Daily Game Plan

TODAY’S GAME PLAN:  from the trading
desk, this is not research

TODAY’S ECONOMIC DATA:   No major releases scheduled

Highlights and News:  

• US Mounts Strike Against ISIS Targets in Nigeria
• KREMLIN SAYS RUSSIA, US AGREED TO CONTINUE DIALOG: IFX
• Zelenskiy is expected to travel to Florida this weekend, where Trump is spending the Christmas break
• China imposed sanctions on 20 US defense equipment makers
• Hundreds of flights were canceled at New York’s major airports with heavy snow expected in NYC
• A single Powerball ticket sold in Arkansas won the second-largest US lottery jackpot on record

Global stocks inched higher, extending their year-end rally in thin trading, driven by optimism over economic growth and expectations for improved corporate earnings.
Markets are closed in Australia, Austria, Belgium, Bulgaria, Canada, China A Shanghai, China A Shenzen, China B Shenzen, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Indonesia, Ireland, Italy, Kenya,
Lithuania, Luxembourg, Netherlands, New Zealand, Nigeria, Norway, Poland, Portugal, Romania, Slovenia, South Africa, Spain, Switzerland, and the United Kingdom. China’s foreign ministry announced sanctions targeting 10 individuals and 20 US defense firms,
including Boeing’s St. Louis branch, over arms sales to Taiwan. Companies targeted include Northrop Grumman Systems Corporation and L3Harris Maritime Services. Putin said that he might be open to swapping some territory controlled by Russian forces in Ukraine
but that he wanted the whole of Donbas, the Kommersant newspaper reported.
Zelenskiy said he agreed to meet with Trump in the near future, following a “very good conversation” with envoys Steve Witkoff and Jared Kushner, aiming toward an end of Russia’s
war. The US launched a military strike against ISIS targets in Nigeria, collaborating with the African nation’s government to combat increasing terrorist attacks.

EQUITIES: 

US equity futures are little changed after the S&P 500 finished Wednesday at a record high. The “Santa Claus Rally” is traditionally seen as taking place on the final five trading sessions
of a year and the first two of the new one. The S&P 500 Index gained on Wednesday for a fifth day in a shortened session ahead of the Christmas holiday, while the VIX fell to the lowest level this year. Risk appetite has been boosted toward year-end even as
stronger-than-expected US economic growth data scaled back bets on near-term rate cuts. Nvidia agreed to a licensing deal with artificial intelligence startup Groq, furthering its investments in companies connected to the AI boom. Hundreds of flights have
been canceled at New York’s major airports as a significant winter storm descends on the city and neighboring regions.

Futures ahead of the bell: E-Mini S&P -0.02%, Nasdaq +0.05%, Russell 2000 -0.2%, DJI -0.1%.

In pre-market trading, Miners including Coeur (CDE) and Freeport (FCX) are higher as gold, silver and platinum jumped to all-time highs and copper surged to a record
in Shanghai. Biohaven (BHVN) drops 15% after a mid-stage study of the company’s experimental drug BHV-7000 for the treatment of major depressive disorder missed the primary endpoint. Coupang (CPNG) gains 5.6% after Yonhap News reported the e-commerce company
has identified the former employee who allegedly accessed personal data of 33 million customers.

Euro-zone markets still closed.

Shares in Asia extended gains for the week, helped by advances in Japan, Taiwan and South Korea. The MSCI Asia Pacific Index climbed 0.2% for its best week since November.
Tech shares traded higher, amid a year-end rally in US peers, with Samsung Electronics rising to an all-time high. Samsung and SK Hynix will begin mass production of chips in February that will be used by Nvidia, local media reported. Japanese stocks rose
as tech shares and exporters bolstered the indexes, while buying in dividend names also lifted shares. Mainland China shares rose, with gains in stocks related to solar, precious metals, lithium batteries and new energy vehicles boosting the gauge. Markets
in Hong Kong, Australia and Indonesia remained closed for a holiday. Nikkei 225 +0.7%, Taiwan +0.65%, Kospi +0.5%, Philippines +0.4%, CSI 300 +0.3%. Sensex -0.4%, Thailand -0.4%, Vietnam -0.75%.

