is evident, with higher-income households experiencing a 3% growth in spending, while lower-income households see growth below 1% [15] - The gap in spending growth between income levels has remained relatively constant, with a 2 percentage point difference noted over the last six months [16][17] - Tax refund season may temporarily buffer the K-shaped economy, but long-term trends suggest the disparity will continue [18] Generational Spending Differences - Older households are showing stronger spending growth compared to younger generations, with Gen X currently facing the most significant spending pressures [20] Company-Specific Insights - Tyson Foods reported first-quarter earnings that exceeded estimates but faced challenges in its beef segment, which has seen ongoing losses due to supply issues [39][41] - Disney's earnings surpassed forecasts, but the company provided a tepid growth outlook, leading to a 7% drop in stock price [43][44] - NXP Semiconductors reported fourth-quarter results that fell short of expectations, particularly in the automotive segment, resulting in a 5% decline in stock price [47] SpaceX and XAI Merger - SpaceX plans to merge with XAI, consolidating two of Elon Musk's ventures, potentially to leverage shared technologies and mitigate financial losses from XAI [34][35][36]

Core Viewpoint - The transportation sector is showing positive momentum, with 82% of its stocks trading above their 40-week moving averages, indicating a potential bullish trend in the market [1]. Industry Summary - The S&P industrials, particularly transportation stocks, are performing well, suggesting a favorable economic outlook that may continue into 2026 [2]. - The strong economy is expected to drive better volumes and double-digit earnings growth for transportation companies [3]. - Cost efficiencies and productivity improvements are anticipated to contribute to margin expansion, with a notable reduction in debt levels [4]. Company Summary - Union Pacific (UNP) is highlighted as a buy opportunity, with a modest year-to-date increase of 5%, making it an attractive investment [2]. - The company is expected to achieve double-digit earnings growth, supported by strong fundamentals and an acquisition deal with Norfolk Southern that could add $2 billion in EBITDA synergies [5][6]. - The management team has successfully improved margins by 500 basis points over the last two years, positioning the company to catch up with other transportation stocks [6].

Market Overview - The Dow is up approximately 670 points, while the S&P 500 is up about 0.2%, and the NASDAQ is down about 0.3% [1] - Investors are looking beyond big tech and the AI trade following the Fed's third consecutive rate cut [9] Oracle's Performance - Oracle's stock is facing significant declines due to concerns over AI buildout and missed earnings expectations [2][67] - The company has a substantial commitment to OpenAI, but there are doubts about OpenAI's ability to fulfill its financial commitments, leading to concerns about Oracle's future revenue [70][75] Crypto Regulation Developments - Executives from major banks, including Bank of America and Wells Fargo, are meeting with lawmakers to discuss comprehensive crypto legislation [3][4] - The focus of the discussions includes bank permissibility and interest paid on crypto, with banks aiming to influence the legislation [5][6] Federal Reserve Insights - The Fed has revised its GDP growth forecast for next year to 2.3%, with inflation expected to fall to 2.5% and unemployment holding at 4.4% [35][39] - Economists express skepticism about the Fed's projections, suggesting that growth could be higher than anticipated due to strong productivity trends [36][41] AI Market Dynamics - There are concerns about an AI bubble, with only two of the MAG 7 outperforming the broader market index [23] - Analysts suggest that capital is leaking out of the AI trade, and companies like Oracle may struggle to maintain their market positions due to overleveraging [24][25] Adobe's AI Integration - Adobe reported record revenue and cash flows, with a forecast of over 10% growth in annual recurring revenue, driven by the integration of AI into its software [102][104] - The company is focusing on innovation and investing in AI capabilities to enhance its product offerings [106][110]