Stocks To Watch – 1/6/2025

 Brief Overview

Welcome back! New year, new Stocks to Watch! We’re in for another four-day week with markets announcing they will close on Thursday Jan. 9th, in observance of the National Day Of Mourning for former President Jimmy Carter 🇺🇸. With another short week, we’ll be ready to get alerts our to members as opportunities present themselves!

Let’s take a look at how last week played out.

The “Santa Claus rally” was a no-show this year. The S&P 500 slipped 1.1% since Christmas Eve—the worst stretch for this period since 2015-2016. The Nasdaq also fell for the fourth day in a row, leaving investors wondering if this signals trouble for January.

Consumers were cautious heading into 2025, with lingering inflation and potential tariffs keeping spending in check. While holiday retail sales rose 3.8% through December 24, many shoppers are planning to scale back this year. Retailers might face a tougher road ahead.

Fed officials acknowledged that inflation is cooling but still not where they want it. November’s annual rate sat at 2.4%, with housing inflation remaining a big concern. The Fed’s message? They’ll keep monitoring closely to keep the economy on track.

Wall Street is buzzing about a potential IPO resurgence in 2025. Companies like Medline and Genesys are getting ready to hit the market, thanks to strong stock gains in 2024 and expected tax cuts under the new administration. It looks like the IPO drought could finally end.

On Friday, stocks finally bounced back as investors piled cash into 2024’s biggest winners. There’s a lively debate going on about whether the top stocks of 2023 and 2024 will stay in favor during 2025. Investors are weighing their options, wondering if these champs have more gas in the tank or if it’s time to switch gears.