Market Monitor January 3th

Highlights

Wall Street ended a strong 2024 on a weak note, with four consecutive losing sessions, and the first trading day of 2025 continued the trend.

The Dow Jones fell 0.4% to 42,392 points after an initial positive start, while the Nasdaq also struggled to gain momentum.

Tesla disappointed investors with its Q4 sales figures, falling short of expectations and posting slightly lower annual sales compared to 2023.

Tesla’s stock dropped 6%, although this pullback remains minor compared to its sharp rally since CEO Elon Musk became a key advisor to the new U.S. President, Donald Trump, last fall.

Tesla’s full quarterly report, including margins and cash flow, is due January 29.

Major Index Performance:

S&P 500 (SPY):

Down 0.25%, showing short-term weakness with a 1-week drop of 2.77%. However, the 12-month trend remains strong at +24.9%.

Nasdaq 100 (QQQ):

Down 0.2%. It underperformed in the short-term (-3.72% over 1 week) but retains robust long-term gains (+28.6% over 12 months).

Russell 2000 (IWM):

Slightly positive, up 0.08%, yet shows significant short-term weakness (-1.01% over 1 week) with only a 14.4% gain over 12 months.

Sector Performance:

1 Week:

Financials and Information Technology led the market with notable gains, while Real Estate and Utilities were the weakest performers.

1 Month:

Similar trends with Financials and IT sectors outperforming, while Real Estate continued to lag significantly.

3 Months:

Financials maintained strong momentum, with Real Estate persistently underperforming.

All info available on our Sector Performance page

Market Breadth:

• The advancer-decliner ratio for January 2 indicates slight market strength, with 51.1% of stocks advancing. However, declining stocks over the past week (46.4%) remain close to advancing ones.
• Short-term breadth indicators (SMA20+ and SMA50+) show only 25.5% and 28.7% of stocks trading above their moving averages, reflecting underlying weakness.

All info available on our Market Monitor page

Key Observations:

• Short-term trends point to overall market hesitation and mild weakness despite long-term uptrends.
• Sector rotation is evident, with Financials and IT gaining momentum, while defensive sectors like Real Estate and Utilities struggle.
• Breadth metrics suggest cautious optimism but underline the need for a stronger rally to sustain upward momentum.