Core Viewpoint - Precious metals and oil prices are experiencing significant losses, primarily triggered by U.S. President Trump's nomination of Kevin Warsh as the successor to Federal Reserve Chair Jerome Powell [1][11]. Precious Metals Market - Spot gold prices fell 3.2% to $4,713.39 per ounce, following a historic drop of over 9% on Friday, marking the sharpest one-day decline since 1983 [2]. - Spot silver prices decreased by 2.7% to $82.29 per ounce, having dropped over 31% on Friday, which is its worst daily performance since 1980 [2]. - Analysts suggest that the recent downturn in precious metals is part of a broader market decline, with the pan-European Stoxx 600 index reflecting losses from Asia-Pacific markets [3]. Investment Strategies - JPMorgan's global investment strategist, Grace Peters, emphasizes the importance of geopolitical hedges and safe-haven assets, asserting that gold remains the best geopolitical hedge [4]. - Peters maintains a forecast of $6,500 per ounce for gold by year-end, driven by factors such as central bank buying and institutional investor support [5]. - The current allocation of gold in institutional and retail portfolios is around 3%, indicating potential for increased investment in gold [8]. Market Sentiment and Future Outlook - The sell-off in precious metals began due to fears regarding the Federal Reserve's independence and expectations of a declining U.S. dollar [10]. - The nomination of Warsh has led to a reevaluation among investors, as he has advocated for reducing the Fed's balance sheet, creating uncertainty in the market [11][12]. - Some analysts view the recent sell-off as a "healthy correction," suggesting that prices may stabilize and recover in the coming months, with expectations of gold reaching $5,020 per ounce and silver at $88 per ounce by year-end [15][16]. Oil Market - Oil prices also declined, with Brent crude futures falling 5% to $65.88 per barrel and U.S. West Texas Intermediate futures down 5.3% to $61.76, marking the steepest single-session decline in over six months [18]. - The decline in oil prices is attributed to signals of de-escalation in U.S.-Iran tensions, as President Trump indicated that the two nations are "seriously talking" [17].

Key Takeaways EXE, ET and AROC stand out as broker favorites amid oil's volatile price action and sharp reversals.EXE is now the largest U.S. gas producer, backed by unconventional assets and strong broker support.ET and AROC boast resilient midstream models, with no Sell ratings and Strong Buy consensus from analysts.Oil prices have delivered eye-catching gains this month, only to reverse sharply on a day-to-day basis. That combination of strong momentum and sudden pullbacks has made energy investing both ...

Quick Read Investors were treated to a bifurcated market on Tuesday, with the Nasdaq soaring and the Dow Jones Industrials plunging. Investors are anxiously awaiting the first major fourth-quarter tech results after the close today. Gold and Silver continued their epic march higher on Tuesday as investors kept buying the two precious metals. Investors rethink ‘hands off’ investing and decide to start making real money Pre-Market Stock Futures: The futures are trading higher after a seesaw day acr ...

Quick Read Stocks open Monday, hoping to end a two-week losing streak as fourth-quarter earnings reports return and take center stage. With volatility cooling somewhat, investors can get back to focusing on economic fundamentals and earnings reports. One nagging concern that reemerged last week was private credit funding, which many on Wall Street, including JPMorgan’s Jamie Dimon, are worried about. Investors rethink ‘hands off’ investing and decide to start making real money Pre-Market Stock Fu ...

