Good afternoon! The Oscars are trading red carpets for the algorithm. Starting in 2029, Hollywood’s biggest night will stream exclusively on YouTube, ending a nearly 50-year run on ABC and landing the Academy Awards on the same platform where people watch stunts, shorts, and endless scrolls.
The move comes as TV audiences keep shrinking and online attention keeps winning. The Academy says YouTube offers the largest global reach, while Disney reportedly found out about the switch just before it went public. Cue the standing ovation… from Silicon Valley.
MARKETS
Stocks caught a second wind after CPI came in cooler than expected, snapping a four-day losing streak and reviving the battered AI trade. The S&P 500, Nasdaq, and Russell 2000 all jumped as traders dusted off the “soft landing” narrative and dared to whisper about a Santa rally.
The macro backdrop helped too. Jobless claims fell by 13,000, easing fears sparked by earlier labor data, while oil climbed and gold stayed near recent highs. After a rough stretch, markets finally got a reason to exhale and they took it.
STOCKS
Winners & Losers
What’s up 📈
Trump Media exploded 41.93% after announcing a merger with fusion energy firm TAE Technologies $DJT
Rivian Automotive ripped 15.09% following a Baird upgrade and growing optimism around its R2 platform launching in 2026 $RIVN
Rocket Lab launched 11.05% after successfully completing the STP-S30 mission for the US Space Force $RKLB
Utilities (TLN / CEG / VST) spiked as power prices hit record highs in a key grid auction, boosting generators with exposure to the market $TLN $CEG $VST
SoFi climbed 4.04% after unveiling SoFiUSD, its new stablecoin aimed at commercial clients $SOFI
Lululemon popped 3.48% after activist investor Elliott disclosed a $1B stake and reportedly pushed for leadership changes $LULU
What’s down 📉
AdvisorShares Pure US Cannabis ETF cratered 26.76% as investors sold the news after Trump signed an order easing marijuana restrictions $MSOS
Insmed collapsed 16.08% after halting development of brensocatib following a failed mid-stage trial $INSM
Canopy Growth tumbled 11.98% in a classic buy-the-rumor, sell-the-news reaction to marijuana rescheduling $CGC
Birkenstock slipped 11.34% after issuing FY26 guidance that missed expectations amid tariff uncertainty $BIRK
FactSet fell 7.68% despite solid earnings, as forward guidance failed to impress $FDS
CarMax skidded 4.24% after reporting declining used-car sales in its latest quarter $KMX
Tilray Brands dropped 4.19% as cannabis stocks broadly reversed post-executive order $TLRY
AI
Micron Crushes Earnings and Revives the AI Trade
The AI trade has been tripping over itself lately, but Micron $MU ( ▲ 7.31% ) walked in and reminded everyone what real demand looks like. The chipmaker torched earnings expectations, then casually dropped guidance that made analysts check their spreadsheets twice. The result: a double-digit stock pop and a sudden mood swing across tech.
This wasn’t a one-off beat. It was Micron saying, “We’re sold out,” and the market replying, “Say less.”
When ‘Out of Stock’ Is Bullish
AI is eating memory faster than suppliers can make it. Micron says demand is so strong it can only fulfill about half to two-thirds of some customer orders, pushing gross margins toward 68%. After getting burned in the last DRAM downturn, memory producers are keeping supply tight on purpose, which means pricing power stays firmly in their corner.
Analysts don’t see relief coming anytime soon. One estimate says balance won’t return until 2027, which in chip years is basically forever.
Oracle Stumbles, Micron Steals the Mic
Not every AI name is enjoying the moment. Oracle’s $ORCL ( ▲ 7.58% ) debt-heavy infrastructure push and a scrapped $10B data center deal have rattled investors, dragging sentiment across the space. That’s made Micron’s performance stand out even more.
Wall Street noticed. JPMorgan raised its target, Bank of America upgraded the stock, and Morgan Stanley called the quarter one of the strongest beats in US semiconductor history outside of Nvidia. While some AI stories are still built on spending and hope, Micron is selling into demand it literally can’t meet. And right now, that’s exactly the kind of problem investors want.
