Stocks Sharply Lower into Final Hour on New China AI Model Ramification Speculation, Tariff Uncertainty, Profit-Taking, Tech/Construction Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Heavy
  

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 18.1 +21.6%
• S&P 500 Intraday % Swing .91 +40.4%.
  
• Bloomberg Global Risk On/Risk Off Index 71.8 -4.2%

• Euro/Yen Carry Return Index 181.2 -.9%

• Emerging Markets Currency Volatility(VXY) 8.3 +2.2%

• CBOE S&P 500 Implied Correlation Index 13.5 +13.4% 

• ISE Sentiment Index 163.0 -7.0 points
  

• Total Put/Call .92 +19.5%

• NYSE Arms 1.14 +11.7%
  
• NYSE Non-Block Money Flow +$12.7M 
  

Credit Investor Angst:

• North American Investment Grade CDS Index 49.1 +2.2%
  

• US Energy High-Yield OAS 280.9 +2.2%
• Bloomberg TRACE # Distressed Bonds Traded 166 -18
  

• European Financial Sector CDS Index 60.7 +2.1%
  
• Deutsche Bank Subordinated 5Y Credit Default Swap 144.9 +1.4%
  

• Italian/German 10Y Yld Spread 110.0 basis points unch.
  

• Asia Ex-Japan Investment Grade CDS Index 76.5 +3.5%
  

• Emerging Market CDS Index 159.9 +2.3%
• Israel Sovereign CDS 87.9 +1.4%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 24.01 +.02%

• 2-Year SOFR Swap Spread -16.5 basis points -.5 basis point
  

• 3M T-Bill Treasury Repo Spread 4.0 basis points -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.5 -1.0 basis point
  
• MBS  5/10 Treasury Spread 136.0 -1.0 basis point
  
• Bloomberg CMBS Investment Grade Bbb Average OAS 605.0 -4.0 basis points
  
• Avg. Auto ABS OAS 44.0 +1.0 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 37.18 -.27%
• 3-Month T-Bill Yield 4.29% -3.0 basis points
  

• China Iron Ore Spot 103.2 USD/Metric Tonne -.4%
• Dutch TTF Nat Gas(European benchmark) 47.8 euros/megawatt-hour -3.7%

• Citi US Economic Surprise Index 9.6 -9.1 points
  

• Citi Eurozone Economic Surprise Index -4.0 +20.9 points

• Citi Emerging Markets Economic Surprise Index 7.2 -.7 point
• S&P 500 Current Quarter EPS Growth Rate YoY(79 of 500 reporting) +16.0% -2.9 percentage points
  
• S&P 500 Blended Forward 12 Months Mean EPS Estimate 274.84 +.56:  Growth Rate +15.4% +.3 percentage point, P/E 21.8 -.4
  
• S&P 500 Current Year Estimated Profit Margin 12.26% +1.0 basis point
  
• NYSE FANG+ Current Quarter EPS Growth Rate YoY(1 of 10 reporting) +97.6% unch.
  
• NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 399.65 +1.02: Growth Rate +27.8% +.7 percentage point, P/E 33.4 -1.1
  
• Bloomberg US Financial Conditions Index .88 +1.0 basis point
  
• Bloomberg Euro-Zone Financial Conditions Index 1.83 +7.0 basis points
  
• US Yield Curve 33.25 basis points (2s/10s) -1.75 basis points
  
• US Atlanta Fed Q4 GDPNow Forecast +2.99% unch.
  
• US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 27.0% +3.6 percentage points
  

• Cleveland Fed Inflation Nowcast Core PCE YoY +2.83% unch.: CPI YoY +2.84% unch.
  
