Weekly Market Recap:

This week, U.S. equities were mostly lower. The Dow (-1.82%), S&P 500 (-0.64%), and Russell 2000 (-2.58%) declined, while the Nasdaq (+0.34%) edged higher on Big Tech strength. Key outperformers included beverages, China tech, trucking, and apparel manufacturers. Underperformers were industrial metals, medical devices, biotech, and banks. Treasuries weakened with a steepening yield curve. The dollar strengthened against major currencies. Gold gained +0.6%, WTI crude surged +6.0%, and Bitcoin remained flat.

Corporate Highlights:

• Oracle (ORCL -9.5%): Positive AI cloud infrastructure takeaways, but fiscal Q2 results and Q3 guidance fell short of high expectations.

• Adobe (ADBE -15.7%): Beat fiscal Q4 estimates, but soft FY25 guidance disappointed investors.

• Broadcom (AVGO +25.2%): Issued in-line FQ4 results, better Q1 guidance, and AI momentum updates.

• Google (GOOGL +8.6%): Strong sentiment driven by its new quantum computing chip breakthrough.

• MongoDB (MDB -22.1%): Beat and raised guidance, but valuation concerns lingered.

Sector Performance:

Top performers were Communication Services (+2.42%), Consumer Discretionary (+1.40%), and Technology (-0.16%). Materials (-2.91%), Utilities (-2.70%), and Real Estate (-2.43%) lagged. Despite mixed performance, investor focus shifts to the December FOMC meeting with a nearly 100% chance of a rate cut. Economic data and earnings next week could provide additional market catalysts.

Alphabet (NASDAQ: GOOG) saw its stock price rise over 10% this past week, even reaching its 52-Week high of $196.71 earlier this week. This rise occurred after Alphabet unveiled ‘Willow’ - a quantum chip that is said to be ground-breaking. Google claims that Willow was able to solve a complex computation in five minutes- a computation that would take the world’s fastest supercomputer ten septillion years. The quantum computing industry has received a lot of buzz, as some insiders are projecting the industry to add more than $1 trillion to the global economy by 2035. While quantum chips are years away from being used for practical applications, Alphabet’s Willow chip is a major step in the right direction, and the world may see quantum computing being used sooner than expected. Willow’s unveiling marks a pivotal step forward in the pursuit of scalable, error-corrected quantum systems. As Alphabet continues to refine quantum technology, the combination of quantum computing and AI could unlock revolutionary advancements in fields ranging from energy to medicine, fundamentally transforming industries worldwide.

Next Week:

Notable Earnings:

• Monday (12/16)

  • Compass Minerals International Inc. ($CMP)

  • RCI Hospitality Holdings Inc. ($RICK)

• Tuesday (12/17)

  • Heico Corp. ($HEI)

  • Worthington Enterprises Inc. ($WOR)

• Wednesday (12/18)

  • Birkenstock Holding PLC ($BIRK)

  • Micron Technology Inc. ($MU)

  • General Mills Inc. ($GIS)

• Thursday (12/19)

  • Nike Inc. Cl B ($NKE)

  • FedEx Corp. ($FDX)

  • FactSet Research Systems Inc. ($FDS)

• Friday (12/20)

  • Carnival Corp. ($CCL)

  • Winnebago Industries Inc. ($WGO)

Notable Ex-Dividend Dates:

• Monday (12/16)

  • Hess ($HES) 1.39%

  • Meta Platforms ($META) 0.33%

  • Walt Disney ($DIS) 0.60%

• Tuesday (12/17)

  • Best Buy ($BBY) 4.30%

  • Amphenol ($APH) 0.97%*

• Wednesday (12/18)

  • Eversource Energy ($ES) 4.63%

  • Salesforce ($CRM) 0.44%

• Thursday (12/19)

  • Cincinnati Financial ($CINF) 2.15%*

• Friday (12/20)

  • Hewlett Packard Enterprise ($HPE) 2.40%

*Dividend Aristocrat