Stocks Resume Trading Today Following Last Week's Sharply Higher Gains Stocks were closed yesterday for Martin Luther King Jr. Day. Yesterday was also Inauguration Day. Today is the first trading day since last week's positive weekly close for all of the major indexes. Last week's better-than-expected inflation reports came as a relief to the market and helped lift stocks from the previous week's decline. Same goes for last week's stellar start to earnings season with a slew of positive EPS surprises from many of the biggest banks. We'll get plenty more earnings announcements this week with more than 290 companies on deck, including Charles Schwab, 3M and D.R. Horton before the open today, with Netflix, United Airlines and Seagate Technology going after the close. Next week things really start heating up with 4 of the Magnificent 7 stocks reporting with Microsoft, Meta and Tesla posting results on Wednesday, 1/29; and Apple posting on Thursday, 1/30. But the biggest event next week will likely be the FOMC Announcement on Wednesday. While the market is factoring in a 99.5% probability that the Fed does NOT cut rates next week, the odds are at 30.4% that they do when they subsequently meet again on March 31 (they don't meet in February). So while it's essentially a foregone conclusion that rates stay the same next week, what everybody will be listening for are any clues as to what the Fed is thinking for March, or even the rest of the year. Their last time out, they reduced their outlook from expecting to cut four times in 2025 to just twice. We'll see if they have any new revisions, or language, or other insights to share this time around. Not much in the way of economic reports today. But things pick up as the week goes on with MBA Mortgage Applications, the Atlanta Fed Business Inflation Expectations, and Leading Indicators tomorrow; Weekly Jobless Claims and the Kansas City Fed Manufacturing Index on Thursday; and the PMI Composite, Existing Home Sales and Consumer Sentiment on Friday.
You can also expect to hear plenty of analysis on President Trump's executive orders that he's already signed and will be signing, especially as it pertains to tariffs, energy production, and government spending/waste (read as DOGE). We also expect to hear more on cryptocurrency, and TikTok. And of course, more on the President's policy agenda including tax cuts. Should be a busy week. In the meantime, stocks enter the week with momentum at their back. Not just for the week, but also YTD as all of the indexes are in the green so far. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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