David Trainer, New Constructs, joins 'Closing Bell Overtime' to talk the day's record market action.

Wall Street

The S&P 500 reached a new record high, propelled by continued gains in AI-related stocks. Market experts, including David Treanor of New Constructs, recommend that investors diversify their portfolios beyond the well-known 'Magnificent 7' technology companies, citing opportunities in lesser-known AI firms like Photronics.

Treanor highlighted Alphabet (Google) as a standout among the top tech stocks due to its strong cash flow and proprietary technology, but warned that many companies may not sustain their high valuations without similar advantages. He predicted that the market will become more selective, rewarding firms with robust cash flows while others, such as Oracle, may face challenges in keeping up with the sector's high spending demands.

S&P 500 closes at record high

Another positive day on Wall Street as AI stocks continue to push the market higher and S&P 500 closing at a record But our next guest sees opportunities beyond the mag 7 in 2026 He joins us with names that should be on your radar. Let's bring in new construct CEO David Treanor David so maybe we just get right to it Where do you see opportunity outside of the mag 7 and is it a safe bet to kind of diversify outside? In a bigger way in 2026 just given the returns we've seen from some of these names over the past few years Hi, Leslie. Yeah We think it's not just a safe bet. We think it's a smart bet I mean look everything is concentrated into these very crowded trades have been crowded for a long time We've helped clients I think do really well with some lesser-known names like Photronics and firms like that that are AI related but not necessarily the AI popular crowd Which again those are all crowded trades and so we would definitely recommend people look to diversify away from these these winners now They've been winners Yes But they've been winners for so long that I think it's time to look for something else if you really want to be able to Outperform. Okay. So what is that something else? What do you think is maybe next year's mag 7 or mag something else? Well, I don't know if there's anything's gonna come out of the shadows in terms of that front But I think you know when you're when you're looking within the max 7 the one that we think that is the most interesting for Sure is Google. I mean, it's the only firm that owns its own cloud. It has its AI It has all that it has its own own process or so many actors and it generates a ton of cash flow So we think that one is going to be a winner How many other winners there might be? I'm not so sure I think it's I think I see a lot of stocks, you know Whether it's max 7 or not max 7 that had been awarded valuations that assume they're going to be winners but they don't have the assets and competitive advantages that a firm like Google has and I think we're gonna see a lot of that flush Out here in 2026 Yeah Of course alphabet up about 62% over the last year or bolstered in part by that new Gemini Model as well as the Berkshire Hathaway stake in terms of just the overall posture of the market you think we are in an AI bubble Do you think that ultimately deflates or pops? This is a 2026 thing and what will cause it to do so you know Leslie, I think we may be past the days where we see major sort of bubble pops and corrections just because I think the Regulators the politicians understand that they can keep the masses happy when the stock market is up and that means keeping liquidity Very high and and at hand, so I don't know if anyone's going to be willing to Risk the political backlash of taking away the punch bowl So I you know we call them kind of micro bubbles where we look at a group of stocks and we say look these are the stocks whose Cash flows can somewhat reasonably justify the valuation and these are the stocks that can't and so I think as opposed to the whole market Going down. We're gonna see the market just be a bit more discerning as we've already seen Like for example We wrote a piece a few weeks ago called the winners and losers losers for the tech bubble or the AI bubble and you know We mentioned Google's I mentioned before as a winner But you know Oracle one of the ones we mentioned is a loser and we can see how it is already kind of taken a bit of a stumble or more than a stumble because Frankly doesn't have the cash flows that Google has to keep up in the race I think we're gonna see more and more of that Playing out because as heated as this race is in terms of stock prices and valuations It's also heated in terms of cash flow demand The amount of spending is so high that there's only a few companies that can remain at the table and those companies that can't Continue to ante up and keep up with the spending e.g. Oracle. They're gonna really struggle in 2026

A Delaware state trooper was killed Tuesday during a shooting at a Wilmington DMV, the Delaware State Police said. The state's governor confirmed the shooter is also dead.

Wilmington

Delaware state trooper killed in DMV shooting, officials say

The Supreme Court ruled on Tuesday that President Trump cannot deploy the National Guard troops to Chicago as a legal challenge moves ahead.

Washington

Supreme Court blocks deployment of National Guard to Illinois

The Justice Department released a new trove of documents from its investigation into convicted sex offender Jeffrey Epstein, including an email from a prosecutor indicating President Donald Trump had traveled aboard his private jet "many more times than previously has been reported."

Trump flew on Epstein jet 8 times according to newly released files

The Libyan army's chief of staff, Mohammed Ali Ahmed Al-Haddad, died in a plane crash after leaving Turkey's capital Ankara, the prime minister of Libya's internationally-recognized government said, adding that four others were on the jet as well.

Haymana

Libyan army's chief dies in plane crash in Turkey

Two men have been found guilty of plotting to kill hundreds in an Islamic State-inspired gun rampage against the Jewish community in England, a planned attack investigators say demonstrates the resurgent risk posed by the militant group.

Bolton

Two men found guilty of UK plot to kill Jews as IS fears grow

The FDA has approved the pill version of the weight loss drug Wegovy, the first oral medication of its kind. The new pills are expected to be available in a few weeks.

FDA approves Wegovy pill, first prescription pill for weight loss

French Parliament has approved the Stopgap Bill two days before Christmas. The budget bill now moves to French senate.

Parijs

French Parliament approves Stopgap Bill: Budget bill moves to senate

Russia fired more than 650 drones and three dozen missiles at Ukraine in a large-scale attack that began during the night and stretched into daylight hours Tuesday, officials said. At least three people were killed, including a 4-year-old child, two days before Christmas.

