Stock Market Today: January 6th - 10th, 2025

Welcome to the trading week of January 6th!

S&P 500, Nasdaq snap five-day losing streak, but still close lower on the week: Live updates



Stocks closed higher Friday as Wall Street recovered following a shaky start to the new year.

The S&P 500 closed up 73.92 points, or 1.26%, at 5,942.47, and the Dow Jones Industrial Average advanced 339.86 points, or 0.8%, to end the day at 42,732.13. The Nasdaq Composite gained 340.88 points, or 1.77%, to close at 19,621.68.

Tech stocks were a bright spot for the market on Friday. Chip giant Nvidia climbed 4.7%, while server maker Super Micro Computer jumped 10.9%.

Those stocks could benefit from continued spending on artificial intelligence, as will Constellation Energy and Vistra, with shares up 4% and 8.5%, respectively.Microsoft announced Friday that it would spend $80 billion on AI-enabled data centers in the 2025 fiscal year,and power producers have been boosted by the trend.

The rally on Friday was broad, though some of the best performers were also big winners during last year’s rally.

“The secular growth drivers that have been driving earnings growth and market gains over the last two years, I think they’re still on strong footing and will continue to drive those earnings gains,” Jeremiah Buckley, portfolio manager at Janus Henderson Investors, said on CNBC’s “Squawk on the Street.”

Friday’s rally snapped a five-day losing streak for the Nasdaq and the S&P 500, but it wasn’t enough to make the major averages winners on the week. The S&P 500 finished the week down 0.48%, while the Dow lost 0.60%. The Nasdaq Composite lost 0.51%.

That weakness for stocks also means that the “Santa Claus” rally, in which stocks gain in the final five trading days of one year and the first two of the next, failed to materialize. The market cooled in the final weeks of 2024, but the averages are still not too far from record highs after a strong year for Wall Street.

“Generally, these are the days that you kind of have people just moving to the sidelines after what’s been a pretty tough last four weeks. And the fact that today you’re not seeing that means that perhaps this an orderly type of consolidation, not a beginning of some sort of incredibly painful period,” Mark Hackett, chief market strategist at Nationwide Financial, told CNBC.

News out of Washington, D.C., was spurring some individual stock moves on Friday. Shares of U.S. Steel fell 6.5% after President Joe Biden said he would block the proposed acquisition by Nippon Steel. Booze and beer stocks declined after the U.S. surgeon general issued an advisory on cancer risk related to alcohol consumption, with Molson Coors falling 3.4%.

This past week saw the following moves in the S&P:


S&P Sectors End of Week:


Major Indices End of Week:


Major Futures Markets End of Week:


Economic Calendar for the Week Ahead:


What to Watch in the Week Ahead:
(N/A.)

 

Best Performing Stocks of 2024
Thu, Jan 2, 2025

Below is a look at the 20 best performing stocks in 2024 of current Russell 3,000 members. As shown, each of these stocks gained at least 349% last year, with eleven gaining 500%+ and four gaining 1,000%+.



Below is a one-sentence description of what each of the 20 best performing stocks in the Russell 3,000 in 2024 does to generate revenues:

• GeneDX (WGS): Provides advanced genetic testing and analysis to support precision medicine and healthcare solutions.
  
• Rigetti Computing (RGTI): Develops cutting-edge quantum computing systems and software for various industries.
  
• Sezzle (SEZL): Offers "buy now, pay later" financing solutions for e-commerce platforms and retailers.
  
• Dave (DAVE): A personal finance app designed to help users manage expenses, avoid overdraft fees, and build credit.
  
• SoundHound AI (SOUN): Develops AI-powered voice recognition and conversational intelligence solutions for businesses.
  
• D-Wave Quantum (QBTS): Specializes in quantum computing hardware and software to solve complex optimization problems.
  
• AppLovin (APP): Provides tools and services for mobile app marketing and monetization.
  
• Intuitive Machines (LUNR): Focuses on lunar exploration technologies and space systems for commercial and government missions.
  
• Root (ROOT): Offers personalized auto insurance powered by advanced data analytics and telematics.
  