• 10-Year TIPS Spread 2.40 -5.0 basis points
  
• Highest target rate probability for March 19th FOMC meeting: 68.1% (-4.3 percentage points) chance of 4.25%-4.5%. Highest target rate probability for May 7th meeting: 47.4%(-5.4 percentage points) chance of 4.25%-4.5%. (current target rate is 4.25-4.5%)
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -475 open in Japan 
• China A50 Futures: Indicating +33 open in China

• DAX Futures: Indicating +170 open in Germany

Portfolio:

• Lower: On losses in my utility/tech/industrial sector longs
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  
• Market Exposure: Moved to 50% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Growth -3.2%
  

Sector Underperformers:

• 1) Semis -9.9% 2) Construction -8.6% 3) Networking -8.6%

Stocks Falling on Unusual Volume: 

• BSTZ, ARLP, TGLS, ET, USAC, MMYT, ASML, RMBS, PDX, WMB, HUBB, KMI, AR, DLR, EQT, DELL, ECG, BWXT, SOFI, CCJ, MU, TSM, ORCL, APH, ONTO, CAMT, AAON, ETN, NVT, LB, PRIM, MTZ, NVDA, EME, TSEM, AGX, TAC, AVGO, MRVL, MIR, CEG, TLN, CIEN, GEV, STRL, FIX, ANET, PSIX, COHR, LITE, SMTC, MOD, SEI, CLS, NNE, BE, FN, VST, SMR, OKLO, VRT, ALAB, CRDO, CORZ and NBIS
  

Stocks With Unusual Put Option Activity:

• 1) NXE 2) AHCO 3) NBIS 4) BE 5) UEC
  

Stocks With Most Negative News Mentions:

• 1) VRT 2) VST 3) CEG 4) OKLO 5) GEV
  

Sector ETFs With Most Negative Money Flow:

• 1) XLV 2) VHT 3) XLE 4) XLI 5) COPX

Charts:

• ETFs Falling on Unusual Volume
• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Small-Cap Value unch.
  

Sector Outperformers:

• 1) Homebuilding +2.5% 2) Pharma +2.3% 3) Healthcare Providers +2.3%

Stocks Rising on Unusual Volume:

• AKRO, LGTY, EVER, TREE, TITN, QNST, T, OI, AVNS, PTLO, RKT, SBAC, AWK, HCA, ASAN, NICE, KBH, HUBS, SMPL, YELP, WMG, CRM, SMG, BLDR, ED, MCY, XPEV, BTI, EDU, CCI, ZIM, MTN, AAPL, BUR, WSBC, PEP, PLYM, BRBR, JNJ, BOH, PII, GTY, ABT, EBC, FWRD, AZPN, MAA, MRTN, LEN, MIDD, PRGS, LAD, AEP, GSK, FBIN, BC, FE, MNST
  

Stocks With Unusual Call Option Activity:

• 1) HOLO 2) HOG 3) VRT 4) CIEN 5) DBI

Stocks With Most Positive News Mentions:

• 1) AKRO 2) JG 3) DADA 4) ETNB 5) LGTY
  

Sector ETFs With Most Positive Money Flow:

• 1) XLK 2) XLF 3) SMH 4) VGT 5) IGV
  

Charts:

• ETFs Rising on Unusual Volume
• Stocks Rising on Unusual Volume

Tomorrow's Earnings/Economic Releases of Note; Market Movers

Earnings of Note 
Company/Estimate 

Before the Open:

• (BA)/-2.72
• (CVLT)/.87
• (GM)/1.82
• (IVZ)/.47
• (JBLU)/-.29
• (KMB)/1.51
• (LMT)/6.62
• (NEP)/.70
• (PCAR)/1.69
• (PII)/.89
• (PGR)/3.57
• (RCL)/1.50
• (RTX)/1.38
• (SAP)/1.40
• (SYY)/.92
  

After the Close: 

• (BXP)/1.80
• (CB)/5.44
• (FFIV)/3.36
• (MANH)/1.06
• (SBUX)/.67
• (SYK)/3.87
  

Economic Releases

8:30 am EST

• Durable Goods Orders for Dec. is estimated to rise +.6% versus a -1.2% decline in Nov.
• Durables Ex Transports for Dec. is estimated to rise +.3% versus a -.2% decline in Nov.
  
• Cap Goods Orders Non-Defense Ex-Air for Dec. is estimated to rise +.3% versus a +.4% gain in Nov.
  

9:00 am EST

• The FHFA House Price Index MoM for Nov. is estimated to rise +.3% versus a +.4% gain in Oct.
• The S&P CoreLogic CS 20-City MoM SA for Nov. is estimated to rise +.3% versus a +.32% gain in Oct.
  

9:30 am EST

• The Dallas Fed Services Activity Index for Jan.
  

