Stocks were mixed last week as investors parsed market-moving news nearly every trading day—from an unsettling AI update to White House news to Q4 corporate reports.

The Standard & Poor’s 500 Index fell 1.00 percent while the Nasdaq Composite Index slid 1.64 percent. Meanwhile, the Dow Jones Industrial Average rose, picking up 0.27 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 0.75 percent.

A Choppy End To January

The week started on a down note with news that a Chinese artificial intelligence (AI) startup had made a breakthrough, which put pressure on a wide range of tech stocks. The tech-heavy Nasdaq fell 3 percent for the day, but the Dow Industrials ended the trading session slightly higher.

Stocks were under pressure again mid-week as investors waited on news from the Federal Reserve. The Fed voted to hold firm on short-term interest rates. Even though the decision was widely expected, markets were under pressure again after the Wednesday afternoon announcement.

Stocks rallied Thursday but reversed course Friday afternoon as traders adopted a more “risk-averse” position going into the weekend. There was a bit of anxiety knowing that the new administration’s tariffs on Mexico and Canada were scheduled to take effect on Saturday.

Interestingly, it was the Dow Industrial’s fourth-straight week outperforming both the S&P and the Nasdaq.

Black Swan Event

It’s hard to overstate how much the markets were caught off guard by Monday’s news related to the success of a new AI startup based in China.6

What unsettled investors was the company’s claim that it developed a competitive AI model that performs as well as its Western counterparts at a fraction of the cost. As the week progressed, markets started to process the news and began to evaluate whether it was truly a “black swan” event or just another development in the fast-moving world of AI.

Monday: ISM Manufacturing. Construction Spending.

Tuesday: Motor Vehicle Sales.

Wednesday: ADP Employment Report. Factory Orders. ISM Services Index. Beige Book.

Thursday:   Jobless Claims. International Trade in Goods and Services. Productivity and Costs.

Friday: Employment Situation.

Source: Econoday

Monday:  Palantir Technologies Inc. (PLTR)

Tuesday:  Alphabet Inc. (GOOG, GOOGL), Merck & Co., Inc. (MRK), PepsiCo., Inc. (PEP), Advanced Micro Devices, Inc. (AMD), Pfizer Inc. (PFE), Amgen, Inc. (AMGN), KKR & Co. Inc. (KKR), Spotify Technology (SPOT)

Wednesday: The Walt Disney Company (DIS), Qualcomm Incorporated (QCOM), Boston Scientific Corporation (BSX), Uber Technologies, Inc. (UBER), Fiserv, Inc. (FI)

Thursday:  Amazon.com, Inc. (AMZN), Eli Lilly and Company (LLY), Philip Morris International Inc. (PM), Honeywell International Inc. (HON), Bristol Myers Squibb Company (BMY), ConocoPhillips (COP)

Source:Zacks.com

Sources: YCharts.com, February 1, 2025

Weekly performance is measured from the close of trading Friday January 27, to Friday, January 31 close.

Tips For Making Cleaning Your Closet Easier

There’s something satisfying about cleaning out your closet, especially at this time of year. Here are some tips on how to make spring cleaning your closet a little easier.

• Not sure what to keep or get rid of? Try the clothes hanger hack! Turn all your coat hangers around so they face away from you, and over the course of a month or two, turn the hangers around as you wear your clothes. Then, you can see what you wear and clean your closet accordingly.
• Separate your clothes by season and neatly pack away the clothes you aren’t wearing for future use. To save space, use a vacuum sealer. Label your storage containers or bags to remember what’s in each.
• Save space by shopping for wardrobe accessories like shoe organizers, slimmer hangers, or necklace/scarf organizers.

Tip adapted  from Who What Wear

Chicken Pot Pie Empanadas

Serves: 12

Ingredients:

• 1 tablespoon extra virgin olive oil
• 1 leek, white and light green parts only, washed and thinly sliced
• 2 carrots, peeled and sliced
• 2 celery stalks, diced
• 2 garlic cloves, minced
• 1 tablespoon fresh thyme leaves
• 1 teaspoon fresh rosemary, chopped
• ½ teaspoons Diamond Crystal kosher salt
• ¼ teaspoons freshly cracked black pepper
• ¼ cups all-purpose flour
• 2 cups shredded rotisserie chicken
• 1 cup chicken broth
• ½ cups whole milk
• 1 cup frozen peas
• 12 store-bought empanada dough disks, thawed
• 2 cups neutral oil, for frying

Directions:

1. Heat the olive oil in a large skillet over medium heat. Add the leek, carrots, celery, garlic, thyme, and rosemary. Cook until the vegetables are softened, about 5 minutes. Season with salt and pepper.
2. Sprinkle the flour over the vegetables and cook for 1 minute more, stirring constantly.
3. Add the chicken, broth, and milk. Bring to a simmer and cook until the sauce has thickened, about 5 minutes. Stir in the peas and cook for 1 minute more.
4. Transfer the filling to a bowl and let it cool completely.
5. To assemble the empanadas, spoon a heaping tablespoon of filling onto each empanada disk. Fold the dough over to form a half-moon shape and crimp the edges with a fork to seal.
6. Heat about 1 inch of neutral oil in a large skillet over medium-high heat. Fry the empanadas in batches until golden brown, about 2 minutes per side. Drain on paper towels. Serve immediately.

Recipe adapted from Food52

Punch Shot

A punch shot is similar to a recovery shot and also known as a recovery shot. A punch shot is even lower than a knockdown and the shot doesn’t go very far compared to a normal stock iron shot. Here are three rules when hitting a punch recovery shot.

• Check the lie. Make sure the lie will allow you to hit the shot. If the ball is sitting up too much in the rough it’s easy to catch a flier lie and launch it much higher. If the ball is sitting down too much you’ll want to play even more conservatively as it’s hard to get the club on the ball.
• Play conservatively. Even pros struggle from the trees – don’t make it worse by trying to play an ultra aggressive shot. The last thing you want is your ball ricochet off the trees and leave you with a similar second shot.
• Use less loft. You need less loft to hit a lower trajectory shot, which is why you want a mid to long iron. Avoid hitting high lofted woods or utility irons for this shot too as they’re meant to launch high and difficult to keep low.

Tip adapted from theleftrough.com

Be On The Lookout For Unemployment Identity Theft Scams

With millions of people receiving unemployment, it’s no surprise that scammers are taking advantage of this situation and filing fraudulent claims for unemployment compensation. They do this by using stolen personal information of taxpayers who haven’t filed unemployment claims.

If you filed for unemployment and received an incorrect Form 1099-G, contact the issuing agency to request a revised form. When filing your federal tax return, you can also contact the IRS and request an identity protection PIN to protect your identity. Educate yourself on the many signs of identity theft and take the proper steps to help protect yourself.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS

Photo of the Week

Cape Peron Yellow Crab

Francois Peron National Park, Australia

Financial planning and investment advisory services offered through Cleveland Wealth, LLC, a Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified wealth advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.