Weekly Market Overview

The major equity indices experienced gains this week, driven by strong buying in the mega-cap sector. The Vanguard Mega Cap Growth ETF (MGK, Financial) closed 2.5% higher. The market-cap weighted S&P 500 rose by 1.5%, while the Invesco S&P 500 Equal Weight ETF (RSP, Financial) increased by 0.5%. The information technology sector led the S&P 500 sectors with a 3.8% gain, followed by communication services at 2.0%.

Economic and Policy Updates

• Fed Chair Powell's semiannual testimony before Congress did not reveal any surprises. He reiterated no urgency to adjust the policy stance.
• President Trump imposed 25% tariffs on steel and aluminum, effective March 12, with potential exemptions for Australia. The reciprocal tariff plan is less aggressive, set for April 1 application on a case-by-case basis.

Inflation and Economic Data

Economic data showed mixed results:

• The New York Fed's January Survey of Consumer Expectations showed inflation expectations unchanged at 3.0%.
• Total CPI increased by 0.5% month-over-month and 3.0% year-over-year. Core CPI rose 0.4% month-over-month and 3.3% year-over-year.
• The January PPI report brought some relief, potentially keeping the PCE Price Index in check due to declines in components like airfares and physician care.
• Retail sales for January were weak, and industrial production grew due to increased utility output driven by cold weather.

Bond Market Performance

Treasuries had modest gains, with the 10-year yield dropping one basis point to 4.48% and the 2-year yield falling three basis points to 4.26%.

Index Performance

• Dow Jones Industrial Average: +0.6% for the week / +4.7% YTD
• S&P Midcap 400: -0.3% for the week / +2.5% YTD
• S&P 500: +1.5% for the week / +4.0% YTD
• Russell 2000: Unchanged for the week / +2.2% YTD
• Nasdaq Composite: +2.6% for the week / +3.7% YTD

Daily Market Recap

Monday

The stock market started the week positively, recovering from Friday's declines. The Nasdaq Composite jumped 1.0%, the S&P 500 rose 0.7%, and the Dow Jones Industrial Average closed 0.4% higher, driven by mega-cap stocks and earnings reports.

Tuesday

Tuesday saw mixed trading with little conviction. The market focused on Fed Chair Powell's testimony and tariff news. The NFIB Small Business Optimism survey declined to 102.8 from 105.1 in December.

Wednesday

The market closed mixed, influenced by a hotter-than-expected January CPI report. The S&P 500 fell 0.3%, and the Dow Jones Industrial Average dropped 0.5%. The Nasdaq Composite rose slightly, supported by mega-cap stocks.

Thursday

No aftershocks followed the January PPI release, allowing the stock market to continue its buy-the-dip strategy. The 2-year yield fell to 4.31%, and the 10-year yield returned to 4.53%. All S&P 500 sectors ended higher.

Friday

Friday's market was mixed. The S&P 500 closed unchanged, the Nasdaq Composite gained 0.4%, and the Dow Jones Industrial Average fell 0.4%. Weak retail sales and industrial production data affected market sentiment.

Guru Stock Picks

Murray Stahl has made the following transactions:

• Reduce in MO by 0.74%
• Sold out in ASTL
• Add in CSCO by 0.09%
• New position in ARIS

Daniel Loeb has made the following transactions:

• Reduce in PCG by 2.51%
• Sold out in HE
• Add in CRS by 31.82%
• New position in TMO

George Soros has made the following transactions:

• Reduce in AUR by 76.27%
• Sold out in ORCL
• Add in RUN by 1994.75%
• New position in WASH

Jana Partners has made the following transactions:

• Reduce in SPY by 10.38%
• Sold out in FYBR
• Add in LW by 102.21%
• New position in MKL

Steve Mandel has made the following transactions:

• Reduce in KKR by 10.49%
• Sold out in BKNG
• Add in INTU by 25.55%
• New position in CIFR

Larry Robbins has made the following transactions:

• Reduce in AMZN by 29.89%
• Sold out in LYV
• Add in ZI by 153.76%
• New position in FMC

Carl Icahn has made the following transactions:

