Kuby's Commentary

For further insights and fund holdings, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠www.nsinvestfunds.com⁠⁠⁠⁠⁠⁠⁠⁠⁠.

The information provided in this commentary is not an offer to sell or the solicitation of an offer to purchase any security, product, or brokerage service. The information is not intended to be used as the basis for investment decisions, nor should the information be construed as advice designed to meet the particular needs of any investor. This commentary is presented to illustrate examples of the securities that North Star Investment Management Corporation and/or its affiliates ("North Star") may have bought for client accounts and the diversity of markets in which North Star Investments may invest, and may not be representative of current or future investments. You should not assume that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this commentary will be profitable or will be equal to any corresponding performance levels that might be indicated. Past performance is no guarantee of future results. Investments in securities involve risks including the possible loss of the principal invested. North Star and others associated with it, including employees, may have positions in and effect transactions in securities of companies mentioned or indirectly referenced in this commentary. North Star may buy, sell or hold these securities in proprietary or client accounts. North Star will not be providing regular updates or advising you of any changes in the views expressed herein. Investors should consider their investment objectives, risk tolerance, and financial situation and needs before investing in any security. Tax considerations, commissions, fees and other costs should be carefully evaluated with one's investment and/or tax advisors. Information provided is obtained from sources deemed to be reliable, but North Star cannot guarantee the accuracy or completeness of the information. This material may not be reproduced, distributed or transmitted to any other person in whole or in part without the prior written consent of North Star. A copy of North Star Investment Management Corporation's Form ADV Brochure, Privacy Notice and Business Continuity Plan summary can be obtained by calling 312-580-0900.

Markets faced volatility last week as tariff concerns and softening economic data pressured equities. The S&P 500 slipped 1%, while the Nasdaq dropped 3.5%, and small caps signaled economic uncertainty with a 1.5% decline. Nvidia’s 8% drop despite strong earnings highlighted struggles for the Magnificent 7. However, defensive sectors and the Equal Weight Index showed resilience, reinforcing the case for diversification. Bond yields fell, gold retreated, and sentiment indexes hit their lowest since 2021. Meanwhile, corporate earnings surprised to the upside, with Q4 profits up 18.2% year-over-year. This week, key economic data, earnings from major retailers, and political developments will drive market sentiment.

For further insights and fund holdings, visit ⁠⁠⁠⁠⁠⁠⁠⁠www.nsinvestfunds.com⁠⁠⁠⁠⁠⁠⁠⁠.

The information provided in this commentary is not an offer to sell or the solicitation of an offer to purchase any security, product, or brokerage service. The information is not intended to be used as the basis for investment decisions, nor should the information be construed as advice designed to meet the particular needs of any investor. This commentary is presented to illustrate examples of the securities that North Star Investment Management Corporation and/or its affiliates ("North Star") may have bought for client accounts and the diversity of markets in which North Star Investments may invest, and may not be representative of current or future investments. You should not assume that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this commentary will be profitable or will be equal to any corresponding performance levels that might be indicated. Past performance is no guarantee of future results. Investments in securities involve risks including the possible loss of the principal invested. North Star and others associated with it, including employees, may have positions in and effect transactions in securities of companies mentioned or indirectly referenced in this commentary. North Star may buy, sell or hold these securities in proprietary or client accounts. North Star will not be providing regular updates or advising you of any changes in the views expressed herein. Investors should consider their investment objectives, risk tolerance, and financial situation and needs before investing in any security. Tax considerations, commissions, fees and other costs should be carefully evaluated with one's investment and/or tax advisors. Information provided is obtained from sources deemed to be reliable, but North Star cannot guarantee the accuracy or completeness of the information. This material may not be reproduced, distributed or transmitted to any other person in whole or in part without the prior written consent of North Star. A copy of North Star Investment Management Corporation's Form ADV Brochure, Privacy Notice and Business Continuity Plan summary can be obtained by calling 312-580-0900.

Last week, record highs in the stock market were reversed after weak Walmart guidance and a steep drop in the University of Michigan consumer sentiment index led to the year's sharpest sell-off on Friday. Small-cap stocks and consumer services were hit hardest, while defensive sectors like Health Care and Utilities managed to close in the green. Consumer sentiment for February fell 10% below January levels, with inflation expectations surging to 4.3%, and Federal Reserve minutes indicated no plans for immediate interest rate cuts. Meanwhile, the bond market outperformed as the 10-year Treasury yield hit a 2025 low and gold prices neared $3,000, with investors now anticipating key inflation data from the core PCE price index and tech updates from Nvidia’s earnings.

For further insights and fund holdings, visit ⁠⁠⁠⁠⁠⁠⁠www.nsinvestfunds.com⁠⁠⁠⁠⁠⁠⁠.

