Schwab Network

Bitcoin and Ethereum have both climbed roughly 10% over the last five trading sessions, something @CharlesSchwab's Adam Lynch calls "impressive" following the Fed's interest rate hike and failed Clarity Act vote. However, a strong boost in leverage leads Adam to issue some caution for crypto traders. He then addresses the fallout in D.C. since the Senate failed to each enough votes to pass the Clarity Act last week.

Mizuho's Nick Setyan believes Darden Restaurants (DRI) did a good job at justifying weakness the company's earnings showed. Now, it needs to outline a clear path for guidance. Nick points out that casual dining trends remain strong, but QSR categories are weakening. Michelle Korsmo of the National Restaurant Association sees greater confidence long-term due to a steady climb in restaurant hiring and guest counts. She discusses surveys done by the association which she believes show key pain points for the restaurant industry.

Jake Hanley says a U.S. diesel export ban is a "really bad idea." He points to diesel transportation as the crux to his argument, saying "we are not built for this" and will accelerate inflation instead of capping it. Neither the U.S.-Iran war nor Russia-Ukraine are showing signs of cooling down, something Jake sees as a significant headwind to the energy trade.

Jason Brown (@brownreport) turns to stocks that are the faces of the restaurant, financial, and consumer staples industries. He expresses concerns in McDonald's (MCD) core fundamentals following the company's investor day and subsequent selloff, expects CapitalOne (COF) to see pressure from consumers pulling back on borrowing, and Procter & Gamble (PG) as an investing fortress amid all the uncertainty. Jason offers example options trades for his stock picks while Rick Ducat takes investors through his technical analysis in the charts.

Underneath the surface of the S&P 500 (SPX) and Nasdaq-100 (NDX) strength, there's a lot of weakness, says @OptionsPlay's Tony Zhang. He explains why the lasting rally across Treasury yields adds to warning signals in equities. That said, Tony points to trading opportunities in stocks and ETFs tied to the yield volatility. He offers example options trades for the Invesco U.S. Dollar Index Bullish Fund (UUP) and Apollo Global Management (APO).

Costco (COST) is a great "temperature check" for the U.S. consumer, says Melissa Otto, emphasizing the company's earnings as the next barometer after Thursday's trading session. She explains how macro movers, including the climb in crude oil prices, serve as a headwind for Costco's forward momentum. Tom White offers an example options trade for the retail giant's stock.

Investors weren't hungry for McDonald's (MCD) growth strategy announced during the company's investor day. The stock fell to 4-year lows off the announcement. Marley Kayden takes investors through the fast-food giant's plans to draw in a larger dine-in crowd and push deeper into the beverage space. Analysts aren't entirely convinced the strategy will offer long-term value for the stock. Joe Tigay offers an example options trade for McDonald's.

S&P 500 (SPX) bulls face a critical level to hold, argues @CharlesSchwab's Rachel Dashiell. She takes investors through the index's 4-month price action to highlight how weaker market breadth is putting a recent breakout at risk. Rachel then looks into a slice of the S&P through the energy sector, pointing out an "extreme correlation" with the rally in 10-year Treasury yield that she believes has risk of unwinding.

Kevin Green highlights key levels investors need to watch in the S&P 500 (SPX) futures as Treasury yields tap multi-decade highs. He talks about how the latter is creating a drag on a recent breakout from a bullish flag pattern. On the international headlines, KG talks about the significance (or lack thereof to equities) to the U.S. and China extending their trade truce into January as President Trump and China President Xi Jinping begin their summit. He brings his discussion back to the U.S. by focusing on what he calls a "good" new home sales report.

Tony Blagrove discusses the AI buildout and how its shaping the earnings dynamics for the stock market's biggest companies, including Nvidia (NVDA). He also addresses cyclical financing concerns around the Mag 7 giant, arguing the company "will get hurt" should any significant weakness in the AI trade materialize. Tony adds that bonds "are extremely attractive" at today's prices amid all the geopolitical and economic uncertainty.