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What a difference a day makes! December ISM Services data suggests the service sector remains strong. The JOLTS report showed there were 8.09 million job openings in November — that’s well above the 7.7 million that was expected. US economic growth is strong, as is the labor market. Stocks sold off on the news and for the rest of the trading day. Tuesday’s economic data brought back thoughts of the possibility of the Fed dialing back on its rate cuts in 2025.

The Federal Open Market Committee (FOMC) releases its minutes on Wednesday at 2:00 PM. Investors will be listening for any hawkish signals from the Fed. Expect some market action on Wednesday afternoon. The stock market is closed on Thursday in honor of former President Jimmy Carter. On Friday, we have the December Non-Farm Payrolls, so don’t be surprised if volatility climbs higher this week.

The Return of the Inflation Narrative

While stocks sold off on inflation and labor concerns, the bond market saw a lot of excitement. Treasury yields rose on the news with the 10-year yields closing at 4.68%. It’s within spitting distance of its 52-week high of 4.737. If it gets there, things could get worse for stocks.

They were bad enough on Tuesday. All broader indexes closed lower with the Nasdaq Composite ($COMPQ) closing 1.89% lower. The daily chart of the Nasdaq (see below) doesn’t paint a pretty picture.

FIGURE 1. DAILY CHART OF NASDAQ COMPOSITE. The series of lower highs should be an alert that the index is pulling back.Chart source: StockCharts.com. For educational purposes.

The Nasdaq Composite is getting close to its 50-day simple moving average (SMA), and a break below it would be cause for concern. It would be even more concerning if the break coincides with a declining Nasdaq Advance-Decline Issues (lower panel).

The Nasdaq has crossed below its 50-day SMA in the past and recovered. The recoveries presented opportunities to accumulate long positions in Nasdaq stocks. A similar scenario could play out this time, but Mark Twain’s quote, “History doesn’t repeat itself, but it often rhymes” keeps popping up. What will the rhyme be this time?

Energy and Health Care

Overall, it was a pretty grim day for stocks. Nine of the 11 S&P sectors closed lower; Energy and Health Care were the only two that closed higher. However, the charts of the exchange-traded funds (ETFs) that represent these sectors — Energy Select Sector SPDR (XLE) and Health Care Select Sector SPDR (XLV) — don’t display a bullish trend. The Bullish Percent Index (BPI) for these sectors is below 50, with the S&P Healthcare Sector BPI being the more favorable of the two at 39.39 (see chart below).

FIGURE 2. ENERGY AND HEALTH CARE SECTORS. Even though Energy and Health Care were the best performing sectors on Tuesday, their charts aren’t exhibiting bullish characteristics.Chart source: StockChartsACP. For educational purposes.

The best-performing S&P 500 stock on Tuesday was Moderna, Inc. (MRNA) with an 11.65% rise. Moderna is developing a vaccine for bird flu, which helped propel the stock price. The Market Movers panel on Your Dashboard shows a handful of health care and energy stocks in the S&P 500, %Up category.

Even though the Energy or Health Care sector charts are far from bullish, it’s worth keeping an eye on them. If a bullish trend takes shape while other sectors, such as Technology and Consumer Discretionary, turn bearish, it may be worth allocating a portion of your portfolio to the bullish-performing sectors.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

In this exclusive StockCharts video, Joe shares how to identify the best entry point by using two timeframes, Moving Averages, MACD and ADX. He shows two different examples of when to pull the trigger. Joe highlights weakness in the Large Cap universe, and finally goes through the symbol requests that came through this week, including NVDA, ABNB, and more.

This video was originally published on January 8, 2025. Click this link to watch on Joe’s dedicated page.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

In this exclusive StockCharts video, Julius takes a look at what he recently called “The Best Five Sectors” on a relative rotation graph side-by-side with their price charts. He then takes an in-depth at Consumer Discretionary, and shares some interesting stocks within, including AMZN, ULTA, and more.

This video was originally published on January 8, 2025. Click on the icon above to view on our dedicated page for Julius.

