Investors and analysts could turn attention to how UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) will replace its insurance unit CEO Brian Thompson, who was fatally shot in December, and how the company will keep public trust as the sector comes under increased scrutiny when the company reports fourth-quarter financial results before <a href="https://www.benzinga.com/earnings">market open Thursday.</a>



Earnings Estimates: Analysts expect UnitedHealth to report fourth-quarter revenue of $101.75 billion, up from $94.43 billion in last year's fourth quarter, according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011525&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company has missed analyst revenue estimates in two straight quarters, while beating estimates in eight of the last 10 quarters.



Analysts expect the company to report fourth-quarter earnings per share of $6.73, up from $6.16 in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in nine of the last 10 quarters.



Read Also: <a href="https://www.benzinga.com/general/health-care/25/01/43001214/unitedhealth-the-number-one-company-on-sale-ahead-of-q4-earnings-report">UnitedHealth: The &#8216;Number One Company On Sale&#8217; Ahead Of Q4 Earnings Report</a>



Key Items to Watch: Thursday's earnings report marks the first quarterly report from UnitedHealth since the company lost Thompson.



Thompson, who was the CEO of UnitedHealthcare, was <a href="https://www.benzinga.com/general/health-care/24/12/42316904/unitedhealthcare-ceo-brian-thompson-fatally-shot-outside-nyc-hotel">shot and killed </a>on Dec. 4 in New York City. Luigi Mangione was arrested for the murder and is facing state and federal charges that include<a href="https://www.benzinga.com/24/12/42605759/luigi-mangione-faces-death-penalty-details-show-attack-planned-for-months-the-target-is-insuranceit-checks-every-box"> first degree murder.</a> Mangione faces potential sentences of life in prison without parole and the possibility of the death penalty if found guilty.



Analysts and investors may be ready to hear if UnitedHealth will address the challenges of replacing Thompson and moving forward after his passing. Sources told <a href="https://www.bloomberg.com/news/articles/2025-01-15/ceo-brian-thompson-s-death-looms-over-unitedhealth-earnings-call?sref=TBDibEcD">Bloomberg </a>the company is not ready to immediately replace Thompson.



UnitedHealth Group CEO Andrew Witty<a href="https://www.benzinga.com/general/health-care/24/12/42744629/unitedhealth-group-ceo-reportedly-says-company-will-hit-financial-records-execs-murder-public-outcry-are-backdrop-for-q4-earnings"> recently reportedly told </a>executives the company will hit financial records in the current fiscal year, which could put the company and stock back in the spotlight a month after Thompson's death.



The company's revenue through the first nine months is $299 billion, a company record, and up from $277 billion through the first nine months of 2023.



Health insurance companies like UnitedHealth have come under increased attention and pressure after Thompson's death. A notebook found on Mangione at the time of his arrest mentioned how insurance companies were focused on profits over the public's health.



An entry in the notebook dated Aug. 15 said: "The details are finally coming together." The entry said procrastination had allowed Mangione to learn more about the company he was targeting; the name of the company was redacted.



"The target is insurance…it checks every box," was also written in the notebook alleged to belong to Mangione, according to the federal complaint against him.



Despite being on trial for murder, Mangione has gained a level of public support, with Thompson's death becoming a rallying cry for critics of the health insurance industry, often accused of denying medical claims.



Along with navigating the fallout from Thompson's death and the increased attention on insurance claims, UnitedHealth has found itself a target of incoming President Donald Trump, who<a href="https://www.benzinga.com/24/12/42517567/cvs-cigna-unitedhealth-shares-slide-as-trump-targets-drug-middleman"> recently spoke out</a> about pharmacy benefit managers.



Trump said he would "knock out" PBMs from the industry, referring to them as drug middlemen, a role they are commonly associated with.



"You know the middleman, right? The horrible middleman that makes more money frankly than the drug companies, and they don't do anything except they're a middleman. We're going to knock out the middleman," Trump said.



UnitedHealth is also facing bipartisan pressure from Congress to push for the breakup of health care conglomerates over PBM practices.



The insurance company also faces scrutiny from the Department of Justice, which has blocked United's $3.3 billion <a href="https://www.benzinga.com/24/12/42704893/amedisys-and-unitedhealth-extend-merger-deadline-whats-going-on">deal to acquire </a>Amedisys Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMED#NASDAQ">AMED</a>).



Along with any commentary on how the new White House administration and public pressure could impact the company's future growth and operations, investors and analysts may be looking for an update on guidance.



UnitedHealth <a href="https://www.benzinga.com/general/health-care/24/12/42317793/unitedhealth-introduces-2025-guidance-ahead-of-now-stopped-investor-conference">shared 2025 revenue guidance </a>of $450 billion to $455 billion and earnings per share guidance of $28.15 to $28.65 ahead of Thompson's death in December.



UNH, DIA Price Action: UnitedHealth stock trades at $544.11 versus a 52-week trading range of $436.38 to $630.73. UnitedHealth stock is up 4.8% over the last year, but has fallen around 11% since Thompson's death.



The SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) and other ETFs that track the Dow Jones Industrial Average will also be in the spotlight Thursday after UnitedHealth's report. United is the second largest component of the Dow Jones Index due to its price-weighted methodology.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/12/42544499/luigi-mangione-documentaries-in-the-works-from-award-winning-creators-and-possibly-rapper-50-cent">Luigi Mangione Documentaries In The Works From Award-Winning Creators — And Possibly Rapper 50 Cent</a></li>
</ul>



Photo: Shutterstock

Previews

Trading Ideas

AMED

UnitedHealth Group Q4 Earnings Preview: First Report Since Insurance CEO's Murder Comes With Questions On Company's Future

Defense stocks are moving slightly lower Wednesday after Israel and Hamas verbally agreed on a <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">ceasefire in Gaza</a>.



What Happened: Hamas accepted a draft agreement on Wednesday for a ceasefire in Gaza that includes the release of several hostages, according to <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">multiple reports</a>. 



The agreement follows months of negotiations and paves the way for a potential end to the ongoing war in the Middle East that began about 15 months ago. The verbal agreement also comes just days before President-elect Donald Trump&#8217;s inauguration. 



&#8220;We have a deal for the hostages in the Middle East. They will be released shortly. Thank you!&#8221; Trump&nbsp;said in a post on Truth Social.



The deal reportedly includes a six-week ceasefire and the release of 33 Israeli hostages in exchange for the release of Palestinian prisoners. Israel still needs to ratify the deal, but a vote is expected by Thursday. 



Related Link: <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">Israel, Hamas Agree To Cease-Fire Deal With Hostage Exchange: What You Need To Know</a>



Defense stocks including Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), Northrop Grumman Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) and RTX Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) moved lower as the ceasefire reports surfaced despite a strong session from broader indices. The Global X Funds Global X Defense Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHLD#NYSE">SHLD</a>) and the SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) also pulled back from highs on the news. 



At the time of writing, Lockheed Martin shares were down about 0.7%, while Northrop Grumman and RTX shares were down about 0.8%. It&#8217;s worth noting that the SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 1.77% at last check.



Defense stocks have benefitted from the ongoing war in the Middle East with the Global X Funds Defense ETF having gained more than 35% over the past year, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. Defense stocks tend to rally in periods of elevated conflict given their heavy reliance on government contracts. 



Energy stocks including BP P.L.C (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>), Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) and ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) also pulled back slightly on the ceasefire news, but bounced back pretty quickly. 



The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) hit new 52-week highs on Wednesday on continued momentum from last week after the U.S. announced its most extensive sanctions on Russian oil exports to date.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/42948649/goldman-sachs-warns-of-90-oil-risk-trump-may-not-ease-sanctions-once-he-takes-office">Oil Could Hit $90, Goldman Sachs Says: &#8216;Trump May Not Ease Sanctions&#8217; On Russia</a></li>
</ul>



Photo: courtesy of Lockheed Martin.

News

Global

Movers

SHLD

Defense Stocks Fall On Gaza Ceasefire While Broader Market Rallies: What's Going On?

Economic activity expanded slightly to moderately across the Federal Reserve&#8217;s 12 districts during late November and December, yet concerns over looming changes to U.S. immigration and tariff policies cast a shadow on the future, according to the Fed <a href="https://www.benzinga.com/topic/federal-reserve">Beige Book released Wednesday. </a>



The latest Fed Beige Book report highlighted moderate growth in consumer spending, strong holiday sales and rising wages.



According to anecdotal economic insights from businesses and other contacts across the country, several Fed districts showed potential economic headwinds tied to expected policy shifts under President-elect Donald Trump.



<h3 class="wp-block-heading">How Expected Tariffs, Immigration Policies Shape Business Sentiment</h3>



Businesses are increasingly wary of the Trump administration&#8217;s plans to tighten immigration rules and impose steep tariffs. Trump has floated the idea of raising tariffs on Chinese goods to as much as 60% and applying 10% universal tariffs on imports from other nations.



