Good morning investors! The Dow Jones Industrial Average and S&P 500 reached new heights on Thursday despite Oracle falling about 12% and taking others down with it.
Today we cover:
Weekly jobless claims surge
Big earnings (CostCo, Broadcom, and more)
Where to invest a million
📊 Economy and News
US Weekly Jobless Claims Surge Due to Seasonal Volatility
U.S. initial jobless claims jumped 44,000 to a seasonally adjusted 236,000 for the week ended December 6 — the largest increase in nearly 4-1/2 years — but economists attribute the spike to holiday-season volatility rather than deteriorating labor conditions.
The surge reversed a sharp drop the prior week and exceeded forecasts of 220,000. The four-week moving average, which smooths fluctuations, rose modestly to 216,750, signaling underlying stability.
Economists noted the data remain "slightly below the long-established trend," countering concerns about a weakening market. Despite corporate layoff announcements, claims have not shifted higher significantly.
Continuing claims fell 99,000 to 1.838 million, consistent with a gradual rise in the unemployment rate.
In a separate report, the U.S. trade deficit narrowed 10.9% to $52.8 billion in September — the lowest since June 2020 — as exports rose 3.0% amid a weaker dollar, while imports edged up marginally.
Global hits:
Turkey’s central bank cuts interest rates to 38%.
Canada posts a trade surplus in September, beating expectations of a deficit.
Japan's government reportedly plans new tax breaks despite debt concerns.
Good to know: Zealand Pharma unveiled its "Metabolic Frontier 2030" strategy, targeting five drug launches and over 10 clinical programs by 2030, intensifying competition for obesity market leaders Novo Nordisk and Eli Lilly.
Meanwhile, Eli Lilly's next-gen obesity drug retatrutide achieved record ~28.7% weight loss (up to 71 lbs) in a Phase 3 trial, while significantly reducing knee osteoarthritis pain—positioning it as a key follow-up to Zepbound.
Reminder: Fed to conduct $54.4 billion in bond purchases through mid-January. In other news, Obamacare costs look set to spike for millions of Americans as Senate votes fail. On the other hand, US House backs massive defense policy bill, Senate next. Also, President Donald J. Trump signed an executive order issuing a single regulation framework for artificial intelligence.
👨 Sponsored by Options Wheel
Markets are Wobbly, and the economy is looking weak… 32,000 jobs lost last month.
Consumer confidence at 2009 crisis levels.
Here’s how to fight back…
Jay Soloff is a former CBOE market maker with 20+ years of trading experience.
he’s showing options traders how to generate steady weekly cash flow using a simple options strategy.
It’s perfect for these market conditions.
You’ll see how he’s been using the Wheel for years to generate steady cash flow, why traders keep coming back to it, and how you can put it to work without having to sit in front of your screen all day.
You won’t want to miss this event.
Please review the full risk disclaimer:
📈 Stocks
S&P 500 6 901,00 (+0.21%)
DJIA 48 704,01 (+1.34%)
NASDAQ 23 593,86 (-0.25%)
BRENT CRUDE 61.28 (-1.49%)
* Prices as of Dec 12th, 12:20 AM UTC
Earnings are here
Costco beat Wall Street expectations for its fiscal Q1, with net sales up 8.2% year-over-year. Digital sales surged 20.5%, driven by 24% higher website traffic and 48% app traffic growth. Same-day delivery (via Instacart in the U.S., Uber/DoorDash internationally) outpaced overall e-commerce.
The company gained traction with younger customers joining memberships and benefited from the September 2024 fee increase in the U.S./Canada, applying to new sign-ups and renewals.
Costco opened eight new warehouses in Q1 and plans to open 30+ annually going forward. The retailer provides no full-year guidance.
Broadcom beat Wall Street expectations with strong Q4 earnings and revenue, fueled by AI demand. Net income surged 97% to $8.51B ($1.74/share). The company forecasts Q1 AI chip sales doubling YoY to $8.2B, with total revenue ~$19.1B (up 28%).
The company added a fifth custom AI chip customer with a $1B order (delivery late 2026); revealed Anthropic as the prior mystery client ordering Google's TPUs (~$10B initial + $11B additional). AI backlog stands at $73B over 18 months.
Broadcom raised its quarterly dividend 10% to $0.65/share, payable later this month.
Lululemon Athletica beat on both the top and bottom lines, with revenue rising 7% to $2.6 billion, topping the $2.4 billion forecast. On the downside, the company issued softer-than-expected guidance for the holiday quarter, yet the stock jumped as investors reacted to news of CEO Calvin Mcdonald stepping down in January 2026. Also, the firm is buying back $1 billion more in stock.
Interesting: Rivian announces new AI tech, chip and robotaxi ambitions.
Musk says SpaceX report of 2026 IPO is ‘accurate’.
‘Reflation is back’ says Deutsche Bank as global central banks diverge from Fed.
Lastly, GPT-5.2 is now out!
Surprising: Disney making $1 billion investment in OpenAI, will allow characters on Sora AI video generator. Elsewhere, Nvidia’s new opt-in service will provide geolocation data that could help identify which country certain GPUs are operating. Furthermore, reports suggest Amazon is planning new one-hour pickup service in stores. Lastly, crypto mogul Do Kwon sentenced to 15 years in prison for $40 billion stablecoin fraud
💵 Personal Finance
Where Pros Would Invest $1 Million Today
In a landscape of shifting policies and geopolitical risks, veteran strategists urge staying invested and diversified, prioritizing AI-driven growth, industrial capex, and quality bonds.
Moderate-Risk Profile: Citi Wealth suggests a balanced multi-asset mix: 60% equities (38% U.S. large-cap, 13% developed non-U.S., 9% emerging markets), 37% fixed income, 2% commodities (e.g., gold hedge), 1% cash. Emphasize AI's productivity boom amid valuation concerns. Commonwealth adds a 60/40 tilt toward U.S. large-cap growth with broadening international exposure, like Europe's rearmament and infrastructure.
Aggressive Profile: Ramp up equities to 80-100%, focusing on AI/tech themes. AlTi Global recommends 40% equities, 30% bonds, 20% private credit, 10% cash, plus alternatives for UHNW clients. Broaden AI to industrials, healthcare, logistics; add 5% gold, 1% bitcoin as inflation hedges. Private credit yields premiums but requires vetted managers.
Conservative Profile: Prioritize income and stability: 70% equities (dividend-focused with strong balance sheets), 25% short-term high-quality fixed income (e.g., munis for U.S. taxable accounts), 5% cash for liquidity. Dietze highlights undervalued energy stocks, poised for gains from lower rates and rising demand, while avoiding overreactions to recessions or tariffs.
💰 Be a Better Investor
“Nothing so undermines your financial judgement as the sight of your neighbor getting rich.”
What did you think of today's newsletter?
👩🏽⚖️ Legal Stuff
FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT ADVICE. Morning Download products and services are offered for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation or be relied upon as personalized financial advice. We are not financial advisors and cannot give personalized advice. There is a risk of loss in all trading, and you may lose some or all of your original investment. Results presented are not typical. This message may contain paid advertisements, or affiliate links. This content is for educational purposes only.
Please review the full risk disclaimer: MorningDownload.com/terms-of-use