Weekly Market Recap:

This week, U.S. equities posted another strong performance. The Dow (+2.15%), S&P 500 (+1.74%), Nasdaq (+1.65%), and Russell 2000 (+1.40%) all ended higher. Big tech saw mixed results, with NFLX (+13.9%) surging on record net adds and AAPL (-3.1%) lagging. Strength was notable in telecoms, hospitals, managed care, investment banks, and agriculture, while energy, insurance, cruise lines, and industrial metals underperformed. Treasuries firmed, the dollar weakened, and Bitcoin rose +1.3% following an executive order promoting crypto. Gold climbed +1.2%, while WTI crude dropped -3.5%.

Corporate Highlights:

• Netflix (NFLX +13.9%): Posted a record 19M net adds, beating all key metrics.

• Oracle (ORCL +14.0%): Jumped on the Stargate AI initiative announcement.

• Johnson & Johnson (JNJ -0.1%): Results were slightly better; guidance largely in line.

• Schwab (SCHW +7.1%): Beat on trading revenues and new account openings.

• United Airlines (UAL -2.2%): Results and guidance exceeded expectations, supported by strong demand trends.

• Texas Instruments (TXN -3.5%): Talked up China strength, but Q1 guidance was mixed.

Sector Performance:

Outperformers included Communication Services (+4.01%), Healthcare (+2.90%), and Industrials (+2.40%), while Energy (-2.90%) and Materials (+0.74%) lagged.

With markets buoyed by optimism around AI developments, solid Q4 earnings, and macro improvements, investor focus turns to next week’s FOMC meeting and economic data, including GDP and PCE inflation reports.

The U.S. housing market hit its coldest point in nearly three decades last year, with just over 4 million previously owned homes sold—the lowest level since 1995. High mortgage rates and elevated home prices kept both buyers and sellers on the sidelines, creating a perfect storm of affordability challenges. While December brought a 9.3% uptick in sales compared to the previous year, this glimmer of activity was likely spurred by a brief dip in mortgage rates to around 6%. However, as rates rebounded near 7% in early 2025, the market remains under pressure. The pandemic-era surge in home prices and historically low interest rates created a frenzy that abruptly cooled as the Federal Reserve raised rates to combat inflation. This dual punch of high prices and borrowing costs left buyers priced out and homeowners reluctant to sell, further tightening inventory. There are signs of gradual stabilization as life events push more owners to sell, and buyers begin to adjust to the "new normal" of 6-7% mortgage rates. Inventory is slowly increasing, and some economists believe the market may have found its floor. Still, significant recovery hinges on a meaningful drop in borrowing costs—a prospect that remains uncertain. For now, the housing market’s path to normalization looks more like a slow crawl than a rapid rebound.

Next Week:

Notable Earnings:

• Monday (1/27)

  • SoFi Technologies Inc. ($SOFI)

  • AT&T Inc. ($T)

• Tuesday (1/28)

  • Royal Caribbean Group ($RCL)

  • Lockheed Martin Corp. ($LMT)

  • Boeing Co. ($BA)

• Wednesday (1/29)

  • T-Mobile US Inc. ($TMUS)

  • Nasdaq Inc. ($NDAQ)

  • Hess Corp. ($HES)

• Thursday (1/30)

  • United Parcel Service Inc. Cl B ($UPS)

  • Caterpillar Inc. ($CAT)

  • Southwest Airlines Co. ($LUV)

• Friday (1/31)

  • Exxon Mobil Corp. ($XOM)

  • Chevron Corp. ($CVX)

Notable Ex-Dividend Dates:

• Monday (1/27)

  • Conagra Brands ($CAG) 5.05%

  • Bank of New York Mellon ($BK) 2.48%

• Tuesday (1/28)

  • Carpenter Technology ($CRS) 0.40%

• Wednesday (1/29)

  • Lennar ($LEN) 1.40%

  • Clorox ($CLX) 2.90%

• Thursday (1/30)

  • Valero Energy ($VLO) 3.24%

  • Ally Financial ($ALLY) 3.19%

• Friday (1/31)

  • Citizens Financial Group ($CFG) 3.60%

  • Morgan Stanley ($MS) 2.82%

    
    

*Dividend Aristocrat