📈 Natural Gas 2.0 Set to Surge

Good morning.

⚡ The Fast Five → Broadcom a big winner, Nvidia sees influx of retail investors, Toyota stock soars, Apple stock continues winning streak, U.S. LNG Poised to Replace Russia

🔎 Market Trends → Wall Street indexes end flat as rising yields pressure megacaps; US Futures Indicate Weak Start for Wall Streets Eve

And now…

⏱️ Your 5-minute briefing for Friday, December 27, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Markets Steady as Holiday Spending Bolsters Optimism

The Dow edged up 0.1% to 43,325.8, while the S&P 500 was flat at 6,037.6. The Nasdaq slipped 0.1% to 20,020.4. Financials and health care led sector gains, while consumer discretionary lagged.

The Big Picture:

Investors returned from the Christmas break to mixed trading as strong holiday retail sales fueled optimism, offset by lingering caution over economic uncertainties. Mastercard's holiday spending report showed retail sales growth outpacing last year, signaling a robust consumer bolstered by wealth gains and a tight labor market.

Markets also await potential shifts in trade policy under the incoming administration, though the seasonal Santa rally continues to provide tailwinds. Historically, stocks have gained 1.3% on average during the final week of December and the first two days of January, a trend that offers a bullish start to 2025.

Oil dropped 0.7% to $69.60/barrel, reflecting steady supply dynamics. Gold rose 0.7% to $2,653.70/oz, while silver added 0.4%, signaling resilient demand for precious metals.

Market Movers:

• Starbucks (SBUX): Rose +2.2%, rebounding from a five-day strike that shuttered stores across 43 states. The strong holiday retail report reassured investors about consumer resilience.

• Broadcom (AVGO): Climbed +2.4%, continuing its upward momentum as semiconductors remain a key driver of tech sector growth.

• Tesla (TSLA): Fell -1.8%, extending its decline amid broader concerns over competition and execution in the EV space.

What They’re Saying:

"The holiday shopping season confirmed what we’ve seen all year—a consumer willing to spend but increasingly focused on value," said Michelle Meyer, Mastercard's chief economist.

WHAT WE’RE WATCHING
Events

• There are no events scheduled for today.

Earnings Reports

• Today: Real Good Foods 

• Monday: BHP Group

MARKET BRIEF
Leading News

Gas Giant: America’s LNG Empire Set to Surge Under Trump

Why it matters:

The U.S., already the world’s top LNG exporter, is poised for rapid expansion with new export hubs and streamlined regulations under a Trump administration. This could mean new opportunities for investors—but not without risks.

Zoom Out:

The mantra of the natural gas industry is shifting from “Drill, Baby, Drill” to “Build, Baby, Build.” With President-elect Donald Trump pledging to fast-track infrastructure projects, the U.S. could solidify its dominance in the global liquefied natural gas (LNG) market.

Key players like EQT (NYSE: EQT) are banking on easier permitting processes and new LNG hubs to open up lucrative international markets. Meanwhile, record-low gas prices have tempered drilling activity in recent years, but industry leaders see brighter days ahead.

Critics warn that expanding LNG exports could raise domestic energy costs and boost emissions, but proponents argue the benefits—economic growth, reduced global reliance on Russian gas, and replacing coal in developing markets—outweigh the drawbacks.

Key Insights:

• Regulatory tailwinds: A Trump administration could ease the burdensome permitting process, accelerating LNG export projects slated through 2028 and beyond.

• Global demand: Europe and Asia are hungry for alternatives to Russian gas and coal, positioning U.S. LNG as a cleaner, reliable choice.

• Market resilience: Despite recent price volatility, LNG’s long-term fundamentals remain strong, with new projects set to come online starting next year.

Market Pulse:

“Political force has overwhelmed market forces,” says Toby Rice, CEO of EQT, highlighting how Washington’s support could redefine the trajectory of American energy.

Bull’s Take:

The U.S. is doubling down on its LNG powerhouse status, creating opportunities for investors in infrastructure and energy stocks. While risks of overbuilding exist, rising global demand and favorable policies make this a bet worth considering. Keep an eye on LNG leaders like EQT and Cheniere Energy (NYSE: LNG), and consider how expanding U.S. dominance in natural gas could impact emerging markets, energy ETFs, and even crypto projects tied to clean energy solutions.

Headlines

• Holiday shopping surges, flexing strength of US economy (link)

• Broadcom (AVGO) is the Biggest Winner on Nvidia Rotation as a Hyper-Growth Company (link)

• Nvidia sees ‘remarkable’ influx of retail investor dollars as traders flock to AI darling (link)

• Nippon Steel pushes deadline to close U.S. Steel deal as Biden decision looms (link)

• Toyota Stock Soars, As Honda And Nissan Jump Further Above Key Levels (link)

• Apple Stock Hasn’t Had a Streak Like This Since 2010. What It Means as Value Nears $4 Trillion. (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin Returns to $95K as Christmas Rally Snuffed Out (link)

• MicroStrategy Buys a Further 5,262 BTC as Stock Joins Nasdaq 100 (link)

• Crypto could see the ‘dawning of a new age’ in 2025(link)

DAILY SHARE
On the Socials