The manufacturing sector appears particularly vulnerable, with contacts reporting efforts to stockpile raw materials in anticipation of higher tariffs.



Additionally, some businesses fear that restrictions on immigration could exacerbate labor shortages, especially in industries like construction and agriculture.



Business leaders across industries within the New York Fed District &#8220;expressed concern that potential import tariffs would push up prices,&#8221; the Beige Book stated.



In the Richmond Fed District, firms from various sectors expressed concerns and uncertainties about tariffs, port worker strikes and overall economic conditions heading into the new year.



<h3 class="wp-block-heading">Wage Growth Picks Up, Inflationary Pressures Remain Modest</h3>



The labor market showed signs of strength, with wage growth accelerating to a moderate pace across most districts. Yet businesses reported growing uncertainty about future staffing needs, especially in light of potential policy changes.



Prices rose modestly overall, with businesses reporting a mix of flat, moderate or even declining selling prices in certain sectors like retail and manufacturing.



Input costs, particularly for health insurance and fuel, continued to climb, and some contacts predicted that higher tariffs would contribute to broader inflation in 2025.



While inflationary pressures remain contained for now, many businesses are bracing for price hikes if the new tariffs go into effect.



The agricultural sector struggled under weak farm incomes and adverse weather conditions. The spread of avian flu further tightened egg supplies, leading to a spike in prices. Energy activity, meanwhile, was mixed, with optimism about 2025 tempered by uncertainty over global demand.



Despite these challenges, the Beige Book revealed cautious optimism for the year ahead. More contacts reported a positive outlook for 2025 than a negative one, reflecting the resilience of the U.S. economy in the face of shifting political landscape.



<h3 class="wp-block-heading">Market Reactions</h3>



Markets showed little reaction to the Fed Beige Book release. The S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), maintained its session gains of 1.8%.



Tech stocks rallied further during early afternoon trading in New York. The Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was 2.3% higher, eyeing its strongest session since Nov. 6, 2024, when tech stocks showed a post-election rally.



The U.S. dollar index was also little moved, with the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) down 0.1% for the day.



Crude oil added gains, with the West Texas Intermediate light crude up by over 3% to $80 a barrel by 2:20 p.m. ET. 



Read now: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/01/43007354/big-banks-crush-q4-earnings-forecasts-financial-stocks-set-for-biggest-1-day-rally-since-trumps-election">Big Banks Crush Q4 Earnings Forecasts: Financial Stocks Set For Biggest 1-Day Rally Since Trump&#8217;s Election</a></li>
</ul>



Photo via Shutterstock.

Broad U.S. Equity ETFs

Economics

Federal Reserve

Markets

ETFs

Fed Beige Book Flags Moderate Growth, Yet Tariffs, Immigration Policies Spark Concerns

Edison International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EIX#NYSE">EIX</a>) shares are trading higher on Wednesday. Brokerage firm <a href="https://www.benzinga.com/analyst-ratings/upgrades/25/01/43010675/edison-international-shares-are-moving-higher-wednesday-whats-driving-the-action">Ladenburg Thalman upgraded the stock from Sell to Neutral</a>. They believe the recent sell-off is overdone.



The chart of Edison illustrates that even when there is significant news regarding a company, it is still important for traders and investors to understand technical analysis dynamics. This is why it is our Stock of the Day.



The sell-off was driven by concerns about the potential impact caused by the Los Angeles fires. Edison is an electric power generator and distributor that operates in Southern California. The company will lose revenue because it is no longer supplying energy to the destroyed areas.



There are also concerns over possible legal issues. A lawsuit has been filed alleging that faulty equipment owned by Edison started the fire.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="545" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6-1024x545.png" alt="" class="wp-image-735468" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6-1024x545.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6-300x160.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6-768x409.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6.png 1528w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>







Read Also: <a href="https://www.benzinga.com/news/earnings/25/01/43007354/big-banks-crush-q4-earnings-forecasts-financial-stocks-set-for-biggest-1-day-rally-since-trumps-election">Big Banks Crush Q4 Earnings Forecasts: Financial Stocks Set For Biggest 1-Day Rally Since Trump&#8217;s Election</a>



Despite this news, as you can see on the chart technical analysis dynamics still come into play.



In financial markets, certain price levels are more important than others. These are called support and resistance levels.



&#8220;Markets have memories&#8221; is an old Wall Street expression. It means important price levels can retain their importance for a long time. It could be weeks, months or even years.



The $55 level has been support for Edison since October 2020. Each time the stock dropped to this price, the buyers flooded the market and put a floor under the stock.



This isn't a coincidence. There tends to be support at prices that were support previously.



Some investors and traders regret selling at a support level if the price rallies after. A number of these remorseful sellers decide that if they can, they will buy their shares back at the same price they were sold.



As a result, if and when the stock reverses and drops back to the support level they place buy orders. If there is a significant number of these orders, it will create support at the same price where there had been support before.



Markets do in fact, have memories. The chart of Edison International shows it. The $55 has been a support level for more than four years.



Read Next: • <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43001512/inflation-rises-to-29-in-december-core-slows-yet-rising-energy-costs-put-feds-target-at-risk">Inflation Rises To 2.9% In December: Core Slows, Yet Rising Energy Costs Put Fed&#8217;s Target At Risk</a>



Photo: Shutterstock

Technicals

Stock Of The Day: Time To Buy Edison International?

Wall Street is anticipating the inauguration of President-elect Donald Trump and contemplating what potential impacts the Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy, may<a href="https://www.benzinga.com/markets/equities/25/01/42938119/lockheed-martin-donates-1m-to-trumps-inaugural-committee-as-speculation-grows-over-elon-musk-led-doge-crackdown-on-traditional-defense-contracts"> have on defense contractors.&nbsp;</a>



Truist Securities analyst Michael Ciarmoli is optimistic on the defense sector and initiated coverage on Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) with Buy ratings and price targets of $579 and $544, respectively. 



Also Read: <a href="https://www.benzinga.com/news/legal/25/01/42979220/biden-announces-more-student-loan-forgiveness-bringing-debt-relief-to-nearly-5-million-borrowers">Biden Announces More Student Loan Forgiveness, Bringing Debt Relief To Nearly 5 Million Borrowers</a>



DOGE-related fears are "overblown," Ciarmoli said, adding that the recent pullbacks in both defense contractors' stocks have led to attractive entry points at current levels.



Ciarmoli highlighted DOGE's role as only an advisory board and noted that lawmakers and the appropriations committee still "call the shots" on budget and spending decisions. He also said Truist sees U.S. and NATO defense budgets increasing in 2026.&nbsp;



The Truist analyst sees Northrup Grumman's anchor nuclear triad B-21 Raider and Sentinel GBSD programs providing stability and growth. Ciarmoli also said U.S. and NATO defense spending will continue to grow and demand for missiles and munitions will be robust.



LMT, NOC Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Lockheed Martin shares are down 2.2% over the past month and Northrup Grumman shares are down 2.3% over the same period. 



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/25/01/43007213/experts-see-the-fed-on-hold-for-now-if-there-are-any-cuts-at-all-in-2025-after-decembers-sticky-consumer-inflation-report">Interest Rate Cuts &#8216;On Hold&#8230; If There Are Any At All In 2025&#8217; After December&#8217;s Sticky Consumer Inflation Report: Economists </a></li>
</ul>



Image: Shutterstock

Government

Initiation

Analyst Ratings

Tech

DOGE Fears For Defense Contractors Lockheed Martin, Northrop Grumman 'Overblown,' Analyst Says

Wall Street staged a strong rebound on Wednesday, as mixed inflation data bolstered investor confidence in the Federal Reserve's continuation of easing cycle in 2025, <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43001512/inflation-rises-to-29-in-december-core-slows-yet-rising-energy-costs-put-feds-target-at-risk">easing recent market anxieties.</a>



The headline Consumer Price Index rose 2.9% year-over-year in December, up from November&#8217;s 2.7% and aligning with economist forecasts. On a monthly basis, headline inflation increased by 0.4%, up from November&#8217;s 0.3%, marking the sharpest monthly rise since March 2024.



The inflation report strengthened market expectations for Fed rate cuts in 2025. The probability of a rate cut by June climbed to 63%, up from 55% the previous day, with December futures now pricing in a 50% chance of two rate cuts.



The S&amp;P 500 advanced 1.5% by midday trading in New York, and the Dow Jones followed suit with a similar gain, both supported by strength in financial stocks. The Nasdaq 100 outperformed, rising 1.9%, while small-cap stocks posted a 1.7% gain.



Key financial giants, including JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), Bank of New York Mellon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>), and BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), exceeded Wall Street's <a href="https://www.benzinga.com/news/earnings/25/01/43007354/big-banks-crush-q4-earnings-forecasts-financial-stocks-set-for-biggest-1-day-rally-since-trumps-election">fourth-quarter 2024 earnings expectations.</a>



The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) surged nearly 2.2%, leading all S&amp;P 500 sectors and recording its strongest one-day gain in over two months.



