We are proud to announce our commitment as PRI signatories!
It is with great pride that we share an important announcement: our company has joined the Principles for Responsible Investment (PRI) as signatories. This commitment reflects our determination to integrate environmental, social, and governance (ESG) criteria into our investment practices.
As PRI signatories, we strengthen our mission to manage your investments sustainably while contributing to a more responsible future for generations to come. This globally recognized framework will enable us to assess, improve, and report on our ESG practices, ensuring they meet the highest standards.
We thank our clients and partners for their continued trust and are excited to continue investing together for a sustainable future.
To learn more about the Principles for Responsible Investment, visit PRI.org.
Your Portfolios in Brief
Founded in 2000, Constellation Energy (CEG) is the largest nuclear power plant operator in the United States and a leader in clean energy production. With 20 nuclear reactors across approximately 10 sites, as well as solar and wind farms with a combined capacity of over 1,600 MW, the company plays a key role in the energy transition.
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Key Highlights for 2023-2024
1. Major Acquisition: In 2025, Constellation finalized a strategic acquisition of Calpine Corporation for $26.6 billion, incorporating natural gas and geothermal electricity generation capacities, strengthening its presence in regions like California and Texas.
2. Partnership with Microsoft: The historic agreement with Microsoft, signed in 2024, secures nuclear energy supply for its data centres over 20 years, solidifying Constellation’s role as a key provider for the digital economy.
3. Artificial Intelligence (AI) Initiatives: The company partnered with OpenAI and Softbank under the “Stargate” project announced by the Trump administration, aimed at investing $500 billion in AI infrastructure, further increasing demand for its reliable, low-carbon energy.
4. Earnings Growth: The company posted an impressive adjusted earnings growth of 66% in 2024, supported by nuclear production tax credits and cost-reduction initiatives.
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Why This Stock Is One to Watch
1. Dominance in the Nuclear Sector: Nuclear energy is the most reliable clean energy source, providing the stability needed in the age of artificial intelligence.
2. Geographical and Technological Expansion: With the addition of Calpine’s capabilities, Constellation is entering new markets while enhancing its clean energy portfolio.
3. Tax Advantages: Nuclear production tax credits and partnerships with the U.S. government ensure a solid financial foundation.
4. Attractive Dividends: In 2024, Constellation increased its dividends by 25%, offering competitive returns to investors.
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Conclusion: A Strategic Pillar in Our Portfolio
At Pratte Porfolio Management, we firmly believe in Constellation Energy. Its leadership in clean energy, strategic acquisitions, and technological partnerships make it a solid choice for the future. As responsible investors, we are confident that CEG will continue to deliver strong returns while supporting the transition to a more sustainable world. With a 475% growth over the past three years, CEG outpaces giants like Nvidia (+390%) and Meta (+85%). It ranks among the 12 most promising green stocks, with 78 hedge funds investing in its shares in Q3 2024. This unique positioning and resilience make Constellation Energy a cornerstone of our long-term investment strategy.
Markets in Brief
Monday
U.S. financial markets were closed on Monday in observance of Martin Luther King Jr. Day, a federal holiday in the United States.
Canadian Markets Driven by Energy and Political Expectations
• S&P/TSX Composite Index: The Toronto Stock Exchange’s main index rose by 103.66 points (+0.41%), closing at 25,171.58 points.
The gains on Monday were largely driven by the energy sector, with the TSX Energy Index climbing 2.3%, bolstered by the inauguration of Donald Trump, whose policy promises are seen as favourable for the energy industry. Additionally, cold weather increased demand for natural gas.
Loonie on the Rise
In the currency market, the Canadian dollar strengthened to 69.78 cents USD, up from 69.28 cents USD on Friday. This appreciation reflects renewed confidence in Canada’s economic prospects, despite uncertainties surrounding potential U.S. tariffs.
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Tuesday
• Dow Jones Industrial Average (DJIA): Gained 537.98 points (+1.24%), closing at 44,025.81 points.