• Summit Therapeutics (SMMT): Develops innovative therapies for infectious diseases and other critical health challenges.
  
• Redwire (RDW): Provides advanced space solutions, including manufacturing, infrastructure, and engineering for space exploration.
  
• RealReal (REAL): Operates a luxury consignment platform for buying and selling pre-owned high-end goods.
  
• NuScale Power (SMR): Develops modular nuclear reactor technology for clean and efficient energy production.
  
• Candel Therapeutics (CADL): Focuses on the development of oncolytic viral therapies for cancer treatment.
  
• Innodata (INOD): Provides data annotation, AI model training, and digital content services for enterprises.
  
• Janux Therapeutics (JANX): Develops innovative immunotherapies designed to treat various types of cancer.
  
• MicroStrategy (MSTR): Offers enterprise analytics, business intelligence software, and cryptocurrency-focused solutions.
  
• Rocket Lab (RKLB): Designs and manufactures launch vehicles and space systems for small satellite deployments.
  
• Byrna Technologies (BYRN): Produces non-lethal self-defense products and devices for personal and law enforcement use.
  
• Palantir Technologies (PLTR): Provides data analytics platforms and solutions for government and enterprise use.

Seven Important Things to Remember in 2025


“Stocks take the escalator up, but the elevator down.” Old investing axiom

It’s New Year’s Eve today and 2025 is just around the corner. We know 2025 will bring with it new worries, concerns, and fears, but also new opportunities. But it is also important to take a step back sometimes and realize there are some things about markets that all investors should know that are timeless. As 2024 winds down, here are seven things we think all investors should know as we move into 2025.

Go Into the New Year Expecting a Double-Digit Decline
Remember August 2024? It might be hard to recall now, but global markets crashed on fears over the yen carry trade unwinding. We pushed back against the sell-off at the time, but still, knowing that Japan was having its worst day since the 1987 crash and US futures were down massively overnight made for a sleepless night for your dear authors on that first Sunday in early August.

In the end, the S&P 500 pulled back 8.5% from peak to trough, the largest drawdown of the year. Take note though that since 1980 the largest drawdown of the year has averaged 14.2%. If most investors went into each year expecting a double-digit correction as uncomfortable but perfectly normal, they probably wouldn’t get so worried when it happens. If it doesn’t happen at all in a year then all the better, but the odds of it happening the next year increase. In the end, 23 of the previous 44 years saw a double-digit correction, with 13 of those 23 years still finishing positive.



What Matters Is Time in the Market, Not Timing the Market
Time can be an investor’s best friend. Each year will have scary headlines and reasons to sell, but that doesn’t mean you should. In fact, the longer you are willing to hold, the more likely you’ll make money. On any random day the odds of stocks being higher is about a coin flip at 53%. A full week? 56.6%. A full month? 60.4%. A year? 71.2%. Five years? 80.8%. 10 years? 90.4%. And over 20 years stocks have never been lower.

Sure, no one wants to buy something and wait 20 years to feel really secure about gains, but imagine what the returns could be if you buy when stocks were in a correction or bear market? They get much, much better. There’s an old saying that it is all about time in the market, not timing the market, and this is something all investors need to remember.



Valuations Aren’t Always a Good Timing Tool
Do you like buying things when they are pricey? Of course not, and investors feel the same way. Here’s the catch though. There is virtually no proof that high (or low) valuations can predict what stocks might do the following year. Going out many years there can be some advantage, but don’t get sucked into avoiding the stock market because a talking head on TV tells you stocks are overvalued. We heard the same thing this time a year ago and stocks have added another 20%. If you want to lighten up on overvalued parts of the market that is fine, but to blindly go to cash could be a very bad mistake.

I looked at forward S&P 500 price/earnings multiples and S&P 500 returns the following 12 months and found the correlation was about zero. Without getting too geeky here, the correlation tells you how much two variables tend to move together. When the correlation is near 0, there’s no statistical tendency to move together at all, and that’s basically where we are. Rather than making investing decisions based on valuations, you are better off investing in days that end in ‘y’ if you ask me.



