[Chart courtesy of MarketWatch.com][Chart courtesy of MarketWatch.com]Moving the marketThe Dow started strong, but the Nasdaq felt the heat as traders kept rotating out of tech. Big AI names took hits: Nvidia down over 1%, Apple on track for its seventh straight loss, and Oracle off more than 2%.The bright spot? Defense stocks went gangbusters after President Trump floated a massive $1.5 trillion defense budget for 2027 (up huge from 2026’s $901 billion). Northrop Grumman soared 10%+, Lockheed Martin jumped ...

Group 1: AI and Technology Sector - AI stocks are expected to perform strongly in 2026, with companies like Micron and Nvidia leading the way due to increased demand for memory and storage solutions [1][2] - The demand for higher-bandwidth memory in data centers is anticipated to drive spending and further increase demand for memory components [2] Group 2: Banking Sector - The banking sector, particularly regional banks, is identified as a promising investment opportunity for 2026, despite the lingering effects of the 2023 regional banking crisis [3] - Analysts suggest that deregulation could enhance banks' ability to utilize capital and generate better returns [3] Group 3: Investment Methodology - The selection of the 8 best American stocks to buy and hold in 2026 is based on hedge fund popularity, focusing on stocks with at least 10% expected revenue growth [6][7] - The strategy of imitating top hedge fund picks has historically outperformed the market, with a reported return of 275% since May 2014 [7] Group 4: Company Highlights - **Tesla Inc. (NASDAQ:TSLA)**: Expected revenue growth of 14.4% in 2026, with a potential upside of 4.2%. Despite underwhelming delivery numbers, analysts remain optimistic about Tesla's future, particularly in robotics and autonomous driving [8][9] - **Capital One Financial Corp (NYSE:COF)**: Expected revenue growth of 18.2% in 2026, with a potential upside of 8.18%. Recent target price increases from analysts reflect bullish sentiment, and the company is expected to benefit from synergies following the acquisition of Discover [11][12]

Group 1: Keynote Insights at CES - Nvidia CEO Jensen Huang and AMD CEO Lisa Su will deliver keynote speeches at CES, which could significantly influence sentiment in the AI infrastructure sector heading into 2026 [1][2] - Huang's presentation will be closely watched for announcements regarding next-generation AI accelerators and data center roadmaps, as well as customer demand sustainability [1] - AMD's Lisa Su is under pressure to showcase the adoption of the MI300 series and competitive positioning against Nvidia in data center GPUs, with potential wins from cloud service providers enhancing AMD's credibility [1] Group 2: Economic Data and Market Sentiment - The week features a comprehensive economic data calendar culminating in the December jobs report, which will provide insights into labor market conditions and influence Federal Reserve policy expectations [2][3] - Key economic indicators such as ISM Manufacturing and Non-Manufacturing PMIs will offer insights into industrial and services sector health, impacting market sentiment and potential sector rotation [4][6] - The absence of major earnings reports allows economic data and CES announcements to dominate market focus, testing whether the market can maintain momentum from any year-end rally [2][6] Group 3: Inflation and Federal Reserve Policy - The week's economic data will provide multiple perspectives on inflation, with ISM prices components and wage growth data being crucial for assessing inflationary pressures [7] - The Federal Reserve's December meeting highlighted the need for sustained evidence of disinflation before committing to further policy easing, making this week's inflation signals particularly significant [7] - Any evidence of reaccelerating price pressures could impact rate-sensitive sectors and support the dollar, while benign inflation readings may provide relief for risk assets [7]

Travel-themed snow globe with hotel, cruise ship, and flight board on a beach, symbolizing travel sector growth. Key Points Travel and leisure stocks could benefit from a “normal” economy as sector rotation puts an emphasis back on companies with solid fundamentals. Carnival, Booking Holdings, and Marriott show improving earnings trajectories and potential upside into 2026. Analysts forecast earnings growth above historical averages, signaling renewed confidence in consumer travel demand. Interested i ...

