2025 | February 18

The Markets

Stocks Gain

The S&P 500 and the NASDAQ recorded weekly gains, bouncing back from negative results the previous two weeks. The S&P 500 finished just four points shy of a record high that it set three weeks earlier; the NASDAQ and the Dow were around a percentage point below their all-time peaks. 

Wednesday’s Consumer Price Index report extended a recent trend of slightly hotter-than-expected inflation. Core inflation, excluding volatile energy and food prices, rose at an annual rate of 3.3% in January. That result was above economists’ consensus forecast and slightly above the previous month’s annual figure.  

U.S. consumers trimmed their spending more than expected after the holiday shopping season. In January, retail sales fell 0.9% on a seasonally adjusted basis compared with the previous month. The result was well below most economists’ expectations and marked the biggest monthly decline in a year. 

With earnings season nearing an end, profits continued to exceed expectations. As of Friday, analysts expected fourth-quarter net income to rise 16.9% compared with the same quarter a year earlier, based on the three-quarters of S&P 500 companies that had reported results and forecasts for companies that hadn't yet posted results. Before earnings season, analysts had expected growth of 11.8%. 

U.S. Federal Reserve Chair Jerome Powell said in congressional testimony that Fed policymakers need to see more progress in curbing inflation before considering further interest-rate cuts. Powell declined to specify the inflation rate that might trigger the Fed to approve a further cut in its benchmark rate, which has remained in a range of 4.25% to 4.50% since the last cut in December. 

The United Kingdom’s economy eked out a 0.1% GDP growth rate at the end of 2024, exceeding economists’ expectations after stagnating in the previous quarter with a 0.0% reading. Thursday’s report on fourth-quarter GDP came a week after the Bank of England cut its benchmark interest rate.  

Source: John Hancock Investment Management

Payroll Gains

What Do You Know About Buying a House?

First-time home buyers have a lot to think about. A house is a big investment, so it’s important to do the research and develop some checklists that can help you compare and evaluate the options available to you. One checklist might include key points to observe during home showings. For example, did you know it’s a good idea to begin your home tour in the basement (assuming the house has one)? If you find issues that significantly affect the structure’s integrity, end the tour there.

Here are a few things to consider:

• The inspection. Many people have been told that requiring an inspection may mean they won’t get the house. But waiving an inspection can be costly, especially if the home has significant problems. One option “is to include a home inspection ‘for informational purposes’ in your contract. This means that you won’t hold home sellers responsible for making repairs or fronting the money for them—and could make sellers more likely to accept your offer,” reported Kelsey Ogletree of Realtor.com. If the home has serious issues, you can back away from the sale although your earnest money may be at risk.

• The neighborhood. You can learn a lot about prospective neighborhoods online, but it’s a good idea to spend time there, too. Drive through the community. Take walks through the neighborhood at different times of the day and different days of the week. Chat with people you see. The more information you gather, the more confident you will be about your decision.

• Your actual monthly costs. After buying a home, the amount you owe each month is usually several hundred dollars more than your mortgage expense. That’s because the payment to your lender will include property taxes and homeowner’s insurance costs that are held in escrow and, usually, paid by the lender when due.

When you’re ready to buy a home, leverage your resources—including online research and friends and family members—and gather the information you need to feel confident that you’re making a sound decision.

Phone: (615) 709-8709

Fax: (615) 505-3306

eMoney

Charles Schwab

Advyzon

Emily Triano

Operations Manager

emily@ajadvice.com

Maya Laws

Operations Associate

maya@ajadvice.com

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