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Market Recap
WEEK OF FEB. 3 THROUGH FEB. 7, 2025
The S&P 500 index began February relatively flat but volatile. It finished the week with a 0.2% weekly decline as January job gains came in slightly below expectations and US consumer sentiment reached its lowest level since July. The S&P 500 ended Friday's session at 6,025.99, marking its second consecutive week in the red. It's still up 2.5% for the year.
Government data on Friday showed the US economy added fewer jobs than expected in January, with total non-farm payrolls up by 143,000 last month versus a consensus estimate for a 175,000 increase. The unemployment rate, however, unexpectedly improved to 4% from December's 4.1%. The rate had been expected to stay at 4.1% for January.
Other data showed US consumer sentiment reached its lowest level since July, while year-ahead inflation expectations hit their highest level since November 2023, according to preliminary February results from the University of Michigan's Surveys of Consumers. The survey indicated concerns regarding the negative impact of the Trump administration's tariff policy.
The consumer discretionary sector had the largest percentage drop of the week, falling 3.6%, followed by a 2.1% decline in communication services. Industrials, materials and health care were also in the red.
Among the decliners in consumer discretionary, Tesla (TSLA) shares fell 11% on the week amid reports that the electric vehicle maker's sales of China-made electric vehicles fell 11.5% year over year to 63,238 units in January. Also, the US Federal Highway Administration said in a letter posted online Friday that it is suspending the approval of all State Electric Vehicle Infrastructure Deployment plans for all fiscal years.
In communication services, shares of Google parent Alphabet (GOOGL) shed 9.2%. The company reported Q4 earnings above analysts' expectations but its revenue missed the Street view, prompting many analysts to lower their price targets on the stock.
However, consumer staples rose 1.6%, followed by a 1.3% gain in real estate and a 1% rise in energy. Technology, financials and utilities also edged higher.
In consumer staples, Philip Morris International (PM) shares jumped 11% as the company reported Q4 results above analysts' expectations. Philip Morris also forecast 2025 adjusted EPS above analysts' mean estimate at the time.
In real estate, shares of Essex Property Trust (ESS) rose 2.7% as the real estate investment trust's Q4 core funds from operations surpassed analysts' mean estimate while revenue also topped the Street view.
This week's earnings calendar features McDonald's (MCD), Coca-Cola (KO), S&P Global (SPGI), Cisco Systems (CSCO), Applied Materials (AMAT) and Deere (DE).
Economic data will include two closely watched inflation figures: the consumer price index and producer price index for January. There will also be reports on January retail sales, industrial production and capacity utilization.