Don’t Mix Politics and Investing
I can’t tell you how many investors I’ve met over the years that didn’t invest in the stock market because of who is in the White House. A lot of people didn’t like President Obama and stocks did great. A lot of people didn’t like President Trump and stocks did really well. A lot of people didn’t like President Biden and stocks started slowly, but soared the past two years. This is obviously a bigger deal in election years and mid-term years, but it is still important to remember every year. I’ll say it one final time, don’t mix your political beliefs with your investing views.



Ignore the Scary Headlines; All Years Have Them
A cousin to the lesson above is remembering that every single year will have scary headlines. I’m old enough to remember back in 2013 when everyone freaked out because the island of Cypress was having financial issues. I’m serious, it was a very big deal for about a week and had many investors on edge. Then you look back and the S&P 500 gained over 30% in 2013 and you wonder what in the world we were thinking!

Here’s a great chart that shares some of the worst headlines we’ve ever seen, yet over time stocks still gained.



Average Isn’t So Average When It Comes to Investing
Historically, stocks gain about 9% on average, but a little known secret is that something near the average return rarely ever happens, in fact, much larger moves, both higher and lower, are quite common. Incredibly, going back to 1950 stocks had ‘about an average year,’ with a return between 8% and 10%, only four times, and the average return in an up year is 17.6%.

Another angle — after this year the S&P 500 will have gained more than 20% 22 times compared with an annual outright loss 21 times. In other words, the historical odds of a 20% gain are greater than a down year! Most investors aren’t prepared for this type of annual volatility, but it’ll help them if they indeed are.







Volatility Is the Toll We Pay to Invest
We will finish with probably one of the most important lessons for investors. While stocks have a strong economically based tendency to go up in the long run, it’s still perfectly normal for them to go down in the short run. As the quote at the beginning noted, the declines always seem to happen way quicker than the advances.

With thanks to our friends at Ned Davis Research, historically the average year sees more than seven 3% dips and more than three mild corrections of 5% or more a year. In fact, it is perfectly normal to see a 10% correction as well, as one happens on average once a year. Print this off and stick it to your desk, as investors could do themselves a big favor by remembering that each year will see volatility and it is the toll we pay to invest.



That’s seven important things to remember in 2025 and in every year. We wish everyone a Happy New Year and many happy returns in 2025.

Concentration
Mon, Dec 30, 2024

On Friday, we published our annual recap report for 2024. The report provides a complete rundown of everything that went on across financial markets this year, including the trend of incredible concentration in stocks up at the top. Replicated below is a chart from that report showing the combined market cap of the S&P 500's eight largest stocks as a percentage of total S&P 500 market cap for each year going back to 1994.

Currently, the eight largest members of the S&P—at the moment those are the Magnificent Seven names plus the newest trillion-dollar stock: Broadcom (AVGO)—account for 35.6% of S&P 500's total market cap. That's a record high. We would also note that the growing share of the S&P 500's market cap that this small handful of stocks accounts for isn't exactly a new phenomenon. Over the past decade, the largest stocks' share of market cap has steadily been growing, and actually, this isn't the only record high to highlight with prior records being set at 29% at the end of 2021 and 30% last year. With that said, the 5.6 percentage point jump versus last year is one of the largest one-year increases in concentration at the top that we've seen.



Drilling down a step deeper, below we again show the collective share of S&P 500 market cap possessed by the eight largest members for each year since 1994, but this time with a breakdown by sector. Of the current group of largest stocks, half belong to the Tech sector: NVIDIA (NVDA), Apple (AAPL), Microsoft (MSFT), and Broadcom (AVGO). Of course, zooming out for context, the Tech sector, as a whole, holds a historically massive S&P 500 weighting at 32%, but these four stocks alone account for a huge share (21.5 percentage points) of that. In other words, the S&P 500 is heavily concentrated in Tech, and Tech is heavily concentrated in these four stocks.

As for the other largest members, Communication Services names—Meta Platforms (META) and Alphabet (GOOGL)—account for a combined 7.21% of the S&P 500's total market cap and the remaining two names from the Consumer Discretionary sector—Tesla (TSLA) and Amazon (AMZN)—are to thank for 6.95%.