The information provided in this commentary is not an offer to sell or the solicitation of an offer to purchase any security, product, or brokerage service. The information is not intended to be used as the basis for investment decisions, nor should the information be construed as advice designed to meet the particular needs of any investor. This commentary is presented to illustrate examples of the securities that North Star Investment Management Corporation and/or its affiliates ("North Star") may have bought for client accounts and the diversity of markets in which North Star Investments may invest, and may not be representative of current or future investments. You should not assume that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this commentary will be profitable or will be equal to any corresponding performance levels that might be indicated. Past performance is no guarantee of future results. Investments in securities involve risks including the possible loss of the principal invested. North Star and others associated with it, including employees, may have positions in and effect transactions in securities of companies mentioned or indirectly referenced in this commentary. North Star may buy, sell or hold these securities in proprietary or client accounts. North Star will not be providing regular updates or advising you of any changes in the views expressed herein. Investors should consider their investment objectives, risk tolerance, and financial situation and needs before investing in any security. Tax considerations, commissions, fees and other costs should be carefully evaluated with one's investment and/or tax advisors. Information provided is obtained from sources deemed to be reliable, but North Star cannot guarantee the accuracy or completeness of the information. This material may not be reproduced, distributed or transmitted to any other person in whole or in part without the prior written consent of North Star. A copy of North Star Investment Management Corporation's Form ADV Brochure, Privacy Notice and Business Continuity Plan summary can be obtained by calling 312-580-0900.

Stocks rebounded last week, snapping a two-week losing streak as tariff delays, mixed inflation data, and strong corporate earnings lifted markets. The S&P 500 gained 1.5%, the Nasdaq surged 2.6%, and small caps were flat, while Treasury yields held steady. Inflation remains sticky around 3%, with concerns that tariffs could limit further improvement. Earnings growth accelerated to 16.9%, with nine of eleven sectors reporting double-digit gains.

This week, markets face a holiday-shortened schedule with key FOMC minutes, housing data, and retail giant WMT's earnings in focus.

For further insights and fund holdings, visit⁠⁠⁠⁠⁠⁠www.nsinvestfunds.com⁠⁠⁠⁠⁠⁠.

The information provided in this commentary is not an offer to sell or the solicitation of an offer to purchase any security, product, or brokerage service. The information is not intended to be used as the basis for investment decisions, nor should the information be construed as advice designed to meet the particular needs of any investor. This commentary is presented to illustrate examples of the securities that North Star Investment Management Corporation and/or its affiliates ("North Star") may have bought for client accounts and the diversity of markets in which North Star Investments may invest, and may not be representative of current or future investments. You should not assume that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this commentary will be profitable or will be equal to any corresponding performance levels that might be indicated. Past performance is no guarantee of future results. Investments in securities involve risks including the possible loss of the principal invested. North Star and others associated with it, including employees, may have positions in and effect transactions in securities of companies mentioned or indirectly referenced in this commentary. North Star may buy, sell or hold these securities in proprietary or client accounts. North Star will not be providing regular updates or advising you of any changes in the views expressed herein. Investors should consider their investment objectives, risk tolerance, and financial situation and needs before investing in any security. Tax considerations, commissions, fees and other costs should be carefully evaluated with one's investment and/or tax advisors. Information provided is obtained from sources deemed to be reliable, but North Star cannot guarantee the accuracy or completeness of the information. This material may not be reproduced, distributed or transmitted to any other person in whole or in part without the prior written consent of North Star. A copy of North Star Investment Management Corporation's Form ADV Brochure, Privacy Notice and Business Continuity Plan summary can be obtained by calling 312-580-0900.

Markets faced uncertainty last week as earnings growth accelerated, but tariff concerns weighed on sentiment. Strong reports from Amazon, Uber, Pfizer, and Bristol-Myers boosted S&P 500 earnings growth to 16.4%, yet half of companies cited tariff risks in their outlooks. U.S. consumer confidence hit a seven-month low, inflation expectations spiked, and job growth showed mixed signals. The S&P 500 fell 0.2%, Nasdaq 0.5%, and Russell 2000 0.4%, while Treasury yields dipped and gold hit new highs. This week, all eyes are on Wednesday’s CPI report, with inflation expected below 3%.

