Trading Observations

• Jobless claims rose 17k to 242k in Dec. 7 week compared with median est. 220k,

• US Nov. Producer Prices Rise 3.0% Y/Y; Est. +2.6%

• US Nov. Producer Prices Rise 0.4% M/M; Est. +0.2%

• Still wrestling with 6085 resistance area.  6010 below, blue skies above...

• ADBE wasn’t enough for the bulls, focus turns to AVGO tonight

Futures

DOW -32

S&P -14

Nasdaq -109

10-Year Yield

Oil

BITCOIN

Consumer/Financial Healthcare

OMC, IPG – Let the M&A parade begin. OMC has said they want to buy IPG for ~$36 which is a scant 12.8x P/E. Billboard advertisers unite.

GLP-1s may potentially be used for addiction, heart disease and Alzheimer's – FT

CHWY – BC Partners selling another slug of Stock; the company repurchasing $50M

Lovesac shares fall 22.77% ahead of the bell after the furniture company cut its net sales and EPS guidance for the full year.

Celsius Holdings climbs as much as 3.6% after JPMorgan initiates the energy-drink maker at overweight on branding and attractive valuation. Deutsche Bank initiates the company at hold.

Coca-Cola, PepsiCo and Keurig Dr Pepper are upgraded to buy from hold at Deutsche Bank, which is becoming more positive on non-alcoholic beverage stocks into 2025. Keurig shares rise 1.1% premarket, Coca-Cola +1% and PepsiCo +0.9%.

Technology

PLTR – Baird Initiate Neutral, $70PT. PLTR has excelled at actually putting generative AI applications into production, which is where we expect most value to be extracted in the coming years We are positive on the company's position, but are wary of chasing given strong YTD performance and valuation.

ADBE: -10% underwhelming as F25 guide below. Q4 NNARR missed buyside bogey; growth guide inline but FY25 rev guide growth below 10% (sees 8-10% vs expects 10-11%). Lack of acceleration in DM ARR raises concerns on weakness at the low end of the market offsetting strength at the high end” ... Doesnt shift bear narrative as shrs likely remain HF short on AI disruption fears + rising competitive threats (Midjourney, Canva, Figma, OpenAI)

AVGO: #'s tonight | implied move 7% ... huge move ystrdy post Apple/AI chip headlines; desk has seen LO demand vs HF supply (which fits with long positioning coming into week having more of a HF tilt) ...

CIEN: -4% Q4 revs inline; GMs healthy miss (41.6% vs est 43.8%) .. Conf call 830am ET. "As Cloud and AI drive bandwidth demand across the network, we are positioned for accelerated revenue growth and market share expansion moving forward"

Nvidia steps up hiring in China to focus on driven cars – Bloomey

Semicaps (ASML AMAT KLAC LRCX): Jefferies cutting WFE estimates again on weaker China and DRAM ... "the only real strength is from TSMC at the leading edge, but there are questions around Foundry strategy at both Samsung/Intel.

UBER up after providing bookings color and pushing back against some competition concerns (Waymo) at Barclays Conference. (LYFT)

Microsoft sees $800M charge on stake in GM's failed autonomous taxi initiative – Bloomey

GOOGL: +11% WTD; positioning (LOs UW; crowded short), quantum / Willow announcement, Gemini 2.0 launch fueling move ...... CEO: “If Gemini 1.0 was about organizing and understanding information, Gemini 2.0 is about making it much more useful”

Meta donates $1M to Trump's inauguration fund – NY Times

Industrials 

LCID reportedly in talks with automakers about partnerships.

Boeing (BA) Raised to Neutral at Northcoast

• CACI (CACI) Cut to Sell at Goldman; PT $373

Celanese (CE) Raised to Buy at Fermium Research; PT $80

Flowserve (FLS) Raised to Neutral at Goldman; PT $69

General Dynamics (GD) Cut to Hold at Jefferies; PT $300

General Dynamics (GD) Cut to Sell at Goldman; PT $245

Leidos (LDOS) Cut to Neutral at Goldman; PT $153

Middleby (MIDD) Cut to Hold at Jefferies; PT $160

Northrop Grumman (NOC) announces new $3B share repurchase authorization

Nucor (NUE) Cut to Neutral at UBS; PT $156

Otis Worldwide (OTIS) Cut to Underperform at Wolfe

Parker-Hannifin (PH) Raised to Outperform at Wolfe; PT $786

Parsons (PSN) Raised to Buy at Goldman; PT $111

Rockwell Automation (ROK) Raised to Buy at Jefferies; PT $350

Steel Dynamics (STLD) Cut to Neutral at UBS; PT $149

Vontier Corp (VNT) Raised to Outperform at Wolfe; PT $48

Xylem (XYL) Cut to Peerperform at Wolfe