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Microsoft (MSFT) reported Q4 2024 earnings per share (EPS) of $3.23, beating expectations of $3.13. Revenue came in at $69.6 billion, slightly surpassing estimates of $68.92 billion. The company’s market capitalization now stands at $3.29 trillion, reflecting continued strong performance and growth momentum.

The Federal Reserve kept interest rates unchanged at 4.25%–4.50%, citing solid labor market conditions and above-target inflation as reasons to maintain its cautious stance. After three rate cuts last year, the Fed’s decision reflects concerns over stronger economic growth and stickier inflation, reducing the urgency for further easing. Additionally, uncertainty surrounding the *neutral rate (r)**, which determines the equilibrium interest rate, has influenced the Fed’s outlook. Recent adjustments suggest the Fed may have underestimated how restrictive its policy stance has been. With economic conditions remaining robust, the central bank appears in no rush to cut rates further.

Starbucks reported Q4 2024 earnings of $0.69 per share, slightly beating expectations of $0.68. Revenue came in at $9.4 billion, surpassing the forecasted $9.35 billion. The company's market capitalization stands at $114.06 billion. Investors will be closely watching Starbucks' future outlook as it navigates changing consumer demand and economic conditions.

The Conference Board’s Consumer Confidence Index for January 2025 came in at 104.1, below both the expected 105.7 and December’s revised 109.5. This decline reflects growing consumer concerns over economic conditions and future expectations, likely influenced by uncertainty surrounding monetary policy and ongoing inflationary pressures. The drop suggests potential caution in consumer spending, which could weigh on economic growth in the coming months.

The latest durable goods orders data for December 2024 presented mixed signals about the U.S. manufacturing sector. Core Durable Goods Orders (excluding transportation) increased by 0.3%, slightly less than 0.4% expectations, and reflecting better growth compared to November’s revised decline of -0.1%. Headline Durable Goods Orders fell sharply by -2.2%, missing the expected 0.3% rise, largely due to a decline in transportation-related orders and defense spending.

Durables Excluding Defense Orders dropped by -2.4%, while Durables Excluding Transport Orders matched the moderate growth of 0.3%. On a more positive note, Goods Orders Non-Defense Excluding Aircraft rose by 0.5%, exceeding forecasts of 0.3% but marking a slowdown from the previous month’s 0.9%.

The data highlights ongoing challenges in the durable goods sector, influenced by weakening demand in transportation and defense, although core metrics suggest some resilience in broader manufacturing activity.

AT&T reported strong results for Q4 2024, exceeding market expectations. The company posted an earnings per share (EPS) of $0.54, surpassing the forecasted $0.49, alongside revenue of $32.3 billion, beating the anticipated $32.07 billion. Additionally, AT&T’s market capitalization stands at $173.21 billion, reflecting its robust performance and resilience in a competitive telecommunications landscape. These results underscore the company’s continued ability to deliver shareholder value and maintain its market position.

The U.S. housing market showed resilience in December 2024, with New Home Sales rising to 698K, exceeding both the forecast of 669K and the previous figure of 674K. On a month-over-month basis, sales increased by 3.6%, reflecting sustained demand despite the slower pace compared to November’s robust 9.6% growth. These figures suggest that the housing sector continues to perform well, supported by favorable market conditions and steady consumer demand.

The U.S. housing market showed relative growth in December 2024, with Existing Home Sales rising to 4.24M, exceeding the expected 4.19M. On a monthly basis, sales increased by 2.2%, indicating steady demand despite slowing momentum compared to November's 4.8% growth.

The U.S. service sector faced mounting pressure in January 2025, as the S&P Global Services PMI dropped to 52.8 from 56.4, signaling slower growth. The Composite PMI also declined to 52.4, reflecting weaker activity across sectors. Meanwhile, the Manufacturing PMI improved slightly to 50.1, barely returning to expansion territory, suggesting a modest recovery in manufacturing amidst a broader economic slowdown.

The U.S. labor market showed a slight uptick in jobless claims for the week ending January 17, 2025. Initial Jobless Claims rose to 223K, slightly above the expected 221K and the prior week's 217K, suggesting a moderate increase in layoffs. Continuing Jobless Claims also climbed to 1,899K, exceeding both the forecast of 1,860K and the previous 1,853K, indicating persistent challenges for some workers. Meanwhile, the 4-week moving average of Jobless Claims edged higher to 213.50K, reflecting a gradual rise in labor market pressures.

The U.S. economy showed mixed performance in December 2024. The Redbook Index, which tracks retail sales growth, increased by 4.5% year-over-year, reflecting robust consumer spending compared to the previous 4.0%. However, the Leading Economic Index (LEI) declined by 0.1% month-over-month, in line with expectations but down from the last 0.4%, signaling potential softening economic momentum heading into 2025.

Johnson & Johnson (JNJ) reported strong Q4 2024 earnings, with earnings per share (EPS) of $2.04, slightly exceeding the estimated $2.02, reflecting steady profitability. Revenue came in at $22.52 billion, marginally above the forecast of $22.46 billion, driven by growth in its pharmaceutical and medical device segments. The company’s total assets stood at $345.49 billion, underlining its solid financial position and dominance in the healthcare sector.