Kiev

Russia carries out massive drone attack on Ukraine's energy sector

The U.S. Department of Justice has released another batch of files related to convicted sex offender Jeffrey Epstein, including videos, emails and documents. CBS News' Scott MacFarlane reports.

U.S. Justice Department releases new trove of Epstein files

The leaders of Denmark and Greenland insisted that the United States won't take over Greenland and demanded respect for their territorial integrity after President Donald Trump ‍​announced ​the appointment of a ‌special envoy to the semi-autonomous territory.

Nuuk

Trump's appointment of envoy to Greenland sparks tension with Denmark

Australia's most populous state is set to pass tougher gun laws, ban the display of terrorist symbols and curb protests after the state parliament's lower house cleared a bill late on Monday (December 22) in an emergency sitting following the Bondi mass shooting.

Council of the City of Sydney

Australia's NSW to tighten gun, hate speech laws after Bondi attack

On Monday, President Trump announced a new class of Navy battleships he's calling the "Golden Fleet." The president said two vessels will be built in the short term, with plans to expand to up to 25.

Trump unveils plans for new fleet of advanced Navy battleships

China's foreign ministry on Monday (December 22) said the United States' seizure of another country's ships was a serious violation of international law, after the U.S. intercepted a China-bound oil tanker off the Venezuelan coast.

Beijing

China says U.S. ship seizures ‘serious violation' of international law

A Russian general was killed by an explosive device underneath his car in Moscow, according to Russian investigators, who say Ukraine's intelligence services may have orchestrated the attack. Ukraine has not commented.

Moscow

Ukraine Invasion

Russian general killed in car explosion

The U.S. Coast Guard is pursuing an oil tanker in international waters near Venezuela, officials told Reuters on Sunday (December 21), in what would be the third operation in less than two weeks if successful.

Caracas

U.S. pursuing third oil tanker near Venezuela, officials say

At least 15 documents related to Jeffrey Epstein that were initially made public have been pulled from the Justice Department website. The agency says it will keep reviewing and redacting materials to "protect victims."

Epstein files pulled down to 'protect victims'

Nine people have died and at least ten others were wounded after a group of gunmen carried out a shooting at a South African pub during the early hours of Sunday, authorities said.

Bekkersdal

At least nine people killed in South Africa pub shooting

U.S. intelligence reports continue to warn that Russian President Vladimir Putin has not abandoned his aims of capturing all of Ukraine and reclaiming parts of Europe that belonged to the former Soviet empire, six sources familiar with U.S. intelligence said.

As peace talks go on, U.S. intel says Putin's war goals unchanged

A court in Pakistan has convicted and sentenced the imprisoned former Prime Minister Imran Khan and his wife, Bushra Bibi, to 17 years in prison after finding them guilty of retaining and selling state gifts, including jewelry given by Saudi Arabia in 2021.

Islamabad

Former Pakistani PM Imran Khan convicted to 17 years in prison

The U.S. seized an oil tanker off Venezuela's coast on Saturday. It's the second time in two weeks that U.S. forces have carried out such an action. This comes after President Donald Trump announced a block of "sanctioned oil vessels" entering and exiting Venezuela.

Oil tanker seized off Venezuela, second in two weeks

The Justice Department released more documents related to the late sex offender Jeffrey Epstein on Saturday after failing to meet Friday's deadline to release all the documents, as required by the law signed by President Trump last month. The Justice Department said the delay was, in part, to ensure that victims' information was protected.

Justice Department releases more Epstein documents Saturday

The U.S. Department of Justice released thousands of documents, photos and files related to late sex offender Jeffrey Epstein on Friday. But some Democrats are criticizing the partial release because the department had a deadline to release all of the files by end of Friday.

'Partial' release of Epstein files faces criticism

The United States military “hit the ISIS [ISIL] thugs in Syria”, President Donald Trump has said, a week after two US soldiers and an interpreter were killed in Syria’s Palmyra city. Trump said he “ordered a massive strike on the terrorists that killed our three great patriots last week”.

Damascus

Trump says U.S has launched large-scale attacks on ISIL in Syria

Ukraine said its drones hit a vessel from Russia's shadow fleet – the first such strike in the neutral waters of the Mediterranean Sea. Russia's shadow fleet transports sanctioned Russia oil by frequently changing flags and concealing ownership.

Ukraine strikes Russian shadow fleet tanker in Mediterranean sea

The U.S. Justice Department has released thousands of files relating to Jeffrey Epstein, including photos featuring people like former President Bill Clinton and Mick Jagger. However, survivors are concerned with how much information was redacted from the files.

Thousands of new Epstein files, photos released

The U.S. military launched large-scale strikes against dozens of Islamic State targets in Syria on Friday (December 19) in retaliation for an attack on American personnel, U.S. officials said.

U.S. hits ISIS in Syria with large retaliatory strikes

The man suspected of carrying out an attack in Taiwan with a smoke grenade and knife acted alone, police said on Saturday of the incident that killed at least four, including the attacker. This edit contains graphic images.

Taipei City

Taipei attacker acted alone, police say after three killed

The suspect in the Dec. 13 mass shooting on the campus of Brown University was found dead by suicide in a storage unit in Salem, New Hampshire, authorities said. He has been identified as 48-year-old Claudio Manuel Neves Valente, a former Brown grad student.

Providence

How a Reddit post led police to the suspected university shooter

Seven people were killed, including former NASCAR driver Greg Biffle and his wife and children, in a plane crash in North Carolina. Investigators hope to find clues about why it happened on the cockpit voice recorder. Cristian Benavides has the latest.

Plane crash kills NASCAR driver, family

President Trump announced new agreements on Friday with nine pharmaceutical companies aimed at making certain prescription drugs cheaper. CBS News reporter Karen Hua has the details.

Breakdown