Weekly Market Update for May 16, 2025
The S&P 500 rose every day this week as the major stock indices continue to rebound from their April lows. Stocks benefitted from some tariff relief and cooler inflation readings. Year to date, the major stock indices are returning to positive territory. The S&P 500 has risen +20% from its April 8th low and is now up +1% on the year. The Nasdaq has risen +26% from its low and is nearly flat on the year. This week, the S&P 500 rose +5% while the Nasdaq rose +7%. The 10-Year Treasury yield, an interest rate indicator, closed at 4.43%, up +5 bps from last week. The 6-Month US Treasury, a favorite of our US Treasury strategy, rose +2 bps to 4.26%.
Stocks and Preferred securities jumped on Monday following a productive meeting between Treasury Secretary Bessent and representatives from China last weekend. Both countries agreed to a temporary tariff truce that would dramatically reduce tariff rates for the next 90 days. This de-escalation provided considerable relief to US retailers who were concerned about inventory levels and the risk of bare shelves during the second half of the year. Economic data was also positive this week. CPI inflation rose at a 2.3% pace while PPI rose at a 2.4% pace – both slower than prior months and cooler than anticipated.
In equity portfolio news, recently beleaguered holding UnitedHealth Group faced additional headwinds this week. The company rescinded their annual operating guidance on Tuesday while announcing the CEO would step down; then on Thursday the WSJ reported the company was under investigation for possible Medicare fraud. While the company has stated they have not received any notice of an investigation and stands by the integrity of their Medicare programs, the possibility has shaken investor trust. The company’s board of directors has installed former CEO Stephen Hemsley, who successfully led the company from 2006-2017 and who remained board chair, as the replacement CEO. While we are encouraged by Hemsley’s return to the helm and believe the stock’s valuation doesn’t reflect its earnings capacity today, the company may be in a penalty box for the next few months. Thus, we may look to realize some losses in taxable accounts which have higher cost bases to offset gains in other portfolio names, but generally we are holding UNH positions.
Looking ahead to next week, scheduled news flow should be rather quiet. Home Depot will report Q1 earnings on Tuesday with Lowe’s reporting the day after. Both companies are amongst the largest US importers of products from China, so commentary regarding tariffs will be noteworthy. Existing home sales for April will be released Thursday while new home sales come Friday. Mortgage rates above 6.5% still remain a headwind to any uptick in home sales activity.
The information contained in this commentary is not investment advice for any person. It is presented only for informational purposes. Included information has been obtained from sources considered reliable, but we do not guarantee that the foregoing materials are accurate or complete. Investors should contact Ulland Investment Advisors for individualized information prior to deciding to participate in any portfolio or making any investment decision. Ulland Investment Advisors does not provide tax advice. All investors are strongly urged to consult with their tax advisors regarding any potential investment. Performance quoted is past performance. Past performance is not indicative of future performance. There is always a possibility of loss.
Current performance may be lower or higher than performance shown. Differences in performance versus the indices/funds may be attributable, in part, to differences in the asset make-up of the strategy vs. the indices/funds. Performance calculations are based on the reinvestment of dividends and gains unless these amounts were paid out to the client. Performance is subject to revision. See www.ullandinvestment.com for important strategy disclosures.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investing involves risk; principal loss is possible. Investors should consider the investment objectives, risk, charges, and expenses of the strategy carefully before investing. This and other important information can be obtained by contacting Ulland Investment Advisors at www.ullandinvestment.com or 612.312.1400.
A Tribute to Jim Ulland
From the UIA Team
Following a Thanksgiving week filled with family time for many, it is with heavy hearts that we share the sad news of our founder Jim Ulland’s passing. We would first and foremost like to send our thoughts and prayers to the Ulland family, including his wife Kris, and his children Olivia (Farris Hussain) Argañaraz and Matias (Hayley Jones) Argañaraz. Thank you for sharing your amazing husband and father all these years. We are eternally grateful and blessed to have had Jim in our lives. As we mourn Jim, we wanted to use our medium this week as a tribute to him.
Born in Duluth, Jim received degrees from Carleton College and the University of Pennsylvania’s Wharton School of Finance before starting an extensive political, educational, and business career – oh, and don’t forget Christmas tree farmer.
By the time Jim founded Ulland Investment Advisors (UIA) in 1997, he had already served as Minority Leader of the Minnesota Senate, a college professor, a senior leader at large banks and investment firms, and as Minnesota’s Commissioner of Commerce. Elected to the State House at the ripe age of 27, everyone knew Jim was destined for big things right out of the gate. His gift of finding common ground and instantly connecting with individuals extended into the investment world. Simply put, people have always been drawn to Jim Ulland.
Jim loved to invest in companies exhibiting strong growth, especially at reasonable prices. He sought those with innovative technologies, disrupting legacy industries. His most recent favorite, Nvidia – which he routinely mentioned in this newsletter – is a perfect example of Jim’s ability to catch a trend early and ride the winner. Jim’s investment style not only proved fruitful for clients over many a bull market, but his resolve and calm served as a sea anchor in the winds, holding strong in the bear market storms. Jim was always steady at the helm, no surprise given his Coast Guard service, which he often enjoyed sharing over a Minneapolis Club lunch (don’t forget the side of Durkee’s mustard and just a splash of coffee). Internally, he always led with a calm and steady hand. Control what you can control, and focus on the longer term. Jim always had an optimistic view on the market and life, and an ability to transfer that to clients as well.
Ulland hits stride with money-management venture 30 Nov 1999, Tue Star Tribune (Minneapolis, Minnesota) Newspapers.com
Jim was passionate about Carleton College and his impact on generations of Carls is clear. Jim was always quick to mention that he was the hockey goalie at Carleton. During Jim’s freshman year, he was introduced to the team as a member of the world-famous Duluth East Greyhounds. What the team failed to know was that Jim was the team manager. No problem, Jim would rise up and lead the Knights in net. The pinnacle of his college hockey career was when the team defeated Wisconsin. As later recalled in a note by Captain Fred Bagley, the Knights were led by the “heroic” Jim Ulland in net, saving 40 shots on goal.
Jim’s love for Carleton led to a steady stream of interns to the firm, of whom all cut their teeth under his wing. In fact, all partners in the firm were at one time interns at UIA. From Wall Street to the NBA hardcourt, Jim has left his mark.
While there are too many investment lessons learned from Jim over the decades to mention, we will stand fast to the knowledge we have acquired under his tutelage. As we carry the UIA torch that Jim lit many years ago, we hope to embody his collaborative spirit, his passion for work, and his close connection to clients, as well as to forever remember the impact he had on the community. Clients can be reassured they remain in very good hands with the UIA team, but regrettably we will all miss the dashing smile of Jim Ulland.
Please forward this email to others who knew Jim, particularly those touched by the full life he lived. A celebration of life will be held in June, details of which we will share as we get closer. Jim’s obituary can be viewed here.
Jim always enjoyed watching the peregrine falcons from his desk at the IDS Center. We know that his spirit will be soaring high above us all as we remember the impact he made.
Thank you, Jim!
Ulland Investment Advisors Team
Nat Beebe, President (18 years at UIA)
James Skjong, Dir. of Trading, Compliance & Operations (20 years at UIA)
Jared Plotz, Dir. of Research, Portfolio Manager (8 years at UIA)
Vini Crusius d’ Avila, Research Associate (3 years at UIA)
Sarah Stokes, Client Service Associate (3 years at UIA)
