Weekly Update – January 21, 2025
The Week on Wall Street
Stocks roared back last week, fueled by upbeat Q4 corporate reports and economic news that stalled inflationary fears.
The Standard & Poor’s 500 Index rose 2.91 percent, while the Nasdaq Composite Index advanced 2.45 percent. The Dow Jones Industrial Average led, picking up 3.69 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 2.00 percent.1,2
Goldilocks is Back
The “Goldilocks” narrative—an economy that’s neither too hot nor too cold —made a comeback last week.
Tuesday’s Producer Price Index report showed that wholesale prices rose less than expected in December—one piece of evidence suggesting a cooling economy.3
Stocks jumped out of the gate Wednesday after the December Consumer Price Index (CPI) report showed core inflation (minus volatile energy and food prices) rose less than expected. Investors also cheered Q4 reports from a handful of money center banks and positive news out of the Middle East.4
Stocks took a breather Thursday before pushing higher again on Friday.5
The S&P and Dow Industrials had their best week since early November, and the Nasdaq saw its best weekly performance since early December. The yield on the 10-year Treasury note fell roughly 20 basis points over the week.6,7
Slowing Inflation
Investors welcomed the inflation reports, believing wholesale and consumer prices might trend lower in 2025.
First, producer prices came in at 0.2 percent, which was less than the 0.4 percent increase anticipated. Then consumer prices came in at 2.9 percent, slightly elevated, but the real story was core inflation. When you subtract out food and gas prices, CPI saw its smallest monthly increase since July.8
THIS WEEK: KEY ECONOMIC DATA
Monday: Markets closed – MLK Jr holiday
Wednesday: Treasury Buyback Announcement. 20-Year Treasury Bond Auction.
Thursday: EIA Petroleum Status Report. Weekly Jobless Claims. Fed Balance Sheet.
Friday: Existing Home Sales. Consumer Sentiment.
THIS WEEK: COMPANIES REPORTING EARNINGS
Tuesday: Netflix, Inc. (NFLX), The Charles Schwab Corporation (SCHW), Prologis, Inc. (PLD), Interactive Brokers Group, Inc. (IBKR), 3M Company (MMM), Capital One Financial Corporation (COF)
Wednesday: The Proctor & Gamble Company (PG), Johnson & Johnson (JNJ), Abbott Laboratories (ABT), The Progressive Corporation (PGR), GE Vernova Inc. (GEV)
Thursday: Intuitive Surgical, Inc. (ISRG), GE Aerospace (GE), Texas Instruments Incorporated (TXN), Union Pacific Corporation (UNP), Elevance Health, Inc. (ELV)
Friday: American Express Company (AXP), Verizon Communications Inc. (VZ), NextEra Energy, Inc. (NEE), HCA Healthcare, Inc. (HCA)
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1. The Wall Street Journal, January 17, 2025
2. Investing.com, January 17, 2025
3. CNBC.com, January 14, 2025
4. The Wall Street Journal, January 15, 2025
5. CNBC.com, January 17, 2025
6. MarketWatch.com, January 17, 2025
7. CNBC.com, January 17, 2025
8. The Wall Street Journal, January 15, 2025