S&P 500 – 6,800.26 (-0.24%)

Dow Jones – 48,114.26 (-0.62%)

NASDAQ – 23,111.46 (+0.23%)

• Market Overview: U.S. stocks drifted modestly lower on Tuesday as investors digested the latest employment report, with bond yields steady and overseas markets mixed.
• Government: Trump signals he’s considering executive order to reclassify marijuana, sparking volatility in cannabis stocks after his comments on easing federal regulations.
• Economics: Payroll growth rebounds in November as unemployment hits four-year high, with 64,000 jobs added and the rate climbing to 4.6%; core retail sales rose a strong 0.85%, exceeding expectations.
• Commodities & Rates: Gold and silver continued their meteoric rally, crude oil fell below $55 per barrel amid progress in Ukraine talks, and chances of a Fed rate cut next month remained just above 26%.
• Automotive: Tesla stock surges as Robotaxi testing without safety driver confirmed, while Ford takes a $19.5 billion charge in its hybrid pivot and cancels the F-150 Lightning EV.
• Consumer & Retail: Gap climbed after a Wells Fargo upgrade citing accelerating fundamentals at Gap and Old Navy; Kraft Heinz advanced on news of a new CEO.
• Technology: Nvidia and Roku advanced on strong demand and optimistic 2026 outlooks; PayPal applied to form PayPal Bank; ServiceNow sank amid a potential $7 billion acquisition; Broadcom clawed back after recent declines.
• Semiconductors: Despite a sharp drop in the PHLX Semiconductor Index on Friday, the sector remains up over 30% for the past year, with Micron and Applied Materials seeing raised price targets, while Adobe, Texas Instruments, and Arm faced downgrades.
• Travel & Leisure: Intel gained amid talks to acquire AI chip startup SambaNova; Marriott and Las Vegas Sands climbed following Goldman Sachs upgrades for a mixed 2026 outlook.
• Entertainment: Son of Hollywood director Rob Reiner and producer Michele Reiner arrested in connection with their deaths, shocking the entertainment community.
• Artificial Intelligence: Lovable valued at $6.6 billion in latest funding round, capping a breakout year for the European AI startup in the vibe coding space.

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"When I was a kid, I inhaled frequently. That was the point." — Barack Obama

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Notable Stocks

• Tesla (TSLA)
• Nvidia (NVDA)
• Ford (F)
• Gap (GAP)
• Roku (ROKU)

Weekly Notables

Trump Signals He’s ‘Strongly’ Considering Executive Order to Reclassify Marijuana

President Donald Trump has confirmed that he is considering an executive order to ease federal marijuana regulations. The Amplify Seymour Cannabis ETF (CNBS) rose briefly in afternoon trading after Trump said he was weighing reclassifying marijuana, but the fund still fell nearly 7% as investors took profits following a record-setting rally on Friday. That session had lifted the ETF more than 50%, putting it back in positive territory for the year after a four-year losing streak. When asked about a potential executive order on rescheduling cannabis, Trump said, “We are considering that. A lot of people want to see the reclassification, because it leads to tremendous amounts of research that can't be done unless you reclassify. So we are looking at that very strongly.”

Tesla Stock Surges as Robotaxi Testing Without Safety Driver Confirmed

Tesla (TSLA) shares jumped after confirmation of Robotaxi testing without a safety driver, fueling optimism that the EV maker’s autonomous vehicle plans are entering a new phase. The development surfaced over the weekend when an X.com user shared a video of a Tesla Robotaxi operating in Austin, Texas, with no driver on board. Ashok Elluswamy, head of Tesla AI initiatives, including autonomous driving, responded, “And so it begins!” CEO Elon Musk later confirmed the test, tweeting, “Testing is underway with no occupants in the ‌car.”

Earnings Spotlight

Earnings Spotlight: Nike (NKE)

Nike (NKE) will release its fiscal second quarter results on Thursday, Dec. 18. Evercore ISI has reiterated an Outperform rating and $90.00 price target on the stock, maintaining its positive outlook despite ongoing challenges in the company’s turnaround efforts. The target represents a 33% upside from the current price of $67.78, while analyst targets across Wall Street range from $38 to $120, according to InvestingPro data.

What's Ahead

The November CPI report will be released today. (October inflation data will not be released). Consensus expectations call for both headline and core CPI to rise 3.1% year over year, following September’s 3% increase.

Wednesday (12/17): Business Inventories, EIA Crude Oil Inventories, MBA Mortgage Applications Index, Retail Sales. Earnings from ABM Industries Inc. (ABM), Enerpac Tool Group Corp. (EPAC), General Mills Inc. (GIS), Jabil Inc. (JBL), Micron Technology Inc. (MU), Toro Co. (TTC).

Thursday (12/18): Continuing Claims, Consumer Price Index (CPI), EIA Natural Gas Inventories, Initial Claims, Leading Inventories, Net Long-Term TIC Flows, Philadelphia Fed Index, Bank of Japan (BOJ) Monetary Policy Meeting (December 18-19th). Earnings from Accenture PLC (ACN), Birkenstock Holding PLC (BIRK), CarMax Inc. (KMX), Cintas Corp. (CTAS), Darden Restaurants Inc. (DRI), FactSet Research Systems Inc. (FDS), FedEx Corp. (FDX), HEICO Corp. (HEI), KB Homs (KBH), Nike Inc. (NKE).

Friday (12/19): Existing Home Sales, Q3 GDP – Third Estimate, PCE Prices, Personal Income, Personal Spending, University of Michigan Consumer Sentiment – Final. Earnings from Carnival Corp. (CCL), Conagra Brands Inc. (CAG), Lamb Weston Holdings Inc. (LW), Paychex Inc. (PAYX), Winnebago Industries Inc. (WGO).