10:00 am EST

• The Conference Board Consumer Confidence Index for Jan. is estimated to rise to 105.7 versus 104.7 in Dec.
• The Richmond Fed Manufacturing Index for Jan. is estimated to fall to -12 versus -10 in Dec.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Atlanta Fed GDPNow 4Q update, 7Y T-Note auction, M2 money supply report for Dec., weekly US retail sales reports, weekly API crude oil stock report, (HRL) annual meeting, (BRBR) annual meeting, (V) annual meeting and the (BDX) annual meeting could also impact global trading tomorrow.

US Equity Market Hours

• 9:30 am - 4:00 pm EST

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +40.0% Above 100-Day Average 
• Nasdaq/NYSE Volume Ratio 13.6 +.5
  
• 7 Sectors Declining, 4 Sectors Rising
• 55.4% of Issues Advancing, 43.2% Declining 
• TRIN/Arms 1.12 +9.8%
  
• Non-Block Money Flow -$2.8M
  
• 73 New 52-Week Highs, 15 New Lows
• 56.2% (-.5%) of Issues Above 200-day Moving Average
• Average 14-Day RSI 63.0 -2.4
  

Other:

• Bloomberg Global Risk-On/Risk-Off Index 71.1 -5.2%
• Bloomberg Cyclicals/Defensives Index 256.9 -.3%
  
• Russell 1000: Growth/Value 20,790.5 -3.1%
• CNN Fear & Greed Index 39.0 (FEAR) -7.0
  
• 1-Day Vix 13.2 +46.6%
  
• Vix 18.5 +24.7%
  
• Total Put/Call .95 +23.4%

Monday Watch

Today's Headlines

Bloomberg:        

• Israel’s Ceasefire Deals Face Test With Gaza Refugee Impasse. 
• China’s Emissions Rose in 2024 on High Energy Growth, CREA Says.
• Latvia, Sweden Investigate as Baltic Sea Data Cable Damaged. 
• German Election Taboos Broken as Merz and Musk Flirt With AfD. 
• UK Firms See Biggest Hit to Output and Profit Since Pandemic.
• Macron’s Approval Rating Drops to Record Low in Ifop Poll.
• Currency Volatility Set to Wipe Out Emerging-Market Carry Trades. 
• Asian Stocks Up Early as Tariffs Remain in Focus.
• Oil Declines as Trump’s First Trade Curbs Undermine Sentiment.
• Bond Traders Shift Focus to Fed as Trump Shadows the Outlook.
• Vance Says Big Tech Still ‘On Notice’ in Clash Over Free Speech.
• Trump Seizes Wartime Powers in Battle for More Fossil Fuels.
• Will Sports Betting Force the NFL to Fix Its Bad Calls?
• Tech’s $15 Trillion Rally Hinges on High-Stakes Earnings Stretch. 
• Five Key Charts to Watch in Global Commodity Markets This Week.

Zero Hedge: 

• Colombia Offers Presidential Plane To Repatriate Illegal Aliens After Trump Slaps Country With Sweeping Sanctions.
• Crank Your Amps To 11.
• Watch: Angry Migrant Mob Blocks Dallas Traffic In Protest Of ICE Raids.
• The Algorithmic Age.
• Trump Fires 'Virtually Worthless' Inspectors General, Liz Warren Freaks Out Over 'Purge'.
• Weekend News Round Up - Newsquawk Asia-Pac Market Open.
• NATO, Sweden, Latvia On High Alert After Baltic Undersea Data Cable "Damaged".
• Hartnett: These Are The 10 Biggest Themes In The Next 5 Years.
• DOJ Asks Supreme Court To Freeze Student Debt, Environmental Cases.
• Goldman Finds "More Nuclear & Fewer EVs" As Trump Supercharges Powering Up America Theme.
• Stockman: America's Fiscal Doomsday Machine Must Be Stopped.
• This Is The Income Needed To Raise A Family In Each US State.
• Trump And Newsom Prepare To Battle Over Wildfire Relief.
• Trump Calls For Jordan, Egypt To Take More Palestinian Refugees, "Clean Out" Gaza.
• Democrats Threaten "Righteous Litigation" Over Trump's Shutdown Of DEI Offices.
• Davos Post Mortem: The US Vibe Shift Goes Global.
• "Screaming Eagles" Deployed To US Border As Race To Repair National Security Intensifies.
• Rebuilding American Manufacturing: It's Not Just Plants, It's People.
• New Documents: Hunter Biden's Name, Signature Tied To $60 Million Fraud Investigation.
• Trump Administration Puts Immediate Pause On FDA, CDC, & HHS Reports And Posts.
• Massachusetts Governor Says She Won't Obstruct ICE Efforts To Deport Criminals, But Cops Won't Help.
• US Army's Next-Gen Hybrid Tactical Vehicle To Replace Humvee Tested In Germany.
• Why Greenland Matters: US Strategy In The Changing Arctic.
• Rubio Tells Chinese Counterpart That US Interests Come First.
• 59% Of Americans Don't Have Enough Savings For A $1,000 Emergency: Report.

