US retail sales rose for a fourth month in December, rising by a weaker-than-expected 0.4% vs. the previous month. The Commerce Dept. also revised up November’s sales to a strong 0.8% monthly increase. “The control group, which feeds into calculations of gross domestic product, exceeded estimates, rising by 0.7% for the month,” writes an analyst at RSM. “This increase lifted the group’s three-month annualized average to 5.4%, only slightly lower than the 5.9% recorded in the third quarter.”

US jobless claims rose last week after reaching the lowest level in nearly 11 months. New filings for jobless claims increased to 217,000, up 14,000 from the previous week’s revised level of 203,000.

China’s economic growth accerlated in the fourth quarter, rising 5.4%. The gain beat expectations. “The shift of policy stance in September last year helped the economy to stabilize in Q4, but it requires large and persistent policy stimulus to boost economic momentum and sustain the recovery,” writes Zhiwei Zhang, president and chief economist, Pinpoint Asset Management.

Homebuilder sentiment edges higher in January despite risks for the housing industry. “Builders are facing continued challenges for housing demand in the near-term, with mortgage rates up from near 6.1% in late September to above 6.9% today,” says NAHB Chairman Carl Harris.

Philly Fed Manufacturing Index surges in January. The survey-based benchmark shows a sharp turnaround in regional manufacturing activity this month.

US import prices rose slightly in December, reflecting a mostly tame pace for a third month. In 2024, import prices increased 2.2% after advancing 1.4% for the year through November.

The earnings yield for the S&P 500 Index continues to slide below the recently rising US 10-year Treasury yield, advises a research note from TMC Research, a division of The Milwaukee Company, a wealth manager. “The gap in favor of the 10-year note suggests that the long-run risk premium for stocks is negative.”