Upbeat comments on Friday from New York Fed President John Williams were supportive for stocks but negative for bonds, as he said some of the data we're seeing is "pretty encouraging" and he sees no sign of a sharp deterioration in the jobs data. He added that he sees US GDP growth of 1.5% to 1.75% this year, with growth picking up next year, and that there's "no urgency to need to act further on monetary policy right now, because I think the cuts we've made have positioned us really well."The University of ...

OpenAI alone plans to spend $1.4 trillion in the coming years. But the Sam Altman-led company, which became the world’s most valuable startup in October, is generating far less revenue than its operating costs. It expects to burn $115 billion through 2029 before generating cash in 2030, The Information reported in September.Here’s a look at the key trends to watch while navigating through these choppy waters.Of course, there are still plenty of reasons for optimism. The tech giants that account for much of ...

China is considering an incentives package of as much as $70 billion to support its chipmaking industry https://t.co/nLuCJ9jOS2 ...

Economic Indicators - The Federal Reserve cut rates by 25 basis points, raised growth estimates, and lowered inflation projections, contributing to positive sentiment in the stock market [1] - Initial Jobless Claims rose to 236,000, the highest since the week after Labor Day, but this figure is roughly the median for new claims over the past year [2] - Continuing Claims dropped significantly to 1.838 million, the lowest since mid-April, indicating a potential positive trend in the labor market [3][4] - The U.S. Trade Balance improved, shrinking to a deficit of $52.8 billion, the lowest level since June 2020, and 60% lower than the record deficit in March [5] Company Earnings - Lovesac (LOVE) reported negative earnings of $0.72 per share, missing estimates, and its revenue of $150.17 million was down 2.37% from consensus, leading to a 14% drop in shares [6] - Broadcom (AVGO) is expected to see earnings growth of 31.7% and revenue growth of 24.5%, driven by AI infrastructure supply [7] - Costco (COST) is projected to achieve 11.5% earnings growth and 8.3% revenue growth [7] - Lululemon (LULU) is estimated to report a 22.7% decline in earnings, despite a 3.5% increase in revenues [7]

Economic Indicators - Initial Jobless Claims rose to +236K, the highest since +263K reported after Labor Day, following a previous drop to +192K, which was revised slightly higher [2] - Continuing Claims dropped significantly to 1.838 million from a revised 1.937 million, marking a -99K decrease week over week, the lowest since mid-April [3] - The long-term jobless claims remained above 1.9 million for 32 weeks without exceeding 2 million, indicating stability in the labor market [4] Trade Balance - The U.S. Trade Deficit decreased to -$52.8 billion, the lowest level since June 2020, down from a revised -$59.3 billion the previous month [5] - This figure is -60% lower than the record trade deficit set in March, attributed to preemptive actions by trade merchants ahead of tariff changes [5] Company Earnings - Lovesac (LOVE) reported negative earnings of -$0.72 per share, missing the anticipated -$0.70, and revenue of $150.17 million, down -2.37% from consensus, resulting in a -14% drop in shares [6] - Broadcom (AVGO) is expected to see earnings growth of +31.7% and revenue growth of +24.5%, driven by AI infrastructure supply [7] - Costco (COST) is projected to achieve +11.5% earnings growth with +8.3% revenue growth [7] - Lululemon (LULU) is estimated to report a -22.7% decline in earnings while revenues are expected to grow by +3.5% [8]