• NASDAQ: Advanced 0.64%, finishing at 19,756.78 points.
• S&P 500: Rose 0.88%, closing at 6,049:24 points.
A Softer Tone on Tariffs Reassures Markets
Markets responded positively to Donald Trump’s initial stance on tariffs. While he mentioned a potential 25% tariff on goods from Canada and Mexico starting February 1, no immediate actions were taken. Investors interpreted this as a negotiating tactic rather than a concrete policy, alleviating fears of escalating trade tensions.
Tech Stocks Lifted by AI Optimism
The technology sector saw strong performance driven by reports that the Trump administration supports up to $500 billion in investments in AI infrastructure.
• Oracle surged 7.17%, while Nvidia (+2.21%), Broadcom (+1.19%), and Micron (+3.43%) also posted significant gains.
Bond Market Relief
The U.S. 10-year Treasury yield dropped from 4.61% on Friday to 4.56%, providing some respite for investors concerned about rising rates.
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Wednesday
• S&P 500: Increased 0.61%, reaching an intraday record of 6,100.81 points before closing at 6,086:37 points, slightly below its previous all-time high.
• NASDAQ: Jumped 1.28%, closing at 8:009.34 p.m. points, driven by strong tech sector performance.
• Dow Jones Industrial Average (DJIA): Rose by 130.92 points (+0.3%), ending at 44,156.73 points, bolstered by a 2% gain in Procter & Gamble following better-than-expected earnings.
Artificial Intelligence Fuels Tech Rally
Tech stocks continued their upward trajectory, fuelled by President Trump’s ambitious “Stargate” project, a collaboration between OpenAI, Oracle, and Softbank aimed at investing $500 billion in U.S. AI infrastructure.
• Oracle gained 6%, while Nvidia rose 4%, benefiting from investor enthusiasm.
• Netflix surged 9% after surpassing 300 million paid subscribers and delivering strong earnings and revenue, driven by popular content like Squid Game and live sports events.
Economic Optimism Returns
Markets welcomed the combination of a resilient economy, easing inflation, stable interest rates, and a strong start to the earnings season. Donald Trump’s less aggressive tone on tariffs further bolstered investor confidence.
Keith Lerner, Co-Chief Investment Officer at Truist, noted:
“Technology is resuming its leadership role in the market thanks to the Stargate project, highlighting the transformative potential of artificial intelligence.”
A Full Recovery After Late 2024 Pullback
The S&P 500’s rise to record highs marks a full recovery following its 2.5% decline in December 2024, which was driven by Federal Reserve policy concerns. Since the start of 2025, the index has gained 3.5%, with the Dow and NASDAQ also up more than 3%.
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Stocks in Brief
• Oracle (+6.00%) and Nvidia (+4.00%): Boosted by the announcement of the Stargate project.
• Netflix (+9.00%): Delivered strong results and achieved a record number of subscribers.
• Procter & Gamble (+2.00%): Surpassed earnings expectations.
Thursday
• S&P 500: Gained 0.53%, reaching a record closing high of 6,118.71 after touching an intraday high.
• Dow Jones Industrial Average (DJIA): Rose 408.34 points (+0.92%), closing at 44,565.07.
• NASDAQ Composite: Advanced 0.22%, finishing at 20,053.68.
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Optimism Fuelled by Trump’s Economic Comments
Markets rallied after President Donald Trump, during a virtual address to the World Economic Forum, called for immediate interest rate cuts and lower oil prices. While Trump does not directly control rates, his comments were well received by investors seeking pro-growth policies.
The president’s mention of asking Saudi Arabia to reduce oil prices pushed crude oil prices lower, while short-term Treasury yields declined. Investors remain cautiously optimistic, noting relief in the absence of formal actions on tariffs during Trump’s initial days in office.
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Strong Earnings and Sector Highlights
The broader market’s gains were supported by strong fourth-quarter earnings reports:
• GE Aerospace surged +6.71% after reporting a 14% increase in revenue to $10.81 billion and a 37% rise in net income, exceeding expectations.