• Reduce in CTRI by 30.78%
• Add in UAN by 4.48%

Steven Cohen has made the following transactions:

• Reduce in YETI by 63.29%
• Sold out in LWAY
• Add in CCEP by 232.73%
• New position in ATYR

Lee Ainslie has made the following transactions:

• Reduce in SN by 83.47%
• Sold out in LINE
• Add in CRIS by 8.51%
• New position in IGT

Yale University has made the following transactions:

• Reduce in ITOT by 4.64%
• Sold out in RNAC
• New position in REI

David Einhorn has made the following transactions:

• Reduce in ROIV by 0.7%
• Sold out in PPA
• Add in DHT by 20.78%
• New position in ACHC

David Rolfe has made the following transactions:

• Reduce in MSFT by 3.93%
• Sold out in TPL
• New position in IWF

Stanley Druckenmiller has made the following transactions:

• Reduce in KEY by 9.74%
• Sold out in CRH
• Add in SWTX by 21.93%
• New position in SNRE

Michael Burry has made the following transactions:

• Reduce in MOH by 16.67%
• Sold out in FOUR
• Add in ACIC by 46.1%
• New position in HCA

Nelson Peltz has made the following transactions:

• Reduce in FERG by 2.64%
• Add in UHAL by 45.02%

HOTCHKIS & WILEY has made the following transactions:

• Reduce in DFS by 99.41%
• Sold out in VSTO
• Add in SEM by 17.47%
• New position in LIVN

ValueAct Capital has made the following transactions:

• Reduce in EXPE by 61.32%
• Add in LLYVK by 18.46%
• New position in AMZN

Michael Dell has made the following transactions:

• Reduce in HAYW by 83.3%
• Sold out in LTH

Caxton Associates has made the following transactions:

• Reduce in HIW by 20.09%
• Sold out in UBER
• Add in FTDR by 564.32%
• New position in KODK

Kahn Brothers has made the following transactions:

• Reduce in SEB by 0.18%
• Sold out in CWEGF
• Add in HOLX by 15.63%
• New position in MBI

Joel Greenblatt has made the following transactions:

• Reduce in VC by 36.72%
• Sold out in SBGI
• Add in TDC by 53.38%
• New position in NXT

Bill Gates has made the following transactions:

• Reduce in MSFT by 1.73%
• Sold out in VRMMQ
• New position in MCD

Private Capital has made the following transactions:

• Reduce in XLE by 1.41%
• Sold out in LYFT
• Add in LAKE by 0.41%
• New position in SSBK

Paul Tudor Jones has made the following transactions:

• Reduce in FRPT by 1.78%
• Sold out in EVER
• Add in FN by 0.35%
• New position in DNN

Bill Ackman has made the following transactions:

• Reduce in CMG by 14.44%
• Add in BN by 6.59%

Glenn Greenberg has made the following transactions:

• Reduce in FNF by 0.62%
• Sold out in DLTR
• Add in SNX by 12.22%
• New position in ICLR

Bruce Berkowitz has made the following transactions:

• Reduce in OZK by 1.49%
• Add in EPD by 0.05%
• New position in EOG

Warren Buffett has made the following transactions:

• Reduce in C by 73.5%
• Sold out in VOO
• Add in VRSN by 3.56%
• New position in STZ

Mason Hawkins has made the following transactions:

• Reduce in CNH by 3.61%
• Sold out in WMG
• Add in ENOV by 60.55%
• New position in TIGO

Donald Smith & Co has made the following transactions:

• Reduce in CLCO by 0.64%
• Add in GAU by 7.65%

Andreas Halvorsen has made the following transactions:

• Reduce in USB by 27.28%
• Sold out in DAWN
• Add in ORIC by 10.78%
• New position in MNST

Jefferies Group has made the following transactions:

• Reduce in DIA by 2.06%
• Sold out in CLCO
• Add in RACE by 989.79%
• New position in BBIO

Louis Moore Bacon has made the following transactions:

• Reduce in RSP by 97.72%
• Sold out in THCPW
• Add in KRE by 89.3%
• New position in WBA

Chase Coleman has made the following transactions:

• Reduce in UNH by 81.45%
• Sold out in STNE
• Add in SHW by 90.28%
• New position in CSGP

Ron Baron has made the following transactions:

• Reduce in IBP by 6.81%
• Sold out in LBRDK
• Add in MELI by 10.95%
• New position in VGT

Barrow, Hanley, Mewhinney & Strauss has made the following transactions:

• Reduce in GBX by 8.5%
• Add in CMCO by 13.54%

Philippe Laffont has made the following transactions:

• Reduce in ETN by 4.07%
• Sold out in NKLA
• Add in TEAM by 612.67%
• New position in QFIN

Al Gore has made the following transactions:

• Reduce in FRSH by 7.96%
• Sold out in AMAT
• Add in HTHT by 194.75%
• New position in TTAN

Leon Cooperman has made the following transactions:

• Reduce in RRX by 23.51%
• Sold out in DTM
• Add in FIHL by 7.47%
• New position in IEUR

Arnold Van Den Berg has made the following transactions:

• Reduce in SW by 2.1%
• Sold out in HAL
• Add in EG by 0.3%
• New position in AAPL

Today's News

Dell Technologies (DELL, Financial) is reportedly in advanced negotiations to secure a $5 billion contract with Elon Musk's xAI for AI-optimized servers, boosting Dell's shares by 4%. The deal involves servers equipped with Nvidia (NVDA, Financial) semiconductors, underscoring the growing demand for AI computing power. This move highlights Dell's strategic positioning in the high-performance server market.

CEOs from major pharmaceutical companies, including Pfizer (PFE, Financial), Merck (MRK, Financial), and Gilead Sciences (GILD, Financial), are set to meet with President Trump at the White House. The meeting aims to address potential reforms in the pharmaceutical sector, particularly concerning Medicare drug price negotiations and FDA regulations, amid concerns about the impact of Robert F. Kennedy Jr.'s appointment as HHS Secretary.

Whale Rock Capital Management has made significant adjustments in its portfolio, taking new stakes in Reddit (RDDT), Atlassian (TEAM), Apple (AAPL, Financial), and Twilio (TWLO), while exiting positions in Monolithic Power (MPWR) and Guidewire (GWRE). The hedge fund also increased its investments in Broadcom (AVGO), Amazon (AMZN, Financial), Salesforce (CRM, Financial), and Roblox (RBLX, Financial), indicating a strategic shift towards technology and growth stocks.

SoundHound AI (SOUN), Serve Robotics (SERV), and Nano-X (NNOX) saw sharp declines after Nvidia (NVDA, Financial) exited its stakes in these companies. Nvidia also reduced its position in Arm Holdings (ARM) by 44%, reflecting a strategic realignment in its investment portfolio.

Saudi Arabia's Public Investment Fund has exited its stake in Walmart (WMT, Financial) and taken a new position in DoorDash (DASH), while significantly increasing its holdings in Amazon (AMZN, Financial) and Lucid (LCID). These moves highlight the fund's focus on e-commerce and electric vehicles as key growth areas.

Sanofi (SNY, Financial) has received FDA approval for Merilog, a biosimilar of Novo Nordisk's (NVO) NovoLog insulin product, marking a significant development in the diabetes treatment market. The approval of Merilog, available in prefilled pen and vial forms, represents a step forward in providing more affordable insulin options.

Soros Capital Management has opened new positions in Nvidia (NVDA, Financial), Chipotle Mexican Grill (CMG), and SoFi Technologies (SOFI, Financial), while selling stakes in Alibaba (BABA) and Microsoft (MSFT, Financial). The fund also increased its investments in Amazon (AMZN, Financial) and Taiwan Semiconductor Manufacturing (TSM), underscoring a strategic focus on technology and consumer sectors.

Electric vehicle makers, including Polestar (PSNY), Rivian Automotive (RIVN), VinFast Automotive (VFS), and Tesla (TSLA, Financial), showcased their latest models at the Chicago Auto Show, highlighting the industry's growing presence and innovation in the EV market. Tesla's rare appearance with the Cybertruck drew significant attention.

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