FIXED INCOME: 
 

Treasuries are narrowly mixed as US trading resumes following Thursday’s US holiday. Yields are back within a basis point of Wednesday’s closing levels after small
increases during Asia session, when some of the day’s gains were briefly erased. 10-year yield is flat at 4.13% while 2-year yield is -1bp. 2s10s +1bp, 5s30s +2 bp.

METALS: 

Gold and silver jumped as escalating geopolitical tensions and dollar weakness helped extend a historic rally for precious metals. Silver surged past the $75 level
for the first time, while gold and platinum also climbed to record highs, as expectations for US interest rate cuts and heightened geopolitical concerns drove strong investor demand. All precious metals are headed for weekly gains, with platinum recording
its strongest weekly rise on record. Spot gold +0.7%, Silver +3.7%, Copper futures +3.0%.

ENERGY:   

Oil prices are steady, on track for their largest weekly increase since late October, driven by a partial US blockade on Venezuelan crude exports and a US airstrike
targeting Islamic State militants in Nigeria at the request of the government. The White House has directed US military forces to enforce a “quarantine” on Venezuelan oil shipments for at least the next two months, signaling that Washington currently prefers
economic pressure over military action to influence Caracas. Brent traded briefly above $62 a barrel, rising more than 3% this week, while WTI held over $58. Brent crude remains on track for the biggest annual decline since 2020 with a 16% slide. The drop
has been driven by expectations for a surplus, with virtually all of the world’s major crude traders foreseeing a global glut next year. WTI +0.02%, Brent -0.1%, US Nat Gas +2.9%, RBOB -0.4%.   

CURRENCIES: 

In currency markets, the yen weakened against all Group-of-10 peers after a report showed Tokyo’s inflation cooled more than expected as pressures from food and energy
prices faded. Strategists at JPMorgan and BNP see the yen weakening to 160 or beyond by the end of 2026 amid weak fundamentals, the BOJ’s cautious policy approach and fiscal-driven inflation risks. Meanwhile, China set the yuan’s daily reference rate at a
level that was below market estimates by a record margin, in the latest sign of policymakers’ intention to slow the currency’s appreciation. US$ Index +0.05%, GBPUSD -0.05%, EURUSD -0.02%, USDJPY +0.3%, AUDUSD is flat, NZDUSD -0.25%, USDCHF +0.15%, USDCAD
+0.05%, USDSEK +0.1%, USDNOK +0.1%.

Spot Bitcoin +0.9%, Spot Ethereum +0.8%. 

Colors within the report:
Green is always the 200 period (day, week).
Red is always 21,
Blue = 50,
Brown =
100 *Stars have added importance 

• Upgrades
• Costco (COST) Raised to Buy at Northcoast; PT $1,100
• New Oriental Education (EDU) ADRs Raised to Buy at SWS Research
• Downgrades
• Can-Fite BioPharma (CANF IT) ADRs Cut to Hold at D. Boral Capital LLC
• Comstock Inc (LODE) Cut to Market Perform at Noble Capital Markets
• Dynavax (DVAX) Cut to Market Perform at William Blair
• GDI Integrated (GDI CN) Cut to Market Perform at Raymond James
• Cut to Sell at TD Cowen; PT C$36.60
• KB Home (KBH) Cut to Market Perform at Raymond James
• Spire Global (SPIR) Cut to Neutral at Alliance Global Partners; PT $9
• Initiations
• Hyperion DeFi Inc (HYPD) Rated New Buy at Chardan Capital Markets
• Hyperliquid Strategies (PURR) Rated New Buy at Chardan Capital Markets
• Johnson & Johnson (JNJ) Reinstated Add at CTBC Securities; PT $230
• KLA Corp (KLAC) Reinstated Buy at William O’Neil
• Walmart (WMT) Rated New Outperform at CICC; PT $125
• YPF (YPFD AR) ADRs Rated New Buy at Banco Mariva; PT $43.10

Data sources: Bloomberg, Reuters, CQG

David Wienke