In the bond market, yields on the 2-year Treasury note, which is highly sensitive to interest rate expectations, fell 9 basis points to 4.28%, while 30-year yields dropped 8 basis points to 4.89%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) gained 1.3% as bond prices rose.



The U.S. Dollar Index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), remained flat, with dollar strength against the euro offset by weakness versus the yen.



West Texas Intermediate — as tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) — rallied 2%, hitting $80 a barrel during the day amid a stronger-than-expected drop in commercial crude stocks last week.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) jumped 2.6%, nearing $99,000, buoyed by optimism surrounding potential Fed rate cuts. Meanwhile, gold, tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), gained 0.5%. 



<h1 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day % chg</td></tr><tr><td>Nasdaq 100</td><td>21,142.06</td><td>1.9%</td></tr><tr><td>Russell 2000</td><td>2,257.59</td><td>1.7%</td></tr><tr><td>S&amp;P 500</td><td>5,932.76</td><td>1.5%</td></tr><tr><td>Dow Jones</td><td>43,153.53</td><td>1.5%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:15 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011525&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 1.5% to $590.96.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 1.5% to $431.31.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1.9% to $514.49.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) increased 1.8% to $223.77.</li>



<li>The&nbsp;Financial Select Sector SPDR Fund outperformed, up 1.2%; the&nbsp;Consumer Staples Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, down 0.3%.</li>
</ul>



<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>



<ul>
<li>Citigroup Inc. rallied over 7%, in reaction to stronger-than-expected earnings, marking the strongest performance within the S&amp;P 500 index.</li>



<li>Intuitive Surgical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>) rose 6.9% after RBC raised its 12-month price target to $641. </li>



<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares climbed more than 5% after RBC increased its price target for the stock from $313 to $440, while reaffirming its outperform rating.</li>
</ul>



Read Now: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43006771/bitcoin-up-to-99000-is-loving-inflation-data-release-xrp-dogecoin-follow-higher">Bitcoin Up To $99,000 &#8216;Is Loving&#8217; Inflation Data Release, XRP, Dogecoin Follow Higher</a></li>
</ul>



Photo: Shutterstock

Equities

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Macro Economic Events

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Commodities

Econ #s

$BTC

ISRG

TSLA

Wall Street Rallies As Treasury Yields Fall, Banks Smash Q4 Earnings, Oil Hits $80: What's Driving Markets Wednesday?

Hamas has verbally accepted a draft agreement for a ceasefire in Gaza and for the release of dozens of hostages, according to various sources including the Associated Press, which obtained <a href="https://apnews.com/article/israel-hamas-gaza-ceasefire-draft-terms-hostages-3df21b67620fdc8f62aa1d1e96487880">copy of the proposed agreement</a> that it said was confirmed by Egyptian and Hamas officials <a href="https://www.benzinga.com/news/global">to be authentic</a>.



&#8220;We have a deal for the hostages in the Middle East. They will be released shortly. Thank you!&#8221; said President-elect Donald Trump on his Truth Social network. 



Nevertheless, Israeli Prime Minister Benjamin Netanyahu&#8216;s cabinet still needs to ratify the deal. A vote is expected by Thursday. The agreement outlines an initial six-week ceasefire, during which Hamas would release 33 Israeli hostages, including women, children and the elderly, in exchange for the release of Palestinian prisoners.



This phase also includes a gradual withdrawal of Israeli forces from central Gaza and the return of displaced Palestinians to the northern regions of the enclave. According to the officials, reported Reuters, there has been last-minute wrangling over the Egypt-Gaza border, which is now controlled by Israeli forces.



Despite the progress in negotiations, Israeli military operations have continued, resulting in additional Palestinian casualties. The urgency to finalize the ceasefire was heightened by the impending inauguration of Trump on Jan. 20, who <a href="https://www.benzinga.com/25/01/42933339/trumps-envoy-urges-netanyahu-for-gaza-deal-can-ceasefire-efforts-succeed-before-inauguration">said</a> there would be hell to pay if Israeli hostages were not released before he takes office.



The proposed ceasefire is structured in three phases:



<ol start="1">
<li>First Phase: A six-week ceasefire during which Hamas would release 33 Israeli hostages in exchange for Palestinian prisoners. Israeli forces would begin a gradual withdrawal from central Gaza, allowing displaced Palestinians to return to their homes, though they have mostly been destroyed.</li>



<li>Second Phase: Negotiations for the release of remaining hostages and a more comprehensive Israeli withdrawal from Gaza.</li>



<li>Third Phase: The return of the bodies of remaining hostages in exchange for a reconstruction plan for Gaza.</li>
</ol>



The international community is closely monitoring the situation, with hopes that the ceasefire will alleviate regional tensions and pave the way for the reconstruction of Gaza, where up to 50,000 people — mostly civilians and children — have reportedly been killed by Israeli bombardment, according Palestinian, international and some Israeli agencies.



The deal&#8217;s success hinges on the resolution of outstanding issues, including the specifics of Israeli troop withdrawals and the mechanisms for prisoner exchanges.



Photo via Shutterstock.

Politics

Israel, Hamas Agree To Cease-Fire Deal With Hostage Exchange: What You Need To Know

Major U.S. banks reported strong fourth-quarter 2024 earnings on Wednesday, with better-than-expected results across the board <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42984073/banks-kick-off-earnings-season-on-wednesday-retail-traders-bet-big-on-financials-ahead-of-regulatory-tailwinds">and upbeat 2025 guidance. </a>



The performance was driven by robust net interest income (NII), resilient fee revenue, and disciplined expense management. 



These positive earnings results sent financial stocks higher, with the Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) rising 1.9% on Wednesday, eyeing the strongest one-day rally since Nov. 6, 2024, when financial stocks rallied in response to Donald Trump&#8216;s victory at the presidential elections.



The SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) jumped 3.1%, reflecting strength among regional banks.



<h3 class="wp-block-heading">Bank Earnings In Focus</h3>



JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reported fourth-quarter earnings per share of $4.81, far exceeding the consensus estimate of $4.11, representing a 17% surprise, according to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011525&amp;t=be2bearmibe3na1">Benzinga Pro</a> data.



Revenue came in at $43.74 billion, beating estimates by 4.9%. The bank's strong performance was attributed to higher NII, which totaled $94 billion for 2025 guidance, above expectations, along with lower-than-anticipated credit costs.



The world&#8217;s largest bank repurchased $4 billion in shares during the quarter, bringing its Common Equity Tier 1 ratio to 15.8%, up 30 basis points quarter-over-quarter.



Shares of JPMorgan Chase &amp; Co. rose 0.5% by 10:00 a.m. in New York. 



Read also: <a href="https://www.benzinga.com/25/01/43000684/jpmorgan-q4-earnings-shine-investment-banking-revenue-jumps-46-yy-jamie-dimon-says-inflation-may-persist-for-some-time">JPMorgan Chase Q4 Earnings: Investment Banking Revenue Jumps 46%, CEO Jamie Dimon Says &#8216;Inflation May Persist For Some Time&#8217;</a>



Goldman Sachs Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) delivered a standout performance with EPS of $11.95, a sharp 45.4% surprise over the $8.22 consensus. Revenue reached $13.87 billion, 11.9% above estimates, driven by strong trading revenue, up by 13%, and better-than-expected equity underwriting, up 41%.



According to Bank of America analysts, Goldman remains &#8220;a favored way to gain exposure to rebounding investment banking activity.&#8221;



The bank repurchased $2 billion in shares and ended the quarter with a 15% CET1 ratio. Return on equity for 2024 stood at 12.5%, slightly below the bank&#8217;s mid-teens target but still solid.



Goldman Sachs rallied 6% in response to fourth-quarter results, reaching highs last seen in early December 2024 and eyeing the strongest 1-day rally since Nov. 6 2024.



Read also: <a href="https://www.benzinga.com/news/earnings/25/01/43000353/goldman-sachs-q4-earnings-equity-and-debt-underwriting-fuel-revenue-boost-assets-under-management-hit-record-314-trillion">Goldman Sachs Q4 Earnings: Underwriting Boosts Revenue, Assets Reach Record $3.14 Trillion</a>



Wells Fargo Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) posted EPS of $1.42, beating estimates by 5.2%, driven by stronger-than-expected NII and fee revenue. 



Overall revenue was slightly below estimates at $20.38 billion, yet the bank's 2025 guidance surprised to the upside, with NII expected to grow 1-3% year-over-year, implying $48.98 billion—higher than analyst expectations.



Wells Fargo's CET1 ratio stood at 11.1%, down 20 basis points quarter-over-quarter, but the bank returned $4 billion to shareholders through buybacks. 



