Impactful Navigation

Last week, markets rode a wave of volatility, as investors grappled with uncertainty surrounding economic data and policy shifts. While some sectors found safe harbor—consumer staples and real estate emerging as the week’s victors—others, such as technology and energy, bore the brunt of the storm. Yet, even amid these choppy financial waters, bright spots remain for those willing to look for resilience in economic indicators and steadfast businesses.

Weekly Performance

Data Source: Factset®        Performance Period:      2/24/2025  to 2/28/2025

The past week painted a mixed economic picture, marked by declining consumer confidence and growing concerns over inflation and trade policies. February’s consumer confidence reading took a dip to 98.3 from the previous 105.3, reflecting the caution lingering among consumers. In the housing sector, new home sales underperformed expectations in January, followed by a striking 4.9% drop in pending home sales—their lowest level since data collection began in 2001. Rising home prices and mortgage rates have fueled affordability concerns, creating a challenging environment for prospective buyers. Labor market data added to the uncertainty, as initial jobless claims ticked up beyond both forecasted figures and the prior week’s numbers. Meanwhile, personal income saw a 0.9% increase in January, a positive signal of wage growth. That said, consumer spending still fell by 0.2%—its most significant decline in four years. As the week wrapped up, personal consumption expenditures managed to align with expectations, rising by 0.3%.

Looking ahead, the coming week is poised to deliver a wealth of economic data, with a strong focus on the labor market. Reports on construction spending and ISM manufacturing will set the tone early on, providing insight into business investment and industrial activity. Factory orders, ISM services, and wholesale inventories will further shape the broader economic landscape, offering a glimpse into production and corporate spending. However, the true focal point of the week will be employment data. With the ADP employment report, initial jobless claims, the U.S. jobs report, unemployment rate, and hourly wage growth all set to be released, the market will gain a clearer picture of the labor force’s resilience. The week will conclude with a key consumer credit report—an area worth monitoring, especially following December’s surge in borrowing.

Amid the market’s ever-changing landscape, dominated by the excitement of artificial intelligence and emerging technologies, it is essential not to overlook companies that play a fundamental role in sustaining everyday life. Waste Management may not be the most glamorous name in the stock market, but its significance cannot be overstated. So far this year, Waste Management’s stock has climbed over 14%. A key driver of this success has been its strategic acquisition of Stericycle, a company specializing in medical waste disposal and information destruction services. This move has not only expanded Waste Management’s service portfolio, but has also strengthened its foothold in an increasingly vital sector. Perhaps what sets Waste Management apart even further is its dedication to positive impact for people and communities. Through educational programs for employees and their families, as well as environmental initiatives that extend beyond profit margins, the company exemplifies the balance between business success and social impact.

In times of uncertainty, the principles of diversification and impact planning become even more crucial. The ability to respond to unforeseen circumstances and still make a positive impact is a hallmark of wisdom. As Ecclesiastes 11:2  advises, “Give a portion to seven, or even to eight, for you know not what disaster may happen on earth.”  Spreading our talents and making prudent decisions is the best forward in times of volatility.

Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights

 Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Faithward Advisors LLC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Dream More, Plan More, Do More is a registered trademark of Faithward Advisors, LLC, Reg. U.S. Pat. & Tm. Off. Any opinions expressed in this forum are not the opinion or view of Faithward Advisors or American Portfolios Financial Services, Inc. (APFS). They have not been reviewed by either firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.