Wall Street Journal:

• How DEI Conquered the University of Colorado.
• Trump 47 Brings a Long Awaited Spring for Businesses.
• President Tries to Forge ‘Golden Age’ Economy of Self-Reliance, Defiance.
• America Has Fallen in Love With Long-Shot Sports Bets.
• Officials Waste No Time in Justice Department’s Rightward Shift.
• Five Takeaways From Bill Gates’s Interview With The Wall Street Journal.
• Meta’s Free-Speech Shift Made It Clear to Advertisers: ‘Brand Safety’ Is Out of Vogue.
• What Will It Take for Home Buyers to Start Asking for a Disaster Discount?
• Now Wanted in Silicon Valley: Ho-Hum Businesses With Thin Profit Margins.
• The CIA Wakes Up About Covid’s Origin.

CNBC:  

• Asia-Pacific markets open higher as investors await China PMI and industrial profits data.
• Meta offers creators deals to promote Instagram on TikTok, Snapchat and YouTube Shorts.
• After the wildfires: What a long rebuilding process will look like for Los Angeles homeowners.
• After TikTok, the WiFi router in your home may be next Chinese tech ban target.
• White House reportedly in talks to have Oracle and U.S. investors take over TikTok.
• Universal Music Group and Spotify strike new agreement.
• Top Wall Street analysts recommend these dividend stocks for stable returns.

MarketWatch.com:  

• Trump vs Powell: Who will drive the stock market as the Fed holds its first meeting of the year?  
• Big tech is spending billions on AI. How much time will Wall Street allow for the payoff?

NewsMax:

• Trump Reveals Evolving Plan to 'Just Clean Out' Gaza.
• Trump Urges USAID to Put 'America First'.
• Trump: 'Going to Deliver' for Tip-Earning Men, Women.

Fox News:

• Trump hits back at nation refusing deportation flights for its own citizens that snuck into US.
• Marco Rubio secures first win as secretary of state under Trump admin.
• One of Trump's early fulfilled promises already saved $420 million in taxpayer funds.
• Forget 'Girls Gone Wild' — why it's all about the classier 'Girls Gone Bible' now. 
• READ IT: Defense Secretary Hegseth sends clear message about DEI at the Pentagon.
• National anthem at NFC Championship game has fans feeling patriotic.

TheGatewayPundit.com:

