Financial markets advanced this week as a solid start to the fourth-quarter earnings season, and some better-than-feared inflation data gave investors a reason to buy the most recent dip. The financial sector gained 6.1% on the week as bank earnings rolled in with solid results. JP Morgan, Goldman Sachs, Morgan Stanley, Blackrock, and Citibank were some of the top performers in the group. The Producer Price Index (PPI) and the Consumer Price Index (CPI) showed sticky inflation. Still, the numbers were not as robust as some expected, which gave investors some relief on the inflation front. US Treasuries advanced significantly across the curve on the benign data. However, this sense of relief may be short-lived as the world awaits Trump 2.0 and the agenda that is poised to unfold next week after Trump is inaugurated on Monday as the 47th President of the United States. We expect Trump to announce tariffs shortly after taking office, although we did expect these tariffs to be titrated higher over time, as several reports have suggested. We also expect that the current immigration policy will materially change in the first days in office. A cease-fire has been agreed upon by Israel and Hamas, which is a situation that is also likely to be addressed by the President on his first day in office.
The S&P 500 gained 2.9% and retook its 50-day moving average. The Dow rose 3.7%, the NASDAQ climbed by 2.4%, and the Russell 2000 advanced 4%. US Treasuries rallied across the curve, with the 2-year yield decreasing by thirteen basis points to 4.27% and the 10-year yield falling by seventeen basis points to 4.61%. As yields fall, bond prices increase. Oil prices continued to trend higher, adding $0.69 to close at $77.52 a barrel. Gold price rose by 1.2% or $34.80 to $2748.50 an Oz. Copper prices increased by six cents to $4.36 per Lb. Bitcoin soared by nearly $10,000 to close above $105,000. The US Dollar index gave up 0.3% to 109.34.
The PPI and CPI headlined the Economic calendar. The Producer Price Index (PPI) increased by 0.2% in December, lower than the consensus estimate of 0.3%. The reading was up 3.3% on a year-over-year basis, up from 3% in November. The core reading that excludes food and energy was flat in December versus an expected uptick of 0.3%. The core reading rose 3.5% annually, which was in line with the November figure. The Consumer Price Index (CPI) increased by 0.4%, slightly higher than the anticipated 0.3%. On a year-over-year basis, the figure increased by 2.9%, above the 2.7% reported in November. Core CPI was flat versus an expected increase of 0.3%. The Core reading on an annual basis came in at 3.2% in December, down from 3.3% in November. December Retail Sales increased by 0.4% versus the consensus estimate of 0.6%. The Ex-Auto metric also came in at 0.4%. Initial Jobless Claims increased by 14k to 217k, while Continuing Claims fell by 18k to 1.859M.
Investment advisory services offered through Foundations Investment Advisors, LLC (“FIA”), an SEC registered investment adviser. FIA’s Darren Leavitt authors this commentary which may include information and statistical data obtained from and/or prepared by third party sources that FIA deems reliable but in no way does FIA guarantee the accuracy or completeness. All such third party information and statistical data contained herein is subject to change without notice. Nothing herein constitutes legal, tax or investment advice or any recommendation that any security, portfolio of securities, or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of FIA for services, execution of required documentation, including receipt of required disclosures. All investments involve risk and past performance is no guarantee of future results. For registration information on FIA, please go to https://adviserinfo.sec.gov/ and search by our firm name or by our CRD #175083. Advisory services are only offered to clients or prospective clients where FIA and its representatives are properly licensed or exempted.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Investment advisory services offered through Donato Wealth Management, PLLC, dba Empower Wealth Management and Empower Wealth & Tax (“Empower Wealth Management” or “EWM”),
an SEC registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional adviser before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned, or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Personal investment advice can only be rendered after the engagement of EWM, execution of required documentation, and receipt of required disclosures. All investment and insurance strategies have the potential for profit or loss. Asset allocation and diversification will not necessarily improve an investor’s returns and cannot eliminate the risk of investment losses. Past performance is no guarantee of future results. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #305031.
Insurance products and tax services are offered through Senior Tax and Insurance Advisors, PLLC, dba Empower Wealth Group (“Empower Wealth Group” or “EWG”). Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products offered through EWM. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. EWG is not affiliated with or endorsed by the U.S. Government, Social Security Administration, nor the federal Medicare program. You may be contacted by a licensed insurance agent. Calling the number above will direct you to a licensed insurance agent. EWG may not offer every plan available in your area. Any information provided is limited to plans available in your area. Please contact Medicare.gov or 1-800-MEDICARE.
EWM and EWG are both affiliated companies of Empower Wealth, LLC (“Empower”). Investment adviser representatives of EWM may have a financial incentive to recommend tax and insurance products and/or services offered through EWG which presents a conflict of interest. This conflict is addressed by EWM’s adoption of its Code of Ethics, which requires that all EWM’s Associated Persons place the interest of clients ahead of their own. Clients of EWM are also free to choose their own tax and/or insurance professionals and are under no obligation to utilize the services offered through any related entities or persons associated with Empower.
Strategic Partners listed on this page are not employees of EWM and are not affiliated through common ownership.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.
© Empower Wealth Management All Rights Reserved.