The Morning Filter

Michael Field, Morningstar’s chief Europe markets strategist, briefly outlines Europe-focused opportunities. He talks market outlook and rising uncertainty despite improving macro data. He highlights attractive countries and sectors, plus value in European small caps. He finishes with three long-term stock picks: SAP, Diageo, and GSK.

They debate whether the weakening U.S. dollar is worrying and unpack global yield and yen risks. Big tech earnings get a close look, from cloud and AI spending to margin and CapEx questions. They explore why small-cap stocks are rallying and highlight three undervalued small caps to consider. Several consumer and industrial names get quick status checks amid changing demand and cost dynamics.

Sarah Hansen, a Morningstar senior reporter who tracks the Federal Reserve and monetary policy, joins to preview Fed dynamics for 2026. They unpack rare Fed dissents and which mandate could steer policy. Conversation also covers big earnings to watch — Microsoft, Meta, Apple, Tesla — and which long-term stocks remain attractive after three years of picks.

This week features Dave Sekera, Morningstar's chief U.S. market strategist, who dives into the latest economic trends. He discusses the outlook for inflation and major bank earnings, emphasizing the importance of retail sales. With potential impacts from political shifts, he highlights investment strategies for 2026, recommending a balanced approach between AI stocks and high-quality value assets. Plus, Sekera shares five stock picks, including strong cases for companies like SLB and Mondelez, perfect for savvy investors.

This week, Dave Sekera, Morningstar's Chief U.S. Market Strategist, shares insights on the market's wild ride in 2025 and what lies ahead in 2026. He discusses a 50% fair value increase for Micron Technology, the competitive edge of Novo Nordisk over Eli Lilly in the obesity market, and reviews earnings from Darden Restaurants and FedEx. Dave also reveals his top five core stocks to hold, including Microsoft and Palo Alto Networks, emphasizing their strong moats and sound financials.

Dave Sekera, Morningstar's Chief U.S. Market Strategist, shares insightful stock analysis and investment philosophy. He reflects on the importance of reviewing past stock picks and the lessons learned from wins and losses. Dave discusses several companies, including Baxter's challenges, Alphabet’s strong fundamentals due to AI innovations, and AMD’s strategic partnerships. He wraps up by highlighting four undervalued stocks for 2026: Biogen, Microsoft, LPL Financial, and Devon Energy, showcasing their potential for future gains.

On this week’s episode of The Morning Filter podcast, Dave Sekera and Susan Dziubinski discuss what’s next after the Federal Reserves 25-basis-point interest rate cut and which economic reports could move the market this week. Tune in to find out why to keep an eye on the earnings reports from Micron Technology MU, FedEx FDX, and Darden Restaurants DRI and whether Marvell Technology MRVL remains a stock to buy after a tough week. They unpack new earnings reports from Oracle ORCL, Adobe ADBE, and Costco COST, among others. And this week’s picks are stocks to put on a watch list to buy on weakness. Episode Highlights 00:00 Welcome 01:07 Fed Meeting Recap 04:35 On Radar: Economic Reports, Earnings 12:05 Updates on ORCL, MRVL, ADBE, COST 29:00 Stocks to Buy on Weakness Read about topics from this episode. December 2025 Stock Market Outlook: Where We See Investment OpportunitiesRead Dave’s complete archive. Got a question for Dave? Send it to themorningfilter@morningstar.com. Follow us on social media.Dave Sekera on X: @MstarMarketsDave Sekera on LinkedIn: https://www.linkedin.com/in/davesekeraFacebook: https://www.facebook.com/MorningstarInc/X: https://x.com/MorningstarIncInstagram: https://www.instagram.com/morningstarinc/?hl=enLinkedIn: https://www.linkedin.com/company/morningstar/posts/?feedView=all  Viewers who’d like more information about any of the stocks Dave talked about today can visit Morningstar.com for more details. Read more from Susan Dziubinski and Dave Sekera.Subscribe to The Morning Filter to get notified when we post. We’ll see you next Monday! Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Explore the potential for a Federal Reserve rate cut and its implications. Hear why Costco, Campbell's, and Adobe are capturing attention with their latest earnings. Dive into the cybersecurity landscape as top contenders like Zscaler and CrowdStrike are evaluated. Discover Marvell Technology's promising AI positioning and Salesforce's soaring revenue powered by AI. Get insights on market valuations, small-cap strategies, and the merits of high-quality wide-moat stocks. Plus, catch the latest trends from popular retailers and investment allocation tips for 2026!

Dan Lefkovitz, a Morningstar Index strategist and dividend investing expert, shares insights into the current landscape of dividend stocks. He discusses why U.S. dividend stocks have lagged while international ones have thrived, attributing it to market dynamics and the stock buyback boom. Listeners learn to identify potential dividend cuts using key metrics and explore undervalued stock picks like Merck and Pepsi. Lefkovitz also outlines why dividend growth investing is often undervalued and predicts a favorable outlook for dividends in 2026.

This week, the discussion dives into the unlikely Fed rate cut in December and the mixed retail earnings from giants like Walmart. The hosts analyze Nvidia's impressive growth but the market's unexpected sell-off. They tackle intriguing audience questions on AI and lithium stocks. In a compelling segment, six overvalued stocks are highlighted, including Wingstop and Church & Dwight, urging listeners to consider profit-taking. It's an insightful take on navigating today’s unpredictable market!