Market Overview - The stock market experienced its worst day since October, with all major indices closing significantly lower due to geopolitical tensions and overbought market conditions [2][5] - The Dow Jones Industrial Average fell by 1.76% to 48,488, the S&P 500 decreased by 2.06% to 6,796, and the Nasdaq dropped by 2.4% to 22,954 [2] Treasury Bonds - Treasury yields increased, with the 30-year bond closing at 4.92% (up 8 basis points) and the 10-year note at 4.29% (up 6 basis points) [3] - The selling pressure in the bond market was partly fueled by Denmark's announcement of selling $100 million in U.S. Treasuries, which, although a small amount, created headline risk [3] Oil and Gas - Oil prices showed mixed results, with Brent Crude closing at $63.90 (down 0.06%) and West Texas Intermediate at $59.48 (up 0.24%) [4] - Natural gas prices surged by 26% to close at $3.91 due to severe cold weather affecting the U.S. [4] - Disruptions at Kazakhstan's Tengizchevroil facilities due to power distribution issues raised concerns about supply constraints in the energy market [4] Precious Metals - Energy and precious metals, particularly gold, were among the few bright spots in the market amid the overall downturn [5]

Oil rose as traders weighed the supply impact from disruptions in the Black Sea region along with broader market gyrations in the wake of President Donald Trump’s ambitions to take over Greenland. West Texas Intermediate’s February contract, which settled Tuesday, rose 1.5% to settle above $60. The more active March contract rose by a similar amount. Supply disruptions have helped support prices, with Kazakhstan’s largest oil producer recently halting production at the Tengiz and Korolev fields after two ...

Market Overview - Futures are trading higher, indicating a potential positive close to the week after a significant rally on Thursday, driven by a combination of factors including positive economic data and strong earnings reports from major banks [1] - The Dow Jones closed up 0.60% at 49,442, the S&P 500 rose 0.26% to 6,944, and the Nasdaq increased by 0.25% to 23,530, with the Russell 2000 leading the gains at 0.86% [1] Treasury Bonds - Treasury yields increased across the curve as sellers returned, influenced by positive inflation reports and labor market news, which led to speculation that interest rate cuts may be delayed until June [2] - The 30-year bond closed at 4.80%, while the 10-year note was at 4.17% [2] Oil and Gas - Oil prices fell sharply, with Brent Crude down 4.12% to $63.78 and West Texas Intermediate down 4.42% to $59.28, ending a five-day winning streak due to reduced military tensions and oversupply concerns [3] - Natural gas saw a slight increase, closing at $3.14, up 0.74% [3] Gold and Silver - Gold prices experienced a minor decline of 0.24%, closing at $4,615, attributed to profit-taking and reduced geopolitical tensions [4] - Silver also fell by 0.84% to $92.29, with traders noting it may not be included in the critical minerals tariff list for now [4] Cryptocurrency - The cryptocurrency market faced a downturn, primarily due to the postponement of a key US Senate crypto bill, with Bitcoin dropping below $96,000 during trading [5] - Bitcoin was trading at $95,357 and Ethereum at $3,304 at 8 AM EST [5] Analyst Upgrades - Garmin Ltd. upgraded to Equal Weight from Underweight with a target price increase to $217 from $208 [12] - Honeywell International Inc. upgraded to Overweight from Neutral, target price raised to $255 from $218 [12] - PepsiCo Inc. raised to Outperform from Neutral with a target price of $179 [12] - Rocket Lab Corp. upgraded to Overweight from Equal Weight, target price increased to $105 from $67 [12] - Seagate Technology Holdings plc raised to Neutral from Negative, target price increased to $280 from $150 [12] Analyst Downgrades - ConocoPhillips downgraded to Underperform from Neutral with a target price of $102 [12] - Devon Energy Corp. downgraded to Sector Perform from Outperform, target price set at $41 [12] - HP Inc. cut to Underweight from Equal Weight, target price reduced to $18 from $24 [12] - Kraft Heinz Co. downgraded to Underweight from Equal Weight, target price trimmed to $24 from $27 [12] - MGM Resorts International cut to Underweight from Equal Weight, target price lowered to $33 from $40 [12] Analyst Initiations - Martin Marietta Materials Inc. initiated with a Neutral rating and a target price of $700 [12] - Staar Surgical Co. resumed coverage with an Underweight rating and a target price of $13 [12] - TFS Financial Corp. assumed coverage with a Neutral rating and a target price of $15 [12] - Unity Software Inc. started with a Buy rating and a target price of $52 [12] - Vulcan Materials Inc. initiated with a Buy rating and a target price of $345 [12]

