Once again, it was all about Technology (XLK), followed by Communication Services (XLC) and Consumer Discretionary (XLY).

The “Mag Seven” continued to be powered by positive Artificial Intelligence (AI) news that broadened the story beyond chips.

ISM Services

• Headline 52.1; consensus 56.0
• Prices 58.2; consensus 58.1
• Employment 51.5; consensus 53.0
• New Orders 53.7; consensus 57.4

Respondents to the Institute for Supply Management (ISM) Services survey discussed the unknowns of tariffs and the new cabinet, but we shouldn’t downplay how much this report missed the mark:

The November Automatic Data Processing (ADP) Employment number also came up short of the Street at 146,000 against the consensus of 150,000.

A headline from the report was the monster revision of October to 184,000 from the initially reported 233,000.

Bonds Slip

Despite the bad news, the stock market rallied, but iShares 20 + Year Treasury Bond ETF (TLT) turned lower to land right at the 50-day moving average.

Today’s Session

It’s a quiet morning with Bitcoin (BTC) passing $100,000, hogging the headlines. The big jobs report scheduled for tomorrow looms large, we’ll share thoughts in the afternoon note. In the meantime, I’m kind of bummed that all the bears are throwing in the towel.

I absolutely love it when most of the Street is negative. The good news is they are still underestimating the market.