Market Overview - US stock futures declined after Oracle's earnings raised concerns about AI overspending, impacting the Wall Street rally following the Federal Reserve's interest-rate cut [1][2] - S&P 500 and Nasdaq 100 futures fell approximately 0.5% and 0.8%, respectively, while Dow Jones Industrial Average futures decreased by 0.1% [1] Oracle's Earnings Impact - Oracle's after-hours earnings report reignited fears regarding AI spending, leading to a significant drop in its stock by over 10% [2] - The company missed expectations for cloud sales and increased its data center spending by $15 billion, raising concerns about tech valuations and the sustainability of AI investments [2][9] Federal Reserve's Actions - The broader market had previously risen after the Federal Reserve voted to lower rates for the third time this year, bringing the federal funds target range to 3.5%–3.75% [3] - Fed Chair Jerome Powell indicated a cautious approach moving forward, suggesting that a rate hike is unlikely for January [3][4] Investor Sentiment - The abrupt shift in market sentiment following Oracle's earnings highlights ongoing concerns about an AI bubble, despite a temporary increase in risk appetite due to the Fed's easing [10] - The MSCI All Country World Index was close to its peak before Oracle's stock plunge, which also affected gold prices and Treasury yields [8][9] Novo Nordisk's Performance - Novo Nordisk's shares have dropped over 50% in 2025, reflecting a significant decline from the previous year's weight-loss drug frenzy [11][12] - The company faces challenges due to disappointing clinical trial results and increased competition in the obesity-drug market, raising concerns about future sales growth [12][13]

Core Insights - The Q3 earnings season has shown solid results, with a projected 13.4% increase in earnings per share for S&P 500 companies, marking the fourth consecutive quarter of double-digit growth [2][41] - Retailers are reporting mixed results, reflecting the impact of softening consumer sentiment as the holiday shopping season approaches [4][19] Earnings Reports - **Dollar General**: Reported fiscal Q3 earnings that exceeded Wall Street expectations, resulting in a 4% stock increase [5] - **Five Below**: Achieved a 23.1% year-over-year increase in net sales to $1 billion, with earnings per share of $0.66, surpassing estimates of $0.26 [7][8] - **Snowflake**: Revenue grew 29% year-over-year to $1.15 billion, but guidance fell short of expectations, leading to an 8% drop in stock [10][11][13] - **Salesforce**: Reported Q3 earnings per share of $3.25, beating estimates, and revenue of $10.27 billion, which was in line with expectations [14] - **Dollar Tree**: Revenue increased 9.4% to $4.75 billion, with adjusted earnings per share of $1.21, exceeding expectations [16][18] - **Macy's**: Revenue of $4.7 billion was slightly above estimates, with adjusted earnings per share of $0.09, better than the expected loss [19][20] - **American Eagle Outfitters**: Reported a profit per share of $0.53, exceeding estimates, and revenue increased by 6% year-over-year [25][26] - **CrowdStrike**: Revenue rose 22% to $1.23 billion, leading to an increase in full-year guidance [28][29] - **Okta**: Revenue rose 12% to $742 million, beating estimates, with adjusted profit per share of $0.82 [32] - **Marvell**: Reported earnings per share of $2.20 on revenue of $2.07 billion, but stock fell 6% after announcing an acquisition [33][34] Market Reactions - Despite solid earnings, market reactions have been more subdued than usual, with stocks of companies beating earnings expectations rising only 0.4% on average, below the five-year average of 0.9% [41][42] - Companies missing earnings estimates have seen an average stock decrease of 5%, significantly higher than the five-year average decline of 2.6% [43]

Core Insights - Alphabet has transitioned from being perceived as an AI laggard to a leader in the AI space, overcoming significant challenges and achieving a stock increase of nearly 68% as of November 26 [3][11] - The company faced a lawsuit from the U.S. Department of Justice regarding monopolistic practices, which raised concerns about its business model, particularly in digital advertising and search [2][5] - Alphabet's AI innovations, such as AI Overview summaries and the new Gemini 3 model, have impressed investors and are expected to help maintain its 90% market share in traditional search [7][8] Company Developments - Alphabet's AI Overview feature has led to increased user engagement, with more detailed questions and higher click-through rates [7] - The company has launched AI Mode within its search engine to compete with chatbots like ChatGPT, enhancing its capabilities in the search market [7][11] - Alphabet is exploring the sale of its custom Tensor Processing Units (TPUs) to other hyperscalers, which could target up to 10% of Nvidia's business [9][10] Market Position - Alphabet is well-positioned in the AI race, with a diverse portfolio that includes YouTube, Google Cloud, and Waymo, indicating strong growth potential across various tech sectors [12][13] - The integration of AI into its search engine is seen as a powerful strategy to fend off competition from emerging AI technologies [11] - Analysts predict that Alphabet's innovations will help sustain its dominant position in the search market despite previous concerns [8]

