Advisors on This Week’s Show

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Jan. 20-24, 2025)

Significant Economic Indicators & Reports

Monday

Markets and government offices closed for Martin Luther King Jr. Day

Tuesday

No major releases

Wednesday

The Conference Board said its index of leading economic indicators declined slightly in December but continued to improve from previous declines. The business research group said its gauge fell 0.1% from November, following an upwardly revised 0.4% gain from October. Over the last half of 2024, the index fell 1.3%, advancing from a 1.7% decline in the first six months of the year. Of 10 leading indicators, five were positive, the organization said, but they were offset by weaker factory orders, consumer confidence and building permits and an uptick in unemployment insurance claims. The Conference Board said its index suggested fewer head winds to economic growth. The group forecast a 2.3% rise in gross domestic product in 2025, up from its December forecast of 2%.

Thursday

The four-week moving average for initial unemployment claims rose for the first time in four weeks. The average was 41% below the all-time average dating back to 1967. It was 2% above the level just before the COVID-19 pandemic. The Labor Department said 2.3 million Americans claimed jobless benefits in the latest week, up 4% from the week before and 7% higher than the same time in 2024.

Friday

The pace of existing home sales gained 2.2% in December, the fastest in 10 months. Still, 2024 sales ended below 4.1 million residences, the least since 1995. At the same time, in part because of low inventories, the median sales price hit a record high of $407,500. The median price in December rose 6% from the year before, the 18th consecutive increase, with million-dollar home sales up 35% while those priced under $250,000 declined. The National Association of Realtors expressed optimism in its outlook, citing steady gains in jobs and wages and signs of reviving inventories.

The University of Michigan said its January measure of consumer sentiment declined for the first time in six months, with broadly lower expectations amid widespread belief that inflation will rise. The index fell 3.9% from December and 10% from January 2024. The only component that improved was consumers’ outlook toward personal finances. Expectations for increased unemployment rose to the highest level since the pandemic. The university reported a six-month high in plans for buying durable goods, as consumers wanted to beat anticipated price increases.

Market Closings for the Week

Nasdaq – 19954, up 324 points or 1.7%
Standard & Poor’s 500 – 6101, up 105 points or 1.7%
Dow Jones Industrial – 44424, up 936 points or 2.2%
10-year U.S. Treasury Note – 4.63%, up 0.02 point

Money Talk Podcast, Friday Jan. 24, 2025