• TDS in Full Swing: CNN’s Kate Bolduan Struggles with Reality as Colleague Reveals Trump’s Historic Approval Surge in Second Term — “I Have a Really Hard Time Believing This”.
• Vice President Vance Shuts Down Margaret Brennan with a Devastating Reality Check When She Asserts Refugees Allowed into America Under Biden Were “Heavily Vetted” (VIDEO).
• WATCH: RINO Senator Lindsey Graham Calls Trump’s J6 Pardons a “Mistake” – Compares J6ers to BLM Rioters and “People Burning Down Minneapolis”.
• Barack Obama Spotted at Ritzy DC Restaurant without Michelle Amid Divorce Rumors (VIDEO).
• Italy Restarts Program Shipping Illegal Migrants to Albania for Processing and Repatriation – PM Meloni in Saudi Arabia to Sign Strategic Partnership Agreements With the Kingdom.
• Trump’s Deportation Forces Raid Makeshift Nightclub in Denver, Colorado: Drugs, Weapons, Cash Seized – 50 Illegal Aliens Linked to Venezuelan Tren de Aragua Gang Taken into Custody.
• JUST IN: Trump FIGHTS BACK Against Colombia Blocking Illegal Alien Flights – Announces 50% Tariffs, Travel Ban, Visa Revocations, Sanctions, and Enhanced Border Inspection of Colombians and Their Cargo.
• WATCH: Vice President JD Vance Expertly Schools Far-Left Face the Nation Host Margaret Brennan with a Simple Economic Lesson When She Asks a Gotcha Question on Grocery Prices.
• War Room Founder Steve Bannon on the Establishment: “They Wanted Trump to Die in Prison” (VIDEO).
• Vice President JD Vance Delivers a Stinging Message to Catholic Bishops Whining About the Trump Administration Greenlighting ICE Raids in Churches (VIDEO).
• MUST SEE: First Lady Melania Trump Consoles California Fire Victims Speaking in Their Native Language of Slovenian (VIDEO).
• Marco Rubio Exposes Biden Regime’s Cover-Up: Taliban Holds More American Hostages Than Reported — Calls for Massive Bounties on Their Leadership.
• New York RINOs are Trying to STEAL the Upstate Congressional Seat Being Vacated by Elise Stefanik.
• Pfizer Agrees to $60 Million Settlement in Kickback Scandal for Allegedly ‘Bribing’ Doctors to Promote Migraine Drug — Defrauding Medicare and Other Federal Health Programs.
• AOC Sends Her Supporters Bizarre Fundraising Email, Compares Elon Musk and Republicans to Nazis.

The Epoch Times:

• Missouri Takes CCP to Court for $25 Billion Over Hoarding of COVID-19 Protective Equipment.
• TikTok Alternative Rednote Shares Similar Security Risk, Expert Says.

Around X:

• @elonmusk

• DROWNING IN RED TAPE: AMERICA’S BUREAUCRACY IS OUT OF CONTROL. Unelected bureaucrats hold a lot of power in America, strangling personal and business ventures in endless rules and paperwork. Congress writes the laws, but it’s the administrative state that decides how they’re enforced—and it’s a nightmare.
• A man who’s in our country illegally was artested in FL after killing a 6-year-old boy while driving under the influence. It’s his 3rd DUI. He now has an ICE detainer hold. Reminder that 150 Democrats voted against deporting illegals for DUIs. (video)
• There is massive fraud in the federal entitlements programs. Worse than you could possibly imagine.

• @matt_vanswol
  

• I JUST DROVE PAST THE ARMY CORPS OF ENGINEERS IN WESTERN NORTH CAROLINA!!!!! THEY ARE BACK!!!!!! HOLY CRAP, PRESIDENT TRUMP KEPT HIS PROMISE!!!!!!!!!!! (video)

• @TomFitton

• SMOKING GUNS: Fauci did it. We found the documents on his agency funding creation of coronavirus "MUTANTS" in Wuhan -- Gain of Function, 101. Here are the receipts from: (video)

• @WallStreetApes

• American Citizen overstayed her 180 tourist visa in Mexico. She was stopped on a bus coming back from a concert, taken to an immigration office and she documents herself being forced deported by Mexico back to America. Democrats don’t want you to see other countries, especially Mexico, enforcing immigration policies. Every country is allowed to enforce this but America. (video)
• We need Donald Trump and Tom Homan to focus on Colony Ridge. ““It's a 60 SQUARE MILE CITY of illegal aliens in the middle of Texas — Roughly the size of Washington DC”. “Colony Ridge is home to more than 75,000 illegals and recent reports say that number could easily swell to 200,000”. “That is absolutely vast. I've been up there over and in a helicopter — it's to the horizon. You can't even see the end of this thing”. “The developer's been selling land marketed to illegal aliens”.
  

• @robbystarbuck
  

• I don’t think most US Senators realize yet how hard the base is willing to fight for RFK Jr to be confirmed. It’s time to start making calls and sending emails to every Senator. If they don’t confirm him, it’s because Big Pharma owns them. Contact info: (pic)
  

• @BehizyTweets

• Deputy Chief of Staff Stephen Miller says the administration will expose the child trafficking that's been happening at the border & everyone involved. "This administration is going to investigate every instance of child trafficking, labor trafficking, s*x trafficking, child smuggling, and all the attendant crimes involved in that." "Our message to everyone in the country is to cooperate fully with Immigration and Customs Enforcement so that we can end the scourge of child trafficking and child abuse that has been endemic these last four years." (video)
• The Uniparty stole three Senate seats, so we'll have to spend four years getting undermined by bums like Susan Collins, Lisa Murkowski, and Mitch McConnell. Kari Lake should be a Senator. Eric Hovde should be a Senator. Sam Brown should be a Senator.

