Halftime Report The Final Trading Days of the Year 12/26/25
Dec 26, 2025
Jim Labenthal, a seasoned investor on the Halftime Report investment committee, discusses how earnings fueled market gains and debates the Fed's influence. Kevin Simpson shares insights on defending stocks like Boeing and Lockheed Martin in the defense sector. Steve Leisman analyzes inflation risks and potential Fed policy shifts as he assesses market trajectories for 2026. The panel also examines NVIDIA's strategic acquisitions and highlights opportunities in healthcare, retail, and commodities, offering final trading recommendations as the year closes.
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Earnings Drove 2025 Rally
- Earnings growth, not the Fed, was the dominant driver of 2025 market gains according to Jim Labenthal.
- He expects profits to grow ~15% next year, making earnings the primary market force for 2026.
Policy And AI Reinforce Growth
- Bryn Talkington argues monetary and fiscal policy plus data center investment are reinforcing growth.
- He sees midterm politics and fiscal moves as continued support for a constructive market backdrop.
Inflation Is The Key Risk
- Kevin Simpson warns inflation reigniting would force the Fed into hikes and end the current party.
- He thinks one or two cuts are possible but sustained cutting cycles are unlikely without stable inflation.