It was a calm session, but seven of the eleven sectors finished lower. Communication Services (XLC) and Technology (XLK) led the way. The big story of the session was the surge of semiconductor stocks.

On the other end of the spectrum, continued weakness in Consumer Staples (XLP) reminds us that the notion of pricing power and simply passing on the cost to consumers is folly amid the media obsession (and maybe hope) that tariffs prove inflationary.

Utilities (XLU) are interesting with bond yields remaining elevated and Big Tech looking for ways around regulators considering buying their own mini-nuclear power sources.

The same tide lifted the hottest chip names and the weakest chip names.

Mag Seven Magic

The Mag Seven keeps rocking, and those missing out keep finding excuses.

The most interesting aspect of the Mag Seven in the second half of 2024 is that they haven’t always moved in unison, but leadership swings see a few lift them all and recover lost ground quickly.

Chips Bounce from Dip

Along with chip names, Health Care (XLV) put in a solid session led by Eli Lilly (LLY), separating itself from the miracle weight-loss drug crowd.

Consumer Staples (XLP), Materials (XLB), and Industrials (XLI) lagged, which is interesting considering all the chatter about seeking value.

Factors

Growth and momentum rocked, and small-caps struggled across the board.

Key Charts

The S&P 500 continues to straddle its 50-day moving average. The last two times it faced this challenge, the rally was reinvigorated.

The 10-Year bond yield (TNX) was higher again and looks to have a date with 4.70%, a very important resistance point.

Consumer Confidence

Consumer confidence was tripped up as present conditions edged lower, but expectations swooned, partly due to growing angst over tariffs.

Expectations slipped to 81.1 -12.6 points.

• 46% see tariffs raising costs
• 21% see tariffs creating jobs

Santa, is that you?

Could be…

There will be no afternoon note, the market is closing at 1 pm today.

Merry Christmas to everyone.

God Bless

Charles V Payne

Comments

Charles and company, everyone here, Wish you all a merry Christmas and a healthy and prosperous New Year to come. Terry Dowler on 12/24/2024 8:26:44 AM

Merry Christmas Charles! Thank you for all you do to encourage and prop up the average investor! Happy New Year Too! May the stock market gain new heights in 2025! Pat Harkness on 12/24/2024 8:55:18 AM

Charles: After a year of following you and attending your class, i can say that you have chamged my life. Knowledge is power and i am no longer adrift in financial uncertainty. One of your guests last week praised you for making others richer than anyone else in the business. But that is not the point, nor your value to us. You teach us how to fish and show us the tools to make us free. I pray you will be blessed in the coming years as i will need you to get me to my finish line, like all the rest of us. Be safe. Take care of yourself. Bob johnson on 12/24/2024 11:43:24 AM

Merry Christmas to you and all of your staff for keeping us informed every day of every week. I have not misses a show since Oct 2018 after I retired. I tell people that you have an investment seminar on your show. Have a great New Year! Tom Hall, Phoenx, AZ on 12/24/2024 8:25:54 PM

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