Remy is joined by Brian Jacobson, Chief Economic Strategist at Annex Wealth Management. Brian discusses the mixed economic data that has emerged recently, including a modest increase in retail sales and signs of labor market softness. He emphasizes that while the Fed is divided, the balance of evidence leans more toward a rate cut rather than a pause.

As the holiday season approaches, Remy and Brian examine consumer sentiment, which has turned increasingly negative according to the latest Conference Board data. Despite expectations for U.S. holiday sales to surpass $1 trillion for the first time, Brian points out that this figure represents only a modest growth rate of three to four percent compared to last year. He highlights that consumers are becoming more selective in their holiday spending, focusing on fewer gifts while still seeking bargains.

The conversation then shifts to the stock market, where the S&P 500 has seen a significant gain of about 14% this year. Remy notes the historical trend of a “Santa Claus rally” during the last few trading sessions of the year and the first two of the new year. Brian shares insights on this phenomenon, suggesting that as long as the Fed does not disrupt the market with unexpected decisions, there could be positive momentum heading into the new year.

Finally, Remy and Brian address the relationship between the stock market and the broader economy, particularly in light of the recent AI investment boom. Brian explains that while the stock market is heavily influenced by AI developments, the overall economy is not as dependent on this sector. He provides a compelling analysis of how shifts in the AI landscape could impact market dynamics without necessarily jeopardizing economic stability.

Remy Blaire is joined by Larry Tentarelli, the Chief Technical Strategist at Blue Chip Daily Trend Report, to discuss the current state of the stock market as Thanksgiving approaches. The episode begins with a focus on the S&P 500, which has fully rebounded from a recent sell-off following NVIDIA’s earnings report. Remy notes that all sectors of the S&P 500 are in positive territory, with communications, services, IT, and utilities leading the gains.

Remy and Larry delve into the S&P 500’s performance, highlighting that the index is currently trading above its 50, 100, and 200-day moving averages. Larry shares his insights on the market momentum, pointing out a significant reversal in stock performance, with 88% of S&P 500 stocks rising on Friday and 84% the following day. He expresses confidence that the lows for this pullback may be behind us, estimating a 75 to 80% chance of sustained upward movement.

The conversation shifts to Alphabet, Google’s parent company, which is experiencing a surge due to its advancements in artificial intelligence (AI). In contrast, NVIDIA faces challenges amid concerns about increased competition. Larry emphasizes the importance of owning both companies, as they are leaders in the AI space. He notes that while NVIDIA has seen a pullback, Alphabet has reached new all-time highs, indicating a significant shift in the AI landscape.

As they discuss the ongoing negotiations between Google and Meta regarding tensor processing units (TPUs), Larry suggests that this is more of an adjustment in the market rather than a complete shift in dominance. He maintains that NVIDIA remains a core leader in the AI hardware race.

With the Thanksgiving holiday approaching, Remy and Larry also touch on the rising expectations for a Federal Reserve rate cut in December, with probabilities now above 82%. Larry discusses the delicate balance the Fed must maintain between political pressures and economic realities, especially given the delayed data influencing their decisions.

Remy Blaire is joined by Matt Orton, Chief Market Strategist at Raymond James Investment Management, to discuss the evolving landscape of the AI trade and broader market dynamics.

The conversation begins with a focus on NVIDIA, which recently reported impressive third-quarter earnings, achieving record data center revenue exceeding $51 billion. Despite this success, NVIDIA’s stock has seen a 7% decline over the past month. Remy and Matt explore the reasons behind this fluctuation, particularly in light of Alphabet’s recent advancements in AI, including its custom tensor processing units (TPUs) that are emerging as serious competitors to NVIDIA’s GPUs. Matt emphasizes the strong demand for artificial intelligence and suggests that the market can accommodate multiple winners, especially with increased competition from companies like Alphabet.

As they broaden the discussion, Remy highlights the significant year-to-date gains in major U.S. stock averages, largely driven by the AI trade. Matt shares his perspective on international markets, identifying Japan and India as compelling investment opportunities. He notes that Japan’s focus on AI and robotics positions it well for growth, while India, despite its recent underperformance, boasts strong GDP growth and a growing middle class that could enhance market strength in the future.

The segment also addresses concerns about market breadth, with Matt expressing that weak breadth among mega-cap stocks poses a risk to the overall market. However, he points out a positive rotation into sectors like healthcare, which could indicate a more sustainable recovery. The discussion shifts to the upcoming Federal Reserve meeting, where they analyze the implications of potential rate cuts and the importance of monitoring job growth and inflation data.