*Performance since 7/1/2022. For more details on the performance calculation and methodology of Alpha Picks, click here. |
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► Major U.S. indices exhibited mixed activity this week, with losses accelerating Friday afternoon; The Nasdaq slid over 2%, as the Dow Jones and S&P 500 declines reached above 1.75%.
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► President Trump's proposed 25% tariffs on auto, semiconductor, and pharmaceutical imports dominated market sentiment, triggering renewed trade war concerns and potential supply chain disruptions.
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► Corporate headlines included Alibaba (BABA) surging 10% following strong FQ3 earnings, while Walmart (WMT) faced scrutiny over potential Chinese tariff exposure, and its 1QFY26 profit and sales outlook fell short of estimates.
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► The 10-year Treasury yield edged up 7 BP to 4.57%, with Fed minutes flagging concerns that tariff-driven inflation risks might outweigh near-term rate cut expectations.
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► Bitcoin (BTC-USD) soared above $97,300 as crypto ETFs gained steam among institutional investors.
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► U.S. housing starts declined 8.4% in January amid severe weather impacts, while geopolitical factors—including stalled Russia-Ukraine peace talks and Middle East oil supply risks—added layers of complexity.
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Alpha Picks is a rigorous, data-driven model that offers Strong Buy-rated stocks believed to have the highest probability of capital appreciation based on a proprietary quantitative model. Two 'Strong Buy'-rated stocks are selected monthly on the first trading day of the month and the 15th or the closest trading day thereafter. |
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Global Market Movements and Sector Performance |
Federal workforce reductions have captured headlines to challenge the job market. Roughly 79,000 federal workers agreed to deferred buyouts as part of an initiative led by the Trump administration aimed at reducing the size of the federal workforce. The "DOGE dividend" could deliver $5,000 to American households and has garnered significant attention. Read More. |
Major U.S. indices exhibited mixed activity this week, sliding after Walmart's (WMT) earnings report, despite the S&P 500 closing at a record high of 6,129.58 earlier in the week, up ~4% in 2025. President Trump's proposed 25% tariffs on auto, semiconductor, and pharmaceutical imports dominated market sentiment, triggering renewed trade war concerns and potential supply chain disruptions. Read More. |
This week, defensive sectors outperformed amid tariff concerns: Utilities (XLU) advanced by 1.45% and Consumer Staples (XLP) by 0.77%, driven by solid pricing power, while the Technology sector (XLK) slipped amid tariff tensions and semiconductor supply chain issues. Read More. |
Value Stocks vs. Growth Stocks
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Value and growth stocks continue to be mixed, experiencing some fluctuations due to investor uncertainty around inflation, labor, macroeconomic stability, and trade tensions. These shifts highlight the importance of maintaining a balanced portfolio in times of market volatility. Read More. |
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Crypto Rallies on ETF Enthusiasm
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Bitcoin (BTC-USD) soared above $97,300 as crypto ETFs gained steam among institutional investors and the popularity of Bitcoin exchange-traded funds (ETFs). Spot Bitcoin ETFs accumulated over $40 billion in net inflows, significantly outpacing traditional gold ETFs. Read More. |
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The Japanese yen continued to strengthen against the U.S. dollar as the U.S. dollar softened from its four-day high. The yen's strength can be attributed to geopolitical developments, such as the anticipated easing of tensions between Ukraine and Russia and new tariffs as trade wars intensify. Read More. |
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The United States remains the world's largest holder of gold reserves, with nearly 8.1k metric tons. Where central banks have been building up their gold reserves, peak demand in the last 20 years may have helped weaken gold's relationship with interest rates. |
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► FOMC: The Federal Reserve held rates steady at 4.25%–4.50% during its January 29th meeting, focusing on emerging inflation trends ahead of its March meeting.
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► Inflation: January CPI increased by 3% YoY, though new tenant rent data indicates shelter inflation could ease to approximately 2.5% by Q3. Recent minutes highlighted concerns over tariff-driven inflation, resulting in a "no rush" stance on rate cuts; market-implied odds of a 2025 rate cut declined to 36% for June.
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► Labor Market: Recent employment data has reflected modest improvements, but inflation concerns persist, particularly amid DOGE cost-cutting efforts set to impact ~79,000 employees.
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| The Home Depot, Inc. (HD) Intuit Inc. (INTU) |
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| NVIDIA Corporation (NVDA) Salesforce, Inc. (CRM) |
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| U.S. GDP Report Dell Technologies Inc (DELL) |
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*Performance is as of February 21, 2025. Alpha Picks adds two stocks per month—on the closest business day to the 1st & 15th. Alpha Picks removes stocks based on rating thresholds (i.e., when a rating changes to a sell). Performance is calculated and reported daily using time-weighted returns. For more details on the performance calculation and methodology of Alpha Picks, click here.
Past performance is no guarantee of future results. Alpha Picks does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Any content and tools on the platform are offered for information purposes only. Any views or opinions expressed may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker, U.S. investment adviser, or investment bank. |
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