Market Overview - Equity-index futures for Japan, Hong Kong, and mainland China declined following a 1.1% drop in the tech-heavy Nasdaq 100 Index and a 0.5% decrease in the S&P 500, despite a majority of companies experiencing gains [1][10] - Contracts for US stocks fell 0.2% in early Asian trading, while Australian shares opened higher [1][10] Oil Market - Oil prices fell for the first time in six days, with West Texas Intermediate decreasing by 1.7% after President Trump indicated that Iran would cease its violent actions against protesters, suggesting a potential delay in military response [2][10] US Market Dynamics - The US market has seen a rotation away from large tech companies, which had previously been considered safe investments during economic uncertainty, leading to a decline in the "Magnificent Seven" stocks [3][11] - Despite the S&P 500's decline, over 300 companies within the index recorded gains, and small-cap stocks continued to outperform, with the Russell 2000 index surpassing the S&P 500 for the ninth consecutive session, matching the longest streak since 1990 [8][11] Economic Indicators - US retail sales increased in November, marking the largest rise since July, driven by a rebound in auto purchases and strong holiday shopping [9][11] - Wholesale inflation saw a slight uptick due to rising energy costs, while service prices remained stable [9][11] International Focus - Attention is on Japan as Prime Minister Sanae Takaichi plans to call a snap election, which has led to a rise in equities and pressure on the yen [7][11] - The South Korean won is under scrutiny following comments from US Treasury Secretary Scott Bessent, who provided verbal support amid concerns over the currency's decline [6][11]

Core Viewpoint - The oil sector's recent outperformance compared to commodity prices may not be sustainable, with potential challenges expected by 2026 [1]. Group 1: Market Performance - Last year, both West Texas Intermediate (WTI) and Brent crude prices fell by approximately 20%, yet shares of major international oil companies increased between 4% and 18% [2][10]. - The top five international oil companies are projected to generate nearly $96 billion in free cash flow in 2025, despite WTI averaging just under $65 per barrel, comparable to 2008 levels when WTI averaged over $99 [6][11]. Group 2: Cost Management Strategies - Oil executives are focusing on significant cost reductions, including workforce cuts of up to 20% at companies like Chevron and Shell [4][10]. - By minimizing operational and project expenditures, companies have managed to mitigate the effects of declining commodity prices [6][10]. Group 3: Financial Resilience - The sector has benefited from reduced debt levels following the commodity windfall from 2021 to 2023, allowing companies to maintain dividends and buybacks, except for BP [8][11]. - Despite these measures, the current average of $58 per barrel for WTI in 2023 indicates potential further declines in free cash flow, compounded by lower natural gas prices and weaker refining and chemical margins [9][11].

Market Overview - Futures are trending higher following the December consumer price index at 2.7%, aligning with Wall Street expectations [2] - Major indices experienced volatility but closed higher, with the Dow Jones up 0.17% at 49,590 and the S&P 500 up 0.16% at 6,977, both reaching new all-time highs [2] - The Nasdaq rose 0.25% to 23,833, while the Russell 2000 led with a 0.44% increase to 2,635, marking a 5.7% gain year-to-date [2] Treasury Bonds - Treasury yields increased across the curve, influenced by the controversy surrounding Federal Reserve subpoenas, leading to a decline in bond prices [3] - The 30-year bond yield closed at 4.84%, and the benchmark 10-year note was at 4.19% [3] Oil and Gas - Energy prices rose due to geopolitical tensions and potential long-term changes in global oil supply, with Brent Crude closing at $64.01, up 1.06%, and West Texas Intermediate at $59.63, up 0.85% [4] - Natural gas prices surged 6.5% to $3.38 following a wave of cold weather across the U.S. [4] Earnings Season - The fourth-quarter earnings season is set to begin, with major Wall Street banks reporting later this week [5] - Economic indicators, including the December Consumer Price Index, are anticipated to influence market movements [5]