Forefront’s Market Notes

January 27th, 2025

 

Stocks rallied last week as investors reacted positively to a handful of better-than-expected corporate earnings reports and developments out of Washington, D.C.
 
The Standard & Poor’s 500 Index gained 1.74 percent, while the Nasdaq Composite Index added 1.65 percent. The Dow Jones Industrial Average rose 2.15 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 3.03 percent.1,2

Flurry of News

Markets surged over the first three trading days as investors cheered a flurry of new policy announcements and executive orders following Monday’s inauguration. For example, investors responded to news that the White House trade team is considering taking a softer stance on tariffs.3

It was also a good week for Q4 company reports and other upbeat corporate news.4
 
Markets leveled off Friday as investors were disappointed that existing home sales fell to a 30-year low. But for the week, the Nasdaq had closed above 20,000 on two of the four trading days, and the S&P 500 closed above 6,000 at every session.5

allison@harrisandward.com

Source: YCharts.com, January 25, 2025. Weekly performance is measured from Friday, January 17, to Friday, January 24. 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.

 

A Look Forward

The stock market is a discounting mechanism, meaning today’s stock prices reflect all available information, including present and potential future events. And for the most part, the markets reacted positively to the news coming out of Washington last week. Some news spurred broad-based market moves, while other news had more sector-specific impacts.6

For example, on Thursday, markets reacted positively to news that the White House believes interest rates were too high and want to see rates trend lower. The Fed’s first scheduled two-day policy meeting ends on Wednesday, so investors may be looking to see if Fed Chair Jerome Powell addresses the new administration’s concerns. 

Electronic Filing Options for Military Families

 

The Internal Revenue Service (IRS) offers several online resources for military members and their families. Some of these resources include:

  • IRS Free File. This program offers online tax preparation, electronic filing, and direct deposit of refunds. There is no charge.
  • Members of the military and their families with incomes below $72,000 can choose from any of the Free File tax software companies the IRS has compiled.
  • Free File Fillable Forms are available for those with income above $72,000.
  • Free File can help taxpayers determine their earned income tax credit, child and dependent care credit, and Recovery Rebate Credit.
  • Miltax is another free tax resource available for the military community offered through the Department of Defense. 

*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS10

 

Footnotes and Sources

1. The Wall Street Journal, January 24, 2025
2. Investing.com, January 24, 2025
3. MarketWatch.com, January 21, 2025
4. CNBC.com, January 22, 2025
5. CNBC.com, January 24, 2025
6. The Wall Street Journal, January 21, 2025
7. IRS.gov, June 10, 2024

Stock market calendar this week:

Time (ET) Report
MONDAY, JAN. 27
10:00 AM New home sales
TUESDAY, JAN. 28
8:30 AM Durable-goods orders
8:30 AM Durable-goods minus transportation
9:00 AM S&P Case-Shiller home price index (20 cities)
10:00 AM Consumer confidence
WEDNESDAY, JAN. 29
8:30 AM Advanced U.S. trade balance in goods
8:30 AM Advanced retail inventories
8:30 AM Advanced wholesale inventories
2:00 PM FOMC interest-rate decision
2:30 PM Fed Chair Powell press conference
THURSDAY, JAN. 30
8:30 AM GDP
8:30 AM Initial jobless claims
10:00 AM Pending home sales
FRIDAY, JAN. 31
8:30 AM Fed Gov. Michelle Bowman speaks
8:30 AM Employment cost index
8:30 AM Personal income (nominal)
8:30 AM Personal spending (nominal)
8:30 AM PCE index]
8:30 AM PCE (year-over-year)
8:30 AM Core PCE index
8:30 AM Core PCE (year-over-year)
9:45 AM Chicago Business Barometer (PMI)

 

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Most anticipated earnings for this week

 

Did you miss our last blog?

Forefront Market Notes: January 20th

 

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About Amit: I am a first generation American, the son of a working-class Indian family, and I lived through my parents’ struggle to find their place in this country, to put down roots that would sustain them as well as their children in a new land. As they encouraged me to excel in school and fostered my hobbies and interests, I was keenly aware of the dynamic between them. I understood that there was a difference between where they came from individually and where we were now. They worked hard in their individual capacities, but they weren’t always on the same page about financial issues – and that can make or break a family’s future. I didn’t know it at the time, but this laid the groundwork for my passion towards financial services and helping families succeed.

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