Rate Concerns Rising | January 13th, 2025

📊 Weekly Market Recap & Outlook: Stocks Sink, Inflation Data Ahead

Last Week: Stocks tumbled in a holiday-shortened week as strong economic data fueled concerns about continued Federal Reserve hawkishness in early 2025. The December jobs report revealed 256,000 new jobs and a drop in unemployment to 4.1%, driving the 10-year Treasury yield up 18 basis points to 4.78%. Major indices suffered, with the S&P 500 down 1.9%, Nasdaq sliding 2.3%, and small caps plunging 3.5%. Oil & Gas was the only sector in positive territory. Despite the selloff, moderate wage growth could ease inflation pressures, supporting small-cap earnings growth. Historically, 5% interest rates are not unusual, with current market valuations appearing fair.

This Week:
Wall Street anticipates heightened activity with a packed economic and earnings calendar:

• Economic Data: December Producer Price Index (Tuesday), Consumer Price Index (Wednesday), Fed Beige Book, and retail sales.
• Earnings Reports: Major Financials JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo (Wednesday), UnitedHealth (Thursday), and SLB (Friday).
• Retail Updates: The ICR conference features presentations from Walmart and industry leaders.

Sports & Community:
Optimism surrounds Lonzo Ball’s recent performance for the Bulls, while the University of Chicago Maroons aim to extend their basketball winning streak. Meanwhile, the devastating Los Angeles fires weigh heavily on sentiment.

For insights and fund holdings, visit www.nsinvestfunds.com.

The information provided in this commentary is not an offer to sell or the solicitation of an offer to purchase any security, product, or brokerage service. The information is not intended to be used as the basis for investment decisions, nor should the information be construed as advice designed to meet the particular needs of any investor. This commentary is presented to illustrate examples of the securities that North Star Investment Management Corporation and/or its affiliates ("North Star") may have bought for client accounts and the diversity of markets in which North Star Investments may invest, and may not be representative of current or future investments. You should not assume that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this commentary will be profitable or will be equal to any corresponding performance levels that might be indicated. Past performance is no guarantee of future results. Investments in securities involve risks including the possible loss of the principal invested. North Star and others associated with it, including employees, may have positions in and effect transactions in securities of companies mentioned or indirectly referenced in this commentary. North Star may buy, sell or hold these securities in proprietary or client accounts. North Star will not be providing regular updates or advising you of any changes in the views expressed herein. Investors should consider their investment objectives, risk tolerance, and financial situation and needs before investing in any security. Tax considerations, commissions, fees and other costs should be carefully evaluated with one's investment and/or tax advisors. Information provided is obtained from sources deemed to be reliable, but North Star cannot guarantee the accuracy or completeness of the information. This material may not be reproduced, distributed or transmitted to any other person in whole or in part without the prior written consent of North Star. A copy of North Star Investment Management Corporation's Form ADV Brochure, Privacy Notice and Business Continuity Plan summary can be obtained by calling 312-580-0900.