Monday was not the day for momentum lovers. All major indices retreating from record highs as investors braced for key inflation data

⚡ Closing Bell:

• S&P 500: ⬇️ -0.61% to 6,052.9 — Friday’s record feels far away.

• Nasdaq Composite: ⬇️ -0.62% to 19,736.7 — Nvidia and AMD dragged the tech-heavy index.

• Dow Jones: ⬇️ -0.54% to 44,401.9 — blue-chip stocks weren’t spared either.

• Russell 2000: ⬇️ -0.7% to 2,392.84 — smaller companies hit by domestic economic concerns.

Sector Highlights:

• Health Care ✅: Best performer of the day.

• Communication Services & Utilities: Dragged the S&P 500 lower, led by Comcast (CMCSA) ⬇️ -9.5% after a bleak broadband subscriber forecast.

Despite Monday’s pullback, Oppenheimer Asset Management remains bullish, projecting the S&P 500 could reach 7,100 by the end of 2025, a 17% upside from Friday’s close.

Yields on the Rise
The bond market didn’t sit still either:

• 10-Year Treasury Yield: ⬆️ +4.8 bps to 4.20%.

• 2-Year Treasury Yield: ⬆️ +3.1 bps to 4.13%.

💡 What This Means: Rising yields = markets adjusting to stickier inflation. Translation? Borrowing gets pricier, and businesses might start feeling the squeeze.

The Federal Reserve Bank of New York’s latest survey revealed a tale of two trends:

• Inflation Expectations: Edged higher in November, signaling persistent concerns over price pressures.

• Financial Confidence: A standout positive, with personal financial optimism climbing significantly as brighter outlooks took hold.
  

❗ What’s Coming Up:
This week’s inflation reports are poised to shape the Federal Reserve’s big meeting on Dec. 17-18. Here’s what analysts are predicting:

• CPI (Wednesday):

  • Expected: +2.7% YoY, ticking up from October’s +2.6%.

• PPI (Thursday):

  • Expected: +2.6% YoY, suggesting steady but modest producer price growth.

With markets already pricing in an 85% likelihood of a 25-basis-point rate cut, investors will be laser-focused on any surprises in these numbers that could sway the Fed’s next move.

#TRUTH:
❗❗❗ “Energy and persistence conquer all things.” ~ Benjamin Franklin

Market Zen 🧘‍♂️:

The housing market might still be pricey, but consumers are slowly adjusting to higher mortgage rates and home prices—and they’re starting to feel a little more optimistic.

Fannie Mae’s Home Purchase Sentiment Index just ticked up 0.4 points in November, landing at 75 points.

• That’s a 16% jump in the past year as buyers and sellers get more comfortable with the market.

• 45% of people surveyed think mortgage rates will drop next year, while 25% expect them to rise.

Buyers vs. Sellers:

• Buyers: Only 23% think it’s a good time to buy, but the “bad time to buy” crowd shrank slightly to 77% (down from 80%).

• Sellers: Holding steady—64% say it’s still a good time to sell.

Mark Palim, Fannie Mae’s chief economist, attributes the uptick in confidence to a steady adjustment:

• Consumers are adapting to elevated home prices and higher borrowing costs.

• The shift began two and a half years ago, following the pandemic-fueled spike in home prices.

Slowly but surely, buyers and sellers are learning to navigate the “new normal.”

A Glimmer of Hope in Mortgage Rates

• Mortgage Rates: Average rates are holding at 6.7%, a small improvement from recent highs of 6.84%. While still elevated, the slight drop offers a bit of breathing room for homebuyers.

Home Price Expectations:

• 38% of respondents expect prices to rise in the next year.

• 25% predict declines, while 36% see prices holding steady.

• Consumers anticipate price increases of less than 1% in 2024, reflecting a continued cooling trend in expectations.

Looking Ahead to 2025:

• Home Prices: Experts predict appreciation of 2% to 4%, signaling modest growth.

• Mortgage Rates: Expected to ease further, providing potential relief for buyers navigating high borrowing costs.

The housing market remains a challenging landscape, but improving sentiment shows buyers and sellers are adapting to these conditions. Could 2025 bring smoother sailing? Time will tell.

🧠 Reddit’s AI:

Reddit has unveiled a new AI chatbot, Reddit Answers, designed to summarize threads and comments for users. With Google searches increasingly including “Reddit” for authentic, community-driven responses, the platform is looking to capitalize on this trend.

Fun fact: “Reddit” is now the 6th most-searched word on Google this year, as users type in queries like “weird mole on foot Reddit” for real answers.

