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Market Recap
WEEK OF JAN. 13 THROUGH JAN. 17, 2025
The S&P 500 index advanced 2.9% last week as investors exhaled as the latest U.S. Inflation reading showed continued positive developments in trending in a lower direction. In addition, Q4 2024 earnings season kicked off showing a very robust earnings environment from the major banks. This is welcoming news and typically a very good sign of things to come for as the banking industry deals with pretty much the entire economy. The market benchmark ended Friday's session at 5,996.66 and is now positive 1.96% for the month and year.
In Canada, the S&P/TSX was also positive as it advanced 1.21%.
Markets are both voting machines, powered by attention and popularity, and weighing machines, powered by fundamentals, like expected future cash flow. The markets’ response to the inflation report was classic weighing-machine behaviour.
U.S. markets will be closed today, Monday, to observe Martin Luther King Jr. Day. Additionally,Donald J. Trump will be inaugurated on Monday to start his second, non-consecutive, term as President.
Economic data released this week worth noting include Canada Inflation data onTuesday, U.S. initial jobless claims on Thursday, and a reading on U.S. manufacturing and services PMI on Friday.
Earnings season kicks off in full swing this week. Notable companies on deck include Procter& Gamble (PG), Netflix (NFLX), Johnson & Johnson (JNJ), AmericanExpress (AXP), Intuitive Surgical (ISRG), GE Aerospace (GE),and Abbott Laboratories(ABT).
