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Weekend Update & Market Outlook 1/19/25

Weekend Update & Market Outlook 1/19/25

January 18, 2025

Market Action for Last Week

Below is a comparison of the closing prices for three major ETFs—SPY (S&P 500 ETF), QQQ (Nasdaq-100 ETF), and IWM (Russell 2000 ETF)—from Friday, January 10, 2025, to Friday, January 17, 2025:

ETFJan 10 CloseJan 17 ClosePoint ChangePercent Change

SPY$580.49$597.58+$17.09+2.94%

QQQ$507.19$521.74+$14.55+2.87%

IWM$216.83$225.46+$8.63+3.98%

All three ETFs posted gains over the week, with IWM (Russell 2000) leading in percentage terms.

Upcoming Major Economic Reports and Potential Market Moving Events

Monday, January 20, 2025

  • U.S. Market Holiday: Martin Luther King Jr. Day (markets closed)
  • China: Loan Prime Rate announcement
  • Japan: Industrial Production (final for November)
  • Germany: Producer Price Index (PPI) for December

Tuesday, January 21, 2025

  • U.K.: Labor Market Report (e.g., unemployment rate and earnings data)
  • U.S.: Existing Home Sales (December)
  • U.S.: University of Michigan Consumer Sentiment Index (final for January)

Wednesday, January 22, 2025

  • Canada: Raw Materials Price Index (December)
  • U.S.: Leading Economic Index (December)

Thursday, January 23, 2025

  • Japan: Trade Balance and Exports (December)
  • Norway: Interest Rate Decision
  • Turkey: Repo Rate Decision
  • Canada: Retail Sales (November)

Friday, January 24, 2025

  • U.S.: Flash PMI data for January
  • Japan: National Core CPI (December)
  • U.S.: Michigan Inflation Expectations and Consumer Sentiment updates

Upcoming Major Stock Earnings Reports

Tuesday, January 21, 2025

  • Netflix (NFLX): Post-market
  • Charles Schwab (SCHW): Pre-market
  • United Airlines Holdings (UAL): Post-market
  • Capital One Financial (COF): Post-market

Wednesday, January 22, 2025

  • Procter & Gamble (PG): Pre-market
  • Johnson & Johnson (JNJ): Pre-market
  • ServiceNow Inc. (NOW): Post-market
  • Abbott Labs (ABT): Pre-market

Thursday, January 23, 2025

  • Intel Corp. (INTC): Post-market
  • Visa Inc. (V): Post-market
  • Mastercard Inc. (MA): Pre-market

Market Outlook for the Next 30 Days

I am neutral to slightly bullish on the market over the next month. The recent gains in major indices suggest positive momentum heading into earnings season and economic data releases. However, uncertainties remain regarding Federal Reserve policy shifts and potential inflationary pressures from new trade policies under the incoming administration. Additionally, upcoming corporate earnings will provide critical insights into economic resilience amid these uncertainties.Investors should watch closely for any surprises in economic data or corporate guidance that could sway sentiment in either direction.