Calendar

This Week – Day off Thursday, Half Day Friday dominates what is seasonally a very good week for stocks. Some tech reports post close Tuesday.

Monday – ZM earnings post.

Tuesday – Home sales, Fed Minutes, WDAY, DELL, HPQ, ADSK, CRWD earnings post close.

Wednesday – Complete data dump with PCE, Jobless Claims, Home Sales, & Durable Goods.

Trading Observations

• Holiday week is historically bullish

• Treasury Secretary named (any of those talked about would have been fine) taking tail risk off the table

• Rates lower and up we go

• FOMC minutes Tues, PCE wed

• Tech earnings - ADI DELL and several retail earnings due this week

• Path of least resistance into year-end remains higher

• 6000-6010 resistance.  5940 support....

Futures

DOW +387

S&P +43

Nasdaq +157

10-Year Yield

Oil

Gold

Consumer/Financial Healthcare

SAVA – Down 85% on Alzheimer Drug miss.

BBWI – Bath and Body +20% on FY EPS boost. This name is another 10x P/E, decent short interest name that simply didn’t fail.

ONB – Old National to buy Bremer Bank for $1.4B.

SQ – Downgraded at BMO on momentum concerns.

USB – Upgraded to buy at Citi. They cut MTB to neutral as well.

HOOD – +6% on MS saying Robinhood is a huge Trump winner.

FITB – JPM meeting with management talked up Southeast branch expansion, treasury management, and commercial payments opportunities.

SMID Cap Banks – JPM saying they are seeing surging interest from generalist managers. Exposure feels very underweight. They also upgraded Santander Brasil and downgraded Banco Bradesco.

FIS – Baird is cautions and thinks $80 is possible ($86 last) in coming weeks as headwinds like debt costs, taxes, and depreciation are clearly a problem.

Credit Karma – Revenues +29% y/y, well above consensus, and growing in auto insurance.

M slips 2% after saying it would delay the release of its third-quarter earnings after an investigation revealed an employee hid tens of millions of dollars of expenses.

USB rises 1.4% after Citi upgraded its rating to buy, saying the bank is trading at a “fairly large” discount.

FIVE - downgraded to market perform from outperform at Telsey Advisory Group, which says there is limited visibility into the outlook for the discount retailer.

MRK - pivotal phase 3 Zenith trial evaluating WINREVAIR in adults with pulmonary arterial hypertension met the primary endpoint at interim analysis.

Technology

AAPL ticks up 0.6% with Morgan Stanley growing more positive on the company’s AI-infused iPhones.

APP rises 1.6% after Oppenheimer raised its price target on the mobile-gaming software company to a Street-high view of $480 from $260.

INTC: US cutting Intel's CHIPS Act funding – NYT; Lattice Semiconductor may seek to buy all of Altera from Intel - Bloomberg

SNOW and Elastic NV (ESTC) are both rising after upgrades to outperform from neutral at Wedbush, which touts the position of the software companies with artificial intelligence.

MSTR - shares gain 3.1% in premarket trading after several brokers increased their price targets on the application software company. Bernstein raised the target on MicroStrategy Inc. Class A to $600 from $290. Maintains outperform rating.

META – Added to Raymond James Favorites List