Past videos from Julius can be found here.

#StayAlert, -Julius

The disgraced former FBI informant who falsely accused President Joe Biden and his son Hunter Biden of taking a $10 million bribe from Ukraine was sentenced Wednesday to six years in federal prison, according to court records.

The ex-informant, Alexander Smirnov, who is a dual US-Israeli citizen, has been in jail since his arrest last February.

The sentencing in Los Angeles wraps up one of the final remnants of special counsel David Weiss’ investigation into Hunter Biden and related matters. The only order of business that appears to be unsettled is Weiss’ final report, which, per federal regulations, will be submitted to the attorney general, who can then release it to the public.

Smirnov’s bombshell indictment – and the subsequent public repudiation of his fake bribery claims – helped derail the Republican impeachment push against Biden. Prosecutors hit Smirnov with additional tax charges in November, and with a trial looming, he pleaded guilty last month to causing the creation of a false FBI record, as well as three counts of tax evasion.

As part of the plea deal, prosecutors agreed to ask the judge for no more than six years in prison, and Smirnov’s team agreed to ask for no less than four years. Smirnov has also pledged to pay about $675,000 in restitution to the IRS, to make up for his tax evasion.

In court filings, prosecutors argued in favor of a six-year prison sentence, calling Smirnov a “liar and a tax cheat” who “betrayed the United States.” Prosecutors said his baseless corruption allegations against the Bidens were “among the most serious kinds of election interference one can imagine,” because they roiled both the 2020 and 2024 election cycles.

Smirnov’s lawyers requested a four-year prison term. In court filings, they said he has no criminal record, is ailing from severe glaucoma in both eyes, and “his remorse is sincere.” They submitted letters from loved ones, who lauded Smirnov as a “deeply patriotic and proud American” who “did everything for friends and family” and “always stood for justice.”

Born in the Soviet Union, Smirnov and his family immigrated to Israel as a child, and he later moved to the United States. He became a naturalized citizen and a prized informant for the FBI. But according to prosecutors, he later started expressing bias toward Biden, and invented the Ukraine bribery narrative to hurt Biden’s 2020 campaign against Trump.

The Justice Department secretly probed Smirnov’s allegations in 2020, but nothing came of it. Three years later, during the run-up to the 2024 campaign, congressional Republicans brought national attention to Smirnov’s unproven allegations, and touted his record as an FBI informant. Their claims quickly went viral in the right-wing media ecosystem.

Amid that GOP scrutiny, Weiss’ team re-interviewed Smirnov in 2023 to vet his allegations as they also investigated Hunter Biden. But Weiss concluded Smirnov “was lying” and “should be prosecuted himself” for repeatedly deceiving the FBI, prosecutors said in filings.

Weiss indicted Hunter Biden on tax and gun charges. He was convicted by a jury last year of three gun felonies, and later pleaded guilty to nine federal tax offenses. President Biden granted his son an unconditional pardon in December, before the sentencing in either case.

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A potentially crippling strike up and down America’s East and Gulf Coasts has been avoided – at least for now – after longshoremen and the shipping and port companies reached a tentative deal on a new contract Wednesday.

The United States Maritime Alliance, the group representing ship lines and port and terminal operators, which uses the acronym USMX, and the International Longshoremen’s Association (ILA), a union which represents 50,000 members who fill 25,000 jobs spread between three dozen locations at 14 port authorities from Maine to Texas, jointly announced that they agreed on a six year deal Wednesday. The deal is not complete until it is ratified by the union’s membership.

Without a deal, the port workers were set to go on strike on the morning of January 16.

“We are pleased to announce that ILA and USMX have reached a tentative agreement,” the two sides said in a joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.”

“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace, the two sides added.”

The ILA and USMX reached a deal in October on wages, which increased hourly pay by 10% in the first year and 62% over the six-year tentative deal. That ended a three-day strike. Workers returned to work and negotiators were sent back to the table to work out the rest of the contract. Negotiators met on Tuesday for the first time since mid-November.