As for the rest of the sectors, 2024 is going to end with Financials not having a single stock in the eight largest S&P members for the first time since 2009. This is thanks to Broadcom (AVGO) unseating Berkshire Hathaway (BRK.B) as the index's eighth largest stock. Meanwhile, Industrials hasn't had a stock land in the top eight since 2015, and Consumer Staples has now gone a decade without a top eight stock. In the past five years, Health Care has only found its way into this group once in 2022, but otherwise, it has been absent. Materials, Real Estate, and Utilities haven't had a member land in the top eight largest stocks in any year since at least 1993.



Again, the present situation is historic. Aside from there never having been such a large share of the S&P 500's market cap coming from the top, there also hasn't been a year since at least 1993 when these top eight stocks have had such narrow sector representation. As shown below, only three sectors are represented among the S&P 500's top eight stocks. Historically, it has been most common to see six different sectors represented among these eight names.

Last Trading Day of the Year Lacks Holiday Cheer

The last trading day of the year has become a bearish day the last two decades and it’s the weakest performing day, on average, of the Santa Claus Rally as noted on page 118 of the Stock Trader’s Almanac 2025. Last-minute tax-loss selling, old sayings such as “year ends make great exits,” a desire to start with a clean slate, who knows exactly the answer, but the last trading day of the year has turned bearish over the last twenty-four years.

Since 2000, NASDAQ and Russell 2000 have the worst records. On the final trading day of the year, NASDAQ has been down in 18 of the last 24 years after having been up 29 years in a row from 1971 to 1999. DJIA and S&P 500 have also been struggling recently and exhibit a bearish bias over the last 24 years. Russell 2000’s record very closely resembles NASDAQ, gains every year from 1979 to 1999 and only six advances since.

 

Here are the percentage changes for the major indices for WTD, MTD, QTD & YTD in 2024-



S&P sectors for the past week-

 

Here are the current major indices pullback/correction levels from 52WK highs as of week ending 1.3.25-


Here is also the pullback/correction levels from current prices


Here are the current major indices rally levels from 52WK lows as of week ending 1.3.25-

 

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Here are the upcoming IPO's for this week-

 

Stock Market Analysis Video for January 3rd, 2025
Video from AlphaTrends Brian Shannon


ShadowTrader Video Weekly 1/5/25
Video from ShadowTrader Peter Reznicek

 

StockBoarders! Come join us on our stock market competitions for this upcoming trading week ahead!-

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StonkForums Weekly Stock Picking Contest & SPX Sentiment Poll (1/6-1/10) <-- click there to cast your weekly market direction vote and stock picks for this coming week ahead!

Daily SPX Sentiment Poll for Monday (1/6) <-- click there to cast your daily market direction vote for this coming Monday ahead!

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It would be pretty sweet to see some of you join us and participate on these!

I hope you all have a fantastic weekend ahead!

 

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Here are the most anticipated Earnings Releases for this upcoming trading week ahead.

***Check mark next to the stock symbols denotes confirmed earnings release date & time***

Monday 1.6.25 Before Market Open:

Spoiler: CLICK HERE TO VIEW MONDAY'S AM EARNINGS TIMES & ESTIMATES!

Monday 1.6.25 After Market Close:

Spoiler: CLICK HERE TO VIEW MONDAY'S PM EARNINGS TIMES & ESTIMATES!

(T.B.A.)

Tuesday 1.7.25 Before Market Open:

Spoiler: CLICK HERE TO VIEW TUESDAY'S AM EARNINGS TIMES & ESTIMATES!

(T.B.A.)

Tuesday 1.7.25 After Market Close:

Spoiler: CLICK HERE TO VIEW TUESDAY'S PM EARNINGS TIMES & ESTIMATES!

(T.B.A.)

Wednesday 1.8.25 Before Market Open:

Spoiler: CLICK HERE TO VIEW WEDNESDAY'S AM EARNINGS TIMES & ESTIMATES!