Credit trends remained stable, and expenses were well-managed, positioning the bank for a solid year ahead.



Shares of Wells Fargo roared 5.7% to early December highs. 



Read Also: <a href="https://www.benzinga.com/news/earnings/25/01/43002392/wells-fargo-q4-earnings-investors-cheer-50-jump-in-net-profit-roe-improvement-bank-expects-up-to-3-jump-in-2025-nii">Wells Fargo Q4 Earnings: Investors Cheer 50% Jump In Net Profit, ROE Improvement, Bank Expects Up To 3% Jump In 2025 NII</a>



Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) reported EPS of $1.34, beating the $1.22 consensus by 9.8%, while revenue of $19.58 billion narrowly exceeded expectations. 



The results reflected solid execution across the bank's core operations, with a particular boost from strong trading revenues.



Though the bank still faces challenges in certain areas, analysts at Bank of America see improving operational efficiency and regulatory easing as potential tailwinds. 



Citigroup's stock rose 5.7% following the earnings release, reflecting growing investor optimism.



Read also: <a href="https://www.benzinga.com/news/buybacks/25/01/43002760/citigroup-q4-earnings-12-topline-growth-2-9-billion-net-income-20-billion-share-buyback-gains-in-wealth-and-market-segments">Citigroup Q4 Earnings: 12% Topline Growth, $2.9 Billion Net Income, $20 Billion Share Buyback, Gains In Wealth And Market Segments</a>



Bank of New York Mellon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>) posted EPS of $1.72, exceeding estimates by 10.3%, while revenue of $4.85 billion beat projections by 4.2%. The results were driven by robust pre-provision net revenue growth, up 9.5% year-over-year, fueled by NII growth of nearly 14%.



The bank achieved its medium-term targets of a 33% pre-tax margin and 23% return on tangible common equity (ROTCE), highlighting disciplined expense management. 



Shareholder returns were also strong, with $1.1 billion returned in the fourth quarter, including $750 million in buybacks.



Shares rallied by 5.7%, eyeing their highest one-day surge since July 2022. 



<h3 class="wp-block-heading">Looking Ahead</h3>



The market spotlight will shift to Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>), U.S. Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>), First Horizon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>), PNC Financial Services Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>), and M&amp;T Bank Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>) all slated to report earnings on Thursday, before the market open. 



Here's what investors will be watching, according to Benzinga Pro data:



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Bank</th><th>Estimated Revenue</th><th>Estimated EPS</th></tr></thead><tbody><tr><td>Bank of America Corp.</td><td>$25.24 billion</td><td>$0.77</td></tr><tr><td>Morgan Stanley</td><td>$15.03 billion</td><td>$1.70</td></tr><tr><td>PNC Financial Services Group Inc.</td><td>$5.50 billion</td><td>$3.33</td></tr><tr><td>U.S. Bancorp</td><td>$6.99 billion</td><td>$1.05</td></tr><tr><td>M&amp;T Bank Corp.</td><td>$2.34 billion</td><td>$3.73</td></tr><tr><td>First Horizon Corp.</td><td>$820.7 million</td><td>$0.39</td></tr></tbody></table></figure>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/25/01/42997625/blackrock-beats-q4-estimates-fueled-by-record-inflows-116-trillion-aum-milestone">BlackRock Q4 Earnings: Record Inflows Fuel Revenue And Earnings Beat, AUM Hits $11.6 Trillion Milestone</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Earnings

Mid Cap

Sector ETFs

Small Cap

Big Banks Crush Q4 Earnings Forecasts: Financial Stocks Set For Biggest 1-Day Rally Since Trump's Election

Major indices rallied on Wednesday after December inflation data showed underlying price pressures slowing, reducing fears of a prolonged pause in interest rate cuts <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43001512/inflation-rises-to-29-in-december-core-slows-yet-rising-energy-costs-put-feds-target-at-risk">by the Federal Reserve. </a>



The headline Consumer Price Index rose 2.9% year-over-year in December, up from November's 2.7%, matching economist forecasts. On a monthly basis, headline inflation increased 0.4%, accelerating from the 0.3% surge in November and marking the largest monthly rise since March 2024.



Core inflation, which excludes volatile food and energy prices, rose 3.2% year-over-year, slightly below the expected 3.3%. Month-over-month, core prices gained 0.2%, in line with forecasts.



The inflation data boosted expectations for Fed rate cuts in 2025. The probability of a rate cut by June rose to 68% from 55% the previous day, with December futures now indicating a 58% chance of two cuts by year-end.



<h3 class="wp-block-heading">Wall Street Gains As Bond Yields Retreat, Financial Stocks Soar</h3>



The S&amp;P 500 index – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – surged 1.5% in early New York trading, led by financial stocks after major banks reported strong fourth-quarter earnings.



JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), Bank of New York Mellon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>) and BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) all topped earnings forecasts for the fourth quarter and released upbeat guidance, reiterating that the financial sector thrived heading to the end of last year.



The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) rose 2.2%, leading all S&amp;P 500 sectors, while the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) jumped 3.4%, reflecting strong performance among regional banks.



The Dow rose 1.6%, while the Russell 2000 index outperformed, climbing 2.6%. Tech stocks, tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), gained 1.7%, boosted by falling Treasury yields.



Yields on the policy-sensitive 2-year Treasury note fell 9 basis points to 4.27%, while 30-year yields dropped 9 basis points to 4.88%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) gained 1.6% as bond prices rallied.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 2% to over $99,000, supported by rising hopes for Fed rate cuts. Gold, tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), added 0.5%.



<h3 class="wp-block-heading">Top Movers</h3>



S&amp;P 500 Gainers:



<ul>
<li>Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>): +5.85%</li>



<li>BlackRock Inc.: +5.54%</li>



<li>Assurant Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIZ#NYSE">AIZ</a>): +5.49%</li>



<li>Bio-Techne Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TECH#NASDAQ">TECH</a>): +5.36%</li>



<li>Citigroup Inc.: +5.16%</li>
</ul>



Nasdaq 100 Movers:



<ul>
<li>Copart Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>): +4.62%</li>



<li>Intuitive Surgical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>): +4.60%</li>



<li>AppLovin Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>): +4.43%</li>



<li>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>): +4.30%</li>



<li>The Trade Desk Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>): +3.39%</li>
</ul>



Top Gainers In The Invesco KBW Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NYSE">KBWB</a>):



<ul>
<li>Citigroup Inc.: +5.27%</li>



<li>Wells Fargo &amp; Co.: +4.80%</li>



<li>Bank of New York Mellon Corp.: +4.35%</li>



<li>Western Alliance Bancorp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>): +4.13%</li>



<li>Goldman Sachs Group Inc.: +4.02%</li>
</ul>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/25/01/43000684/jpmorgan-q4-earnings-shine-investment-banking-revenue-jumps-46-yy-jamie-dimon-says-inflation-may-persist-for-some-time">JPMorgan Chase Q4 Earnings: Investment Banking Revenue Jumps 46%, CEO Jamie Dimon Says &#8216;Inflation May Persist For Some Time&#8217;</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

CPRT

KBWB

PLTR

TECH

Stocks Rise On Core Inflation Slowdown, Banks Rally After Strong Q4 Earnings, Treasury Yields Plummet

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is eyeing a march toward the $100,000 mark following <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43001512/inflation-rises-to-29-in-december-core-slows-yet-rising-energy-costs-put-feds-target-at-risk">CPI data that aligned with market expectations</a>. 



What Happened: The report has rekindled optimism across markets, with the S&amp;P 500 index – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) &#8211; gaining 1.7%. 



Major cryptocurrencies have surged across the board:



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>&nbsp;$99,251.48</td><td>+2.6%</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>&nbsp;$3,304.57</td><td>+3.1%</td></tr><tr><td>Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)</td><td>&nbsp;$194.45</td><td>+4%</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td> $2.97</td><td>+15.4%</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td>&nbsp;$0.367</td><td>+4.6%</td></tr><tr><td>Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>)</td><td>&nbsp;$0.00002198</td><td>+2.4%</td></tr></tbody></table></figure>



Trader Notes: Lark Davis, a Bitcoin investor and entrepreneur, noted that Bitcoin &#8220;is loving&#8221; the macroeconomic data released.



Prominent technical analyst Kevin observed that the cooler CPI figures reduced yields and the dollar's strength, boosting asset prices. 



He remains cautious about whether this trend can be sustained.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">CPI comes in at 2.9% as expected.<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is loving it. <a href="https://t.co/EqYJ0KMByQ">pic.twitter.com/EqYJ0KMByQ</a>&mdash; Lark Davis (@TheCryptoLark) <a href="https://twitter.com/TheCryptoLark/status/1879522899771498565?ref_src=twsrc%5Etfw">January 15, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Economist Robin Brooks commented on the benign core CPI reading for December, with underlying inflation <a href="https://x.com/robin_j_brooks/status/1879522953987342551">trending</a> at 0.25% month-over-month. 



