12/08/2025 ValuEngine Weekly Market Summary & Commentary

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Weekly Market Recap – Week Ending December 05, 2025

Market sentiment steadied this week as major ETFs posted measured, broad-based gains following the volatility of November. Technology again led the advance, with QQQM up 1.34%, while cyclical sectors such as Industrials (XLI) and Technology (XLK) outperformed with strong weekly moves. Defensive pockets, particularly Utilities (XLU) and Consumer Staples (XLP), lagged. Overall, the week reflected a constructive tone, with strength concentrated in growth and select cyclicals.
In the below table we use major ETF’s as a proxy for some major indexes as well as each of the sector groups into which we divide the overall markets. Tracking these over time provides a more defined picture of the US markets than simply tracking major indexes.
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Last week resembled business as usual for December in most years past. The total gains were more docile and all positive as opposed to a November characterized by very high volatility and daily returns resembling a roller coaster ride. Tech—as characterized loosely by the Invesco Nasdaq-100 ETF QQQM—led the way again with a 1% gain for the week. Small-cap U.S. and foreign equity markets didn’t quite keep pace but were close. iShares Russell 2000 ETF (IWM) gained 0.8%. Developed markets standard bearer EFA, iShares MSCI EAFE ETF, rose 0.7% while iShares Emerging Markets ETF (EEM) gained 0.8%. The Vanguard S&P 500 ETF (VOO), representing a broad section of U.S. stocks, had trouble keeping up with a gain of only 0.3%.

The big news at the end of last week was the massive, industry-shifting acquisition by Netflix (NFLX) of the film and television studio assets of Warner Bros. Discovery (WBD) for around $82.7 billion (including debt). Legal approval is in question. That said, there are global industry ramifications at play. It will be interesting to see how traders react to this news. In terms of ValuEngine ratings on the companies most likely to be affected, both WBD and NFLX are rated 4 (Buy). Sony (SONY) is also rated 4 while Comcast (CMCSA), Paramount Group (PGRE) and Disney (DIS) are rated 3 (Hold). Theater owners AMC Entertainment (AMC) and Cinemark (CNK) are also rated 3. Two other companies that may be partially affected are Amazon (AMZN) and Apple (AAPL) as entertainment production and services form a portion, but not the bulk, of their revenue streams. Our industry report rated the Entertainment Services sector 3 (Hold). Its principal sector, Consumer Discretionary, is also rated 3.

Beyond these companies, we have a few noteworthy upgrades this week. They include internet-based bank Ally Financial (ALLY) and satellite service provider EchoStar Corp. (SATS), which are now rated 4 (Buy). Given the major acquisition and normal seasonal patterns of trading activity prior to holiday vacation weeks, we are expecting fairly heavy trading volume this week. At any rate, given the possibility of a major acquisition fueling other acquisitions, things could be very interesting before the end of the year.

 

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