Earnings season is underway and, thanks to the banks, it’s off to a good start. Currently, consensus estimates are calling for a strong 12% year-over-year increase in S&P 500 earnings per share (EPS) for the fourth quarter of 2024. Steady economic growth should be enough for corporate America to beat these estimates, but upside will likely be limited due to several headwinds, including currency. Regulatory, trade, and immigration policies will be a major focus for analysts and investors in the weeks ahead, where this earnings season may bring more questions than answers. Policy developments will have a lot to do with whether Wall St

Outsized returns, record highs on nearly a weekly cadence, and low volatility were three major themes of price action in 2024. The S&P 500 posted a total of 57 record highs, marking the fifth-highest number of new highs in a calendar year since 1950. Furthermore, the CBOE Volatility Index (VIX) averaged only 15.5 on a daily closing basis in 2024, well below its historical average close of 19.5 and ranking as the 12th lowest average annual VIX since 1990.

Given the mostly one-way direction of stocks last year and the limited degree of drawdowns experienced on the S&P 500, last year’s price action may seem like an out

Key Highlights from the Institute for Supply Management (ISM) Report on Business:

• Economic activity in both the manufacturing and services sectors improved in December relative to the previous month. However, the manufacturing diffusion index remains below 50. Index levels above 50 imply growth; below 50 imply contraction.

• Purchasing managers — those with boots on the ground — reported another increase in prices paid, a sign of nagging inflation pressures for both those in the manufacturing sector and those in the services sector.

• A rebound in manufacturing new orders drove most of the increase in the

With 2024 and the fourth quarter (Q4) behind us, we decided to conduct a deep dive into the key factors that shaped Q4 performance. We’ve highlighted what we believe to be 10 of the key takeaways.

10 Takeaways From Q4

1. Dow, S&P, and Nasdaq Hit Record Highs: The Dow Jones Industrial Average (Dow), the S&P 500, and the Nasdaq Composite each hit all-time highs in Q4, with the tech-heavy Nasdaq rising 6.4%, besting the S&P 500’s 2.4% increase and the Dow’s modest 0.9% gain. The Nasdaq’s impressive performance was largely fueled by the continued strength of technology stocks, pa