Fake-Out or Break-Out?

Air Lease Corp. (AL) delivered better-than expected results in its fourth quarter ended Dec. 31, 2024, with revenues of $712.9 million, down 0.5% from Q4 2023, and GAAP EPS of $0.83, down 56.1%. Ironically, the EPS decline was due to demand trends, notes Doug Gerlach, editor of Small Cap Informer.

Stocks have had a rough week, with the technology sector getting hit particularly hard. But equities are trying to stabilize so far on Friday. Gold, silver, and crude oil are lower, while Treasuries and the dollar are mostly flat. “Trump Trades” are in trouble. Many of the stocks, sectors, and asset classes that rallied into and after the election are reversing...in some cases, strongly.

Micron Technology Inc. (MU) is bidding for leadership in high-bandwidth memory (HBM) technology with mass production of its 12-stack HBM3e. The chip will position Micron as a critical supplier to Nvidia Corp. (NVDA), and further its ambition to capture a larger share of the lucrative AI-driven memory market, suggests George Gilder, editor of Gilder’s Technology Report.

It happens. An outlier event collapses the SPDR S&P 500 ETF (SPY). It could be something as innocuous as an economic report that, at other times, would hardly move the needle. But this is an occasion when patience most often pays, although you may have to wait several days to recover from this slip, notes Hugh Grossman, founder of DayTradeSPY.

The Magnificent Seven aren’t looking so magnificent anymore. In fact, they’re not even looking good.Check out the MoneyShow Chart of the Day below. It shows the year-to-date performance of the Mag 7 stocks 

Our "Reward Opportunity and Risk" (ROAR) score just dropped to 10 from 30. This means the allocation for a simple two ETF portfolio that can only be allocated to the SPDR S&P 500 ETF Trust (SPY) and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) would be 10% SPY and 90% BIL. But the real potential market trouble is more focused in the Invesco QQQ Trust (QQQ), writes Robert Isbitts, founder of Sungarden Investment Publishing.

The most significant insider activity on today’s list comes from Vimeo Inc. (VMEO), where the CEO, the CFO, the Chief Product and Technology Officer, and a Director stepped in with a collective $353,000 buy. It's rare to see four executives step in at the same time, but when it happens in clusters, it signals a strong bet from the top leadership, notes Steve Strazza, director of research at AllStarCharts.

Stocks couldn’t hold their gains yesterday, though they’re trying to stabilize (again) in the early going today. Gold and silver are selling off along with crude oil, while Treasuries are rallying strongly. The dollar is down a bit. Chipmaker Nvidia Corp. (NVDA) reports quarterly earnings tomorrow after the bell, a closely watched event that could help improve semiconductor sentiment. Investors could use it, especially today with the sector selling off further on fears of tighter Trump Administration export restrictions. Officials are trying to stop China from importing as much high-end chip-making and Artificial Intelligence (AI) technology. The VanEck Semiconductor ETF (SMH) has lost almost 7% in the last month.

Warren Buffett, legendary investor and CEO of Berkshire Hathaway Inc. (BRK.A), wants everyone to know that he remains a long-term bull on US stocks. In his annual letter to Berkshire shareholders, he appeared to be responding to the many news headlines emphasizing Berkshire’s growing cash position, writes Sam Ro, editor of Tker.co.

Sir John Templeton famously said, “If you do the same things as other people, you get the same results.” The biggest returns don’t come from headline stocks — they come from overlooked corners of the market. Let’s talk about why Safe Bulkers Inc. (SB) just passed one of my recent screens, explains Nicholas Vardy, editor of Microcap Moonshots.

After a nasty finish to last week, stocks are trying to bounce in the early going today. Gold and silver are mixed, while crude oil, the dollar, and Treasuries are flat.