What Happened Last Week

The S&P 500 Index gained 2.91 percent, the Nasdaq Composite Index gained 2.45 percent and the Dow Jones Industrial Average gained 3.69 percent.^1,2

Goldilocks is Back

The “Goldilocks” term is used in reference to the economy when economic growth is steady enough to prevent a recession, but not so much growth that would encourage inflation to rise by a great deal. This goldilocks theme 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 break 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

Inflation Slows

Last week, investors welcomed 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 last July.⁸

Economic Data To Watch

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.}

Upcoming Earnings Reports

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.}

Footnotes and Sources

^{1. The Wall Street Journal, January 17, 2025}

^{2. Investing.com, January 17, 2025}

^{3. CNBC.com, January 14, 2025}

^{4. The Wall Street Journal, January 15, 2025}

^{5. CNBC.com, January 17, 2025}

^{6. MarketWatch.com, January 17, 2025}

^{7. CNBC.com, January 17, 2025}

^{8. The Wall Street Journal, January 15, 2025}

^{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.}