On February 18, 2025, Wall Street was closed in observance of Presidents’ Day. The previous Friday saw a mixed performance in the stock market, with notable movements in major indices.
Stock Market Performance
The Dow Jones Industrial Average (DJI) fell by 0.4%, a decrease of 165.35 points, closing at 44,546.08. This decline was influenced by a majority of the index’s components, with 20 out of 30 stocks ending in negative territory.
Conversely, the tech-heavy Nasdaq Composite gained 0.4%, closing at 20,026.77. The S&P 500 experienced a slight loss of 0.01%, finishing at 6,114.63. The mixed results reflected a broader trend, as seven of the 11 sectors within the S&P 500 closed lower.
- The trading day also saw a notable decrease in the CBOE Volatility Index (VIX), which dropped by 2.2% to settle at 14.77.
- Overall trading volume reached 14.4 billion shares, slightly below the 20-session average of 15.0 billion.
- The S&P 500 recorded 37 new 52-week highs and seven new lows, while the Nasdaq Composite noted 131 new highs against 83 new lows.
Corporate Earnings Highlights
In corporate earnings, Roku, Inc. reported a narrower-than-expected fourth-quarter loss of $0.24 per share, compared to an anticipated loss of $0.44. The company’s revenues of $1.2 billion exceeded expectations by 4.48%, resulting in a significant stock price surge of 14.1%.
Similarly, Moderna, Inc. posted an adjusted quarterly loss of $2.50 per share, beating the consensus estimate of a loss of $2.69. Revenues of $966 million also surpassed expectations by 1.04%, leading to a 3.4% increase in Moderna’s shares. Roku currently holds a Zacks Rank #2 (Buy), reflecting positive market sentiment.
Retail Sales and Economic Indicators
The Department of Commerce reported a sharp decline in U.S. retail sales for January, which fell by 0.9%, significantly worse than the expected 0.3% decline. This marked the largest drop since March 2023, attributed to adverse weather conditions, wildfires, and ongoing auto shortages affecting consumer spending.
Despite this downturn, retail sales showed a year-over-year increase of 4.2%, supported by a robust labor market that continues to bolster consumer confidence. Core retail sales, excluding auto sales, also fell by 0.4% in January, lagging behind the anticipated increase of 0.3%.
- However, December figures were revised upward, showing a 0.7% increase instead of the previously reported 0.4%.
- These revisions suggest that while January presented challenges, the overall trend in consumer spending may still be on an upward trajectory.
Industrial Production Growth
In a more positive light, the Federal Reserve reported a 0.5% increase in industrial production for January, an improvement from the revised December number, which was adjusted to a 1% increase from an earlier estimate of 0.9%. This growth in industrial production is a critical indicator of economic health.
It reflects the manufacturing sector’s capacity to meet demand and may provide reassurance to investors, particularly in light of mixed signals from retail sales. As the economy navigates various challenges, including supply chain disruptions and inflationary pressures, the resilience of industrial production could play a pivotal role in shaping future economic policies and market expectations.
📎 Related coverage from: yahoo.com
