Markets Mostly Up on to Start a New Trading Week

Market Performance - Dow gained +358 points, +0.86%, and S&P 500 gained +9 points, +0.16%, while Nasdaq fell -73 points, -0.38% [1] - Russell 2000 small-cap index gained +5 points, +0.24% [1] - Over the past six months, Russell 2000 is up +0.3% and Dow is up +5.2% [2] - 10-year bond yield rose to +4.792% and 2-year bond yield rose to +4.396% [2] Natural Disaster Impact - Property damage estimates from Los Angeles fires increased from $150 billion to$270 billion, potentially the worst natural disaster in U.S. history by property value [3] - Insurers expected to raise prices due to the disaster [3] Company Performance - KB Home (KBH) reported Q4 earnings of $2.52 per share, beating consensus by 7 cents, and quarterly revenues of$2.0 billion, exceeding consensus of $1.99 billion [4] - KB Home's year-over-year revenue growth was +19% [4] - Deliveries increased +17% year-over-year to 3978 units, with Average Selling Price up +3% [5] - KBH shares rose +8% in late trading, offsetting a -3.7% year-to-date decline [5] Economic Indicators - Producer Price Index (PPI) expected to show +0.4% month-over-month headline increase and +0.3% core increase [6] - Year-over-year PPI was +3.0% a month ago, with core at +3.4%, the highest levels in the past 12 months [6] - Beige Book expected to show slight improvements in most regions, with public addresses from Fed Presidents John Williams and Jeffrey Schmid [7]