Good morning. Many boards are approving AI strategies without clear visibility into whether the underlying controls actually work, leaving CFOs exposed when regulators, auditors, or investors ask for proof, according to new research. In the private sector, health care appears to face the steepest challenge.Kiteworks, a technology security company, has released its “Data Security and Compliance Risk: 2026 Forecast Report,” based on a survey of 225 security, IT, compliance, and risk leaders across 10 industri ...

Market Overview - The U.S. markets ended the final trading week of 2025 on a mixed note, with optimism over AI growth offset by caution regarding Federal Reserve policy signals [1] - Despite thin year-end liquidity, late pullbacks in all three major benchmark indexes kept the broader bull trend intact as market participants positioned for 2026 [1] Macroeconomic Indicators - Initial jobless claims fell unexpectedly by 16,000 to a seasonally adjusted 199,000 for the week ended Dec. 27, the lowest since the end of November, signaling continued labor market strength [2] - Pending home sales unexpectedly rose 3.3% in November, marking the largest seasonal rise since 2023 [2] Federal Reserve Policy - The Fed has successfully kept inflation stable and near its 2% target, with a current overnight borrowing rate in the range of 3.50-3.75% [3] - The pace of further easing may slow, even though markets are expecting two additional quarter-point cuts in 2026 [3] Dividend-Paying Stocks - Investors looking to diversify their portfolios can consider dividend-paying stocks, which indicate a healthy business model and can counter market upheavals [4] - Stocks that have raised dividends recently tend to outperform non-dividend-paying entities in a highly volatile market [4] Company Highlights The Ensign Group - The Ensign Group provides health care services in the post-acute care continuum and has a Zacks Rank 2 (Buy) [5] - On Dec. 19, ENSG declared a dividend of 7 cents a share, with a dividend yield of 0.1% [5] - Over the past five years, ENSG has increased its dividend five times, with a payout ratio of 4% of earnings [6] Invesco Mortgage Capital - Invesco Mortgage Capital is a real estate investment trust with a Zacks Rank 1 (Strong Buy) [7] - On Dec. 18, IVR declared a dividend of 36 cents a share, reflecting a dividend yield of 17.3% [7] - IVR has increased its dividend four times in the past five years, with a payout ratio of 58% of earnings [8] ABM Industries - ABM Industries is a provider of integrated facility solutions with a Zacks Rank 3 (Hold) [9] - On Dec. 17, ABM announced a dividend of 29 cents a share, yielding 2.5% [9] - Over the past five years, ABM has increased its dividend six times, with a payout ratio of 31% of earnings [11] Franklin Resources - Franklin Resources is a global investment management company with a Zacks Rank 3 [12] - On Dec. 17, BEN declared a dividend of 33 cents a share, yielding 5.5% [12] - Over the past five years, BEN has increased its dividend five times, with a payout ratio of 58% of earnings [13] Norwood Financial - Norwood Financial is a bank holding company with a Zacks Rank 3 [14] - On Dec. 16, NWFL announced a dividend of 32 cents a share, yielding 4.4% [14] - Over the past five years, NWFL has increased its dividend six times, with a payout ratio of 47% of earnings [14]

A federal judge said the Trump administration can move ahead with a $100,000 fee on new H-1B visa applications, providing a setback for US technology companies that rely on hiring skilled foreign workers. US District Judge Beryl Howell said in a ruling Tuesday that President Donald Trump’s effort to radically increase the cost of the popular visa is lawful. The decision gives a boost to the administration’s campaign to restrict immigration and push demand for US workers. The US Chamber of Commerce, which ...

