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Source: YCharts.com, January 18, 2025. Weekly performance is measured from Monday, January 13, to
Friday, January 17. TR = total return for the index, which includes any dividends as well as any other
cash distributions during the period. Treasury note yield is expressed in basis points.
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.
Source: Investors Business Daily - Econoday economic calendar; January 17, 2025 The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
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)
Source: Zacks, January 17, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Food For Thought
“I've begun to realize that you can listen to silence and learn from it.
It has a quality and a dimension all its own.”
― Chaim Potok
TAX TIP
Beware of Phishing Scams
A phishing scam occurs when someone pretends to be a trusted source, such as a bank, tax preparer, or credit card company, to access your personal information.
If you believe you may be part of a phishing scam, here are some recommendations from the IRS:
- Never open an email from a sender that you don’t recognize.
- Never disclose personal information to anyone online, including your passwords, bank account numbers, credit card numbers, or Social Security number. The IRS will never ask for this information via email.
- When possible, use two-factor authentication to protect your accounts. Two-factor authentication requires a secondary form of identification (such as a phone number) to access your account.
This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS9
Healthy Living Tip
What’s the Deal With Downward Dog?
Even if you’ve never set foot on a yoga mat, you’ve probably heard of one of the most popular poses called Downward Dog.
The pose is popular because it has many benefits, such as increased flexibility and spinal strength. In yoga, it’s a resting posture to let your muscles lengthen and straighten. It can help stretch your back, neck, hamstrings, and calves. You can sit in the pose without moving (a static hold) or “walk the dog,” which includes pushing your heels toward the ground to stretch out your calves.
If you’re new to downward dog, practice proper form by bending your knees and focusing on lengthening your back and arms. Ideally, your body should be in an inverted “V” shape. Eventually, you may straighten your legs and have your heels touch the floor!
Tip adapted from Ekhart Yoga10
Weekly Riddle
You can make it and read about it today;
many classes are taught in it, but it is not part of the future.
What is it?
Dave is at the hardware store to buy something for his house.
Yesterday, he bought 1 for $1. The week before, he purchased 10 for $2,
and his friend bought 100 for $3. Today, he bought 907 for $3.
If the prices haven’t changed, how is this possible?
Answer: Dave and his friend have been buying house numbers.
907 is $3 because it costs $1 per numeral.
Photo of the Week
Dolomite Mountains at Sunset
Dolomitic Alps, northeastern Italy
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