Market Overview - The stock market closed mostly lower, with the Dow managing to finish slightly in the green, while the NASDAQ experienced its worst day in several months [1][2][3] - The S&P 500 ended with a minor loss of about 13 basis points, while the Russell 2000 small-cap index was also slightly down [3] Company Performance - Microsoft saw a significant drop, down approximately 10% at its lows, marking its worst performance in several months [4] - Tesla also declined by 3%, while Meta's stock rose by 10%, contributing to a strong performance in the communication services sector [4][5] - SanDisk reported a revenue of $3.03 billion, exceeding expectations of $2.68 billion, and its earnings per share came in at $620, significantly higher than the expected $344 [22][23] - SanDisk's stock has surged over 90% year-to-date, driven by high demand for memory products in the AI sector [24][25] Sector Analysis - The communication services sector reached a record high, while technology was the worst-performing sector, down 1.6%, primarily due to poor performance in software stocks [5][6] - The software industry faced widespread declines, with companies like SAP down 15% and Atlassian down 10% [6][7] - In the semiconductor space, companies like Lamb Research and KLA saw gains of about 3.5%, indicating a mixed performance within the sector [7] Geopolitical Impact on Oil - Crude oil prices rose to their highest levels since September, influenced by President Trump's threats of military action against Iran, which has led to a risk premium in the oil market [11][12] - Analysts noted that the market is not currently pricing in a full-scale conflict but is reacting to operational signals and geopolitical tensions [12][13] Housing Market Insights - US mortgage rates are holding steady at 6.1%, the lowest in three years, but housing affordability remains a challenge due to high home prices [44][45] - The "lock-in effect" is causing homeowners with low-rate mortgages to keep their homes off the market, contributing to tight inventory levels [48][50] - New home listings have increased, but they are still 20% below pre-pandemic levels, indicating a slow recovery in housing supply [50][56] Future Outlook - Analysts expect continued high demand for memory products, particularly in AI infrastructure, but caution against potential oversupply in the future as production ramps up [39][42] - The housing market may see improvements in inventory levels, but significant policy changes at the state and local levels are needed to address long-term supply issues [52][56]

Core Viewpoint - The investment strategy is shifting towards quality value stocks, particularly in the industrial sector, as earnings growth expectations remain strong for 2026 [1]. Industrial Sector - The industrial sector is favored due to higher return on equity and solid demand, with earnings growth projected at 16% [2]. - Industrial companies are expected to benefit significantly from accelerated depreciation policies, which will stimulate tech capital expenditures [3]. - The aerospace and defense industries are experiencing robust demand, indicating a positive outlook for these sectors [6]. Defense Stocks - Defense stocks have outperformed most sectors, with Boeing's stock rising 40% since November [4]. - Investors are advised to embrace geopolitical risks through investments in defense stocks and metals, rather than attempting to trade on geopolitical headlines [5]. Mid and Small Caps - Mid-cap stocks are gaining attention, with a notable participation in the market, contrasting with the focus on mega-cap tech stocks [7]. - Small and mid-cap stocks are showing strong earnings momentum, particularly in the industrials and regional banks [9]. Regional Banks - Regional banks are experiencing double-digit earnings growth and active M&A activity, although they face potential headline risks and regulatory challenges [10]. Economic Outlook - The economy is showing signs of good growth with controlled inflation, countering fears of stagflation [12]. - Economic indicators such as PMI and ISM are expected to remain above 50, signaling positive growth [13]. - Inflation is projected to moderate into 2026, with housing prices stabilizing and energy prices remaining manageable [14].

Market Outlook - The S&P 500 is expected to gain between 12% and 15% this year, indicating a positive market outlook [1] - The global economy appears to be on better footing, with industrial metals like copper showing price increases, suggesting fewer rate cuts than previously anticipated [2] - High yield bonds showed resilience during market fluctuations, indicating underlying strength in the market despite occasional downturns [3] Economic Indicators - Recent growth forecasts have improved, with expectations for a stronger fourth quarter than initially predicted [5] - The first quarter may see stimulus effects from larger tax refunds, contributing to economic growth [6] - Productivity increased by 4.9% in the third quarter, which is expected to support higher earnings growth and wage increases while capping inflation [8][10] Investment Strategy - A diversified portfolio is recommended, with an emphasis on equities, as small caps have recently outperformed large caps [11][12][13] - The market is not solely driven by a few large stocks; there are positive trends across various sectors, including transportation and regional banks reaching multi-year highs [14] - The current market environment suggests that investors should not be overly concerned about overvaluation, as growth and profit margins continue to rise [7][8]

Strong productivity growth, steady regional bank fundamentals and accelerating artificial intelligence adoption may be laying the groundwork for a more durable small-cap rally than investors have seen in years.The small-cap benchmark – tracked by the iShares Russell 2000 ETF (NYSE:IWM) – has repeatedly pushed to record highs this month, outperforming large-cap indices — a rare dynamic after years of narrow market leadership dominated by mega-cap stocks.Despite those gains, the macro and fundamental case for ...

