Markets inch lower as investors weigh Trump comments and earnings

Dow slid back 59, but advancers over decliners 3-2 & NAZ was off 22.  The MLP index added 1 to the 323s & the REIT index went up 2+ to 405.  Junk bond funds were mixed & Treasuries had modest buying which brought lower yields.  Oil fluctuated in the 74s & gold was up 18 to 2783, nearing its 2790 record.

Dow Jones Industrials

Pres Trump signed an exec order to promote the advancement of cryptocurrencies in the US & to work toward potentially developing a national digital asset stockpile.  Venture capitalist David Sacks, who Trump tapped as his crypto & artificial intelligence czar, joined Trump in the Oval Office for the signing of the order.  “The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the order states.  Trump, who was a crypto critic in his first administration, changed his tune on the campaign trail & attracted hefty contributions from the industry after a tumultuous 4 years under then Pres Biden.  Crypto investors, companies & execs accounted for almost ½ of corp donations in the 2024 election cycle, with some contributing tens of Ms of $s to help Trump win a 2nd term in office.  Most of the order focuses on establishing technology & rules around crypto & its development in the US.  1 of the critical pieces is the creation of a working group to consider a national digital asset stockpile, “potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement effort.”  Trump promised on the campaign trail that if he returned to the White House, he would ensure the federal gov never sells off its bitcoin holdings, though this order does not mention bitcoin.  “If I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future,” he said in Jul.  The order goes on to outline other key priorities for the digital asset industry, including protecting individuals & private sector companies that use blockchain networks from “persecution.”  The document spells out certain protections for developers & miners, noting that they should be able to freely “develop and deploy software” as well as “participate in mining and validating,” a nod to the technicians securing the bitcoin network.

Trump signs executive order promoting crypto, paving way for digital asset stockpile

Boeing (BA), a Dow stock, said hat it likely lost about $4B in the 4th qtr, adding to troubles at the manufacturer, which began 2024 with a midair accident & ended it with a crippling labor strike & layoffs.  The company expects to post a loss of $5.46 per share for the 4th qtr & expects revenue to be $15.2B, less than expectations . BA said it likely burned through $3.5B in cash during the qtr.  The company raised more than $20B in the qtr to boost liquidity during its crises.  BA has not posted an annual profit since 2018.  The company expects to take a $1.1B charge on its 777X & 767 programs because of the strike & new contract.  “Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet,”  CEO Kelly Ortberg said.  The all-important commercial airplane unit revenue will likely come in at $4.8B, with a negative operating margin of nearly 44%.  Its problems also extend to its defense unit, for which it expects to record pretax charges of $1.7B on the KC-46A tanker & the long-delayed 747s that will service as the new Air Force One aircraft, as well as its space programs.  The stock fell 77¢.

Boeing expects $4 billion loss for fourth quarter after chaotic 2024

Sales of previously owned homes in the US rose for the 3rd straight month in Dec, entering 2025 with some momentum after the worst year in nearly 3 decades.  Contract closings of existing homes last month increased 2.2% to an annualized rate of 4.24M, the most since Feb, according to National Association of Realtors (NAR) data, in line with the estimate.  The 3rd straight pickup in monthly sales, the longest streak since late 2021, when mortgage rates were less than ½ of where they are now, signals that homeowners & buyers alike have come to terms with borrowing costs around 7%.  The new-home market also appears to be stabilizing, providing some early signs of optimism for the new year.  “Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” NAR Chief Economist Lawrence Yun said.  However, for all of 2024, sales reached the lowest since 1995, when the US had 70M fewer people.  It marked the 3rd straight annual decline, stretches only ever seen in the 2006 housing crisis as well as the recessions around the early 1980s & 1990s.

US Existing-Home Sales Pick Up at End of Worst Year Since 1995

Stocks struggled to pick up on the recent rally as investors filtered thru the latest batch of earnings & weighed Trump's hints at a softer stance on China tariffs.  Pres Trump's call at Davos for cuts to US interest rates, oil prices & taxes spurred investor optimism for his policies, buoying stocks.  The major gauges are set to end the holiday-shortened week with gains above 2%, demonstrating the power of Trump's comments even as some question his ability to execute changes.  Yesterday, Trump said he'd "rather not" impose tariffs on China, a softening in stance that eased some fears over the potential for a trade war.  Chinese stocks rose after the remarks.