Wednesday’s deal is agreement on all other items including automation, which was a key issue for the union who believed jobs would be lost.

The sides did not publicly disclose the details of the agreement. But a source familiar with the negotiations said that as the final details of the contract were being worked out this week, there was a compromise reached on technology at the ports, Automation was the key sticking point for the union over concerns they would lose jobs.

Fully automated technology is still out of the contract, but it does allow for semi-automation. USMX can implement new technology like cranes that can perform some tasks without human involvement. However, the contract gives the ILA guaranteed jobs directly associated with any new technology, the source said.

Management had argued ports need to introduce technology to improve productivity – not to eliminate union jobs. But the union said it was not convinced its members would go unhurt by new technology.

President Joe Biden had refused calls by many of the nation’s business groups to intervene and order the ILA members back to work during the October strike.

It’s not clear that President-elect Donald Trump would have taken the side of USMX and order the ILA back to work if a new strike started and spilled over into his tenure. After meeting with ILA President Harold Daggett in December, Trump came out firmly in favor of the ILA position on the issue of automation at the ports, writing on his Truth Social platform that the foreign-owned ship lines that dominate the USMX “have made a fortune in the US by giving them access to our markets…. I’d rather these foreign companies spend it on the great men and women on our docks, than machinery, which is expensive, and which will constantly have to be replaced.”

This story has been updated with additional context.

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Supreme Court Justice Samuel Alito said he spoke with President-elect Donald Trump by phone this week in support of a former law clerk who is seeking a job in the incoming administration – but the justice said he did not discuss Trump’s pending effort to delay his sentencing.

“William Levi, one of my former law clerks, asked me to take a call from President-elect Trump regarding his qualifications to serve in a government position,” Alito said in a statement issued Wednesday. “I agreed to discuss this matter with President-elect Trump, and he called me yesterday afternoon.”

The call, first reported by ABC News, came one day before Trump filed an emergency appeal seeking to delay his Friday sentencing in his New York hush money case.

It’s not unusual for justices to make job recommendations on behalf of former clerks, who often remain close with the justice for whom they worked. But it is remarkable for justices to speak with an incoming president, especially in advance of a major court filing regarding the first-ever criminal sentencing of a former president.

The call may give the conservative court’s critics another reason to question its independence from politics and Trump in particular. The incoming president named three justices during his first term, and the court has handed down several high-profile opinions in which the six conservatives and three liberals have lined up on opposite sides.

Alito, a member of the court’s conservative wing, has faced repeated calls for recusal from ethics experts and Democrats on Capitol Hill. Most recently, that criticism was focused around two controversial flags that were raised over his properties in Virginia and New Jersey.

In his statement, Alito said he spoke with Trump on Tuesday – and said he did not discuss the case with Trump. The president-elect filed his appeal Wednesday morning.

“We did not discuss the emergency application he filed today, and indeed, I was not even aware at the time of our conversation that such an application would be filed,” Alito said. “We also did not discuss any other matter that is pending or might in the future come before the Supreme Court or any past Supreme Court decisions involving the President-elect.”

The Trump transition did not immediately respond to a request for comment.

Levi clerked for Alito during the 2011 term and has worked in all three branches of the federal government, including in a number of high-profile positions. He served as chief of staff to Attorney General William Barr during the first Trump administration and also worked as chief counsel to Sen. Mike Lee, a Utah Republican.

Trump will face an uphill fight getting the Supreme Court to pause his sentencing because his case is still pending in New York and the nation’s top court is reluctant to take up emergency appeals in that situation.

This story has been updated with additional details.

This post appeared first on cnn.com

Israel’s military has announced new media engagement rules for its members after a Brazilian court ordered an investigation into war crime allegations against a soldier visiting the country.

The guidelines, announced Wednesday, require the names and faces of most of its soldiers – both active duty and reserve – to be obscured.

The decision comes after a former Israeli soldier fled Brazil last week after a court in the South American country ordered an investigation into allegations by a pro-Palestinian NGO that the soldier was involved in war crimes in Gaza.