He expects a temporary uptick in Q1 2025 due to seasonal price resets, <a href="https://x.com/robin_j_brooks/status/1879523749252514190">echoing</a> patterns seen in early 2023 and 2024.



What's Next: Crypto trader Jelle now marks $97,000 turning into support and with prices pushing towards $100,000 he <a href="https://x.com/CryptoJelleNL/status/1879524740219728355">concluded</a> "Break that, and all bets are off."



Glassnode <a href="https://x.com/glassnode/status/1879483017220997356">data</a> highlighted that the BTC price action validated two key levels flagged by on-chain data. 



It sees support at $89,000 which aligns with Short-Term Holder Realized Price ($88,500). 



Resistance is below $98,000 which is largest accumulation level above spot.



As Bitcoin inches closer to the psychological $100,000 barrier, the market remains divided on whether the rally will be sustained. 



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42998035/bitcoin-adoption-still-early-blackrock-says">Bitcoin Adoption Still Early, BlackRock Says</a></li>
</ul>



Image: Shutterstock

Cryptocurrency

$DOGE

$ETH

$SHIB

$SOL

$XRP

Bitcoin Up To $99,000 'Is Loving' Inflation Data Release, XRP, Dogecoin Follow Higher

JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) shares are trading nearly flat premarket after it reported <a href="https://www.benzinga.com/pressreleases/25/01/b42997622/jpmorganchase-reports-fourth-quarter-and-full-year-2024-financial-results" target="_blank" rel="noreferrer noopener">fourth-quarter FY24 results</a>.



Reported revenue&nbsp;rose&nbsp;11% year-on-year to&nbsp;$42.8&nbsp;billion. Net revenue (<a target="_blank" href="https://jpmorganchaseco.gcs-web.com/node/723716/html#a4q24erfexhibit991narrative.htm" rel="noreferrer noopener">managed</a>) was&nbsp;$43.7 billion&nbsp;(+10%&nbsp;Y/Y), beating the&nbsp;consensus of&nbsp;$41.707 billion.



Consumer &amp; Community Banking (CCB) revenue rose 1%&nbsp;Y/Y to&nbsp;$18.362&nbsp;billion, and Commercial &amp; Investment Bank revenue was&nbsp;$17.598&nbsp;billion&nbsp;(+18% Y/Y) in the quarter.



Investment Banking revenue was&nbsp;$2.6&nbsp;billion, up&nbsp;46% Y/Y, in the quarter. Investment Banking fees rose 49% Y/Y, led by higher fees across all products.



Asset and Wealth Management revenue was&nbsp;$5.8&nbsp;billion&nbsp;(+13%&nbsp;Y/Y), and Corporate revenue stood at&nbsp;$2.00&nbsp;billion&nbsp;(+13%&nbsp;Y/Y) in the quarter.



In AWM,&nbsp;Assets under management stood at&nbsp;$4.0&nbsp;trillion, and client assets stood at&nbsp;$5.9&nbsp;trillion&nbsp;(up&nbsp;18%), driven by higher market levels and continued net inflows.



Net interest income fell 3% Y/Y to $23.5 billion in the quarter. Net interest income excluding Markets&nbsp;stood at $23.0 billion, down 2% Y/Y, due to lower rates and deposit margin compression along with lower deposit balances in CCB.&nbsp;



Noninterest revenue was&nbsp;$20.3 billion, up&nbsp;29%&nbsp;Y/Y, in the quarter. Noninterest revenue, excluding Markets,&nbsp;increased 30% Y/Y to $13.7 billion, led by higher asset management fees in AWM and CCB, increased investment banking fees and lower net investment securities losses.



Noninterest expense decreased&nbsp;7%&nbsp;Y/Y to&nbsp;$22.8&nbsp;billion in the quarter. Average loans rose&nbsp;2%&nbsp;Y/Y and up 1% quarter-over-quarter; average deposits were up&nbsp;2%&nbsp;Y/Y and 1% Q/Q.



In CCB, Debit and credit card sales volume increased by&nbsp;8% Y/Y, and active mobile customers were up&nbsp;7%&nbsp;Y/Y.&nbsp;



In CIB, Market revenue rose&nbsp;21% Y/Y, with Fixed Income Markets increasing 20% and Equity Markets up&nbsp;22% in the quarter.



JPM&#8217;s provision for credit losses was&nbsp;$2.6 billion&nbsp;(-5%&nbsp;Y/Y), including net charge-offs of&nbsp;$2.4&nbsp;billion&nbsp;and a net reserve build of&nbsp;$267 million.&nbsp;



Net income rose 50% Y/Y to&nbsp;$14.0&nbsp;billion&nbsp;in the quarter. EPS of&nbsp;$4.81 exceeded&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">the consensus of&nbsp;$4.11</a>.



The CET1 capital ratio stood at&nbsp;15.7%, and the advanced CET1 capital ratio was&nbsp;15.8%. The bank&#8217;s capital distributions included a dividend per share of&nbsp;$1.25&nbsp;and $4.0 billion of common stock net repurchases.



<a target="_blank" href="https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2024/4th-quarter/9aff0e71-2b8c-4f41-ac93-8da74c263894.pdf" rel="noreferrer noopener">Outlook</a>: JPMorgan expects FY25 net interest income,&nbsp;excluding Markets, of ~$90 billion and project card&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">services NCO rate of ~3.60%.</a>



Jamie Dimon, Chairman and CEO, said, &#8220;The U.S. economy has been resilient. Unemployment remains relatively low, and consumer spending stayed healthy, including during the holiday season. Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business.&#8221;



&#8220;However, two significant risks remain. Ongoing and future spending requirements will likely be inflationary, and therefore, inflation may persist for some time. Additionally, geopolitical conditions remain the most dangerous and complicated since World War II.&#8221;



Read: <a target="_blank" href="https://www.benzinga.com/news/management/25/01/42994008/jamie-dimon-oversees-major-leadership-shake-up-at-jpmorgan-chase-as-president-daniel-pinto-prepares-to-step-down" rel="noreferrer noopener">Jamie Dimon Oversees Major Leadership Shake-Up At JPMorgan Chase As President Daniel Pinto Prepares To Step Down</a>



Investors can gain exposure to the stock via&nbsp;IShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and&nbsp;iShares U.S. Financial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).



Price Action: JPM shares are up 0.29% at $248.18  premarket at the last check Wednesday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/42996752/us-stocks-to-open-higher-ahead-of-december-inflation-data-all-eyes-on-baking-earnings-by-jpm-goldman-citi-wells-fargo" target="_blank" rel="noreferrer noopener">US Stocks To Open Higher Ahead Of December Inflation Data: All Eyes On Banking Stocks As JPMorgan, Goldman, Citi, Wells Fargo Report Quarterly Earnings</a></li>
</ul>

Guidance

JPMorgan Chase Q4 Earnings: Investment Banking Revenue Jumps 46%, CEO Jamie Dimon Says 'Inflation May Persist For Some Time'

On Wednesday, Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>)&nbsp;shares traded higher after the <a target="_blank" href="https://www.goldmansachs.com/pressroom/press-releases/2025/2025-01-15-q4-results" rel="noreferrer noopener">company reported its fourth-quarter</a> and full-year 2024 financial results.



Goldman Sachs reported fourth-quarter revenue of $13.87 billion, beating the consensus of $12.39 billion. Revenue increased by 23% year-over-year, reflecting growth across all segments, with significant growth in Global Banking &amp; Markets.



Full-year revenue was $53.51 billion, up 16% YoY, beating the consensus of $51.98 billion.



Net interest income for 4Q24 was $2.35 billion, 75% higher YoY, reflecting a shift towards higher-yielding assets, and was essentially unchanged QoQ. Average interest-earning assets were $1.59 trillion.



Also read: <a target="_blank" href="https://www.benzinga.com//node/42960000" rel="noreferrer noopener">Goldman Sachs Restructures Business for Financing Growth</a>



Segment Revenues: Global Banking &amp; Markets revenues were&nbsp;$8.48 billion, up&nbsp;33% Y/Y. This was boosted by a&nbsp;24% Y/Y increase in investment banking fees to&nbsp;$2.05 billion, led by higher revenues in Debt and Equity underwriting. Investment banking fees backlog increased QoQ, primarily driven by Equity underwriting.



Net revenues in Fixed Income, Currency, and Commodities (FICC) were&nbsp;$2.74 billion,&nbsp;up 35% year over year, primarily reflecting higher net revenues in FICC intermediation and financing.



Net revenues from Equity grew 32% YoY to $3.45 billion, reflecting significantly higher net revenues in intermediation and financing.



Asset &amp; Wealth Management revenue was&nbsp;$4.72 billion,&nbsp;8% higher than last year. Total Wealth management client assets soared to ~$1.6 trillion.