Omada Health FY Conference Summary Company Overview - **Company**: Omada Health (NasdaqGS:OMDA) - **Industry**: Health Care Services and Technology - **Recent Event**: IPO over the summer of 2025, indicating strong market interest and performance [2][3][5] Core Business Model - Omada Health operates as a "between-visit care provider," focusing on chronic disease management [5][9] - The business model involves charging self-insured employers, fully insured plans, and integrated systems a monthly membership fee for comprehensive services [9][10] - The mission is to improve health outcomes and reduce costs through persistent longitudinal care [5][9] New Service Offerings - Introduction of the **GLP-1 Care Track** aimed at supporting weight loss for members on therapy, showing a 28% increase in weight loss outcomes [18][19] - The service is designed to help members optimize medication use and reduce waste, addressing employer concerns about medication costs and effectiveness [19][20] Financial Insights - The monthly fee structure will increase if clients opt for the prescribing capability, which is expected to be accretive to revenue and margins [24][25] - Long-term targets include achieving over 20% operating margins while maintaining growth [31] Market Dynamics - Anticipated that the GLP-1 prescribing care track will contribute to the P&L primarily in 2027, with some potential deployments in 2026 [37] - The selling season for 2026 is characterized by strong interest from employers, with a mix of those willing to cover medications and those unable to afford them [39][42] AI Integration - Omada is leveraging AI technologies to enhance member engagement and operational efficiency, with tools like Omada Spark and Meal Map [49][50] - AI is seen as a means to improve care team efficiency and increase revenue per user (ARPU) while maintaining quality of care [53][54] Strategic Partnerships - Collaboration with telehealth partners for medication prescriptions to streamline operations and enhance member experience [32][36] - Positive feedback from channel partners like CVS, indicating a gradual build-up of trust and client acquisition [47] Future Outlook - Omada aims to maximize the benefits of new medications and technologies through integrated care solutions, positioning itself as a leader in the health tech space [57] - The company is focused on product innovation and expanding its service offerings to meet diverse employer needs [57][58]

Core Insights - Nvidia's shares experienced a decline of 3.2% despite a strong earnings report, reflecting a broader trend in the tech sector where major U.S. equity indexes closed lower [2][3] - Walmart's shares surged nearly 7% after reporting quarterly earnings that exceeded analysts' expectations, indicating positive consumer spending trends [6][7] - Other AI chipmakers, including AMD and Broadcom, also saw significant declines, with AMD dropping nearly 8% and the PHLX Semiconductor Index falling by nearly 5% [3][4] Nvidia Performance - Nvidia's stock was one of the worst performers in the Dow, contributing to a 0.8% decline in the index, while the S&P 500 and Nasdaq fell by 1.6% and 2.2%, respectively [3] - The decline in Nvidia's stock occurred despite the company posting better-than-expected quarterly results, highlighting volatility in the tech sector [7] Retail Sector Insights - Walmart's strong performance was driven by year-over-year growth in e-commerce sales and advertising revenue, suggesting a positive outlook for U.S. consumer spending as the holiday season approaches [6][7] - Jacobs Solutions saw a significant drop of nearly 11% in its shares due to a year-over-year decline in quarterly profits, attributed to changes in the value of its investment in Amentum [4] Cryptocurrency Market - Bitcoin's price continued to decline, hovering around $87,000, which negatively impacted shares of Robinhood Markets and Coinbase Global, with declines of about 10% and 7.4%, respectively [5] Regulatory Approvals - Regeneron Pharmaceuticals received FDA approval for its Eylea HD eye treatment, leading to a 5% increase in its shares, indicating positive developments in the healthcare sector [8] Mergers and Acquisitions - Solventum announced its acquisition of Acera Surgical for $725 million, with potential additional payments of up to $125 million, resulting in a nearly 3% increase in its shares [9]

Company Overview - Agilon Health partners with primary care doctors to deliver coordinated, value-based senior care [3] Allegations and Financial Impact - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Agilon Health due to allegations of providing potentially misleading business information [1] - On August 4, 2025, Agilon Health announced its second-quarter 2025 results, with the Executive Chair acknowledging that industry challenges had become more severe than expected, leading to the suspension of its full-year financial guidance [4] - Following this announcement, Agilon Health's stock plummeted by 51.5% on August 5, 2025 [4]

Core Insights - Advocate Health, the third-largest not-for-profit health care organization in the U.S., has successfully implemented Workday's AI-powered platform for Human Capital Management, Financial Management, and Supply Chain Management, marking a significant step in its digital transformation [1][2][3] Group 1: Digital Transformation and Operational Efficiency - The merger of Advocate Aurora Health and Atrium Health in 2022 led to the formation of Advocate Health, which aims to streamline operations for its 160,000 employees across over 60 hospitals and 1,000 care sites in six states [2] - Workday, in partnership with PwC, was chosen to provide a unified platform that connects HR, finance, and procurement data, enhancing operational efficiency [2][3] - The implementation of Workday's platform allows Advocate Health to centralize its HR, finance, and supply chain data, improving decision-making and care delivery [3][5] Group 2: Employee Experience and Patient Care - Workday HCM simplifies daily tasks for employees, enabling them to manage time-off requests, approve schedules, and check pay via mobile devices, thus allowing more focus on patient care [4] - Workday Financial Management offers a real-time view of financial data, facilitating faster book closing and smarter decision-making [5] - The integration of AI-powered automation in Workday SCM enhances inventory tracking and expense processing, ensuring that resources are efficiently allocated to caregivers and patients [5][6] Group 3: Strategic Partnerships and Future Outlook - Advocate Health views Workday as a trusted partner in navigating the changing healthcare landscape and enhancing operational capabilities [3][6] - The collaboration with PwC and Workday demonstrates how digital transformation can yield immediate value in healthcare, improving both employee experience and patient care quality [6]