Market Overview - The U.S. stock market experienced significant declines, with over 70.7% of U.S. issues falling on Tuesday, while only 26.4% advanced [2] - The Nasdaq Composite and S&P 500 dropped by 2.39% and 2.06% respectively, with the Dow and Russell 2000 also showing losses of 1.76% and 1.20% [3] Earnings Reports - Major earnings reports expected today include Johnson & Johnson, Charles Schwab, and Prologis, with a focus on regional banks reporting in both premarket and aftermarket sessions [5] - The S&P Regional Bank ETF ($KRE) is anticipated to be particularly responsive to these reports, having risen over 14% since its lows in November 2025 [6]

Small-town brick community bank building, symbolizing U.S. regional banks nearing a market breakout. Key Points Regional banks are nearing a significant level, with the KRE ETF consolidating just below resistance at $70, setting up a potential breakout or double top scenario. A confirmed breakout in KRE could benefit not only regional banks but also small-caps more broadly, given the heavy financials weighting in the Russell 2000. Huntington Bancshares offers leverage to the theme, combining a bullish ...

Core Viewpoint - F.N.B. Corporation plans to release its financial results for Q4 2025 on January 20, 2026, followed by a conference call on January 21, 2026, to discuss these results [1][4]. Group 1: Financial Results Announcement - The financial results for the fourth quarter of 2025 will be issued after market close on January 20, 2026 [1]. - A conference call to discuss the financial results will take place on January 21, 2026, at 8:30 AM ET [1]. Group 2: Conference Call Details - A live listen-only webcast of the conference call will be available on the Corporation's website [2]. - Participants can access the conference call by dialing specific numbers for domestic and international callers [3]. - Pre-registration for the call is available, allowing callers to bypass the live operator [3]. Group 3: Company Overview - F.N.B. Corporation is headquartered in Pittsburgh, Pennsylvania, and operates in seven states and the District of Columbia [5]. - The company has total assets of $50 billion and approximately 350 banking offices across various states [5]. - F.N.B. provides a full range of commercial banking, consumer banking, and wealth management solutions [6]. Group 4: Stock Information - F.N.B. Corporation's common stock trades on the New York Stock Exchange under the symbol "FNB" and is included in the S&P MidCap 400 Index [7].

Markets powering higher today. Record closes for the Dow, the S&P 500, and the Russell 2000, 52- week high for the Dow Transports. Let's talk more about these record-breaking markets as we head into 2026.Joining us now, right here on set, is Stephanie Gild. She is chief investment officer at Robin Hood. It's great to have you.Welcome. >> Thanks for having me. >> All right.Stocks at record highs. What do you think. >> Uh, well, I'm a little worried about the S&P 500 from here.I I do see it going up a little, ...

Core Insights - The State Street SPDR S&P Regional Banking ETF (KRE) is designed to provide broad exposure to the Financials - Regional Banks segment, launched on June 19, 2006 [1] - KRE has gained popularity among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1][2] Fund Overview - KRE has amassed over $3.79 billion in assets, making it one of the larger ETFs in the Financials - Regional Banks segment [3] - The ETF aims to match the performance of the S&P Regional Banks Select Industry Index [3] Cost Structure - KRE has annual operating expenses of 0.35%, positioning it as one of the least expensive options in its category [4] - The ETF offers a 12-month trailing dividend yield of 2.36% [4] Sector Exposure and Holdings - The ETF is fully allocated to the Financials sector, with about 100% of its portfolio in this area [5] - Cadence Bank (CADE) constitutes approximately 2.16% of total assets, with the top 10 holdings making up about 20.25% of total assets [6] Performance Metrics - KRE has increased by about 13.04% and is up approximately 4.83% year-to-date as of December 11, 2025 [7] - The ETF has traded between $48.81 and $67.05 over the past 52 weeks, with a beta of 0.91 and a standard deviation of 31.55% for the trailing three-year period [7] Alternatives - KRE carries a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to Financials ETFs [8] - Other alternatives include Invesco KBW Regional Banking ETF (KBWR) and iShares U.S. Regional Banks ETF (IAT), with respective assets of $53.48 million and $584.57 million [9]

Market Outlook - The market is currently in a bullish phase, with a year-end target of 7,000 and a projection of reaching 8,000 to 8,400 by the end of next year [1] - The transition year ahead will see a shift from Fed influence back to Wall Street determining the credit cycle [5] Federal Reserve Policy - The Federal Reserve is expected to lower the Fed funds rate to 2.75%, which is considered the neutral rate, and the current hawkish sentiment is viewed as misguided [2][4] - There is an anticipation of the Fed increasing its balance sheet, with estimates ranging from 25 billion to 40 billion per month, which is not classified as quantitative easing (QE) [6] Investment Opportunities - Interest rate-sensitive sectors such as regional banks and homebuilders are highlighted as potential areas for investment, having already corrected from their exponential moving averages [7] - The AI sector and the "Magnificent Seven" stocks are also seen as promising, but a broader market rally is necessary for sustained growth [13] Bitcoin and MicroStrategy - Bitcoin is viewed as a buying opportunity, especially as it has recently dropped from 457 to 155, with current trading around 180 [9][12] - MicroStrategy is considered a misunderstood stock, with its balance sheet being transparent due to blockchain technology, contrasting with traditional financial institutions [11] Economic and Political Factors - The combination of monetary and fiscal policies, along with potential supply-side policies from political figures, could contribute to a strong market performance next year [14][15] - The midterm election cycle is expected to have a different impact than previously anticipated, with no significant corrections predicted [15]