📍 How It Works:

• Reddit Answers is rolling out to select U.S. users.

• Powered by AI models from Reddit, Google, and OpenAI.

• Built on the back of Reddit’s $200M+ licensing deals with Google and OpenAI, enabling them to crawl Reddit’s vast library of threads.

💬 Who’s Talking Bots?
Reddit isn’t alone in the chatbot game:

• Meta: Boasts 600M monthly users for its bots on Instagram and WhatsApp.

• X: Recently made its Grok bot free for all users.

• Microsoft: Embeds its Copilot tool in apps like Office 365.

What’s Driving the AI Rush?
Companies are chasing relevance in a rapidly evolving AI world. With ad revenue on traditional platforms slowing, bots are becoming a new monetization opportunity:

• Google has introduced ads in its AI-powered search results.

• OpenAI is reportedly planning to follow suit for ChatGPT.

Reddit’s move is clear: the AI era is here, and platforms are racing to lock in their users while chasing fresh revenue streams. Whether it’s through smarter bots or better integration, no one wants to be left behind.

🌍 Around the World in 365 Days:

The cruise industry, once reeling from pandemic lows, is now charting ambitious waters. Virgin Voyages just dropped a jaw-dropping offer: an annual pass for $120,000, while Disney is gearing up for a $12 billion cruise expansion over the next decade.

Living at sea for a year might sound like a dream—or a reality show—but Virgin is making it happen. Here’s what you get with their Work From Helm package:

• 365 Days of Cruising: Sail across Europe, the Caribbean, and beyond.

• Perks Galore:

  • Free premium Wi-Fi (yes, you can Zoom from the Mediterranean).

  • Two specialty coffees every day (for that onboard caffeine fix).

• Bring a Buddy: One pass includes you and a guest.

Oh, and if a year isn’t enough, Villa Vie Residencies is offering a “perpetual world cruise” that lets you live onboard for up to four years. Talk about commitment.

Meanwhile, Disney is doubling down with a $12 billion investment in its cruise line. Its plans include:

• Fleet Expansion: Growing from 5 ships to 13 by 2031.

• Flagship Debut: The Disney Treasure, a 1,119-foot-long vessel, sets sail later this month.

And here’s what’s driving the boom:

• Passenger Growth: Numbers are now higher than pre-pandemic levels (Cruise Lines International Association).

• Millennial Love: Half of Royal Caribbean passengers are reportedly millennials or younger.

• Crypto Payments: Virgin is the first cruise line to accept Bitcoin for its annual pass. Fancy paying with your gains? Now you can.

Crypto Corner💸:

Bitcoin is down -2.7%, Ethereum dropped -6.2%, and Dogecoin plunged -10.4%, as El Salvador rethinks its Bitcoin policies while MicroStrategy doubles down with a $2.1B purchase.

🧩 Movers:

• Spotlight ✅ / At the Bottom ❌

  • ✅ Hershey (HSY): ⬆️ +10.9%, the day’s top gainer on reports of a potential acquisition by Mondelez (MDLZ), which fell -2.3%.

  • ✅ Enphase Energy (ENPH): ⬆️ +6.8%, boosted by a European collaboration for smart battery systems.

  • ✅ Workday (WDAY): ⬆️ +5.1%, following news of its inclusion in the S&P 500.

  • ❌ Comcast (CMCSA): ⬇️ -9.5% after warning of over 100,000 lost broadband subscribers in Q4.

  • ❌ Omnicom (OMC): ⬇️ -10.3% as acquisition rumors involving Interpublic Group surfaced.

  • ❌ Nvidia (NVDA): ⬇️ -2.55%, as Chinese regulators opened an antitrust probe into the AI leader.

  • ❌ AMD (AMD): ⬇️ -5.57%, following a BofA downgrade citing stiff AI competition.

Momentum Watch:
Stocks with strong recent momentum saw sharp declines:

• ❌ iShares MSCI USA Momentum ETF (MTUM): ⬇️ -2.1%, lagging the S&P 500 by its widest margin since July.

• ❌ Palantir (PLTR): ⬇️ -5.04%, despite an early pre-market rally of +8%.

• ❌ MicroStrategy (MSTR): ⬇️ -7.5%, after announcing an additional $2.1 billion Bitcoin purchase.

Commodities Check: ✔️

• Crude Oil: ⬇️ Rose +1.4% ($68.14/barrel)

• Gold: ⬆️ Safe-haven gold gained +0.9% ($2,683/oz).

• Silver: ⬆️ rallied +2.7%.

The Dollar:

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The stinger

Disclaimer

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