Market Movements & Mixed Signals: Economic Data, Earnings Surprises, and a Cautious Start to 2025 

The week ended with notable economic data and corporate updates. China’s Manufacturing PMI fell to 50.5, reflecting slower growth and lower confidence. In the US, initial jobless claims dropped to 211,000, and crude oil inventories fell by 1.2 million barrels, supporting a 5.46% rise in crude oil prices. The US Manufacturing PMI indicated continued contraction at 49.3%. Gold and silver posted modest weekly gains, while the S&P 500 and NASDAQ declined, and the DJIA edged down. Earnings highlights included Anglo American Platinum (-1.4%), Lifecore Biomedical (+4.67%), and Resources Connection (+7.97%), with Lifecore and Resources exceeding revenue expectations.

03:30 am – China: Manufacturing PMI (CNY)
The Caixin China Manufacturing PMI fell to 50.5 in December, missing expectations and slowing from November’s 51.5. While factory activity grew for a third month, output and new orders weakened, foreign orders shrank, and employment declined, adding to backlogs. Input costs rose, but selling prices fell, and confidence dipped due to trade concerns.

The USDCNH exchange rate edged up by 0.3% compared to the prior trading session.

15:30 – USA: Unemployment Claims (USD)

Seasonally adjusted initial jobless claims fell by 9,000 to 211,000 for the week ending December 28, while the 4-week moving average declined by 3,500 to 223,250. Insured unemployment decreased by 52,000 to 1.84 million, and the insured unemployment rate dropped to 1.2%. States with the largest increases in claims included New Jersey, Kentucky, and Missouri, with layoffs primarily in the manufacturing and entertainment sectors. Continued claims for all programs totaled 1.97 million, up by 81,926 from the prior week.

The EURUSD exchange rate declined by 0.95%.

18:00 – USA: Crude Oil Inventories (USD)

US refinery inputs averaged 16.9 million barrels per day for the week ending December 27, with crude inventories down 1.2 million barrels, 5% below the five-year average. Gasoline and distillate inventories rose by 7.7 and 6.4 million barrels, respectively. Total petroleum inventories increased by 9.3 million barrels, while the four-week average product supply fell 1.2% from last year.

The US Dollar Index increased by 0.72% compared to the previous day’s close.

17:00 – USA: ISM Manufacturing PMI (USD)

The US manufacturing sector contracted for the ninth straight month in December, with the Manufacturing PMI rising slightly to 49.3%. New orders and production returned to growth, while employment continued to decline. Supplier deliveries slowed marginally, and inventories contracted at a slower pace. Prices increased, export orders remained stable, and imports continued contracting. Despite some signs of demand recovery, none of the six largest manufacturing industries reported growth. The report indicates ongoing challenges in labor, supply chains, and demand as manufacturers prepare for 2025.

The EURUSD gained 0.4%.

1. Crude Oil
   Crude oil prices increased by 5.46% over the past week
2. Brent Oil
   Brent was up 4.50% compared to the previous week
3. Gold
   The precious metal Gold (XAUUSD) concluded the week on Friday with a 0.7% weekly rise
4. Silver
   XAGUSD increased by 0.78 from the last week

1. S&P 500 decreased by 0.63%
2. DJIA was down by 0.73%
3. NASDAQ 100 was down by 0.91%

1. N2OFF, Inc. (NITO) 956.42%
2. Baird Medical Investment Holdings Limited (BDMD) 251.16%
3. SuperCom Ltd (SPCB) 134.38%

1. Neumora Therapeutics, Inc. (NMRA) -80.85%
2. Abpro Holdings, Inc. (ABP) -64.14%
3. Intchains Group Limited (ICG) -51.66%

Tuesday, December 31: AGPPF (Anglo American Platinum Ltd)

Thursday, January 2: LFCR (Lifecore Biomedical Inc)

Thursday, January 2: RGP (Resources Connection)

Sales volumes rose 2%, but lower prices and higher costs cut EBITDA by 67% to R24 billion, with a mining EBITDA margin of 35%. Headline earnings fell 71% to R14 billion. The company closed the year with net cash of R15.4 billion, including R11 billion in customer prepayments.

AGPPF shares declined by 1.4% from the previous week.

Lifecore Biomedical reported that quarterly revenue rose 8% to $32.6 million, with gross profit at $11.1 million. Despite higher revenue, a net loss of $6.6 million was recorded due to increased costs. Adjusted EBITDA grew to $6.5 million. The company secured new development deals, expanded production capacity, and strengthened its balance sheet through $24.3 million in financing and credit restructuring. Key leadership changes were also made to support growth.

LFCR shares increased by 4.67% from the previous week.

Resources Connection reported Q2 revenue of $145.6 million, surpassing the consensus of $137.02 million. CEO Kate Duchene highlighted strong execution in driving revenue growth, improved gross margin, and higher Adjusted EBITDA compared to Q1. Despite lower On-Demand client activity, the Consulting segment grew sequentially. Key efforts included cross-selling, higher bill rates, and cost optimization. The company remains cautiously optimistic about demand recovery in the new year and announced additional share repurchase authorization.

RGP shares experienced an increase of 7.97%.

In conclusion, the week showcased a mix of slowing global manufacturing activity, improved US labor market data, and rising commodity prices. Despite continued contraction in US manufacturing, some sectors showed signs of stabilization. Corporate earnings revealed both challenges and progress, with Lifecore Biomedical and Resources Connection exceeding expectations. Equity markets were mixed, while commodity gains underscored investor sentiment amid ongoing economic uncertainty. As 2025 begins, cautious optimism prevails, with businesses focusing on strategic growth and operational efficiency.