U.S. Stock Futures Quiet as S&P 500 Nears Record
Stock index futures were quiet in early pre-market trading ahead of a similarly muted holiday shortened session. U.S. stock markets closed at 1 pm ET and bond markets close at 2 pm ET.The S&P 500 index managed to hold near a record following the thin holiday trading as investors parsed labor market data for additional clues on the Federal Reserve's interest rate path. The move in the benchmark index follows four-straight sessions of gains. The Dow also gained, while the tech-heavy Nasdaq 100 Index closed little changed.Initial jobless claims fell to 214,000 for the week ended December 20, which was below expectations, and continuing jobless claims rose 38,000 to 1.92M in the latest survey.On the commodities front, gold prices climbed to another record, above $4,500 an ounce, while silver and platinum prices also hit records and copper heads for a 40% annual gain.Get caught up quickly on the top news and calls moving stocks with this market wrap Fly By.STOCK NEWS:Intelshares slid afterthat Nvidiarecently tested out whether it would manufacture its chips using Intel's 18A production process, but stopped moving forwardSanofiagreed toof Dynavax Technologiesfor $15.50 per share in cash, reflecting a total equity value of $2.2BBPreached ana 65% shareholding in Castrol to Stonepeak, at an enterprise value of $10.1B, resulting in total net proceeds of $6BWALL STREET CALLS:NorthcoastCostcoto Buy with a $1,100 price targetRaymond JamesKB Hometo Market Perform following the company's "disappointing" Q4 reportComstock Inc.to Market Perform at Noble CapitalSpire Globalto Neutral from Buy at Alliance Global3. AROUND THE WEB:Ares Managementis open to buying a private equity firm in an attempt to bolster its leveraged buyout business,Bitcoin mining companies like Core Scientific, Cipher Mining, Iren, and CleanSparkhave transitioned to artificial intelligence data centers,Hondawill acquire LG Energy Solution's facilities and other assets from their joint battery plant in Ohio for approximately $2.9B,A federal judge has blocked a Texas law requiring companies that run mobile app stores, like Appleand Google, to verify ages of users,4. MOVERS:Agios Pharmaceuticalsincreased after thein anemia patientsEdgewise Therapeuticsgained afterfrom its Phase 2 EDG-7500 trialUiPathclosed higher after beingin the S&P 400 at the open on January 1, 2026Tesla (TSLA) fell afterthe NHTSA has opened a probe into the Model 3 vehicle over door release controlsBrandywine Realtyclosed lower after being picked toon the S&P 600INDEXES:The Dow rose 288.75, or 0.60%, to 48,731.16, the Nasdaq gained 51.46, or 0.22%, to 23,613.31, and the S&P 500 advanced 22.26, or 0.32%, to 6,932.05.
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- Capital Expenditure Forecast: Amazon's forecast of $200 billion in capital expenditures for 2023, significantly higher than its 'Magnificent Seven' peers, has raised investor concerns about future cash flow, leading to a stock price decline.
- Earnings Report Performance: Despite reporting a solid fourth-quarter revenue increase of 14% to $213.4 billion and operating income rising from $21.2 billion to $25 billion, the market's reaction to the high capex forecast caused the stock to remain down post-report.
- Market Environment Impact: The stock had already fallen 6% prior to the earnings report amidst a broader sell-off in tech stocks, reflecting investor fears regarding potential disruptions from AI technologies, even though Amazon, as an industry leader, is not directly exposed to these risks.
- Future Competitive Pressure: Amazon's aggressive investment in AI is necessary to maintain competitiveness; however, the $200 billion expenditure may not yield the expected profits, increasing uncertainty around future earnings.
- Dividend Increase: American Express raised its quarterly dividend by 16% to $0.95 per share, resulting in a dividend yield of 1.2%, which highlights its appeal as a dividend stock despite a 17% year-to-date decline in share price, indicating resilience amid market pressures.
