.png)
January 22, 2025
DOW: 44093.19
S&P: 6077.99
Nasdaq: 19954.23
10YR T-Note: 4.58%
Bitcoin: 104201.5
VIX: 15.19
Gold:2760.9
Crude Oil:75.74
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.
The market continued late last week’s big rally with another strong showing yesterday, as more companies reported better earnings and bond yields continued to back down a bit.
The Dow made a very large jump of 538 points to 44,025 led by gains in CAT, SHW for a change, GS, HD, 3M on earnings and UNH.
The S&P also made a nice rise of 52 to 6049 led by nice gains in most of the large technology stocks (AAPL excluded) and the financials and industrials.
The Nasdaq rose by 126 to 19,756 despite another weak showing from AAPL and a cooling off from TSLA while the Russell 2000 Index of small stocks gained a large 42 points to 2318 on strength in the financials.
The VIX continued to decline and is now at 15.06 and once again it could be getting close to the strong 13 support level if things continue to gain and we shall see what happens if it does get close to that area, which I would assume would stop further advances.
The new President has promised sweeping approaches to re-configure global trade and the economy, often at the expense of other countries, but most stock indexes in Asia and Europe made only modest moves.
In the bond market, yields gave back some of their big recent gains that had put pressure on stock markets worldwide, while bitcoin pulled back from its record set the day before but still ended higher.
In the foreign-currency market, the values of both the Mexican peso and Canadian dollar fell against the U.S. dollar after Trump said he expects to put 25% tariffs on those two countries starting on February 1st.
Trump had threatened even stiffer tariffs on Chinese imports during his campaign, but he said Monday he wanted to have more discussions with the leader of the world’s second-largest economy.
The threat of widespread tariffs, along with the possibility of other policies that could increase the U.S. government’s debt, had helped send Treasury yields higher recently, which in turn knocked down stock prices.
To make up for such downward pressure, companies need to deliver stronger earnings growth to support their stock prices.
SCHW did just that and rose 6% after delivering a better profit report for the end of 2024 than analysts expected. It credited clients pouring more in dollars, as its total client assets rose 19% from a year earlier to $10 trillion.
Dow component 3M climbed after reporting profit and revenue for the end of 2024 that edged past analysts’ expectations. The company behind Scotch tape and Command strips also gave forecasts for financial results in 2025 that were roughly in line with analysts’ expectations.
This 4Q earnings reporting season is still in its early days, but companies have so far been beating analysts’ expectations for earnings by double the rate they were doing at this time three months ago.
MRNA also rose after saying it received $590 million in total awards from the U.S. government for the continued development of flu vaccines.
ORCL rallied ahead of an expected announcement by Trump on investments in artificial-intelligence infrastructure involving the tech giant. And it added additional gains when those statements were made after the close.
Such gains helped offset a large drop for WBI. The U.S. Justice Department accused it late Friday of filling millions of prescriptions without a legitimate purpose, including for dangerous amounts of opioids.
In the lawsuit, the government says the drugstore chain’s pharmacists filled controlled substance prescriptions with clear red flags that indicated they were highly likely to be unlawful.
The company, one of the country’s largest pharmacy chains with over 8,000 locations, said in a statement that it stands behind its pharmacists and “will not stand by and allow the government to put our pharmacists in a no-win situation, trying to comply with ‘rules’ that simply do not exist.”
In the bond market, Treasury yields eased to give back some of the big gains they had made in recent months on worries about inflation remaining difficult to fully subdue.
The yield on the 10-year Treasury fell to 4.56% from 4.62% late Friday. This one has been moving lower since last week’s inflation reports, but it is still well above where it was in September, when it was below 3.65%.
In stock markets abroad, indexes rose slightly across Europe after finishing mixed in Asia.
Hong Kong’s Hang Seng index rose 0.9% after embattled Chinese property developer Country Garden got a reprieve on its deadline for working out an agreement with its creditors.
In the cryptocurrency market, which has surged amid hopes that Washington behaves nicely to the industry, bitcoin pulled back from its record above $109,000 set on Monday and eased back to just above $106,000.
This week the earnings for the 4Q pick up a bit with the following: yesterday - SCHW higher; today – Dow components 3M, PG, TRV and DHI, UAL, IBKR and NFLX higher and COF lower and Dow component JNJ as well; Thursday – ALK, AAL, CSX, UNP; Friday – Dow components AXP and VZ.
Economic reports will have: today – December L.E.I.; Friday – December existing home sales, first half of U. of Michigan Consumer Sentiment Index.