Goldman Sachs clocked fourth-quarter GAAP EPS of&nbsp;$11.95,&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$8.30</a>. Full-year GAAP EPS was $40.54, beating the consensus of $36.55.



Provision for credit losses was&nbsp;$351 million for the&nbsp;fourth quarter, down 39% year over year, reflecting net provisions related to the credit card portfolio (primarily driven by net charge-offs).



In the fourth quarter, total Assets Under Supervision (AUS) saw a net inflow of $92 billion. Total AUS for 2024 increased by $325 billion to a record $3.14 trillion.



Stock Buyback: In the fourth quarter, Goldman Sachs repurchased stock worth $2 billion, bringing the yearly stock buyback to $8 billion.



The Standardized CET capital ratio increased to 15%, and the Advanced CET capital ratio increased to 15.4%. The book value per common share increased to $336.77 YoY, compared to $313.56.



In the last 12 months, Goldman Sachs stock has gained 50%, outperforming the S&amp;P500 and the Dow by a huge margin.



Analyst Ratings: In the last 15 days, Oppenheimer lowered Goldman Sachs stock <a href="https://www.benzinga.com/quote/GS/analyst-ratings" target="_blank" rel="noreferrer noopener">price forecast</a> from $677 to $639, UBS downgraded the stock to a Neutral rating with a price forecast of $610, and Barclays raised the price forecast from $588 to $713.



Investors can gain exposure to the Goldman Sachs stock via Shares U.S. Broker-Dealers &amp; Securities Exchanges ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>), SPDR Dow Jones Industrial Average ETF Trust (NYSE:<a href="https://www.benzinga.com/stock/DJIA#NYSE" target="_blank" rel="noreferrer noopener"> </a>DIA), and Invesco KBW Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NYSE">KBWB</a>).



Price Action:&nbsp;GS shares are up 2.54% at $586.05 premarket at the last check on Wednesday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com//node/42429413" target="_blank" rel="noreferrer noopener">Goldman Sachs CEO Says Bank Can Consider Bitcoin, Ethereum Spot Trading If Regulations Allow</a></li>
</ul>



Photo via Shutterstock

Goldman Sachs Q4 Earnings: Underwriting Boosts Revenue, Assets Reach Record $3.14 Trillion

Consumer inflation surged for the third straight month in December, rekindling concerns that the months-long cooling of price pressures could be over and casting doubt on the Federal Reserve&#8217;s ability to steer inflation <a href="https://www.benzinga.com/topic/inflation">toward its 2% target.</a>



The headline Consumer Price Index rose 2.9% year-over-year in December, according to Wednesday&#8217;s data from the Bureau of Labor Statistics. This marks an increase from November's 2.7% and matches economist forecasts. Notably, it represents the third straight inflation increase and highest annual rate since July 2024.



On a monthly basis, consumer prices increased 0.4%, up from both the previous month's 0.3% gain and the 0.3% predicted by analysts.



The energy index climbed 2.6% in December, contributing to over 40% of the monthly increase in overall prices, with the gasoline index rising 4.4% during the month.



Core inflation, which strips out the volatile food and energy categories, rose by 3.2% on a year-over-year basis, below the 3.3% estimate. Month-over-month, core prices marked a 0.2% increase, matching estimates.



Items that witnessed an increase in December include shelter, airline fares, used cars and trucks, new vehicles, motor vehicle insurance and medical care.



<h3 class="wp-block-heading">Market Reactions: Yields, Dollar Tumble </h3>



Prior to the release of the CPI report, traders priced in one 25-basis-point rate cut by December 2025, according to the CME FedWatch tool.



The mixed December inflation data could keep hopes for more than one rate cut by year-end quite stretched.



Treasury yields tumbled in response to the data, with the policy-sensitive two-year yield down 9 basis points to 4.28%. The U.S. dollar also weakened, with a key index tracking the greenback falling 0.5% during the session.



Equity markets reacted with optimism. Pre-market futures on the S&amp;P 500 rallied 1.5%, while contracts tied to the Nasdaq 100 soared 1.6%. 



On Tuesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched up 0.1%, while the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) declined 0.1%. 



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/42996752/us-stocks-to-open-higher-ahead-of-december-inflation-data-all-eyes-on-baking-earnings-by-jpm-goldman-citi-wells-fargo">US Stocks To Open Higher Ahead Of December Inflation Data: All Eyes On Banking Stocks As JPMorgan, Goldman, Citi, Wells Fargo Report Quarterly Earnings</a></li>
</ul>



Photo via Shutterstock.

Inflation Rises To 2.9% In December: Core Slows, Yet Rising Energy Costs Put Fed's Target At Risk

U.S. stock futures advanced on Wednesday following Tuesday&#8217;s mixed close. Futures of all four major indices rose in premarket trade.



Traders await the December Consumer Price Index will provide fresh insights into inflation&#8217;s trajectory, potentially influencing the Federal Reserve's policy stance amid mounting uncertainty over interest rates.



The headline inflation rate is <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42988894/all-eyes-on-december-inflation-betting-odds-signal-risk-of-fed-struggling-to-tame">projected </a>to rise 2.9% year-over-year, according to TradingEconomics, marking an increase from November&#8217;s 2.7% pace. On a monthly basis, headline inflation is expected to grow by 0.3%, maintaining the same pace as the prior month. 



Amid rotation, technology stocks dragged the Nasdaq down on Tuesday as well, whereas Dow Jones, which has the least number of tech constituents, rose over 220 points.



The 10-year and two-year Treasury notes yielded 4.77% and 4.35%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 97.3%, according <a href="http://The 10-year and two-year Treasury notes yielded 4.77% and 4.35%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 97.3%, according to CME Group's FedWatch tool. --https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">to</a> CME Group&#8217;s FedWatch tool.



<figure class="wp-block-table"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.22%</td></tr><tr><td>S&amp;P 500</td><td>0.14%</td></tr><tr><td>Dow Jones</td><td>0.18%</td></tr><tr><td>Russell 2000</td><td>0.51%</td></tr></tbody></table></figure>



In premarket trading on Wednesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 0.18% to $583.22&nbsp; and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.23% to $506.25, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



U.S. stock market closed with a mixed performance on Tuesday. The Dow Jones Industrial Average saw a significant intraday surge following the release of Producer Price Index data.



PPI increased by 0.2% in December, lower than the expected 0.3% and November&#8217;s 0.4% increase. This positive economic indicator boosted investor sentiment.



However, Big Tech stocks weighed heavily on the Nasdaq. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) experienced notable declines, contributing to the index&#8217;s negative performance.



Sectoral performance was varied across the S&amp;P 500. Utilities, materials, and financial sectors closed higher, while communication services and healthcare sectors underperformed.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.23%</td><td>19,044.39</td></tr><tr><td>S&amp;P 500</td><td>0.11%</td><td>5,842.91</td></tr><tr><td>Dow Jones</td><td>0.52%</td><td>42,518.28</td></tr><tr><td>Russell 2000</td><td>1.13%</td><td>2,219.24</td></tr></tbody></table></figure>



Insights From Analysts



Howard Marks, a veteran investor who accurately predicted the dot-com bubble, warns of <a href="https://www.benzinga.com/markets/equities/25/01/42995814/billionaire-investor-who-predicted-the-dot-com-crash-25-years-ago-warns-of-another-market-storm-brewing-in-the-us">potential market risks</a> in his latest memo, &#8220;On Bubble Watch.&#8221; 



Marks highlights several concerning signs:



<ul>
<li>Over-optimism: High market exuberance and elevated S&amp;P 500 valuations.</li>



<li>AI Hype: Excessive enthusiasm for AI may be inflating valuations in the tech sector.</li>



<li>Magnificent 7 Reliance: Over-reliance on the continued success of a small group of dominant tech companies.</li>



<li>Index Investing Bias: Index fund inflows may be driving up prices regardless of intrinsic value.</li>
</ul>



While not definitively declaring a bubble, the co-founder and co-chairman of Oaktree Capital Management, Marks stresses the importance of acknowledging these risks. He acknowledges counterarguments, such as reasonable valuations for the &#8220;Magnificent Seven&#8221; and a moderate P/E ratio for the S&amp;P 500.



Ultimately, Marks concludes that the market may be expensive and slightly overheated, but it doesn&#8217;t yet display the irrational exuberance typical of a true bubble.



&#8220;The markets are likely to remain listless until Monday&#8217;s Inauguration Day, when President Donald Trump is expected to issue numerous Executive Orders which might muddy rather than clarify the economic outlook,&#8221; said Ed Yardeni of Yardeni Research in his QuickTakes.



Carson Research in their 2025 markets outlook, released on Tuesday said that they expect U.S. growth likely to outpace other global economies this year. They expect a 12-15% return from stocks.



&#8220;Looking at forward 12-month S&amp;P 500 earnings we once again see new highs, now at $271 per share, up from $225 in early 2023,&#8221; the report said.