Israeli military spokesperson Nadav Shoshani referenced the case in a briefing on the measures, which he said were to make sure Israeli personnel were “safe from these types of incidents” involving “anti-Israel activists around the world.”

Those at the rank of colonel and below can be filmed only from behind, with their face obscured, and only the first initial of their name can be used, according to the Israel Defense Forces (IDF).

Military personnel with foreign citizenships – in combat and non-combat roles – need to have their faces obscured and cannot disclose their full names in interviews.

The new protocols apply to all combat zones, and soldiers being interviewed cannot be linked to a specific combat operation, the IDF said.

He said activists were now going after ordinary soldiers, not just high-ranking officers and politicians.

‘Something unusual’

“I got up in the morning, opened the phone and suddenly saw eight calls – the ministry of foreign affairs, my brothers, my mother, consuls,” he said in the interview, adding that it was during the call with the ministry that “we began to understand that there was a situation and something unusual.”

“They wrote that I murdered thousands of children and turned it into a 500-page document,” the soldier said of the case against him. “All that was there was a picture of me in uniform in Gaza.”

He also said that following the attention his case had gained he now hoped to “get off the radar and continue my life.”

The case against him followed a complaint brought by the Hind Rajab Foundation (HRF) – a group that has tracked the activities of Israeli soldiers serving in Gaza and has brought a series of other lawsuits.

A Brazilian judge then ordered police to investigate the soldier based on HRF’s complaint, which accused him of taking part in “demolitions of civilian homes in Gaza during a systematic campaign of destruction.”

The group, named after a five-year-old girl killed by Israeli tank fire in Gaza last year, is a pro-Palestinian NGO that says it is dedicated “to breaking the cycle of Israeli impunity and honoring the memory of Hind Rajab and all those who have perished in the Gaza genocide.”

The case prompted a public outcry, from opposition leaders like Yair Lapid – who called it a result of “monumental political failure” of the government – to Foreign Minister Gideon Sa’ar – who called the case part of a “systematic and anti-Semitic campaign aimed at denying Israel’s right to self-defense.”

A group of Israeli soldiers’ mothers wrote to Prime Minister Benjamin Netanyahu and Israeli’s military leadership saying they would hold them to account for any legal risks their children faced from “malicious actors worldwide.”

HRF has also sought the apprehension of Israeli soldiers visiting Thailand, Sri Lanka, Chile and other countries, according to its website.

Dana Karni and Tim Lister contributed to this report.

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The two best teams in the NBA — the Cleveland Cavaliers and Oklahoma City Thunder — squared off in the first game in league history featuring clubs on 15 and 10 games winning streaks.

Oklahoma City entered Wednesday’s showdown having won 15 games in a row, while Cleveland came into the contest winners of 10 straight.

In an exciting and tense back-and-forth game, the NBA’s best Cavaliers extended their winning streak to 11 games after defeating the Western Conference’s best Thunder 129-122 at Rocket Mortgage FieldHouse in Cleveland.

The marquee matchup had 30 lead changes.

Cleveland has won at least 11 straight games for the second time. The Cavs started the season 15-0.

Oklahoma City’s 15-game winning streak is snapped as the Thunder suffered its first loss since December 1

Seven Cavaliers finished in double-digits led by center Jarrett Allen who had 25 points, 12 rebounds, six assists and three steals. Power forward Evan Mobley added 21 points, 10 rebounds and seven assists.

“It felt like a battle the whole night. They were scoring. We were scoring, getting stops on both sides. At the end of the night, it came down to which team had more effort,” Allen said after the victory.

Allen and Mobley are the first Cavaliers’ teammates with at least 20 points, 10 rebounds and five assists since LeBron James and Dwyane Wade on November 17, 2017.

Thunder all-star guard Shai Gilgeous-Alexander had a game-high 31 points on 13-of-27 shooting and forward Jalen Williams finished with 25 points, nine assists and five rebounds in the losing effort.

