This Week to "Set Tone" for 2025's Close, MU & NKE Key Earnings

Economic Data Overview - The NAHB housing market index for December came in at 39, a slight increase from November's 38, indicating a steady uptick from five-year lows, although still far from multi-year highs [2][3] - The upcoming week is significant with the release of jobs data, retail sales, and CPI, which will influence the Federal Reserve's decision-making and market pricing [4][6] Market Sentiment and Trends - There is a focus on the divergence between soft data and hard data, with soft data being more critical in the current economic landscape [7][8] - The market is experiencing a rotation, particularly moving away from high-flying tech stocks, with attention on the performance of the MAG 7 and the broader S&P 500 [15][16] Earnings Season Insights - Key companies reporting include home builders, Nike, and FedEx, with Nike's performance being particularly noteworthy as apparel retailers have shown strong results this earnings season [10][11] - The dispersion index indicates a decrease in market volatility, suggesting a more synchronized market as earnings season concludes [13] Treasury Yields and Metals - Elevated Treasury yields are a significant focus, with recent movements reflecting market interpretations of Federal Reserve communications [18][21] - There has been notable activity in the metals market, which is being closely monitored alongside Treasury yield trends [18]