• Major indexes all close in the red. Every index saw red on Tuesday with the Dow sliding for its 9th day of losses, the longest losing streak since 1978. Wall Street has been digesting strong retail sales data and also anticipating Wednesday's Fed meeting.
• Federal Reserve policy decision is TODAY. Investors are betting a final 2024 rate cut this Wednesday is a sure thing from the Federal Reserve.
• 2-year Treasury yield fell lower. The yield ended lower for the first time in seven sessions on Tuesday. Investors weighed November's unexpected decline in industrial production against strong retail-sales data. The 2-year rate fell less than 1 basis point to 4.239%, closing lower for the first time in seven sessions, according to Dow Jones Market Data. The 10- and 30-year yields also ended lower on the day ahead of Wednesday's policy update from the Federal Reserve.
• Brent oil futures settle at their lowest in a week. Oil prices declined for a second session on Tuesday. West Texas Intermediate crude for January delivery was off 63 cents, or 0.9%, to settle at at $70.08 a barrel on the New York Mercantile Exchange, down a second straight session. February Brent crude lost 72 cents, or 1%, to $73.19 a barrel on ICE Futures Europe.
• Inflation remains a continuing concern. Chris Brigati, chief investment officer of Texas-based investment firm SWBC has said, "The threat of a re-acceleration of inflation in 2025 is a meaningful concern. Our concern is that inflation resumes and the Fed needs to continue with a restrictive policy stance."
• Small-cap stocks tumbled. Small-cap stocks were getting punished on Tuesday with the Russell 2000 index tumbling over 1% on Tuesday afternoon, while the large-cap S&P 500 index was off 0.4%, according to FactSet data.
• United Health dragged the Dow. United Health shares shed $18.01, or 3.6%, toward an eight-month closing low. It was cutting about 111 points off the Dow's price, which represents about one-third of the Dow's 326-point decline.
• Pfizer stock sees big gains. Pfizer's stock was up 4.5% higher in recent trading and was sharing the top spot on the S&P 500's gainers list with Fox Corp., after the drug maker provided profit and revenue guidance. The pharma giant also affirmed its 2024 earnings and revenue outlooks and provided 2025 guidance that was in line with expectations.
• Nissan shares soared. Nissan shares exploded 22% after the Nikkei newspaper revealed that Nissan and Honda plan to enter into negotiations for a merger to better compete in the rapidly changing.
• Salesforce made a big announcement. Salesforce will bring on 2,000 more salespeople specializing in artificial intelligence, CEO Marc Benioff said at an event in San Francisco on Tuesday.
• Tesla hits new high as analyst doubles price target. The electric vehicle maker saw its stock hit another record high after Vijay Rakesh of Mizuho Securities, upgraded Tesla to Outperform from Neutral and more than doubled his price target to $515 from $230.
• Bitcoin is on a record run. Bank of America's global fund managers survey has noted "super-bullish" risk sentiments from traders and bitcoin's record run above $106,000.

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“I think a rate cut next week will prove to be a mistake because (a) it isn’t warranted and may backfire and fuel more inflation, and (b) it risks eroding Fed credibility." - 

Bernard Baumohl, chief global economist of the Economic Outlook Group, wrote in a note to clients last week.

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Kioxia Shares Soar on Debut in Tokyo After $800M IPO

Kioxia was off to a good start after the company raised 120 billion yen ($800 million) in its IPO, exercising an overallotment option. Shares were priced at 1,455 yen apiece, the midpoint of its price band of 1,390-1,520 yen. Kioxia, formerly known as Toshiba Memory, was the chip division of Toshiba, and was sold to a Bain-led consortium in 2018 for $18 billion.

Broadcom Explodes 11% After Goldman Expresses 'Higher Conviction'

Shares of Broadcom continued their run north this week after analysts at Goldman Sachs raised their price target on the stock to $240 from $190, adding that they have “higher conviction” on the company’s outlook. The stock is now up 126% for the year. “We now have even higher conviction on the company’s forward revenue and earnings growth outlook,” the analysts wrote in a report dated Dec. 15.