📈 AI’s Growth Curve

Good morning.

⚡ The Fast Five → Tesla stock closes at 3 yr high, Major Banks predict record setting 2025, Madison Ave. mega-merger could reshape industry, United Healthcare stock slides 10%, AI boom still in infancy

🔎 Market Trends → S&P 500, Nasdaq hit record closing highs; US Futures Edge Up After Jobs Report

And now…

⏱️ Your 5-minute briefing for Monday, December 9, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Jobs Data Fuels Nasdaq, S&P 500 to Record Highs

The Nasdaq rose 0.8% to close at 19,859.8, while the S&P 500 edged up 0.3% to 6,090.3, both hitting record highs. The Dow lagged, slipping 0.3% to 44,642.5.

The Big Picture:

Investors cheered a stronger-than-expected jobs report on Friday, which showed the U.S. economy added 227,000 jobs in November, exceeding forecasts of 220,000. While the unemployment rate ticked up to 4.2%, this reflects more people entering the workforce—a bullish sign for economic growth.

Oil prices dipped 1.7% to $67.17/barrel as demand concerns overshadowed OPEC+ production cuts. Meanwhile, gold inched up 0.2% to $2,653.50/oz, reflecting modest haven demand, while silver slipped 0.2% to $31.49/oz.

The market now anticipates a quarter-point rate cut from the Fed in December, though officials signaled a cautious approach to future easing amid persistent economic strength.

Market Movers:

• Lululemon (LULU): Soared +15.9%, leading the S&P 500, after stellar Q3 results highlighted international growth and expanding margins.

• Ulta Beauty (ULTA): Gained +9%, as strong Q3 sales reaffirmed its position in the high-growth beauty retail segment.

• UnitedHealth (UNH): Dropped -5.1%, the steepest S&P 500 loser, as market concerns swirled around healthcare cost trends.

• Cooper Cos. (COO): Fell -4.4% after its FY 2025 outlook came in below expectations.

What They’re Saying:

"We’re moving into a goldilocks period—growth is steady, and inflation expectations are manageable. That’s an ideal setup for equities," said a strategist at Oxford Economics.

WHAT WE’RE WATCHING
Events

• There are no events scheduled for today.

Earnings Reports

• Today: Oracle, BHP, MongoDB, Toll Brothers, Casey’s General Stores

• Tomorrow: AutoZone, GameStop, Dave & Buster's, Academy Sports and Outdoors

MARKET BRIEF
Leading News

AI’s Growth Curve Signals the Best Is Yet to Come

Why it matters:

The AI boom is still in its infancy, and the build-out of infrastructure, cybersecurity, and physical assets needed to support it could be a massive opportunity for investors heading into 2025.

Zoom Out:

Artificial intelligence isn’t just about algorithms and software—it’s a transformation that’s demanding real-world infrastructure and next-gen security. BlackRock’s Jay Jacobs, head of thematic ETFs, believes this is a pivotal moment for AI-driven investment strategies.

From data centers to copper supplies, AI's expansion requires tangible investments in physical assets. This goes beyond the cloud to include semiconductors, real estate, and energy. The result? A broadening of opportunities beyond the usual megacap tech names.

Meanwhile, cybersecurity spending is ramping up. As AI processes more valuable data, the need for robust protection grows—positioning key cybersecurity players for strong revenue growth.

Deep Dive:

• Infrastructure’s Backbone: AI’s growth demands data centers, power, and materials like copper—a boon for companies like NVIDIA (NVDA), Broadcom (AVGO), and Taiwan Semiconductor (TSM).

• Cybersecurity Spotlight: Protecting valuable data means more spending on cybersecurity software—think Palo Alto Networks (PANW) and CrowdStrike (CRWD).

• ETF Playbook: BlackRock’s iShares Future AI & Tech ETF (ARTY) and iShares AI Innovation & Tech Active ETF (BAI) offer diversified exposure. Both have posted 13% gains this year, signaling bullish momentum.

Market Pulse:

"It’s still very early in the AI adoption cycle... This is really going to benefit the cybersecurity and infrastructure sectors." – Jay Jacobs, BlackRock

Bull’s Take:

AI is a once-in-a-generation transformation. For investors, this means casting a wider net—beyond big tech—to capture opportunities in infrastructure, cybersecurity, and materials. While risks like regulatory hurdles exist, the long-term growth potential is undeniable.

Headlines

• JPMorgan Chase, Wells Fargo, Bank of America, and 9 Wall Street Firms Forecast Record-Breaking Year for US Stock Market in 2025: Report (link)

• Tesla’s stock closes at highest price in nearly 3 years. Here’s why it can keep going. (link)

• Inflation data could derail a market that’s priced for perfection (link)

• Madison Avenue advertising giants Interpublic, Omnicom reportedly in talks to merge (link)

• UnitedHealth’s stock is down 10% this week as exec’s killing leads to criticism of claims treatment (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin $100,000 and Dow 45,000: Don’t overlook this part of the ‘everything’ rally (link)

• U.S. Spot Ether ETFs Extend Two-Week Inflow Streak as ETH Price Tops $4,000 (link)

• Stablecoins Are Taking the US Dollar Global — But for How Long? (link)

• FDIC Asked Financial Institutions to Pause Crypto-Related Activity According to Letters Obtained Through Coinbase Lawsuit (link)

DAILY SHARE
On the Socials