GROUNDHOG DAY ONE WEEK AWAY – FEBRUARY 2!
U.S. Stocks Move To The Downside But Post Strong Weekly Gains
After turning in a relatively lackluster performance early in the session, stocks moved mostly lower over the course of the trading day on Friday. The
major averages all moved to the downside, with the S&P 500 giving back ground after reaching a new record intraday high.
The major averages climbed off their worst levels going into the close but remained in negative territory. The Dow fell 148.82 points or 0.3 percent to
44,424.25, the Nasdaq slid 99.38 points or 0.5 percent to 19,954.30 and the S&P 500 dipped 17.37 points or 0.3 percent to 6,101.24.
Despite the pullback on the day, the major averages still posted strong gains for the holiday-shortened week. While the Dow surged by 2.2 percent, the
Nasdaq and the S&P 500 both jumped by 1.7 percent.
The weakness that emerged on Wall Street may have reflected concerns about the outlook for interest rates ahead of the Federal Reserve’s monetary policy
meeting next week.
While the Fed is almost universally expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement
for clues about the outlook for rates.
Recent economic data has led to concerns about the Fed leaving rates on hold for a prolonged period, but many economists still expect the central bank to
resume cutting rates sometime in the first half of the year.
CME Group’s FedWatch Tool is currently indicating a 71.1 percent chance rates will be lower by at least a quarter point following the Fed’s June meeting.
On U.S. economic front, revised data released by the University of Michigan showed consumer sentiment unexpectedly deteriorated by more than previously
estimated in the month of January.
The University of Michigan said its consumer sentiment index for January was downwardly revised to 71.1 from the preliminary reading of 73.2. Economists
had expected the index to be unrevised.
The consumer sentiment index is down from the final December reading of 74.0, marking the first decrease in six months.
Meanwhile, a report released by the National Association of Realtors showed existing home sales jumped by much more than expected in the month of
December, reaching their highest level since last February.
Sector News
Semiconductor stocks showed a significant move to the downside on the day, dragging the Philadelphia Semiconductor Index down by 1.9 percent.
Texas Instruments (TXN) led the semiconductor sector lower, plunging by 7.5 percent after reporting better than expected fourth quarter results but
providing disappointing earnings guidance for the current quarter.
Oil and networking stocks also saw notable weakness, while pharmaceutical stocks showed a strong move to the upside, driving the NYSE Arca Pharmaceutical
Index up by 1.4 percent.
U.S.-listed shares of Danish drug maker Novo Nordisk (NVO) surged by 8.5 percent after the company announced positive trial results for its obesity drug.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday. Hong Kong’s Hang Seng Index surged by 1.9 percent and
South Korea’s Kospi advanced by 0.9 percent, although Japan’s Nikkei 225 Index bucked the uptrend and edged down by 0.1 percent.
Meanwhile, the major European markets moved to the downside over the course of the session. While the U.K.’s FTSE 100 Index slid by 0.7 percent, the
French CAC 40 Index and the German DAX Index both edged down by 0.1 percent.
In the bond market, treasuries gave back ground after an early advance but remained modestly higher. Subsequently, the yield on the benchmark ten-year
note, which moves opposite of its price, edged down by 1.2 basis points to 4.626 percent.
Looking Ahead
The Fed’s monetary policy announcement is likely to be in the spotlight next week, although several key economic reports may also attract attention,
including a report on personal income and spending that includes the central bank’s preferred inflation readings.
On the earnings front, Apple (APPL), Intel (INTC), Microsoft (MSFT), Tesla (TSLA), IBM Corp. (IBM), Exxon Mobil (XOM), ATT&T (T), Boeing (BA), General
Motors (GM) and Starbucks (SBUX) are among a slew of big-name companies due to report their quarterly results.
CHNI: Democrats vote against ban on transgender athletes
Editor: I will say it again. Democrats suffer from mental illness!
https://katherineclark.house.gov/2025/1/chni-democrats-vote-against-ban-on-transgender-athletes
https://tinyurl.com/2s4chzdt
THE PRODUCERS WILL SWALLOW THE TARIFFS TARIFFS ARE NOT GOING TO PRODUCE INFLATION
https://www.howestreet.com/2025/01/stocks-driven-higher-by-ai-energy-demand-mark-leibovit/
https://tinyurl.com/38nmcnnz
COME ON, DAD. IT’S TIME TO EAT
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