Stocks climbed higher Friday afternoon as Wall Street delivered its first weekly gain of 2025. The Dow Jones Industrial Average rose over 330 points, while the S&P 500 Index and Nasdaq Composite advanced about 1% and 1.5%, respectively.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Weekly Recap:
For the week, the Dow and S&P 500 rose by roughly 4% and 3%, respectively, bringing each to their biggest weekly gains since the post-U.S. presidential election rally in early November. The Nasdaq has also risen more than 2% this week.
Much of the week's gains can be attributed to two soft inflation reports for both wholesalers and the U.S. consumer, with the core consumer price index posting a lighter annual reading than economists anticipated and the producer price index advancing at a smaller rate than expected for December. Strong earnings from bank including Goldman Sachs
In Economic News:
U.S. Housing Starts and Building Permits rose at a faster-than-expected rate in December even as mortgage rates increased above 7% for the first time since May, the Census Bureau reported Friday.
New construction totaled a seasonally adjusted annualized rate of 1.499 million last month, rising 11.3% from November and coming in well above economist consensus estimates for 1.33 million. Permits totaled a more than expected 1.482 million in December, but were slightly below the previous month's total.
"We expect a cocktail of building material tariffs and stricter immigration rules affecting construction labor under the new Trump administration, as well as the overhang of new homes for sale that has developed in some regions, to discourage builders from starting new projects in the second half of the year and into 2026, causing starts to tail off," said Thomas Ryan, North America economist at Capital Economics, quoted by Yahoo!finance.
In the News:
The U.S. Federal Trade Commission (FTC) sued PepsiCo
The complaint is currently sealed, with the FTC saying that a "substantial portion" the alleged violations are redacted in the lawsuit, citing legal protections offered to Pepsi and the big box retailer.
The U.S. Supreme Court on Friday upheld the law requiring ByteDance to divest its ownership of TikTok by Sunday or face a ban of the popular social media app in the United States. In an unanimous decision, the Supreme Court ruled in favor of the Biden administration, upholding the Protecting Americans from Foreign Adversary Controlled Applications Act signed by President Joe Biden in April.
"There is no doubt that, for more than 170 million Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community," the court's opinion said. "But Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok's data collection practices and relationship with a foreign adversary."
Under the law, third-party app stores like Apple
Bumble
Wolfe Herd founded the company in 2014 in effort to address the growing market for a safer online dating community for women; the app was initially designed for women to make the first move but has since pivoted to a new "Open Moves" feature that allows all users to add prompts to their profile for potential matches to respond to. Bumble went public in 2021 with a debut market cap of $7.7 billion, but its valuation has since fallen to about $850 million.
Bank of America analyst Andrew Didora upgraded American Airlines
"Further, AAL could realize outsized benefit from the return of corporate travel given its $1.5B market share loss in 1H24," Didora added. "As such, we no longer believe an Underperform rating is warranted and upgrade to Neutral, which balances the revenue potential with execution risk, in our view."
In contrast, Didora downgraded shares of rivals Southwest Airlines
Looking Ahead:
Markets will be closed on Monday, January 20, in observance of Martin Luther King, Jr. Day. Monday is the day Donald Trump will be inaugurated as president for the second time. Wall Street will open at regular hours on Tuesday, with market participants expected to react to earnings reports from companies including 3M
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