Hello Capitalists,

Here is everything you should be following today:

• American Eagle SOARS on Q3 Earnings after non-woke ad

• Bitcoin FINALLY picks its self up off the floor

• Anthropic to go for $300B IPO before ChatGPT

• Sam Altman issues a “Code Red” at OpenAI

• Trump kills Biden’s “Green” gas standards

• Exotic ETF’s are the road to riches and rags

Today’s markets + assets:

• ✅ DOW: 47836.60 (⬆️ 0.76%)

• ✅ S&P: 6853.25 (⬆️ 0.35%)

• ✅ NASDAQ: 23467.05 (⬆️ 0.23%)

• ⚠️🔴CBOE VIX Volatility Index: 16.10 (⬇️ 2.95%)

• ✅ Gold: $4245.70 (⬇️ 0.59%)

• ✅ Silver: $58.95 (⬇️ 0.43%)

• ✅ Bitcoin: $92,986 (⬆️ 2.06%)

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American Eagle Soars on the back of Sydney Sweeney’s jeans

American Eagle Outfitters smashed Wall Street forecasts in its fiscal third-quarter 2025 earnings, reporting $1.36 billion in revenue and 53 cents per share, fueled by soaring Aerie sales and star-powered campaigns featuring Sydney Sweeney and Travis Kelce.

• Revenue Surges Past Expectations: Hit $1.36 billion, up 6% year-over-year, beating $1.32 billion forecast with net income climbing to $91.34 million from $80.02 million last year.

• Aerie Drives Double-Digit Growth: Comparable sales leaped 11%, revenue rose 13%, contrasting American Eagle brand’s modest 1% comps increase amid broader 4% companywide gains.

• Margins Expand Amid Challenges: Operating margin hit 8.3%, topping 7.5% estimates, bolstered by marketing buzz from celebrity endorsements despite softer core brand performance.

• Guidance Soars for Holiday Peak: Q4 comps projected at 8-9% versus 2.1% expected; full-year adjusted operating income hiked to $303-308 million from prior $255-265 million range.

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Bitcoin Blasts Past $92K – Santa Surge Incoming?

After a horrendous start to December Bitcoin soared above $92,000 on Wednesday, igniting hopes for a year-end “Santa rally” as institutional inflows rebound from November’s 18% plunge, with analysts eyeing a swift push to $100,000 amid Fed rate cut buzz.

• Price Milestone Achieved: Bitcoin hit $92,413.68, up 1.49% intraday, signaling traders’ green light for a $100,000 retest if institutional flows hold steady.

• November Woes Reversed: After an 18% monthly drop and record ETF outflows, December’s momentum hints at a stronger recovery driven by slowing mid-month lulls.

• Institutions Pile In: Vanguard’s launch of crypto products and Bank of America’s advice to investors to have up to 4% of their portfolio allocated to Crypto is boosting bullish sentiment alongside Ethereum upgrades.

• Fed Shakeup Looms: 80% odds from prediction markets say that Trump will nominate pro-crypto Kevin Hassett as Fed Chair potentially fast-tracking blockchain into banking post a December 10 rate cut.

Anthropic’s $300B IPO bombshell explodes on OpenAI

In a high-stakes AI showdown, Anthropic—the creator of the Claude chatbot—has kicked off early talks for a blockbuster IPO as soon as next year, hiring elite lawyers Wilson Sonsini Goodrich & Rosati to outpace rival OpenAI’s own public listing plans.

• Hiring IPO Powerhouse Firm: Anthropic enlisted the legal team behind Google and LinkedIn’s landmark IPOs, signaling serious preparations for a massive market debut.

• Chasing Sky-High Valuation: The startup eyes a private funding round valuing it over $300 billion, bolstered by $15 billion in pledges from tech giants Microsoft and Nvidia to fuel expansion.

• Rival OpenAI in Crosshairs: OpenAI, fresh off a $500 billion valuation, downplays near-term IPOs, but Anthropic’s aggressive move could let it claim first-mover bragging rights in the AI stock frenzy.

• Bubble Fears Loom Large: Investors buzz about the listings testing the appetite for cash-burning AI firms amid warnings of an overhyped bubble, while Anthropic ramps up with $50 billion in infrastructure and global hiring.

“Alternative AI” UPRISING: OpenAI’s Desperate Code Red Panic!

In a fiery San Francisco memo leaked Tuesday, OpenAI CEO Sam Altman declared a “code red” emergency, rallying his team against surging rivals like Anthropic and Google that threaten ChatGPT’s dominance in the cutthroat AI arms race.

• Altman’s Urgent Battle Cry: OpenAI’s leader warns staff of “existential” threats from competitors, urging all-hands innovation to reclaim AI supremacy amid eroding market share.

• Rivals Fueling Frenzy: Anthropic’s Claude and Google’s Gemini models are eroding ChatGPT’s lead, with users defecting over superior speed and specialized features in enterprise sectors.

• Internal Overhaul Blueprint: Altman outlines aggressive hiring sprees and R&D boosts, vowing to integrate advanced models like GPT-5 to counter rivals’ rapid prototyping edges.

• Industry-Wide Wakeup Call: The scramble signals a maturing AI battlefield, where talent poaching and billion-dollar investments could reshape global tech power dynamics by 2026.

Trump kills Biden’s 50 MPG rule and Detroit celebrates

President Donald Trump will unveil plans Wednesday to dismantle former President Joe Biden’s stringent 50 mpg fuel economy mandate for cars and trucks by 2031, joined by top Detroit executives in a White House ceremony that signals a sharp pivot away from electric vehicles.

• Rollback Targets Biden Mandate: The Administration proposes scrapping the 50 mpg efficiency goal for passenger cars and light trucks, reversing last year’s push to boost vehicle fuel savings.

• Auto Giants Join Announcement: Ford, GM, and Stellantis CEOs will attend an Oval Office event at 2:30 p.m. ET, highlighting industry support for easing regulatory pressures on manufacturing.

• Oil Lobby Fuels Repeal Drive: The American Petroleum Institute aggressively pushed to kill the sky high standards, claiming they accelerated the phase-out of gasoline-powered vehicles in favor of EVs.

• EV Incentives Face Ax Too: The broader Trump agenda seeks to eliminate all federal backing for electric cars, potentially stalling sales growth as federal incentives were a significant factor in adoption by consumers.

The exotic ETF boom, Sky-High Gains or Market Meltdown?

In a volatile market rocked by job losses and tech slumps, Wall Street’s newest exotic ETFs—leveraged bets on single stocks and inverses—dangle “monster gains” to thrill-seeking investors, but experts warn these high-wire acts could trigger devastating wipeouts as complexity outpaces comprehension.

• Leverage Lures Chasers: Single-stock and inverse ETFs amplify returns via a “black box” of swaps, derivatives and options, promising “astronomical” profits in rising markets but demanding constant tweaks that falter amid swings.

• Volatility Weaponizes Wagers: Recent choppiness, like post-ADP futures slides, turns these products’ built-in leverage into a “double-edged sword,” eroding value faster than plain-vanilla funds.

• Issuers Ignite Arms Race: ETF providers compete fiercely to launch ever-more intricate strategies, fueling retail access but widening the gap between product innovation and investor savvy.

• Education Gap Endangers Novices: While “democratizing” advanced trades sounds empowering, mismatched understanding risks significant losses for everyday traders ill-equipped for time-sensitive complexities.

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