Here is the article:
My Top 10 Things to Watch
The new trading year started on a strong note, with back-to-back years of 20%-plus gains for the first time since the 1990s. Mag 7 stocks were responsible for most of the gains since Election Day 2024, with some indices predicting a decline. However, I don’t believe that’s the case.
Apple is offering discounts on phones in China, and its stock is trading at 34 times 2025 earnings estimates, making it the most inflated Mag 7 stock. Additionally, the Club’s stock may not come down, but it’s not a sure thing.
Mainland China’s benchmark CSI 300 experienced its steepest decline since 2016, dropping 2.9% overnight, due to weaker-than-expected manufacturing numbers and tariff worries.
With the inauguration of Donald Trump on January 20, his talk about corporate tax and capital gains rate cuts, as well as trade tariffs, is on the radar.
Evercore ISI has cut its GE Healthcare price target to $98 per share from $102, following the stock’s disappointing performance.
Mortgage demand sank 22% for the two weeks ended December 27, compared to the previous week, according to the Mortgage Bankers Association.
Bond yields were lower on Thursday, having experienced a choppy 2024, with the 10-year yield starting at below 3.9%, rising to above 4.7% in the spring, and retreating to below 3.7% in the fall, before ending the year above 4.5%.
Oil prices climbed slightly, with West Texas Intermediate crude, the U.S. oil benchmark, experiencing a 5%-plus gain for December and the fourth quarter, but flat for all of 2024.
Piper Sandler downgraded Biogen to hold from buy and made a catch-up price-target adjustment to $138 from $315, citing an “uphill battle” in building an Alzheimer’s franchise.
Eli Lilly, a core holding of the CNBC Investing Club, is looking to extend its winning streak over the broader market to six years, with the stock jumping more than 30% last year.
