Good Morning,
I hope everyone had an enjoyable weekend. It’s getting to be crunch time for guaranteed package delivery before Christmas. Anecdotally, Amazon deliveries have been delayed 2-3 days. Maybe it’s just me!
Markets mainly opened higher this morning with record highs in sight. Tech has come under pressure of late sparked by sticky inflation concerns and debt-fueled AI investments. This rotation has helped more value areas of the market as we see the market slowly broaden out. In support of this broadening theme, I think many companies will indirectly benefit from AI efficiency and productivity enhancements and will likely see noticeable upticks in overall earnings. It’s a big week from a data perspective with the jobs report released tomorrow and the latest CPI (consumer prices) on Thursday. Markets are currently pricing 1-2 rate cuts in 2026 with the elephant in the room being the next Fed Chair nominee. President Trump has narrowed his choice to former Federal Reserve Governor Kevin Warsh or National Economic Council Director Kevin Hassett. Either will likely bring more of a dovish bias to the future direction of rates. I look ahead to mid-January 26’ for Q4 25’ earnings and continue to favor more of the value tilt within equity allocations.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great week!