For further insights and fund holdings, visit⁠⁠⁠⁠⁠www.nsinvestfunds.com⁠⁠⁠⁠⁠.The information provided in this commentary is not an offer to sell or the solicitation of an offer to purchase any security, product, or brokerage service. The information is not intended to be used as the basis for investment decisions, nor should the information be construed as advice designed to meet the particular needs of any investor. This commentary is presented to illustrate examples of the securities that North Star Investment Management Corporation and/or its affiliates ("North Star") may have bought for client accounts and the diversity of markets in which North Star Investments may invest, and may not be representative of current or future investments. You should not assume that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this commentary will be profitable or will be equal to any corresponding performance levels that might be indicated. Past performance is no guarantee of future results. Investments in securities involve risks including the possible loss of the principal invested. North Star and others associated with it, including employees, may have positions in and effect transactions in securities of companies mentioned or indirectly referenced in this commentary. North Star may buy, sell or hold these securities in proprietary or client accounts. North Star will not be providing regular updates or advising you of any changes in the views expressed herein. Investors should consider their investment objectives, risk tolerance, and financial situation and needs before investing in any security. Tax considerations, commissions, fees and other costs should be carefully evaluated with one's investment and/or tax advisors. Information provided is obtained from sources deemed to be reliable, but North Star cannot guarantee the accuracy or completeness of the information. This material may not be reproduced, distributed or transmitted to any other person in whole or in part without the prior written consent of North Star. A copy of North Star Investment Management Corporation's Form ADV Brochure, Privacy Notice and Business Continuity Plan summary can be obtained by calling 312-580-0900.

Markets declined last week as investors grappled with headwinds from China’s AI advancements, the Federal Reserve’s hawkish stance, and newly imposed U.S. tariffs on major trading partners. Tech stocks led losses, while defensive sectors like Financials and Consumer outperformed. The S&P 500 fell 1%, the Nasdaq dropped 1.6%, and the Russell 2000 slid 0.9%. Meanwhile, earnings season remained strong, with the S&P 500 tracking 13.2% YoY growth. This week, markets react to the tariff fallout, while 131 S&P 500 companies report earnings and Friday’s Jobs report takes center stage.

Last week, financial markets reacted positively to strong Q4 earnings, with the S&P 500 hitting a new record high, gaining 1.7%. Financial sector outperformance and Netflix's robust results highlighted the resilience of the U.S. consumer, though January's dip in consumer sentiment raised concerns. Meanwhile, President Trump reignited tariff debates, signaling potential action against Canada, Mexico, and possibly China. Gold rallied as a preferred hedge over surging cryptocurrencies, and the dollar weakened.

This week, all eyes are on the Fed's meeting, key earnings from 102 S&P 500 companies, and Friday’s PCE inflation report, which could influence monetary policy debates.

Last Week: Tame inflation data spurred a market rally, with the S&P 500 posting a 2.9% gain, the Nasdaq up 2.5%, and small caps leading at nearly 4%. Lower-than-expected PPI and CPI reports renewed hopes for Federal Reserve policy easing in 2025, while strong bank earnings further fueled optimism. The Oil & Gas sector surged over 6% amid rising commodity prices and new Russian sanctions. Biden's presidency ended with a 55% market gain, the fourth-best in history during a presidential term.

This Week: Markets face a holiday-shortened schedule with light economic data, highlighted by Friday’s Manufacturing and Services PMIs. Earnings season ramps up as 43 S&P 500 companies, including Netflix (NFLX), Procter & Gamble (PG), and Johnson & Johnson (JNJ), report Q4 results.

📊 Weekly Market Recap & Outlook: Stocks Sink, Inflation Data Ahead

Last Week:

This Week:
Wall Street anticipates heightened activity with a packed economic and earnings calendar:

Sports & Community:
Optimism surrounds Lonzo Ball’s recent performance for the Bulls, while the University of Chicago Maroons aim to extend their basketball winning streak. Meanwhile, the devastating Los Angeles fires weigh heavily on sentiment.

For insights and fund holdings, visit www.nsinvestfunds.com.

Last week, ended 2024 on a cautious note, as economic uncertainty surrounding the new administration and hawkish monetary policy dampened sentiment. December ended a stellar year for stocks with a modest pullback, but the S&P 500 still gained +23.31% in 2024, marking consecutive 20%+ annual returns for the first time since 1998. The first trading week of 2025 saw the S&P 500 and Nasdaq Composite slip -0.5%, while Small Caps outperformed, with the Russell 2000 up 1.1%. Bonds remained steady, with the 10-year Treasury yield at a 15-year high of 4.6%.

On the sports front, Chicago fans celebrated the Bears' season-ending win over the Packers and a strong week for the Bulls.

This week, markets face a shortened trading schedule, closing Thursday to honor former President Jimmy Carter. Key focus areas include Friday's December U.S. jobs report, projecting 150K nonfarm payroll growth, and the release of Fed meeting minutes on Wednesday. Additional economic data, including durable goods orders and services PMI, will shape expectations amid ongoing Fed rate cut deliberations.