• @VigilantFOX
  

• WHOOPSIE: A resurfaced video shows MSNBC’s Joe Scarborough expressing EMPATHY for RFK Jr.'s belief that vaccines can cause autism. Scarborough said, “Parents would CONSTANTLY come to me, and they'd bring me video tapes of their [formerly healthy] children. And they're all about the age of my son or younger. Something happened in 1989!” RFK Jr.'s Senate confirmation hearing begins on Wednesday. It's strange how the mainstream media never airs segments like this anymore. (video)

• @MJTruchUltra
  

• Oh my God… What is going on in Los Angeles? Someone sent me coordinates to look into and when I punched them in, there are tons of SOS messages that can be seen from satellite imagery. • HELP • TRAFFICO • FEDERAL • TERRORISMO DOS • LAPD This is what appears to be a construction site near the Twin Towers correctional facility. (video)
• Fake Reverend Al Sharpton warns Donald Trump that he will Boycott any company that doesn’t support DEI. He gave people $25 to go shopping at Costco because Costco came out and said they won’t back down…. —— they will keep hiring people based on the color of someone’s skin or regardless of their skill. Know what that means? BOYCOTT COSTCO… (video)
• BREAKING: The C.I.A, now under the control of John Ratcliffe, determines the Covid Pandemic Began from a Lab Leak. The C.I.A. denied this for years… Now we know why Anthony Fauci was pardoned for all crimes after Jan 2014. Because gain of function began in 2014 and he is likely guilty of creating the virus that caused a world-wide pandemic. (pic)
• President Trump Announces a Game-Changing Executive Order to Bring Water to California. I strongly recommended it 7 years ago… but now I’m just gonna do it. "I'm signing an Executive Order to open up the pumps and the valves in the north. We want to get that water pouring down here as quickly as possible — and let hundreds of millions of gallons of water flow down into southern California." (video)

• @ShadowofEzra
  

• Between 75,000 and 80,000 of the over 300,000 missing migrant children have been located, according to Harris Faulkner on Fox News. She stated that the Trump administration's efforts to identify these children began even before the election and emphasized the importance of finding "these little ones." Faulkner blasted former Homeland Security Secretary Alejandro Mayorkas for lying to a committee about not knowing the whereabouts of these missing children. Tom Homan announced that plans to launch an operation to locate and rescue these children would begin immediately. (video)

• @BarbaraOneillAU

• DO NOT EAT anything with this label! This is a GATES founded company that uses mono & diglycerides to make you sick. (pic)

• @amuse

• SECURITY: Here is what Dr. Fauci’s $20K per day security was like. It was more chauffeur and valet than ‘security’. I’m glad Trump cut this extravagant expense for the multi-millionaire. (video)

• @MarioNawful

• NGOs FUNNELED BILLIONS OF TAX DOLLARS INTO ILLEGAL IMMIGRATION UNDER BIDEN. Turns out nonprofits weren’t just helping migrants—they were funding the crisis! These groups took billions in taxpayer money, often without oversight, to transport and house illegal immigrants. Data shows migrants processed by NGOs ended up in nearly every congressional district. Sanctuary cities were hit hardest, with taxpayers footing the bill. Under Biden, NGOs became the middlemen of illegal immigration. 
• GOODBYE, HUMAN CASHIERS? WENDY'S LAUNCHES AI DRIVE-THROUGHS IN THE U.S. Wendy’s new AI, powered by Google Cloud, is taking orders at nearly 100 locations across 19 states. The AI listens, responds, and takes orders in real time. Human workers monitor and prepare meals, and the AI can even handle Spanish orders—but mess up or request something off-menu, and a human still have to step in. (video)

• @5149jamesLi

• Newly released photos from the apartment of Suchir Balaji, anOpenAI whistleblower found dead in his apartment on November 26, 2023. The SFPD ruled it a suicide in 14 minutes. Take a look at the photos and decide yourself — suicide or murder? Warning: Graphic. (pic)

• @charliekirk11

• As ICE continues making its arrests, remember this: Democrats knew exactly where these thugs lived and the violent crimes they'd committed, but they would rather let Americans die than let a foreigner get deported. (video)

• @realJennaEllis

• Ron DeSantis saved the Pete Hegseth appointment by quickly sending Ashley Moody to fill Rubio’s seat so that Vance could break the tie!