&#8220;We are overweight equities and believe current forward earnings growth expectations remain supportive of stock gains given the economic backdrop.&#8221;



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



<ul>
<li>On Wednesday, the headline and core consumer price index for December and the Empire State manufacturing survey data for January will be announced at 8:30 a.m., ET.</li>



<li>Richmond Fed President Barkin will speak at 9:00 a.m., ET.</li>



<li>New York Fed President Williams will speak at 11:00 a.m., ET.</li>



<li>Chicago Fed President Goolsbee will speak at noon, ET.</li>



<li>On Thursday, initial jobless claims till Jan. 11 will be released at 8:30 a.m., ET.</li>



<li>December&#8217;s U.S. retail sales, import price index, and Philadelphia Fed manufacturing survey will be announced at 8:30 a.m., ET.</li>



<li>Business inventory data for November and the Home builder confidence index for January will be released at 10:00 a.m., ET.</li>



<li>On Friday, housing starts and building permits data for December will be released at 8:30 a.m., ET.</li>



<li>The industrial production and capacity utilization for December will be announced at 9:15 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) was up 0.21% in premarket on Wednesday as Wall Street expects it to report quarterly earnings of $4.04 per share on revenue of $41.56 billion before the opening bell.</li>



<li>Wells Fargo &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) was up 2.39% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.35 per share on revenue of $20.58 billion.</li>



<li>Goldman Sachs Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) was up 0.26% as analysts expect it to post quarterly earnings of $8.35 per share on revenue of $12.46 billion before the opening bell.</li>



<li>Citigroup Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) was up 0.39% ahead of its earnings before the opening bell. Analysts expect it to post quarterly earnings of $1.24 per share on revenue of $19.51 billion. The company will release earnings before the markets open.</li>



<li>Applied Digital Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLD#NASDAQ">APLD</a>) was down 6.21% despite beating the second-quarter revenue and EPS estimates on Tuesday.</li>



<li>Safe &amp; Green Holdings Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SGBX#NASDAQ">SGBX</a>) was up 122.22% as it decided to acquire 100% of New Asia Holdings, including its subsidiaries Olenox Corp and Machfu.com.</li>



<li>Vision Marine Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VMAR#NASDAQ">VMAR</a>) was up 46.43% after it filed its patent application with the United States Patent and Trademark Office for a Battery Authentication Encryption Technology.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 0.62% to hover around $76.84 per barrel.



The gold spot index was up by 1.04% to $2,710.19 per ounce. The Dollar Index was down 0.20% at 109.050 level.



Asian markets closed mixed on Wednesday as Hong Kong&#8217;s Hang Seng, and India&#8217;s S&amp;P BSE Sensex index advanced. Whereas, China&#8217;s CSI 300, Australia&#8217;s ASX 200, Japan&#8217;s Nikkei 225, and South Korea&#8217;s Kospi index fell. European markets were also trading higher.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/01/42967576/meta-investors-push-mark-zuckerberg-to-replace-72b-cash-with-bitcoin-to-combat-inflation-heres-what-it-means-for-investors">Meta Investors Push Mark Zuckerberg To Replace $72B Cash With Bitcoin To Combat Inflation: Here&#8217;s What It Means For Investors</a></li>
</ul>



Photo courtesy: Wikimedia

Analyst Color

Futures

Pre-Market Outlook

APLD

NVDA

SGBX

VMAR

US Stocks To Open Higher Ahead Of December Inflation Data: All Eyes On Banking Stocks As JPMorgan, Goldman, Citi, Wells Fargo Report Quarterly Earnings

Investment giant&nbsp;BlackRock, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) stock is trading higher after the company&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b42996688/blackrock-reports-full-year-2024-diluted-eps-of-42-01-or-43-61-as-adjusted-fourth-quarter-2024-dil" rel="noreferrer noopener">reported&nbsp;fourth-quarter&nbsp;results</a>.



Revenue grew 23% year over year to&nbsp;$5.68 billion, beating the consensus of&nbsp;$5.53 billion.&nbsp;



Investment advisory, administration fees, and securities lending revenues increased to&nbsp;$4.4 billion&nbsp;from&nbsp;$3.6 billion&nbsp;a year ago, led by higher organic base fee, the impact of market beta on average AUM and, around $230 million of fees related to AUM acquired in the GIP Transaction.



Technology services revenue rose to&nbsp;$428 million&nbsp;from&nbsp;$379 million&nbsp;the prior year, led by the successful onboarding of several new clients.



BlackRock stated that net inflow stood at&nbsp;$281 billion&nbsp;in the quarter and $641 billion in 2024.



Total AUM stood at&nbsp;$11.6 trillion at the end of the year compared to $10.0 trillion in 2023.



Adjusted operating income rose&nbsp;36%&nbsp;Y/Y to&nbsp;$2.33 billion, with the margin expanding to&nbsp;45.5%&nbsp;from&nbsp;41.6%&nbsp;a year ago.



Adjusted EPS increased&nbsp;23%&nbsp;Y/Y to&nbsp;$11.93,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$11.21.</a>



BlackRock repurchased shares worth&nbsp;$1.6 billion in the year.&nbsp;



Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42984073/banks-kick-off-earnings-season-on-wednesday-retail-traders-bet-big-on-financials-ahead-of-regulatory-tailwinds" rel="noreferrer noopener">Banks Kick Off Earnings Season On Wednesday: Retail Traders Bet Big On Financials Ahead Of Regulatory Tailwinds</a>



Laurence D. Fink, Chairman and CEO, said,&nbsp;&#8220;Client activity accelerated into the fourth quarter, resulting in 7% organic base fee growth and 12% technology services ACV growth.&#8221;



In December 2024, the company disclosed a definitive agreement to acquire&nbsp;HPS Investment&nbsp;Partners&nbsp;<a target="_blank" href="https://www.benzinga.com/24/12/42296768/blackrock-makes-12-billion-power-move-acquires-hps-to-bolster-private-credit-offerings" rel="noreferrer noopener">for around $12 billion</a>.



This transaction strengthens BlackRock&#8217;s offerings for insurance clients. The deal is expected to increase private markets fee-paying AUM and management fees by 40% and 35%, respectively, and be modestly accretive to BlackRock&#8217;s as-adjusted earnings&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">per share in the first full year post-close</a>.



Fink added, &#8220;Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high-growth businesses of GIP, HPS and Preqin. And we&#8217;ve steadily made organic investments ahead of structural trends that we expect to drive outsized growth in the years ahead.&#8221;



Investors can gain exposure to the stock via&nbsp;Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) and&nbsp;Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).



Price Action: BLK shares are up 2.38% at $986.12 premarket at the last check Wednesday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/equities/25/01/42910264/trump-fallout-blackrock-exits-climate-alliance-cites-regulatory-pressure-and-client-confusion" target="_blank" rel="noreferrer noopener">Trump Fallout? BlackRock Exits Climate Alliance, Cites Regulatory Pressure And Client Confusion</a></li>
</ul>



Photo by rafapress on Shutterstock.

FDFF

SCHD

BlackRock Q4 Earnings: Record Inflows Fuel Revenue And Earnings Beat, AUM Hits $11.6 Trillion Milestone

Arthur Hayes, co-founder of cryptocurrency exchange&nbsp;BitMEX&nbsp;and Chief Investment Officer at&nbsp;Maelstrom&nbsp;Fund, stated that Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) will thrive regardless of any government support or regulatory clarity under the incoming Donald Trump administration.



What Happened: In an interview with Benzinga, Hayes questioned the narrative that cryptocurrency-friendly regulations will serve as a bullish catalyst for the market



&#8220;Remember that we got to a total cryptocurrency market cap of over $3 trillion with no government support anywhere in the world. Why do we need it now?&#8221; Hayes argued.



As for Bitcoin, Hayes said that the leading cryptocurrency will flourish in spite of any regulations that would be enacted by Trump.



See Also:<a href="https://www.benzinga.com/24/12/42735744/pharma-bro-martin-shkreli-predicts-doom-for-michael-saylors-microstrategy-as-stock-dips-below-300-in-after-hours-trading"> </a><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42936962/shytoshi-kusama-outlines-treat-tokens-usefulness-ahead-of-launch-optimistic-whales-buy-up-shiba-inu">Shytoshi Kusama Outlines TREAT Token&#8217;s Usefulness Ahead Of Launch, Optimistic Whales Buy Up Shiba Inu</a>



Hayes expressed doubt on potential cryptocurrency-friendly policies under Trump, saying that most of them will only benefit his lobbyists and close advisors.



&#8220;I fear that the crypto regulation that Trump enacts will be a Frankenstein bill that is an inchoate mishmash of different policies desired by this or that close advisor or large campaign donor,&#8221; he said.