• Moderna rose +10.10% following news of $590 million in U.S. government funding for mRNA vaccine development, driven by concerns over avian flu pandemics.
• American Airlines dropped -8.01%, despite posting better-than-expected Q4 results, due to weaker forward guidance.
• Electronic Arts (EA) fell -16.70% after slashing its forecast and reporting lower-than-expected sales for its flagship title, EA SPORTS FC 25.
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Canadian Markets
• S&P/TSX Composite Index: Climbed +122.58 points, closing at 25,434.08, boosted by industrial and utility stocks.
• Canadian dollar: Slightly down, trading at 69.58 cents USD, compared to 69.59 cents USD on Wednesday.
• Commodities:
o Crude oil: Fell $0.82, settling at $USD 74.62/barrel.
o Natural gas: Declined $0.04, closing at $USD 3.47/million BTU.
o Gold: Dropped $5.90 to $USD 2,765/ounce.
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Why Markets Remain Optimistic
The market’s continued strength reflects confidence in Trump’s pro-business agenda, including potential tax cuts and deregulation. Investors also anticipate a resilient Q4 earnings season, particularly with major tech companies like Tesla, Meta, and Microsoft set to report next week.
Despite concerns over tariffs and rising bond yields (the 10-year Treasury yield edged up to 4.64%), the broader outlook for equities remains positive, supported by resilient economic indicators and growth in key sectors.
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Stocks in Brief
• GE Aerospace (+6.71%): Exceeded earnings expectations with strong demand for maintenance and parts.
• Moderna (+10.10%): Benefiting from U.S. funding for pandemic-related vaccine development.
• American Airlines (-8.01%): Declined on weak forward guidance despite solid Q4 results.
• Electronic Arts (EA) (-16.70%): Impacted by disappointing sales and a reduced outlook.
Friday
• S&P 500: Hovering near its record intraday high reached on Thursday, trading flat.
• NASDAQ Composite: Flickering around its flatline after hitting a weekly high.
• Dow Jones Industrial Average (DJIA): Down 76 points (-0.2%).
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Optimism Surrounding Trump’s Pro-Business Policies
Excitement over President Trump’s pro-business agenda has driven risk assets higher throughout the week. Investors remain relieved that no formal tariff actions have been announced yet, despite threats made by the administration.
The three major indexes are on track to log their second consecutive positive week:
• S&P 500 and NASDAQ: Both up about 2% week-to-date.
• Dow Jones: Has climbed 2.2% over the same period.
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Market Reactions to Trump’s Recent Comments
Trump’s remarks on Thursday at Davos continue to ripple through markets today. The president called for an immediate cut in interest rates and urged Saudi Arabia and OPEC to lower oil prices, leading to movement in commodity markets.
Mark Malek, Chief Investment Officer at Siebert, noted:
“So far, markets have reacted to every statement made by the President, even those that should not have any impact. This shows traders are still finding their pace.”
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Sector Highlights
• Novo Nordisk (+7%): Shares rallied on promising early-stage results for a weight-loss drug.
• Texas Instruments (-5%): Slumped on weak earnings guidance.
• Meta Platforms (+1%): Hit an all-time high after Mark Zuckerberg announced ambitious AI goals, with $60–65 billion in planned capital expenditures for AI infrastructure.
• Moderna: Led gains in the biotech sector, up +25.5% this week, boosting the SPDR S&P Biotech ETF (XBI), which is on track for a +5.5% weekly gain, its best since July 2024.
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Looking Ahead to Next Week
Investors are gearing up for a critical week featuring:
1. Earnings reports from major tech companies, including Tesla, Microsoft, and Meta.
2. The Federal Reserve meeting (January 28–29), where analysts expect rates to remain steady within the 4.25% to 4.50% range.
Markets remain resilient, but the upcoming announcements are likely to dictate the direction of indices in the weeks ahead.
