.png)
January 21, 2025
DOW: 43487.83
S&P: 5996.66
Nasdaq: 19630.20
10YRT-Note:4.546%
Bitcoin: 102014
VIX: 15.81
Gold:2734.7
Crude Oil:76.85
Prices Current as of 10 :11 am
Source: CNBC
Don Selkin, the creator and innovator of the "Fair Value" numbers, as its Chief Market Strategist on the Newbridge platform has given CNBC and its Predecessor, these numbers every day for the over 40 years - never missing a single day, as well as given the fair value for the Nasdaq 100 futures since their introduction in 1996 and the Dow Jones stock index futures since 1997. Mr. Selkin has also been quoted in several publications including but not limited to Bloomberg News, New York Post, Reuters, and The New York Times. Mr. Selkin's Fair Value numbers are included in the U.S.
Futures Report broadcast on CNBC every day before the market
opens attributing "Newbridge Securities" as the source. In addition, NSC provides to its professionals, their clients and the public access to Don Selkin's more in depth financial market views.
Similar to Wednesday, the market started out sharply higher and was able to end with most gains intact by the close. As a result, both the S&P and the Nasdaq ended the week with the best gains in two months and the first winning week of the year.
The Dow gained 335 up to 43,487 with advances in GS, JPM, CAT plus AMZN and NVDA finally doing well for a change.
The S&P advanced by 59 to 5997 as most of the former technology leaders did well and the same goes for the Nasdaq which advanced by 291 up to 19,630 as TSLA helped the rest of the large tech issues do better for the second time this week.
The Russell 2000 Index of small stocks came along to the upside with a 9 point gain to 2275 on further strength in banks and the VIX fell once again down to 15.97. U.S. stock indexes closed their best week in two months with a flourish on Friday.
SLB helped lead the market after the provider of services to oilfields delivered bigger profit and revenue for the end of 2024 than analysts expected. It jumped after it also raised its dividend by 3.6% and said it is returning $2.3 billion to its investors by buying back its own stock.
The markets have been lurching down and up in recent weeks as economic reports pushed traders to revamp their expectations about what the Fed will do with rates.
Treasury yields eased sharply this past week, and the 10-year Treasury yield eased further on Friday. It is at 4.61%, down from 4.62% late Thursday and from 4.76% a week earlier.
And as I predicted in last week’s Monday morning meeting, there was a good chance that things would go higher this week based on two factors, the first of which was that stocks coming into it had been on the defensive and that interest rates could drop, which they did. And the 10-year yield fell sharply, down 15 basis points, to 4.61%, the largest point drop since the end of November. This was based on both the December P.P.I. and C.P.I. coming in slightly lower than expectations.
On the other hand, there are uncertainties created by the new President as his potential policies could help push up inflation, or at least expectations for it, including widespread tariffs and tax cuts for an economy that is already growing.
Investors see banks as some of the biggest beneficiaries from a second Trump administration. Besides a potentially stronger economy, which would boost profits for lending, investors expect another term to mean less regulation on banks.
Truist Financial rose after joining the list of banks to report better profits for the end of 2024 than analysts expected. The company said its average deposits rose 1.5% during the quarter, and it followed bigger-than-expected profit reports from others.
JBHT dropped for the biggest loss in the S&P after falling short of analysts’ expectations for profit in the latest quarter. Higher equipment and insurance-related costs helped drag on its results.
Chinese indexes rose modestly after authorities said the world’s second-largest economy grew at a 5% pace last year, hitting the government’s target but slowing from the year before. Stocks rose 0.3% in Hong Kong and 0.2% in Shanghai.
Economists are forecasting a further slowing of growth this year and beyond for the world’s second-largest economy, and Trump’s threats to raise U.S. tariffs on Chinese goods have added to Beijing’s challenges as it faces a raft of moves by Washington to limit access to advanced technology, such as computer chips used in artificial intelligence.
This week the earnings for the 4Q pick up a bit with the following: today – Dow component 3M plus DHI, UAL and NFLX; Wednesday – Dow components JNJ, PG and TRV; Thursday – ALK, AAL, CSX, UNP; Friday – Dow components AXP and VZ.
Economic reports will have: Wednesday – December L.E.I.; Friday – December existing home sales, first half of U. of Michigan Consumer Sentiment Index.
