MRKT MATRIX: December 13, 2024

Today’s Top Stories:

• S&P 500 is little changed Friday, on track for a losing week (CNBC)

• Broadcom stock jumps 21%, pushing company past $1 trillion market cap for the first time (CNBC)

• Here’s where the stock market is headed in 2025, according to Wall Street’s top strategists (CNBC)

• S&P 500 CY 2024 Earnings Preview: Analysts Expect Earnings Growth of 9.5% (FactSet)

• Apple is a top pick for 2025 as AI will drive iPhone upgrade cycle, Morgan Stanley says (CNBC)

• Dollar Stores Are Flashing a Warning Sign About Lower-Income Consumers (WSJ)

• Fed to Cut Once More Before Slowing Pace in 2025, Economists Say (Bloomberg)

• Trump Advisers Seek to Shrink or Eliminate Bank Regulators (WSJ)

• U.S. Prepares New AI Chip Restrictions to Close China’s Backdoor Access (WSJ)

• OpenAI emails show Elon Musk wanted for-profit structure in 2017 (CNBC)

• Google Challenger Perplexity Promises Booming Growth, Rosy Margins (The Information)

The AI Trade and Market Multiples: David Rosenberg’s Insights on Current Market Conditions

Today’s On The Tape is Presented by CME Group, iConnections, and Robinhood

Dan and Guy are joined by David Rosenberg, the founder of Rosenberg Research. They cover his recent 'Lament of a Bear' report, where Rosenberg reflects on his stock market predictions, acknowledging the unexpected impact of AI and generative technologies on market performance. They delve into the significant rise in market multiples driven by growth in AI, especially since May 2023 with Nvidia's strong performance. Rosenberg explains the potential overpricing of stocks, influenced by high investor confidence and passive investing trends. He also discusses the implications of current and future interest rate environments, inflation expectations, and the role of the Federal Reserve in shaping market outlooks. The conversation touches on the concept of equity risk premium and the potential risks of market corrections. Rosenberg shares his cautious stance and emphasizes the importance of staying informed on economic cycles and reading historical market analyses.

Timecodes

• 0:00 - Lament of the Bear

• 8:00 - The Disconnect

• 28:20 - Yield Picture

• 37:25 - Top Signals

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