Weekly Newsletter 02/21/25
Good afternoon,
The U.S. stock markets traded a bit lower today which is the theme for this Holiday shortened week. Stocks on Thursday were a bit lower, however, off the lows of the day with staples retailers, banks, credit cards, machinery, building products, airlines, trucking, chemicals, cybersecurity and apparel retail among the laggards.
Some focus on tech heavy momentum which may be unwinding. Still a lot of uncertainty surrounding tariffs, taxes and geopolitics. Earnings a bright spot amid continued margin expansion, though some scrutiny on softer guidance trends and stretched valuations. Solid growth backdrop another bright spot, though Q1 tracking estimates have recently come down and broader disinflation traction remains disappointing.
On the money flow front, buybacks remain elevated but also some recent talk about fading retail momentum and more difficult seasonals. Retail investors chasing gains by adding considerably to European funds this week.
Some Fed-speak this week. The common theme being we have a way to go before achieving their 2% inflations objective…gee ya think? Some Fed members anticipate two rate cuts this year while an almost equal share say one.
Raymond James tax documents have been mailed and are also available for our online users except for a handful being delayed until the beginning of March. My favorite financial cliché is: “It’s not what you make, it’s what you keep” and never more true than during tax time. Please let us know if you would like to have a discussion on your tax situation before or after your filing…I can just hear the phone ringing now with so many who want to talk about the fun of taxes.
New car buyers are shelling out more than ever for that new ride as the average transaction price in the U.S. nears $50,000. Thrifty shoppers have little luck for a deal as the used car average price nears $30,000. I consider myself a “car guy”…though I drive a Toyota Camry (the shame) and bore my kids with my car spotting on the local roads, automotive themed programs at home and the occasional car show like the one held on 5thave. in Naples two weeks ago. This is a land where if you ask the price, you can’t afford. Many models in attendance sell for many millions of dollars. One example, a fresh set of tires and an oil change can set you back more than the price of the previously mentioned new car…looking at you Bugatti Chiron and your $43,000 tires and $20,000 oil changes.
Wishing you and yours a wonderful weekend. The link below contains additional financial articles and resources.
Thank you,
Pasquale Evangelista
Sr. Vice President, Investments
Raymond James & Associates, Inc.
1421 Pine Ridge Rd. Suite 300
Naples, FL 34109
(239) 513-6528 Direct - (800) 843-2025 -Toll Free - (239) 938-4078 Cell -
(239) 596-5474 Fax
Pasquale.Evangelista@RaymondJames.com
www.raymondjames.com/evangelista
https://www.raymondjames.com/evangelista/resources
Any opinions are those of Kyle Christianson and not necessarily those of RJA or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This is not a recommendation to purchase or sell the stocks of the companies mentioned. Leading Economic Indicators are selected economic statistics that have proven valuable as a group in estimating the direction and magnitude of economic change. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stocks of companies maintained and reviewed by the editors of the Wall Street Journal. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification. Investing in oil involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors. Bond prices and yields are subject to change based upon market conditions and availability. Gold is subject to the special risks associated with investing in precious metals, including but not limited to: price may be subject to wide fluctuation; the market is relatively limited; the sources are concentrated in countries that have the potential for instability; and the market is unregulated.
