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Inaugural Fuel

Inaugural Fuel

Despite a shortened trading week due to Monday’s holiday market closure, the market delivered a strong performance. Major indices, including the S&P 500, Nasdaq, and the Dow, posted gains of more than 2%, signaling renewed confidence among investors. Technology and Communication Services led the charge, as standout sectors, while Energy and Utilities lagged. This optimism was further underscored by key economic data, offering insight into the evolving dynamics of 2025.

Weekly Performance

Data Source: Factset®        Performance Period:      1/20/2025  to 2/24/2025

Last week’s economic calendar, while lighter than usual, provided meaningful updates. Significantly, Monday brought the inauguration. On Wednesday, the U.S. leading economic indicators registered a 0.1% decline for December, reversing November’s modest growth. The Conference Board attributed this dip to weakening consumer confidence, a drop in manufacturing orders and building permits, and a rise in initial unemployment claims. However, other factors, including long-term growth trends, point to a more resilient outlook ahead. On Thursday, initial jobless claims slightly exceeded expectations, coming in at 223,000. Manufacturing PMI inched back into expansionary territory at 50.1, after months of contraction, though Services PMI disappointed at 52.8, missing the forecast of 56.4. On a brighter note, existing home sales climbed 2.2% in December, aligning with expectations and reflecting resilience in the housing market. While the data presented a mixed bag, it signaled steady progress amid lingering uncertainties.

This week, the economic calendar takes center stage with a flurry of critical updates. All eyes will be on Wednesday’s FOMC interest rate decision, given its far-reaching impact on borrowing costs, business investment, and consumer spending. Additional reports on new and pending home sales, consumer confidence, and personal income and spending will offer deeper insights into economic sentiment and household behavior. The release of the Employment Cost Index and first-quarter Gross Domestic Product will provide a clearer snapshot of the labor market and overall economic performance.

Amid these broader market movements, Costco remains an impressive name. With gains of more than 35% over the last year, the company has outperformed the general market and consistently beat earnings expectations. Not only does Costco strive to provide great value amid an inflation-weary consumer backdrop, but the company is also focusing its efforts on additional ways to attract and retain customers. One much-needed improvement involves bolstering its online presence. From adding search capabilities on its website to creating apps, the company is making its online retail experience as seamless as possible. Other enhancements being pursued include additional product offerings, online pharmacy services, and global expansion. Time will tell how much these strategies drive revenue growth and grant Costco a competitive edge against its other large peers like Walmart and Amazon. Costco’s proactive strategic planning is resemblant of the truth found in Proverbs 10:4 — “A slack hand causes poverty, but the hand of the diligent makes rich.”  And don’t think this proverb is just about money; it is true of spiritual and other aspects of life as well.

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.