Core Insights - QuadMed has opened a new health center in West Bend, marking its fifth location in Wisconsin to support local employers and their employees [1][4] - The new facility aims to provide accessible and cost-effective health care solutions, enhancing the QuadMed Shared Health Center Network [2][3] Company Overview - QuadMed is a health care experience company that partners with employers to deliver whole-person care, focusing on improving health outcomes and reducing costs [6] - Founded in 1991, QuadMed has expanded its services across Wisconsin and beyond, maintaining a commitment to affordable health care [4][5] Services Offered - The West Bend Health Center provides a variety of services including primary care, occupational health, acute care, virtual care, lab, and pharmacy services [3] - The shared-site model allows employers to enhance employee health while controlling health care spending without the need for their own facilities [2] Commitment to Local Employers - QuadMed emphasizes its dedication to helping Wisconsin employers maximize their health care investments [5] - The company offers resources such as the QuadMed Shared Health Center Network Guidebook to assist employers in understanding available services and costs [5]

Labor Market Insights - Economists expected a rebound in September payrolls from August, but still significantly weaker than a year ago, with the unemployment rate anticipated to remain at 4.3% [4] - The current labor market is described as "stagnant," with a focus on the importance of employment data in a low growth environment [5] - Job postings data indicates that health care has been a primary driver of job creation, accounting for more than half of new jobs in recent months [6] Job Postings and Sector Performance - Despite headline job postings being above pre-pandemic levels, all but one sector have seen year-over-year declines, indicating a shift from the strong economy of 2022 to a reliance on residual strength [7] - The distribution of jobs across industries is crucial for understanding the nuances of the current economy [8] Company-Specific Developments - Apple removed the ICEBlock app from its App Store following pressure from the Trump administration, citing safety risks for federal agents [9][10] - USA Rare Earth stock experienced a significant increase, rising 23% on Thursday and an additional 7% in premarket trading, following comments from CEO Barbara Humpton about close communication with the Trump administration [10][11] - The CEO emphasized the collaborative nature of the rare earth supply chain, indicating that multiple players are needed to develop the marketplace [11]

Corporate Responses - American Airlines pilots who celebrated the assassination of Charlie Kirk were immediately grounded and removed from service, with calls for their termination due to glorifying political violence [3] - Delta Air Lines suspended several employees for social media posts that exceeded respectful debate, indicating that violations of their social media policy could lead to termination [3][8] - The University of Miami's health care system fired an employee for making unacceptable public commentary regarding Kirk's death [9] - Children's Healthcare of Atlanta terminated a worker for inappropriate comments about Kirk's killing, emphasizing that such rhetoric violates their social media policy [9] - Office Depot fired an employee for refusing to print flyers about Charlie Kirk, labeling the incident as unacceptable and insensitive [13][15] - Nasdaq terminated an employee for remarks that condoned or celebrated violence related to Kirk [17] Educational Institutions - Middle Tennessee State University fired an employee for making a derogatory comment about Kirk's fate, with the university stating the termination was effective immediately [4] - Idaho's West Ada School District also fired an employee for posting inappropriate content online, expressing shock and sadness over the incident [6] - A middle school science teacher in Oregon was placed on leave and subsequently resigned after stating that Kirk's death "brightened up" his day [6] - Clemson University suspended an employee pending investigation for social media posts related to Kirk's death [7] Media and Public Figures - MSNBC analyst Matthew Dowd was fired for implying that Kirk's "awful words" led to "awful actions," with the network's president calling his remarks inappropriate and insensitive [10][12] - A coordinated effort appears to be behind the firings, with a doxxing site named "Expose Charlie's Murderers" collecting information on individuals who made posts about Kirk [22][23]