Price Return Last Week
S&P 500 +2.9% S&P Mid Cap +4.5% Russell 2000 +4.0%
MSCI EAFE +1.9% MSCI EM +1.2%
10 Yr US Treasury Rate – fell from 4.77% to 4.61%
Source: Refinitiv Eikon
Recent News
Core CPI – Dec: 0.2% (Reuters Poll est. 0.2%) Nov: 0.3%
Core CPI declined modestly from November, advancing at a 0.2% monthly pace. This represents the smallest increase since July. The S&P 500 rose 1.8% after the release for the best one-day performance since the day after the election. The yield on 10-year Treasuries declined from 4.79% to 4.65% for the largest one-day fall since November.
Source: Refinitiv Eikon, The Wall Street Journal
Chicago Downgraded – The city of Chicago’s general obligation debt was downgraded from BBB+ to BBB by S&P. S&P cited the acrimony of the 2025 budget negotiations as one of the factors that led to the downgrade. They also questioned the city’s willingness to cut spending. While the city maintained the supplemental pension payments started under Lori Lightfoot, about 30% of the 2025 budget deficit was closed with one-time revenues. Moody’s and Fitch chose not to adjust their ratings for Chicago debt.
Source: Chicago Tribune
Retail Sales – Dec: 0.4% (Reuters Poll est. 0.6%) Nov: 0.8%
Spending by US consumers was slightly below expectations in December due to a drop in purchases at building material stores and restaurants. Partially offsetting lower spending at building material stores and restaurants was a jump in spending on cars and furniture. The November report was revised slightly higher than previously reported, highlighting a strong holiday season.
Source: Thomson Reuters
Forever Young – Bob Dylan’s fifteenth studio album, Blood on the Tracks, celebrated its 50th anniversary on January 20. What is often referred to as the greatest breakup album ever made was recorded in just ten days as Dylan was in the middle of a divorce. Dylan claimed to be surprised at the album’s popularity and stated “It’s hard for me to relate to that. I mean, people enjoying that kind of pain.” Rolling Stone lists it as the ninth greatest album of all time and Pitchfork gave it a perfect 10 out of 10 rating.
Source: Paste Magazine, Pitchfork, Rolling Stone
Upcoming Events
1/21 – Notable Earnings Reports: D.R. Horton, 3M, Charles Schwab, Netflix, United Airlines, Capital One
1/22 – Notable Earnings Reports: Amphenol, Freeport-McMoran, Halliburton, Johnson & Johnson, Procter & Gamble, Abbott Laboratories
1/23 – Notable Earnings Reports: Union Pacific, General Electric, Northern Trust
1/24 – S&P PMI, Notable Earnings Reports: American Express, Verizon, Nextera Energy
Source: Refinitiv Eikon
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