• @rawsalerts
  

• #BREAKING: Watch as President Donald Trump announce that he intends to reassign nearly 88,000 IRS agents to border patrol duties or demand their resignation. (video)

• @Liz_churchill10

• Dr. Fauci has been committing Biological and Psychological War Crimes for DECADES. Here’s Dr. Fauci in the 1980’s stating that children can get ‘AIDS’ simply by being close to someone with ‘AIDS’. Does this sound and look familiar to you? (video)

• @LeftismForU
  

• Well known racist, anti-Semite,and grifter, Al Sharpton, leads a Costco "buy-in" to show support for Costco keeping their DEI policies. A white Costco worker attempts to join the group, to which Al Sharpton shouts at him to "stay on your side!" (video)

• @GuntherEagleman
  

• BREAKING: Mike Pence linked to a PR firm that’s trying to sink RFK’s nomination! Big Pharma isn’t too happy about the threat RFK Jr. poses. Make sure everyone sees this!

• @AndrewKerrNC

• NEW: Gavin Newsom disbanded a highly trained team of certified firefighters in early 2024 — a move that left his National Guard incapable of sending a complete firefighting force to Los Angeles until 10 days after the fires broke out. This story is wild, read this to the end.

• @teameffujoe

• I’m just gonna say this. IF YOU BELIEVE THAT 4 CAREER POLICE OFFICERS “COMMITTED SUICIDE” FROM THE “HORRORS” THEY SAW ON JAN 6th, YOU’RE A MORON. Police officers don’t kill themselves because they witnessed a riot. They GET KILLED when the Democrats don’t want them to testify.

• @seanmdav
  

• Now it’s time for Trump to crush, with extreme prejudice, the entire Mitch McConnell staffer-fundraiser-lobbyist network in D.C. Ban them from all admin jobs and appointments, PNG their clients, and cut them off from all RNC/congressional campaign contracts.

• @chamath
  

• @POTUS is right. Snowmelt from the Sierra Nevadas and rainfall sent almost 30 million cubic acres of water into the Sacramento River Delta over the past 15 months. Of this, only 23% was sent to productive use in farmland irrigation and homes. A staggering 77% was sent to the ocean. The multiyear "drought" affecting most of California is man-made. California under @GavinNewsom is full of some of the dumbest, destructive policies imaginable. (pic)
  

• @Nicksortor
  

• Mitch McConnell immediately walked over and CELEBRATED with the Democrats after voting against Hegseth. This man HAS TO GO in 2026. The people of Kentucky voted for Trump’s mandate—not this anti-Trump BS. (video)

OpenVAERS: 

• VAERS US COVID Vaccine Adverse Event Reports. 1,022,221 Reports(+1,091 from prior report) Through December 27th, 2024.

SKirsch.com:

• Using the MGH numbers with our own VAERS queries, we have 247 cases per million doses from the MGH study divided by 5.97 cases per million doses from VAERS. 247/5.97 = 41. This suggests that the VAERS under-reporting factor (URF) is 41X.
  

Night Trading

• Asian indices are -.75% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 75.5 +1.0 basis point.
  
• China Sovereign CDS 55.5 -.25 basis point.
• China Iron Ore Spot 105.64 USD/Metric Tonne +.64%.
  
• Bloomberg Emerging Markets Currency Index 37.3 -.04%.
• Bloomberg Global Risk-On/Risk Off Index 74.3 -1.0%.
• Volatility Index(VIX) futures 17.3 +5.6%. 
• Euro Stoxx 50 futures -.71%.
• S&P 500 futures -.75%.
• NASDAQ 100 futures -1.4%.

Morning Preview Links

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and commodity shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.