(NONE. U.S. MARKETS CLOSED IN OBSERVANCE OF NEW YEAR'S DAY.)

Wednesday 1.8.25 After Market Close:

Spoiler: CLICK HERE TO VIEW WEDNESDAY'S PM EARNINGS TIMES & ESTIMATES!

(NONE. U.S. MARKETS CLOSED IN OBSERVANCE OF NEW YEAR'S DAY.)

Thursday 1.9.25 Before Market Open:

Spoiler: CLICK HERE TO VIEW THURSDAY'S AM EARNINGS TIMES & ESTIMATES!

(T.B.A.)

Thursday 1.9.25 After Market Close:

Spoiler: CLICK HERE TO VIEW THURSDAY'S PM EARNINGS TIMES & ESTIMATES!

(T.B.A.)

Friday 1.10.25 Before Market Open:

Spoiler: CLICK HERE TO VIEW FRIDAY'S AM EARNINGS TIMES & ESTIMATES!

(T.B.A.)

Friday 1.10.25 After Market Close:

Spoiler: CLICK HERE TO VIEW FRIDAY'S PM EARNINGS TIMES & ESTIMATES!

(NONE.)

 

And finally here is the most anticipated earnings calendar for this upcoming trading week ahead-
($TLRY $DAL $RPM $WBA $AYI $AZZ $CMC $JEF $SMPL $KBH $APOG $CALM $AIR $SLP $STZ $SAR $PENG $PSMT $MSM $NEOG $GBX $HELE $LNN $ANGO $ACI $UNF $FC $KRUS $ETWO $BBCP $ACCD $SNX $NTIC $RDUS $RELL)


If you guys want to view the full earnings post please see this thread here-

• Most Anticipated Earnings Releases for the week beginning January 6th, 2025 <-- click there to view!

 

Top of the morning StockBoarders! Happy Monday to all of you and welcome to the new trading week and a frrrrrrrrrrrresh start. Here is a quick check on those futures as we are under an hour into the US cash market open.

GLTA on this Monday, January the 6th, 2025!

 

Here are today's economic calendar events:

 

Here are today's analyst stock upgrades & downgrades:

 

Here are this morning's pre-market earnings results:

 

Morning Lineup - 1/6/25 - Looking For Follow Through
Mon, Jan 6, 2025

How many times have you looked at your cell phone already today? It’s probably the first thing you did today. Whether you looked up scores, stock quotes, messages, or even got some work done, the fact that you are reading this right now all traces back to a meeting in Morristown, NJ 187 years ago where Samuel Morse demonstrated his idea of sending electrical impulses over a wire that could then be translated into text, or as he called it, the Telegraph. While that meeting in 1838 was the first telegraph demonstration, the first official telegram wouldn’t come for another six years in May 1844 when Morse sent a message from Washington, DC to Baltimore. Even though he was the first person to ever send a message over wires which ultimately led to the mass proliferation of content, if he were alive today looking at all that the telegraph has spawned, Morse would probably be at a loss for words. His thoughts would probably echo the message he sent in that first telegram, “What hath God wrought!”

Friday’s 1.26% rally was the best day for the S&P 500 since 11/6, the day after November’s election. It was also the third 1%+ daily gain in that span. The other two days were a 1.10% gain on Christmas Eve and a 1.09% gain on 12/20. While there continues to be a near constant focus on the Fed, we think it’s notable that two of the three best days since the election have come when Congress passed the continuing resolution to keep the government open and last Friday when Mike Johnson was re-elected speaker on the first vote.

While Friday’s gains sent the bulls home in an optimistic mood, it wasn’t perfect. After briefly trading back above its 50-DMA, the market pulled back in the afternoon and finished slightly below that level. It was the fourth day in a row that the S&P 500 made a run towards its 50-DMA, but also the fourth day in a row that it finished off its intraday highs. As we start the trading week, the S&P 500 is poised once again to trade back above that level, so now all it needs to do is hold it. Until then, the burden of proof is on the bulls.

 

Here is a final look at today's market and futures maps, as well as how each sector performed individually at the close on Monday, January 6th, 2025.