The first full trading week of 2025 is here, with key inflation data on the horizon as the Consumer Price Index (CPI) and Producer Price Index (PPI) are set for release. These reports will offer critical insights into inflation trends and could shape expectations for future Federal Reserve policy decisions. More significantly, major banks will kick off quarterly earnings season, providing early signals on corporate health and the broader economic outlook. Their results will be closely analyzed to either support or challenge prevailing bullish and bearish market narratives. After last week’s volatility, continued market swings are likely, making the VIX an attractive play.
Monday
Tuesday
PPI
Wednesday
CPI
Earnings: JPM GS BLK C WFC
Thursday
U.S. retail sales
Earnings: TSM BAC MS
Friday
Tracking This Week
Netflix (NASDAQ:NFLX) has faced a sharp sell-off in recent weeks after reaching its all-time high of $941. Profit-taking by investors, coupled with equity research firms raising concerns about overvaluation, has added pressure to the stock. This downward trend could persist if bond yields remain elevated and inflation fears resurface, further weighing on tech names like Netflix trading at high multiples.
NVIDIA (NASDAQ:NVDA) saw a strong initial reaction following Jensen Huang’s keynote at CES, but broader macroeconomic pressures dragged the stock down alongside the overall market. Technical indicators suggest solid support at current levels, positioning NVIDIA for a potential breakout to all-time highs once macro conditions stabilize. Additionally, strong earnings and guidance from Taiwan Semiconductor Manufacturing Company this week could also provide that spark.
Occidental Petroleum (NYSE:OXY) is showing strength as oil prices rebound, providing support for the stock’s recent momentum. Warren Buffett’s significant ownership stake, with an average cost basis above current levels, adds an additional layer of investor confidence. If oil prices continue to rise, it could maintain its upward trajectory.
PayPal Holdings (NASDAQ:PYPL) had been steadily recovering since the end of summer but has shown signs of fatigue over the past 3–4 weeks. With technical indicators breaking down, the stock may be vulnerable to outsized downside moves, particularly as major banks begin reporting earnings. Weak bank results or cautious guidance could further pressure PayPal. Without a significant catalyst, the stock is likely to remain range-bound until its earnings report in early February.