Core Insights - The market dip observed last month may be either temporary or indicative of a full sector rotation, suggesting a significant shift in market dynamics [1] - The author emphasizes a macro-oriented and data-driven investment approach, focusing on identifying trends that may not be apparent to mainstream financial media [1] Investment Strategy - The investment philosophy includes holding concentrated, asymmetrical, and high-conviction positions, with a strong emphasis on disciplined risk management [1] - Position sizing is highlighted as being more critical than security selection in successful investing [1] Market Trends - The author is on a quest to uncover narrative trends, which is referred to as the hunt for information alpha, indicating a proactive approach to market analysis [1] - The newsletter titled "The Macro Obsession" aims to provide insights into macroeconomic factors influencing investment decisions [1]

Core Viewpoint - Domino's Pizza has shown strong performance in 2025, with shares increasing 9.3% from November lows, currently trading near $434, and analysts are optimistic about reaching $550 per share by 2026 [2][6]. Financial Performance - The consensus 12-month price target for Domino's is $496.65, indicating a potential upside of 14.5% from current levels, with 20 out of 34 analysts rating it a buy or strong buy [3]. - Quarterly earnings growth is projected at 30.1% year over year, with Domino's beating Q3 2025 estimates with an EPS of $4.08 compared to the $3.95 consensus [4][8]. Strategic Initiatives - CEO Russell Weiner has highlighted the "Hungry for MORE" strategy, focusing on market share and operational excellence, supported by over 21,700 stores in 90+ markets, primarily operating under a capital-light franchise model [5]. - The company's emphasis on digital ordering and delivery aligns with consumer trends towards personalization and convenience [5]. Valuation Insights - Currently trading at approximately 25x trailing earnings and 22x forward earnings, reaching $550 would imply a valuation of about 32x forward earnings, which is a premium but justifiable given the 30% annual earnings growth [6][7]. Growth Drivers - Continued earnings beats are expected, with Domino's having beaten estimates by 3.3% in Q3 2025, and prediction markets showing 100% confidence in this performance [8]. - U.S. same-store sales grew by 5.2% in Q3, with international sales up 1.7%, indicating strong sales momentum [8]. - The company added 214 net new stores in Q3, with significant room for international expansion as it has only penetrated 90 markets globally [8]. Market Positioning - The restaurant sector underperformed in 2024, but renewed investor interest has been noted in late 2025, positioning Domino's as a quality leader in the market [9]. - Institutional ownership stands at 92.4%, with significant stakes from Berkshire Hathaway and Frontier Capital, indicating strong backing from institutional investors [9].

Macro Signals 2025. Photo by BeInCrypto Markets are in the last full trading week of 2025, and with Christmas Holidays approaching, Wall Street’s sector rotation is sending signals that crypto traders cannot ignore. Capital is moving away from crowded Big Tech and AI trades into financials, industrials, and materials, reshaping liquidity conditions that often spill into Bitcoin, Ethereum, and altcoins. For investors looking to position themselves ahead of 2026, these flows could offer critical clues abou ...

Photographer: Michael Nagle/Bloomberg One theme is becoming prevalent as the new year approaches: The technology giants that have been shouldering this bull market will no longer be running the show. Wall Street strategists at firms including Bank of America Corp. and Morgan Stanley are advising clients to buy less popular pockets of the market, placing sectors like health care, industrials and energy at the top of their shopping lists for 2026 over the Magnificent Seven cohort that includes Nvidia Corp. ...

The Federal Reserve will conclude its most contentious FOMC meeting of the year this afternoon, and the outcome has the potential to meaningfully sway markets. There is a real possibility this turns into a “sell the news” event, but if that happens, I also see several areas where investors may want to consider rotating.Just a month ago, futures were pricing the odds of a rate cut at roughly 50/50, a shift that triggered a sharp bout of volatility. Indexes ultimately fell only about 6% from their highs, but ...

Core Insights - Stubborn inflation is expected to persist, influencing consumer behavior and spending patterns in 2026 [1] - A K-shaped recovery in consumption indicates that different sectors will experience varying levels of growth, leading to a divergence in economic performance [1] - Sectoral rotation will be a significant trend, with investors shifting their focus to industries that are likely to benefit from the prevailing economic conditions [1] Inflation - Inflation rates are projected to remain high, affecting purchasing power and consumer confidence [1] - The persistence of inflation may lead to changes in monetary policy and interest rates, impacting investment strategies [1] Consumption Patterns - The K-shaped consumption trend suggests that higher-income households will continue to spend, while lower-income households may struggle, leading to unequal recovery [1] - This divergence in spending will create opportunities in luxury goods and services, while essential goods may face challenges [1] Sectoral Rotation - Investors are likely to rotate their investments towards sectors that are expected to outperform in an inflationary environment, such as energy and commodities [1] - Technology and consumer discretionary sectors may face headwinds as consumers prioritize essential spending over discretionary items [1]