NEWS
Market Movements
⚛️ Trump Media Merges With Fusion Startup: Trump Media announced a $6B all-stock merger with fusion energy startup TAE Technologies, instantly becoming one of the strangest deals of the year. The company says it plans to start building a utility-scale fusion plant in 2026, with Trump Media kicking in up to $300M in cash tied to regulatory milestones. Markets loved the headline, even if the business logic raised eyebrows. $DJT
🔌 EV Sales Collapse, Tesla Holds Ground: US EV sales are projected to fall 37% in Q4 after buyers rushed earlier this year to lock in tax credits. Tesla’s deliveries are expected to dip far less, meaning it’s gaining market share even as demand cools. The slowdown looks more like consolidation than crisis for the EV leader. $TSLA
🤖 OpenAI’s Price Tag Keeps Rising: Fresh reports suggest OpenAI may raise up to $100B at a valuation near $750B, just days after talk of a $10B Amazon investment. Revenue is projected to soar, but so is spending, with cash burn expected to top $100B this decade. Investors seem unfazed, betting OpenAI remains the center of the AI universe. $AMZN
📺 Streaming Viewers Downgrade, Not Quit: Netflix and Disney are seeing users shift from ad-free plans to cheaper ad-supported tiers as prices rise. Ad tiers now account for nearly all subscriber growth and often generate more revenue per user. Loud ads, lower prices, and higher margins are quietly becoming the streaming norm. $NFLX $DIS
🚙 Rivian Surges on Software and R2 Optimism: Rivian jumped after an analyst upgrade and the rollout of a new hands-free driving feature for highways. While not full autonomy, the update signals growing software ambition ahead of the R2 platform launch in 2026. Investors are warming to signs of execution after a tough year. $RIVN
🛒 FTC Probes Instacart’s AI Pricing Tools: Instacart slid after reports that the FTC opened an investigation into whether its AI pricing software causes shoppers to pay different prices for the same groceries. Regulators are examining Eversight, an AI platform Instacart bought in 2022 that tests price variations to boost retailer margins. Instacart says prices are controlled by retailers, but the timing adds fresh regulatory risk. $CART
🚗 CarMax Sales Slide as Carvana Closes In: CarMax fell after reporting another quarter of declining used-vehicle sales, even though earnings beat expectations. Comparable-store sales dropped 9%, and management plans to cut margins to reignite demand. Meanwhile, analysts expect Carvana to overtake CarMax in retail sales by 2026. $KMX $CVNA
⚡ GE Vernova Gets Another Vote of Confidence: GE Vernova rallied after Jefferies upgraded the stock, citing stronger gas turbine pricing and long-term service revenue visibility. Analysts see AI-driven power demand as a durable tailwind, even after the stock’s massive run this year. The price target hike implies more upside ahead. $GEV
⚡ Power Prices Hit Records, Utilities Win: Electricity prices cleared at an all-time high in PJM’s latest capacity auction, sending utility stocks sharply higher. Data center demand tied to AI is overwhelming supply, locking in higher payments for power generators. Consumers may feel the pain later, but investors are cheering now. $TLN $CEG $VST
🌿 Cannabis Rescheduling Sparks Volatility: President Trump signed an order accelerating marijuana’s move to Schedule III, easing taxes and regulatory burdens for US cannabis operators. Despite the long-term positive implications, cannabis stocks sold off in a classic sell-the-news reaction. Rescheduling helps margins, but banking and legalization hurdles remain. $MSOS $TLRY $CGC $CRON $SNDL
MARKETS
Coinbase Pushes Beyond Crypto With Stocks and Prediction Markets
Coinbase $COIN ( ▲ 1.96% ) wants to be more than a place to trade Bitcoin. The crypto exchange said it’s launching commission-free stock and ETF trading in the US, alongside prediction markets, as it leans harder into becoming what it calls an “everything exchange.” Shares moved higher as investors warmed to the idea of Coinbase stepping deeper into traditional brokerage territory.
Users will be able to trade stocks and ETFs directly inside the Coinbase app, funded with either US dollars or USDC. That puts Coinbase in more direct competition with incumbents like Robinhood $HOOD ( ▲ 4.52% ) , but with a crypto-native twist baked in.
Prediction Markets Enter the App
Coinbase is also rolling out prediction markets through a partnership with Kalshi, a CFTC-regulated platform. Users will be able to trade yes-or-no contracts tied to elections, sports, and economic data, settling positions in dollars or USDC.
The timing makes sense. Prediction markets have surged in popularity over the past year after courts cleared the way for election-related contracts. Coinbase is entering a crowded space that already includes Gemini, Crypto.com, and Robinhood, but its built-in crypto user base gives it a head start.
From Exchange to Fintech Platform
Stocks and prediction markets are just part of the expansion. Coinbase also unveiled new products including Coinbase Business, custom-branded stablecoins, an AI-powered financial advisor, and Coinbase Tokenize, an institutional platform aimed at enabling 24/7 on-chain trading of tokenized assets.
The strategy is diversification. Crypto trading volumes are volatile, and Coinbase wants steadier revenue streams. Investors seem open to the shift, betting that Coinbase’s future may look less like a pure crypto exchange and more like a full-blown fintech super-app.
ECONOMY
Inflation Finally Cools, Markets Breathe Again
Inflation may finally be losing its grip. November’s delayed CPI report showed prices rising 2.7% year over year, below expectations and slower than September’s pace. Core inflation cooled to 2.6%, the lowest reading since early 2021, and stocks wasted no time celebrating, with the S&P 500 and Nasdaq logging their best CPI day since January.
Good News, With an Asterisk
The excitement comes with fine print. The report was distorted by the government shutdown, which wiped out October CPI data and forced the Bureau of Labor Statistics to lean on estimates. That makes it harder to tell whether inflation is truly trending lower or just taking a statistical breather.
Markets seem cautiously optimistic. Rate-cut expectations for January barely budged, suggesting investors like the direction of travel but aren’t ready to crown victory. For now, inflation isn’t dead — but it’s finally starting to look tired.
CALENDAR
On The Horizon
Tomorrow
The data blitz is wrapping up with a softer finish. Tomorrow’s calendar features existing home sales and the University of Michigan’s final December read on consumer sentiment, two pulse checks on housing and how Americans are feeling about the economy after a noisy week of numbers.
On the earnings front, it’s a mixed bag. Carnival, Paychex, Conagra Brands, and Lamb Weston are all set to report, giving investors a look at everything from cruising demand to payrolls and frozen fries.
RESOURCES
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