The Cavs and Thunder will meet again on January 16 at the Paycom Center in Oklahoma City.

Cleveland improved to 32-4 and next hosts the Toronto Raptors on Thursday.

Oklahoma City dropped to 30-6 and take on the New York Knicks at Madison Square Garden in New York on Friday.

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President Joe Biden will no longer travel to Rome, Italy, this week as scheduled, the White House announced late Wednesday, canceling the trip in the final days of his presidency to monitor raging wildfires across the Los Angeles, California, area.

“After returning this evening from Los Angeles, where earlier today he had met with police, fire and emergency personnel fighting the historic fires raging in the area and approved a Major Disaster declaration for California, President Biden made the decision to cancel his upcoming trip to Italy to remain focused on directing the full federal response in the days ahead,” White House press secretary Karine Jean-Pierre said in a statement.

Six wind-driven fires blazing across Los Angeles County remain mostly uncontained, with authorities issuing evacuation orders late Wednesday related to a brushfire in the Hollywood Hills near Runyon Canyon.

“Just complete and utter devastation, and I’ve been to a lot of these fires, a lot, going back to Paradise. This approximates Paradise,” Newsom, a Democrat, said.

Biden was scheduled to travel to Rome on Thursday, where the White House said earlier in the day that he’d meet with Pope Francis, Italian Prime Minister Giorgia Meloni, and Italian President Sergio Mattarella.

It’s not the first time domestic issues have forced Biden to upend foreign travel. In October, Biden postponed a scheduled trip to Germany and Angola as Hurricane Milton made landfall. Earlier this week, the White House canceled a scheduled event in Thermal, California, as the wildfires began to spread across the region.

This is a developing story and will be updated.

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OpenAI co-founder and CEO Sam Altman denied allegations made by his sister in a lawsuit filed Monday, which claimed he sexually abused her for almost a decade.

The lawsuit, filed in federal court in Missouri, accuses him of sexual assault and sexual battery spanning from 1997 to 2006.

His sister, Ann Altman, alleged the sexual abuse began when she was three years old and her brother was 12 at their family home in suburban St. Louis, Missouri, according to the suit.

The abuse included “numerous acts of rape, sexual assault, sexual abuse, molestation, sodomy, and battery,” according to the lawsuit.

She also alleged the last instances of abuse occurred when she was a minor and her brother was an adult.

Altman, in a joint statement with his mother and brothers, said the claims were false and that his sister had struggled with mental health issues and “refuses conventional treatment.”

“All of these claims are utterly untrue. The situation causes immense pain to our entire family,” the statement, posted on X Tuesday, said.

Sam Altman said “Annie” continued to demand money from the family despite financial support.

“Our family loves Annie and is very concerned about her well-being,” the statement said. “Annie receives monthly financial support, which we expect to continue for the rest of her life. Despite this, Annie continues to demand more money from us.”

In response to the Altman family statement, Ann Altman’s lawyer Ryan Mahoney said that “It is not uncommon for parents and other family members to deny (sexual abuse perpetrated by a sibling). In this case, they are focusing on the wrong sibling.”

Mahoney told the Wall Street Journal “there is no evidence that her own mental health has contributed to her allegations.”

Ann Altman, who was 30 when the lawsuit was filed, claimed she has experienced PTSD and extreme emotional distress, mental anguish and depression and has incurred medical bills as a result, according to the lawsuit. She is seeking at least $75,000 in damages.

Ann Altman had previously alleged abuse on her X account beginning in 2021.

The lawsuit says the claims were brought under a Missouri law allowing child sexual abuse victims to file lawsuits up until their 31st birthday. Ann Altman’s X profile indicates she turned 31 on Wednesday, two days after the lawsuit was filed.

Sam Altman is AI’s biggest star — a 39-year-old venture capitalist and the CEO of OpenAI, which kicked off the artificial intelligence wave with its ChatGPT bot. The Microsoft-backed OpenAI had a $157 billion valuation as of October.

OpenAI did not immediately respond to request for comment.

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