January 6, 2025

Markets:

Stock futures rose Monday as chipmakers and technology stocks jumped to start another shortened trading week.

Chip stocks led the early gain after Foxconn announced record fourth-quarter revenue. Nvidia and Broadcom rose more than 1.5% and 2.5% each, respectively, while Micron Technology advanced 5%.

Also aiding market sentiment on Monday is a Washington Post report saying President-elect Donald Trump’s tariff plan would be narrower than anticipated. According to the report, the levies would only cover critical imports. Trump called for “universal” tariffs as high as 10%-20% during his campaign.

Investors are entering another shortened trading week – which will wrap the next of the first five January trading days – on a wobbly note and with lingering concerns about the Federal Reserve’s interest rate projections. The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter.

The December jobs report is due out Friday and will be one of the last key pieces of data before the Fed meeting at the end of this month. Investors are also watching the Job Openings and Labor Turnover Survey (JOLTS) Tuesday and December ADP Employment Survey Wednesday.

Portfolio:

Great way to end the week on Friday and hope the commentary helped everyone when things were getting ugly for the overall market.  The upcoming week could be pivotal as traders assess key economic data, including the monthly jobs report, and react to developments at the Consumer Electronics Show (CES).  

We enter the new trading week holding setups in ASAN, SOUN, and QBTS.  Queue is igniting with force and we are super excited for the month ahead.  Today should market full volume to return from holiday break.  Looking forward to see how this trades.  Interesting fact about January is the first 5 trading days typically defines the way January closes and January strength gives us an insight into how the year closes off.  Internals have been stronger on pull backs and a draw down on low volume was interesting a week before.  This is why we continue to point to how we will trade this week with full volume expected to return.  We will be watching for flow and price activity today and seeing which sectors become the early theme in 2025.

Please be ready today, no better time than now to be a part of this market to start the new year.  Let's have a great 2025!!