Good morning!

Both the S&P 500 and the NASDAQ hit fresh all-time highs last week, following a muted November jobs report that almost assures a rate cut from the Fed at its meeting next week. This week, inflation data is in focus with the release of CPI numbers for November. Here's what's happening...

• Q3 earnings season is on the wane, but there are still a few impactful reports due this week. This morning, earnings are due from AutoZone, mem-stock darling GameStop, Academy Sports, and Dave & Buster's, followed Wednesday by the biggest name of the week, Adobe. Thursday numbers are expected from Broadcom, Costco, Lennar Corporation, and Polestar Automotive, followed by a very light Friday. *

• Wednesday's CPI (Consumer Price Index) report for November is expected to remain steady, extending a core CPI month-over-month streak of 0.3% to 4 months (core CPI excludes food and gas prices). That would keep the annual core CPI unchanged at 3.3%. The Fed's target inflation is 2%, as measured by core PCE inflation, which corresponds to approximately 2.5% for core CPI inflation. Wall Street would love to see that Core CPI number come in below expectations at 0.2%, which would cement a .25% rate cut at next week's Fed meeting and likely spur a nice "Santa Claus rally" in the markets. **

• A week after the Biden administration implemented another round of semiconductor export restrictions, China has now opened an antitrust investigation into chip giant NVIDIA, escalating tensions between Beijing and Washington over artificial intelligence dominance. The probe's issue is with NVIDIA's 2020 acquisition of Mellanox, an Israeli computer networking equipment maker, which the Chinese government thinks may have violated Beijing's anti-monopoly rules. The probe against the most important US chipmaker also comes ahead of Donald Trump's return to the White House next month. Trump has threatened increased tariffs as part of his policy. NVIDIA's stock slipped 3% Monday after the announcement of the probe, but is still up almost 190% so far this year. *** 

The financial advisors at Miramontes Capital diligently keep up with anything that can impact our clients' finances and tap into more than 175 years of combined investment experience. We do our all to keep your money protected and growing. If you think you might benefit from our financial experience and oversight, contact us today for a FREE, no-obligation consultation. Just call (800) 460-1595. Until next week...

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