Although it has been a bumpy day, following a big parade of big tech companies reporting last night and this morning, most indices are now in the green, except for the Nasdaq Composite.

The Ten-Year Yield (TNX) continues its downtrend, briefly dropping below 4.5% for the first time in six weeks.

Technology (XLK) is the only sector in the red, contributing to the Nasdaq Composite’s underperformance. Parts of the Artificial Intelligence (AI) story continue to rebound, lifting Utilities (XLU) to the top performing sector.

On the economic front, the Q4’24 GDP grew at an annual rate of 2.3%, down from 3.1% in the previous quarter and missing estimates of 2.6%.

Notable Points:

• Personal Consumption grew by 4.2%
• Goods spending rose faster to 6.6% from 5.6%
• Services spending rose faster to 3.1% from 2.8%
• Fixed investment contracted to -0.6% from 2.1%
• Residential investment rebounded to 5.3% from -4.3%
• Exports contracted to -0.8% from 9.6%
• Imports contracted to -0.8% from 10.7%

Core PCE in Q4’24 increased by 2.5% Q/Q, accelerating from a 2.2% Q/Q increase in Q3 and in-line with estimates.

Continuing Jobless Claims and Initial Jobless Claims declined last week from the prior week and came in below estimates.

Pending Home Sales in December fell 5.5% M/M, below Novembers 1.6% increase and below estimates of 0%.

Apple (AAPL) reports after the bell today, making it the fourth “Magnificent Seven” to report this week. The Street will be watching closely the demand for its products, namely the iPhone. The company has faced fierce competition in its major Chinese market, possibly affecting sales during the crucial holiday shopping season.

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