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The Key Takeaways
- The S&P 500 jumped 1% on Friday, Jan. 17, 2025, heading into a three-day weekend on a high note as prospects rebounded for additional interest-rate cuts in 2025.
- Intel stock soared following news that the semiconductor company could be a target for acquisition.
- J.B. Hunt’s shares fell after it reported lower-than expected profits and sales for its fourth quarter.
On Monday, Donald Trump will be sworn in for his second term.
Stocks closed the week with a strong performance, which coincided well with renewed optimism about the Federal Reserve’s ability to continue to reduce interest rates by 2025. This was boosted by signs of declining inflation. The four main reasons for inflation are listed below.
The S&P 500 advanced 1% on Friday. Nasdaq gained 1.5% thanks to the technology sector, and the Dow finished the day with a 0.8% gain.
Intel (INTC) shares surged 9.3%, notching the S&P 500’s best performance, amid reports that the semiconductor giant could be a takeover target. Intel’s stock continued to rise on Friday, after Intel announced it was converting its venture capital fund into an independent entity. Intel would remain as a shareholder. Intel’s Interim CEO stated that this move will help Intel maximize value and increase efficiency.
SLB (SLB), world’s biggest oilfield services provider, announced better-than expected results for the fourth-quarter, increased dividends, and increased their share-repurchase program. SLB warned of a limited revenue increase in 2025 due to the high levels of oil supply. However, the company’s stock jumped by 6.1% following the report.
Truist Financial’s (TFC) shares rose by 5.9% following the company exceeding its quarterly revenue and profit expectations. The strong performance was largely due to the increase in net interest and non-interest revenue from last year. Truist’s strong performance was also boosted by an increase in average deposits, despite the decline in loan averages.
Shares of J.B. Hunt Transport Services (JBHT) suffered the steepest drop of any S&P 500 stock on Friday, tumbling 7.4% after the shipping firm’s fourth-quarter sales and profits fell short of expectations. Performance was affected by slumping volumes, with revenue drops across the board. J.B. Hunt CEO stated that J.B. Hunt is focused on improving its margins while navigating the freight industry headwinds.
Eli Lilly’s (LLY), shares dropped 4.2% on Friday, continuing losses from earlier in the week. The pharmaceutical giant had cut its forecast for sales. Centers for Medicare Medicaid Services, which announced on Friday that they had chosen Novo Nordisk’s (NVO), popular treatments for diabetes and for weight loss to be subjected to possible price negotiation. It raised fears that Lilly’s products could come under Medicare’s scrutiny. Novo Nordisk’s U.S. listed American Depository Receipts fell 5.3%.
Fair Isaac Corp. shares (FICO) fell 3.5% after Jefferies raised its target price for the company’s stock. This was a reversal of gains made earlier this week. Analysts raised their expectations on the company’s volume of business to business, although slower mortgage originations are still a problem in a high-interest rate environment.
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