- Strong Performance: In Q4 2025, American Express reported a 10% year-over-year revenue increase to $19 billion, with earnings per share (EPS) rising 16% to $3.53, showcasing strong operational leverage and a solid foundation for future growth.
- Future Outlook: Management's guidance for 2026 EPS between $17.30 and $17.90 implies a robust year-over-year growth rate of approximately 14.4%, with a low payout ratio of 21.6% providing ample room for future dividend increases, enhancing investor confidence in sustained returns.
- Capital Return: In 2025, American Express returned $7.6 billion to shareholders, including $2.3 billion in dividends and $5.3 billion in share repurchases, reflecting an aggressive capital return strategy, with a 7% reduction in share count since 2022, further supporting stock value.
- Earnings Beat Expectations: Walmart recently reported earnings that surpassed market expectations on both revenue and net income; however, the stock did not surge, indicating investor concerns about its high valuation, which could impact future investment decisions.
- Stable Growth Rate: With an average annual growth rate of around 5%, Walmart's growth has been consistent, but it seems insufficient to justify a 170% increase in stock price over the past three years, leading to potential price corrections.
- High Valuation: Currently trading at a price-to-earnings ratio of 47, Walmart's valuation is considered extremely high for a blue-chip stock, prompting investors to carefully assess its future growth potential to determine if the current price is justified.
- Cautious Investment Advice: Despite Walmart's solid business performance, analysts recommend avoiding the stock at its current high valuation, suggesting that there are better value investment options available, which may affect Walmart's market performance.
- Stock Surge: Ondas Holdings saw its share price rise nearly 6% at the start of the trading week, driven by escalating conflict in the Middle East, which heightened investor interest in drone and combat technology demand.
- Strategic Investment: The company announced a $10 million strategic investment in World View Enterprises, a specialist in high-altitude and long-endurance balloon systems, which Ondas believes will synergize well with its drone technology, enhancing its competitive edge in the market.
- Market Outlook: With increasing demand for drones and related technologies, Ondas is expanding its business scope under favorable market conditions, indicating significant growth potential in the defense sector that may attract more investor interest.
- Investor Advisory: Despite Ondas's strong performance, analysts have identified 10 stocks as better investment options, advising caution for investors considering purchasing Ondas shares while evaluating market opportunities.
- Analyst Price Target Cut: RBC Capital's analyst Srini Pajjuri lowered Broadcom's price target from $370 to $340, leading to a 0.2% decline in share price, indicating market caution regarding the company's future performance.
- Optimistic Earnings Outlook: Despite the price target reduction, Pajjuri anticipates that Broadcom will report a 'beat and raise' quarter for Q1 fiscal 2026, driven by strong demand for tensor processing units (TPUs) produced for Google, which could enhance the company's growth.
- Concerns Over Anthropic Relationship: The analyst expressed concerns about Broadcom's relationship with AI developer Anthropic, noting that while current supply agreements will generate revenue, demand may decline after the first half of 2027, potentially impacting the company's long-term revenue stability.
- High Market Valuation: Broadcom currently trades at approximately a 25% premium to AI chip leader Nvidia, and while its diversified business model allows it to benefit from the AI boom, this high valuation may pose risks for investors in the short term.
- Significant Stock Surge: Tower Semiconductor's shares rallied 11% on Monday, reflecting investor optimism regarding Israel's future security, despite the absence of any financial news from the company.
- Market Reaction: The rise in Tower's stock, headquartered in Israel, correlates with the U.S. and Israeli military strikes on Iran's leadership, boosting market confidence in Israel's stability.
- Outstanding Annual Performance: Over the past year, Tower's stock has surged 255%, primarily driven by high demand for its 1.6-terabit silicon photonics transceivers, which are increasingly critical for artificial intelligence data centers.
- Future Earnings Potential: Although the current P/E ratio stands at 71, the company projects that if revenue and earnings reach 85% of existing capacity, future earnings could exceed $750 million, reducing the P/E ratio to a more reasonable 21, indicating strong growth prospects.








