THE WEEK ON WALL STREET
Stocks roared back last week, fueled by upbeat Q4 corporate reports and economic news that stalled inflationary fears. The S&P 500 Index rose 2.91 percent, while the Nasdaq Composite Index advanced 2.45 percent. The Dow Jones Industrial Average led, picking up 3.69 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 2.00 percent.
FACT OF THE WEEK
January 20, 2025, is Inauguration Day. Between 73 and 79 days after the presidential election, the president-elect of the United States is inaugurated by taking the presidential oath of office. The inauguration takes place for each new presidential term, even if the president is continuing in office for another term.
Since the 1981 inauguration of Ronald Reagan, the ceremony has been held at the west front of the United States Capitol facing the National Mall with its iconic Washington Monument and distant Lincoln Memorial. From 1829 through 1977, most swearing-in ceremonies had taken place on a platform over the steps at the Capitol's east portico. They have also been held inside the Old Senate Chamber, the chamber of the House of Representatives, and the Capitol Rotunda. The most recent regularly scheduled inauguration not to take place at the Capitol was the fourth inauguration of Franklin D. Roosevelt in 1945, which was held at the White House.
Over the years, various traditions have arisen that have expanded the inauguration from a simple oath-taking ceremony to a day-long event, including parades and multiple social gatherings. The ceremony itself is carried live via the major U.S. commercial television and cable news networks; various ones also stream it live on their websites.
Membership in this group of people who have taken this oath of office is limited. Since the office was established in 1789, 45 men have served in 46 presidencies.
MARKET MINUTE
Goldilocks is Back
The “Goldilocks” narrative—an economy that’s neither too hot nor too cold—made a comeback last week. Tuesday's Producer Price Index report showed that wholesale prices rose less than expected in December—one piece of evidence suggesting a cooling economy. Stocks jumped out of the gate Wednesday after the December Consumer Price Index (CPI) report showed core inflation (minus volatile energy and food prices) rose less than expected. Investors also cheered Q4 reports from a handful of money center banks and positive news out of the Middle East. Stocks took a breather Thursday before pushing higher again on Friday. The S&P and Dow Industrials had their best week since early November, and the Nasdaq saw its best weekly performance since early December. The yield on the 10-year Treasury note fell roughly 20 basis points over the week.
Slowing Inflation
Investors welcomed the inflation reports, believing wholesale and consumer prices might trend lower in 2025. First, producer prices came in at 0.2 percent, which was less than the 0.4 percent increase anticipated. Then consumer prices came in at 2.9 percent, slightly elevated, but the real story was core inflation. When you subtract out food and gas prices, CPI saw its smallest monthly increase since July.
FINANCIAL STRATEGY OF THE WEEK
Monthly Memberships
In the last few years, we’ve become accustomed to many convenient services, many offered via subscriptions. Now, in the old days, if you had a few magazines or newspapers stacked up, you might not pay to continue your service. Today’s subscriptions typically offer autopay, which is convenient and quickly forgotten for many.
C&R Research reports that the average American spends $219 per month on subscriptions for things like streaming services, news websites, and even regular deliveries of our most often-used goods, such as beans or pet food.
There is also increasing evidence that these subscriptions are getting out of hand for some households. Many find themselves with an unclear idea of how much they are spending on their services, in many cases underestimating the amounts by upwards of $100 per month.
Some have even forgotten they were subscribed to a service. As many as 42 percent of households have some ongoing autopayment happening for a service they are no longer using.
As we all know, these fees can add up quickly and become an unnecessary drain. Some of them are for things like streaming services; you subscribe to see the big new movie or series and keep it going even though you’re done with the show.
Others are less straightforward. For example, you may have signed up for premium rideshare or restaurant and grocery delivery services that are no longer necessary or may not merit the extra expense.
While you might be able to track these extra expenses with a quick review of your checking account and credit card statements, there are also a number of apps that can help you review these payments and even help you cancel them all at once.
One of the nice things about subscription culture is that turning them off can be easy and doesn’t need to be goodbye forever. Unsurprisingly, the services make it fairly easy to turn your subscriptions on and off, as needed, so there’s no reason not to take advantage.