Inflation data captured Wall Street's attention this week, as investors unpacked cooler-than-expected producer price index (PPI) and consumer price index (CPI) readings for December. Earnings season was also off to a strong start thanks to upbeat results from several bank giants. Despite a tech offload to start the week, and the 10-year Treasury yield jumping to its highest level since November 2023, the Nasdaq Composite (IXIC) eventually snapped its five-day slump, while the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) had their best days since Nov. 6 on Thursday. At the time of this writing, stocks are looking to close out the week strong as they head for their best weekly performances in a month or longer.
Quantum, Chips in Focus
It was a busy week for tech. Analysts turned bearish on social media name Pinterest (PINS), but Nvidia (NVDA) remained popular with bulls despite a slow start to the year. Sea (SE) and Dell Technologies (DELL) made it to our list of top stock picks for 2025, and Microsoft (MSFT) unveiled its Quantum Ready program for businesses, boosting quantum computing stocks D-Wave Quantum (QBTS), IONQ (IONQ), and Rigetti Computing (RGTI).
Chip stocks ASML (ASML), Broadcom (AVGO), and Lam Research (LRCX) also rallied after Taiwan Semiconductor's (TSM) record profits. Additionally, shares of cloud giants Salesforce (CRM) and Cloudflare (NET) soared as brokerages took a bullish stance.
Flurry of Retail Updates
Several retailers updated their guidance this week, with Abercrombie & Fitch (ANF), Lululemon Athletica (LULU), and Macy's (M) shares seeing mixed results. Meanwhile, Signet Jewelers (SIG) stock fell after the company cut its fourth-quarter sales and earnings outlook, while Target (TGT) lifted its comparable store sales forecast.
Elsewhere, shares Ollie's Bargain Outlet (OOLI) look overdue for a rebound, and e-commerce giant Amazon.com (AMZN) seems poised to swing back toward its record highs.
Blue Chips Take Over Earnings Docket
Markets will be closed on Monday to observe Martin Luther King, Jr. Day, but as soon as traders are back they will have purchasing managers' index (PMI) data to unpack. The earnings docket is packed full, with results coming from blue chips 3M (MMM), American Express (AXP), Johnson & Johnson(JNJ), Procter & Gamble (PG), Travelers (TRV), and Verizon Communications (VZ). Check out what stocks tend to outperform during the holiday-shortened week, and ignore these SPX risks at your own peril.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
