Stock Market Today: Market Holds Steady as Investors Eye Fed Minutes and Earnings
The stock market is holding steady near record highs as investors prepare for a week of crucial economic data releases and corporate earnings reports. On this Presidents’ Day holiday, February 17, 2025, markets are closed, but the financial world is buzzing with anticipation for the days ahead.
Market Performance and Indexes
Last week, the major U.S. stock indexes showed resilience, with the S&P 500 (^GSPC) inching closer to its all-time high. The index added just under 1.5% for the week, while the tech-heavy Nasdaq Composite (^IXIC) outperformed with a gain of more than 2.5%. The Dow Jones Industrial Average (^DJI) lagged slightly but still managed to add about 0.5%.
The S&P 500 closed Friday at 6,114.63, a mere 0.01% below its record high, reflecting investor optimism despite some economic headwinds.
Upcoming Market Events
This week, investors will be closely watching several key economic events:
1. Federal Reserve Minutes: On Wednesday, the Federal Open Market Committee (FOMC) will release minutes from its January meeting, providing insights into the Fed’s thinking on interest rates and monetary policy.
2. Manufacturing and Services Data: Thursday will bring the Philadelphia Fed business outlook for February, with expectations set at 25.4. On Friday, preliminary February data for S&P Global US manufacturing (previous: 51.2) and services PMI (previous: 52.9) will be released.
3. Consumer Sentiment: The University of Michigan’s consumer sentiment index for February (final reading) will be published on Friday, with the previous figure at 68.7.
Major Stock News and Earnings
Corporate earnings season continues to roll on, with 46 S&P 500 companies expected to report results this week. Key earnings reports to watch include:
– Tuesday: Devon Energy (DVN), Occidental Petroleum (OXY), and Toll Brothers (TOL)
– Wednesday: Carvana (CVNA), Etsy (ETSY), and Garmin (GRMN)
– Thursday: Alibaba Group (BABA), Walmart (WMT), Booking Holdings (BKNG), and Rivian (RIVN)
In recent market moves, Airbnb (ABNB) surged 14.4% on strong earnings, while healthcare giants like Eli Lilly (LLY) saw mixed reactions, reflecting the sector’s current volatility.
Global Market Influences
International developments are also shaping market sentiment:
1. China’s Economic Signals: Chinese President Xi Jinping’s meeting with tech entrepreneurs, including Alibaba co-founder Jack Ma, has been interpreted as a show of support for the private sector, potentially boosting investor confidence in Chinese stocks.
2. Japan’s Economic Growth: Japan’s Q4 GDP grew by 0.7% quarter-on-quarter, surpassing expectations and marking the third consecutive quarterly increase. This could influence global market trends and currency movements.
3. Trade Tensions: Investors remain cautious about potential escalations in US-EU trade tensions, with reciprocal tariff threats adding an element of uncertainty to market outlooks.
Market Outlook
As we move further into 2025, the stock market appears to be in a delicate balance. Positive earnings reports and the possibility of interest rate cuts are supporting bullish sentiment. However, concerns about consumer spending, as evidenced by the 0.9% drop in January retail sales, and geopolitical tensions are keeping investors vigilant.
The VIX, a key measure of market volatility, closed at 14.77 last week, down 2.19% daily and 10.77% weekly, suggesting a relatively calm market despite underlying uncertainties.
As the week unfolds, market participants will be keenly analyzing economic data, earnings reports, and global developments to gauge the direction of stocks in the near term. With the S&P 500 hovering near record highs, any significant news could potentially trigger notable market movements.
Stay tuned for updates as we navigate through this crucial week in the financial markets.
