Well, before the opening bell yesterday, shares of Broadcom (AVGO) and GE Vernova (GEV) indicated lower. The former announced a deal with Apple (AAPL) to make an Artificial Intelligence (AI) chip, and the latter talked up the power demand.

These developments are part of Phase 1's overall framework, which marks the AI S-Curve, and they influenced almost every top advancer in the session.

Things are Looking Up

Key indices point north on a short, medium, and long-term basis.

But this is still a very selective market that has returned to its comfort zone.

NASDAQ Milestone

       53-Year-History:

• +1.75% on session +35.68% year-to-date
• 1,645 days from 10,000 to 20,000
• 2024 hurdles: 17,000, 18,000, 19,000 and 20,000

Despite several significant spinouts over the years – this index has been an absolute beast.

The engine's roar is driven by the existence of seven companies that have never dominated to this degree in history.

There is a flip side to this, and those are the names being left behind. Yesterday, the NASDAQ Composite saw 133 new lows and 2.17 billion in down volume. This is a ‘Darwinian’ market.

Market Breadth	NYSE	NASDAQ
Advancers	1,596	2,432
Decliners	1,209	1,899
New Highs	109	192
New Lows	44	133
Up Volume	1.55 billion	3.57 billion
Down Volume	1.54 billion	2.17 billion

Hungry For More

Risk appetite is through the roof, as are near-term market expectations. Let’s rock and roll but keep our feet on the ground.

Today’s Session

Two misses on economic data this morning. Initial jobless claims spiked to 242,000 (consensus 225,000).

Inflation Signal

Producer Prices erupted higher to 3.0% from 2.4%, the Street was looking for 2.6%.

Core PPI climbed to 3.4%, driven by service inflation.
This is not good news, but the Street has the luxury of ignoring it. The Fed couldn’t look the other way, if this data trend continues. 

President-Elect Trump is ringing the opening bell at the NYSE this morning.

Comments

Tax cuts permanent followed by closing the border and approving ALL Trump cabinet positions NOW!!! Michael Beres on 12/12/2024 9:59:51 AM

Taxes first. Make it permanent. Then build the wall and fix the border. Hugh J Kelly on 12/12/2024 10:00:24 AM

Address tax issues - extend the 2017 Tax Act, expand tax benefits of no taxes on tips, overtime, Social Security benefits. Also address the illegal immigrant crisis. I am not against immigration. It just needs to be done systematically & with meritocracy. I am a first generation U.S.-born Hispanic. I am thankful for being a U.S. citizen, but my parents did it the right way...legally. Gil Alonzo on 12/12/2024 10:08:55 AM

1) Tax cuts 2) Close boarder / get rid of illegal felons 3) Cut Gov't spending / deregulate 4) Undue Biden restrictions on drilling for oil. Jeff Fisher on 12/12/2024 10:13:53 AM

Is JJ (Powell) purposely cutting rates to increase inflation to sabotage the Trump economy in 2025? 🧐 Absolutely no reason to cut in December based on the data. Shaun Crosswhite on 12/12/2024 10:29:46 AM

Hire Kaltbaum and get’er done. Slash and burn the budget. Dave Nederostek on 12/12/2024 10:32:48 AM

Close the border/end birthright citizenship & benefits for illegals/deport them ALL. My parents came here legally, twice. We can at least demand people do it once. Mark on 12/12/2024 10:39:38 AM

That's easy! Extend and make permanent tax provisions of TCJA and add in the campaign promises of no tax on tips, overtime, and Social Security benefits. Ric Walter on 12/12/2024 10:43:41 AM

Make the tax cuts permanent. Address the immigration issue. Scott Heck on 12/12/2024 10:59:49 AM

Close the border, and turn the Border Patrol loose to do their job. DENNIS M WEST on 12/12/2024 12:25:16 PM

Make tax cuts permanent. Bill on 12/12/2024 12:36:38 PM

Restoring Rule of Law and faith in those agencies so tasked-DOJ/FBI and collaterally CIA is paramount. If Courts and prosecutors cannot be trusted all else fails ed hall on 12/16/2024 2:36:22 PM

Trump-100 Executive orders to undo Biden executive orders day 1 House-Pass tax cuts including make Trump tax cuts permanent, and no tax on Tips, Overtime and Social Security day 1 Senate-Confirm all of Trump appointments day 1 Michael A Kowalczyk on 12/16/2024 10:08:21 PM

Secure the Trump Tax Cuts. We don't want to lose Seats in the House in 2026 like what happened when Reagan was President. Other things may seem more important; we all want the boarder closed and getting inflation under control is perimount, but to lose Seats in the House will devastate the ability to do all of the great things Trump will be trying to initiate. Get the tax cuts secure, everything else will follow as we can retain the House and of course, Make America Great Again-- Clara Paulson on 12/17/2024 8:30:11 AM

It's the elephant in the room around what drives the deficit growth as a starting point. This has nothing to do with the SSI and Medicare trust funds, used to hide government spending excess for decades. It will need both parties in congress to be on board as well. Cutting government waist and controlling the excesses in a higher interest rate environment, may cause pain. However better now, than continuing to kick that can down the road again. Terry Dowler on 12/17/2024 10:32:37 AM

Close the border and remove existing illegal immigrants James G Benefield on 12/20/2024 11:31:29 AM

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