Stocks To Watch – 1/13/2025

 Brief Overview

Welcome back to this week’s Stocks to Watch! We’re finally back to a full trading week after 3 consecutive 4-day weeks. We’re excited to get back to normal and as always, ready to alert the best setups to our members. While we are back to normal in terms of trading days, it’s important to note this week and the next will be far from normal. This will be the last week of the Biden Administration 👋 with President Trump being Inaugurated on Monday Jan 20th 🇺🇸.

Let’s take a look at last week.

The week kicked off with chipmakers leading the charge. Nvidia and other tech giants helped lift the Nasdaq, while the S&P 500 notched some gains too. The Dow, however, slipped just a bit. Over in bonds, Treasury yields crept up, with the 10-year settling at 4.62%.

The trade deficit expanded to $78.2 billion in November, up from $73.6 billion in October. While the increase shows strong consumer demand, it’s raising eyebrows about the impact on domestic production. More imports, fewer exports—it’s a balance we’ll need to watch.

Midweek, the markets pulled back as investors digested mixed signals from the economy. The Dow, S&P 500, and Nasdaq all dipped slightly. Adding to the tension? Rumors that President-elect Trump might declare a national economic emergency, which had everyone guessing.

Fed officials were back at it, flagging inflation as a lingering issue. While it’s cooled since its peak, it’s still sitting above the Fed’s 2% target, with housing inflation being a particular pain point. The message? They’re watching closely to make sure the economy stays balanced.

The December jobs report came in hot—256,000 jobs added and unemployment dipping to 4.1%. Sounds great, right? But the market didn’t think so. Stocks fell across the board, with the S&P 500, Dow, and Nasdaq all down 1.6%. Why? Investors worried a strong labor market might keep inflation alive and force the Fed to hold off on rate cuts.