Market Overview - U.S. stock markets closed higher on November 28, 2025, with all three major indexes extending a multi-day rally, driven by hopes for future interest rate cuts and positive economic data [1][12] - The Dow Jones Industrial Average (DJIA) rose 0.6% to 47,427.12, the Nasdaq Composite (IXIC) increased by 0.7% to 23,214.69, and the S&P 500 (SPX) gained 0.5% to 6,812.61, marking the fifth consecutive session of increases for all three benchmarks [2] Weekly Performance - For the week, the Nasdaq surged 4.9%, the S&P 500 was up approximately 3.7%, and the Dow gained about 3.2% [3] - November was mixed; while the S&P 500 and Dow extended their winning streaks to seven months, the Nasdaq ended down 1.5%, attributed to reassessment of profitability timelines for major AI companies [3] Economic Data - Initial jobless claims decreased by 6,000 to 216,000, below the consensus estimate of 229,000, indicating a strong labor market [5] - Orders for durable goods rose by 0.5% in September, missing estimates, while non-defense capital goods orders increased by 0.9%, a key indicator for business spending [5] Upcoming Events - Market participants are monitoring the potential for another interest rate cut by the Federal Reserve next month, which is a significant driver of market optimism [4] - Kevin Hassett is a key contender for the next Fed Chairman, with an announcement expected from President Trump before Christmas, which could influence monetary policy expectations [4] Individual Stock Performance - Intel (INTC) surged 10.2%, leading the S&P 500, following speculation it could become a foundry supplier for Apple (AAPL) processors [7] - Eli Lilly (LLY) shares slipped 2.6%, giving back some recent gains despite a market cap exceeding $1 trillion due to sales of weight-loss drugs [8] - Nvidia (NVDA) shares slid 1.8% amid competitive concerns, while other tech stocks like Microsoft (MSFT) and Amazon (AMZN) saw gains of 1.3% and 1.8%, respectively [9] Sector Performance - Retailers performed well on Black Friday, with Walmart (WMT), Target (TGT), and Amazon (AMZN) finishing up roughly 1% to 2% [10] - Cryptocurrency-related stocks rose as Bitcoin moved above $90,000, with Marathon Digital Holdings (MARA), MicroStrategy (MSTR), and Coinbase Global (COIN) up by 7%, 5%, and 5%, respectively [11]

Core Viewpoint - Investing in artificial intelligence (AI) infrastructure is a sound strategy that can be potentially lucrative, with the AI infrastructure market projected to grow from $35.42 billion in 2024 to $223.45 billion by 2030, at a compound annual growth rate of 30.4% [3]. AI Infrastructure Market - The AI infrastructure market is expected to experience significant growth, indicating a shift in investor focus from traditional chipmaking companies to broader infrastructure investments [3]. Data Center REITs - Investing in data centers through real estate investment trusts (REITs) offers a way to diversify investments away from chip stocks while generating a consistent revenue stream [4]. Digital Realty Trust - Digital Realty Trust is the fifth-largest publicly traded REIT in the U.S., owning over 300 data centers across multiple continents, with major clients including Microsoft, Amazon, and Nvidia [5]. - In Q3, Digital Realty's revenue increased by 10% year-over-year to $1.6 billion, with earnings of $64 million, or $0.15 per share, compared to $0.09 per share a year prior [7]. - The company offers a dividend yield of 3% and is required to distribute 90% of its earnings to shareholders [8]. Equinix - Equinix reported $395 million in annualized gross bookings for Q3, a 25% year-over-year increase, and plans to double its computing power capacity by 2029 [9]. - The company operates 273 data centers globally, with total revenue of $2.31 billion, up 5% from the previous year [10]. - Equinix's net income rose by 26% to $374 million, with earnings per share increasing by 23% to $3.81 [12]. Iron Mountain - Iron Mountain has expanded from records storage to owning over 30 data centers, providing 1.2 gigawatts of computing power [13]. - The company reported a 12.6% year-over-year revenue increase to $1.8 billion in Q3, with its data center and digital businesses growing by over 30% [14]. - Iron Mountain expects full-year revenue between $6.79 billion and $6.94 billion, projecting a 12% improvement from 2024 [17].