Powering Progress in 2025

As the new year dawns, the economic and corporate landscapes are already buzzing with promise and progress. Markets ended the week in an upward trend after days of losses. The sole S&P 500 sector winner was Energy, while laggards were led by Consumer Discretionary and Information Technology. Though the markets experienced choppy waters during the transition into 2025, economic data and groundbreaking energy deals reflected a world ready to embrace new opportunities.

Weekly Performance

Data Source: Factset®        Performance Period:      12/30/2024  to 1/3/2025

The first week of economic data this year offered stable and optimistic insights. The housing market showed signs of revival, painting a hopeful picture for homebuyers and sellers alike. November’s Pending Home Sales Index rose by an impressive 2.2%, reaching its highest point since early 2023. This surge indicates that homebuyers are shaking off hesitation and stepping back into the market. Meanwhile, the October House Price Index ticked up by 0.4%, a modest but meaningful sign of stability. Construction spending in November held steady, with gains in single-family housing balancing a dip in multi-family builds. Together, these indicators suggest a housing market poised for gradual recovery, driven by a renewed sense of buyer confidence.

The labor market continues to be a cornerstone of economic stability. Initial jobless claims came in at 211,000, beating expectations and reinforcing confidence in employment conditions. As the week progresses, key reports on job openings, the unemployment rate, and ADP employment will shed further light on the strength of the labor market. These data points will be instrumental in understanding whether job creation can keep pace with the growing demand for talent in a dynamic economy. In the manufacturing sector, there’s a sense of cautious optimism. December’s Manufacturing PMI climbed to 49.3, signaling a softening contraction and inching closer to expansionary territory. Upcoming reports on factory orders and wholesale inventories will provide valuable insight into how companies are positioning themselves for the year ahead.

Among the week’s highlights was Constellation Energy’s headline-grabbing $840 million deal with the General Services Administration (GSA). As one of the largest nuclear power providers in the U.S., Constellation’s decade-long agreement to supply the federal government with nuclear energy marks a significant step toward sustainability and energy independence. The deal offers federal agencies the stability of fixed energy pricing for the next ten years while allowing Constellation to modernize its equipment and extend its nuclear power licenses. This news came just months after Constellation announced plans to revitalize the dormant Three Mile Island nuclear facility to power Microsoft’s operations. This bold initiative underscores the growing reliance of tech giants on nuclear energy to support energy-intensive technologies like artificial intelligence. As efficiency and sustainability take center stage, nuclear power is emerging as the backbone of a new era in energy consumption.

These developments are a testament to the power of collaboration, foresight, and the willingness to use resources for the good of others. The wisdom of Proverbs 3:27 resonates deeply here: “Do not withhold good from those to whom it is due, when it is in your power to do it.” Building stability, inspiring confidence, and creating solutions helps us to contribute meaningfully to the world around us.

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.