MARKET RECAP

Yesterday: Stocks slid Tuesday as strong economic data pushed bond yields higher, with the S&P 500 dropping 1.1% and the Nasdaq falling 1.9%. Job openings and service sector strength stoked inflation concerns, while oil prices climbed to October highs. Investors now await Friday’s payroll report for further labor market insights.

On Our Radar: After analyzing this morning’s ADP employment report and initial jobless claims, the focus will later turn to wholesale inventories. In the corporate arena, investors will await KB Home’s earnings results to be disclosed tomorrow after the bell.

TOP STORY

Are Regional Banks The Next Big Opportunity? Why Wall Street Analysts Expect Multiyear Rally

Analysts predict regional banks could rally in 2025, fueled by improving credit conditions and expanding net interest margins.

Here’s what this trend signals for markets — and how investors can capitalize on the momentum.

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FIVE ZINGERS

Free Speech: Social media juggernaut Meta Platforms will revamp its content moderation as it prepares to work with President-elect Donald Trump. Learn about the details of what the new protocol will involve.

Red Wave: Tech giant Nvidia saw its shares drop after the company delivered a CES keynote that didn't quite bring all the fireworks. Still, read why analysts are enthusiastic about its end-to-end AI solutions.

Energy Run: Morgan Stanley analysts upgraded Shell shares from Equal-Weight to Overweight while boosting the price target to $79.80. Discover why the experts anticipate a 20% upside in market value.

Fast Food: With inflation pressures easing, Barclays analysts are focused on a potential recovery in the restaurant industry. Learn about their latest upgrades — and what entities to be cautious of.

Fired Up: Thanks to the burgeoning space economy and upcoming events like SpaceX's Falcon 9 launch, sector-related stocks have soared. Here are compelling ETFs for the final frontier.

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Under the Radar: Undervalued Assets Wall Street Isn’t Talking About

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

Wall Street never mentions the type of small banks mentioned last week.

Old economy companies trading for less than the liquidation value of the assets they own are never talked about.

Unless they are doing an IPO that lures buyers willing to pay a high fee, you will never hear closed-end funds mentioned.

When they are out of favor and trading at a discount to the value of the stocks and bonds in the fund and throwing off a high stream of regular income, the big firms and Instant Experts of the internet are as silent as the mice scurrying in the rafters of Trinity Church.

To keep reading and to find out how investors can prepare for the coming oil price rollercoaster, sign up for Benzinga Edge here.

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