Opening Comment — Tuesday, January 21, 2025
DJIA: 43,487.83, up 334.70
S&P 500: 5,996.66, up 59.32
NASDAQ: 19,630.20, up 291.91
Stocks higher to start off the trading week
Stock futures are higher Tuesday morning to start off the trading week following yesterday’s holiday. Investors are looking forward to major data releases later this week, including preliminary January purchasing managers’ indexes and December’s existing home sales. As of 7:19 AM ET, the Dow is rising 0.4%, while the S&P 500 is up 0.3%. The Nasdaq 100 is increasing 0.4% relative to fair value on the GLOBEX.
U.S. equities were higher on Friday as December’s industrial production rose more than projected while housing starts and building permits came in above expectations. The Dow was up 0.8%, while the tech-heavy Nasdaq Composite rose 1.5%. The S&P 500 increased 1.0% with nine of 11 sectors finishing in positive territory. The Consumer Discretionary sector was the top performer, rising 1.7%, while the Health Care sector was the bottom performer, falling 0.7%.
On the data front, the Philadelphia Federal Reserve will release their January Nonmanufacturing Business Outlook Survey.
Across the pond, European stocks are mostly lower in mid-day trading as the U.K.’s unemployment rate rose to 4.4% and average weekly earnings rose less than projected. The ZEW measure of expectations for German economic growth fell more than forecasted in January.
Overnight in Asia, stocks were mixed following South Korea’s Producer Price Index accelerating in December.
In FOREX trading, the dollar is lower ahead of the Bank of Japan meeting later this week.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 2.5% lower at $75.91/barrel.
In the metals complex, gold is 0.6% lower at $2731.50/ounce despite a weakening dollar.