Good evening. The S&P 500 ended the week down -0.2%. Here are the top stocks to watch this week, and what’s moving the markets.

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Top Stocks & Setups To Watch This Week

• $AMZN
Break above 233 🎯 238.83 & 242.06
• $MU
Break below 91.07 🎯 87.51 & 83.54
• $PYPL
Break below 76.54 🎯 74.81 & 73.12
• $ADBE
Break above 437.11 🎯 446.15 & 455.23
• $XOM
Break above 110.28 🎯 112.18 & 113.88
• $NVDA
Break above 133.57 🎯 140.83 & 142.62

KV’s S&P 500 Levels

Weekly Market Recap

Economics

The U.S. economy is off to a strong start in 2025, with GDP projected to grow at an above-trend 2.9% in the first quarter. Consumer spending remains robust, supported by a healthy labor market and positive wage growth. The U.S. manufacturing sector, which had been lagging, shows signs of recovery, as indicated by a recent expansion in the PMI index. These factors point to continued economic momentum, though growth may moderate slightly in the first half of the year.

Earnings

Corporate earnings are also driving market strength. The current earnings season shows that 77% of S&P 500 companies have exceeded expectations, supporting projections of 10%-15% earnings growth for 2025. Both growth and value sectors are contributing to this trend. While high-profile technology companies face scrutiny over competition and efficiency, broadening market leadership is shifting performance toward financials, industrials, and other non-tech sectors, enhancing diversification opportunities.

Tariffs

Despite the positive economic outlook, trade policy uncertainty, particularly regarding tariffs, presents a potential risk. Tariffs on key trade partners like China could raise inflation and dampen growth. However, with inflation currently around 2.5%-3.0%, the impact may be limited. Pro-growth measures such as deregulation and tax cuts could offset these risks. Investors are advised to maintain diversified portfolios, balancing exposure to both domestic growth and defensive sectors to navigate potential volatility.

Coming Up…

Important economic releases this week include CPI inflation and retail sales data. On the earnings front, SMCI, SHOP, HOOD, COIN, MCD, DKNG, KO, CVS, LYFT, ABNB, and ROKU are expected to report this week.

Key Headlines We’ve Been Reading

This is what’s caught our eye over the past 7 days.

• Trump's meme coin made nearly $100 million in trading fees, as small traders lost money.
• World inflation is at risk of rekindling with Trump’s trade war.
• EU sees a path to negotiate with Trump to avoid a tariff fight.
• Wegovy sales double to boost Novo Nordisk's fourth quarter as growth set to slow.
• Trump says Fed made the right call last week to pause rate cuts.

Trading Quote Of The Week

That was it for this week!

Stay safe,
KV 👋

Week #6 | February 9, 2025

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