&#8220;It will be a gift to lobbyists and lawyers and will not ultimately bring that much clarity, as it will be impossible to comply with unless you have hundreds of millions of dollars to spend on lawyers.&#8221;



Hayes has been a long-time Bitcoin bull, projecting the apex cryptocurrency to hit $1 million in the long term. 



Why It Matters: Hayes&#8217; remarks come at a time when the incoming Trump administration is expected to significantly alter the landscape of cryptocurrency regulation. 



Recent reports suggested that Trump could issue <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42962279/trump-could-sign-crypto-related-executive-orders-on-day-1-report">executive orders on day one of his presidency</a>, possibly addressing de-banking and&nbsp;<a href="https://www.benzinga.com/24/12/42502213/new-crypto-accounting-standards-from-todaywill-it-boost-bitcoins-corporate-adoption" target="_blank" rel="noreferrer noopener">fair value accounting</a>, which requires banks holding cryptocurrencies to count them as liabilities on their balance sheet.



Trump has rewarded supporters with high-level appointments in the incoming administration. He named venture capitalist David Sacks, who held a <a href="https://www.benzinga.com/24/12/42356067/venture-capitalist-david-sacks-appointed-as-white-house-ai-crypto-czar-by-trump">fundraising event for Trump&#8217;s campaign</a> at his home, as the &#8220;White House A.I. &amp; Crypto Czar.&#8221;



Price Action: At the time of writing, Bitcoin was exchanging hands at $93,573.37, down 0.90% in the last 24 hours, according to&nbsp;<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">data from Benzinga Pro</a>.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42935597/mark-cuban-advocates-bitcoin-over-gold-during-economic-turmoil-i-think-it-has-more-value-than-gold">Mark Cuban Advocates Bitcoin Over Gold During Economic Turmoil: &#8216;I Think It Has More Value Than Gold&#8217;</a></li>
</ul>

Regulations

Exclusives

MSTR

Trump's Crypto Legislation Will Be A 'Frankenstein' Bill Of Mishmash, Says Arthur Hayes — Bitcoin Doesn't Need Government Support To Flourish

On Tuesday, January 14th, U.S. markets closed mixed, with the S&amp;P 500 edging higher and the Nasdaq slipping after a volatile session. Investors evaluated inflation data and prepared for quarterly earnings reports. The producer price index rose less than expected, while elevated Treasury yields and uncertainty surrounding Federal Reserve policy fueled caution. Earnings season kicks off Wednesday, led by major banks.



According to economic data, U.S. producer prices increased by 0.2% in December, down from 0.4% in November, and below market expectations of a 0.3% rise.



Most S&amp;P 500 sectors rose, led by utilities, materials, and financials, while communication services and healthcare declined.



The Dow Jones Industrial Average was up 0.52% and closed at 42,518.28, the S&amp;P 500 closed higher by 0.11% at 5,842.91, while the Nasdaq Composite slid 0.23% to finish at 19,044.39.



Big banks are supposed to kick off the fourth-quarter earnings season today.



Aisa Markets Today



<ul>
<li>On Wednesday, Japan&#8217;s Nikkei 225 closed higher by 0.09% at 38,471.50, led by gains in the Transportation Equipment, Chemical, Petroleum &amp; Plastic and Insurance sectors.</li>



<li>Australia&#8217;s S&amp;P/ASX 200 fell 0.22%, ending the session at 8,213.30, led by losses in the IT, Telecoms Services, and Industrials sectors.</li>



<li>India&#8217;s Nifty 50 closed higher by 0.23% at 23,228.55, and the Nifty 500 gained 0.36%, closing at 21,558.75, led by gains in the Power, Real Estate, and Technology sectors.</li>



<li>China&#8217;s Shanghai Composite fell 0.43% and closed at 3,227.12, and the Shenzhen CSI 300 slid 0.64%, finishing the day at 3,796.03.</li>



<li>Hong Kong Hang Seng closed the session higher by 0.34% at 19,286.07.</li>
</ul>



Eurozone at 06:00 AM ET



<ul>
<li>The European STOXX 50 was up 0.36%.</li>



<li>Germany&#8217;s DAX gained 0.67%.</li>



<li>France&#8217;s CAC rose 0.36%.</li>



<li>U.K.&#8217;s FTSE index 100 traded higher by 0.74%.</li>
</ul>



Commodities at 06:00 AM ET



<ul>
<li>Crude Oil WTI was trading higher by 0.21% at $76.57/bbl, and Brent was up 0.15% at $80.04/bbl.</li>



<li>Natural Gas gained 0.78% to $3.999.</li>



<li>Gold was trading higher by 1.05% at $2,710.76, Silver was up 1.32% to $30.750, and Copper rose 0.10% to $4.3470.</li>
</ul>



U.S. Futures at 06:00 AM ET



Dow futures were up 0.19%, S&amp;P 500 futures rose 0.16% and Nasdaq 100 futures gained 0.21%.



Forex at 06:00 AM ET



<ul>
<li>The U.S. Dollar Index fell 0.11% to 109.06, USD/JPY declined 0.72% to 156.80, and USD/AUD slid 0.14% to 1.6119.</li>



<li>Global stocks rose cautiously ahead of U.S. inflation data and bank earnings, while bond yields dipped. December&#8217;s tame producer price data eased pressure on Treasuries.</li>
</ul>



Photo by Pavel Bobrovskiy via Shutterstock

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Dollar Cools Off Ahead Of Bank Earnings, Asia Markets Mixed, Europe Up - Global Markets Today While US Slept

On Tuesday, the U.S. Securities and Exchange Commission initiated a lawsuit against Elon Musk, accusing him of failing to disclose his substantial stake in Twitter, now rebranded as X.



What Happened: The lawsuit outlines that before Musk completed his <a href="https://www.benzinga.com/general/education/25/01/42794433/if-you-invested-1000-in-dogecoin-when-elon-musk-acquired-twitter-heres-how-much-youd-have-now">$44 million acquisition of Twitter</a> in October 2022, he had already started amassing a significant number of shares.



By March 2022, Musk had acquired over 5% of Twitter&#8217;s common stock, a threshold that required disclosure to the SEC within 10 days.



This alleged non-disclosure allowed Musk to acquire shares at &#8220;artificially low prices,&#8221; according to the SEC.



The complaint, lodged in a federal court in Washington, D.C., accuses Musk and his wealth manager of withholding this crucial information to avoid a potential surge in Twitter&#8217;s stock price.



See Also: <a href="https://www.benzinga.com/25/01/42931833/hewlett-packard-enterprise-strikes-1b-ai-server-deal-with-elon-musks-x-report">Elon Musk&#8217;s X, Hewlett Packard Strike $1 Billion AI Server Deal: Report</a>



This alleged omission enabled Musk to underpay Twitter investors by more than $150 million for his stock purchases during this period.



According to the lawsuit, Musk increased his stake to 7% by purchasing nearly 3.5 million shares on March 25, 2022.



He later joined Twitter&#8217;s board and formally disclosed his stake in early April 2022, by which time he owned over 9% of the company, causing Twitter&#8217;s stock price to rise by more than 27%.



Why It Matters: Last month, <a href="https://www.benzinga.com/government/regulations/24/12/42487993/elon-musk-faces-deadline-to-settle-with-sec-over-twitter-buyout-lawyer-alleges-years-of-harassment">Musk faced a deadline</a> to settle with the SEC over his Twitter buyout, with his lawyer alleging &#8220;years of harassment&#8221; by the agency. The inquiry focused on Musk&#8217;s sale of Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares and his growing investment in Twitter before announcing a leveraged buyout of the social media platform in 2022.



In October 2024, the SEC rejected Musk&#8217;s offer to pay $2,923 for <a href="https://www.benzinga.com/news/24/10/41559160/elon-musks-2-9k-offer-rejected-by-sec-agency-requests-judge-to-sanction-billionaire-over-missed-depo">missing a deposition</a> related to his 2022 Twitter purchase, seeking sanctions against him instead.



Musk and Vivek Ramaswamy, co-leading the &#8220;<a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42035165/coinbase-ceo-brian-armstrong-says-doge-department-is-a-once-in-a-lifetime-opprtunity-advocates-abolishing-individual-income-tax">Department of Government Efficiency</a>&#8221; in Donald Trump's administration, have previously criticized the SEC, labeling it as a &#8220;weaponized institution.&#8221;&nbsp;Their statement came following the Fifth Circuit Court decision that the <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42469967/elon-musk-vivek-ramaswamy-slam-sec-just-another-weaponized-institution">SEC exceeded its authority</a> by approving Nasdaq&#8217;s diversity quota policy.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/social-media/25/01/42833727/dana-white-wanted-elon-musk-mark-zuckerberg-in-cage-fight-now-hes-on-metas-board-of-directors">Dana White Wanted Elon Musk, Mark Zuckerberg In Cage Fight, Now He&#8217;s On Meta&#8217;s Board Of Directors</a></li>
</ul>



Image via Shutterstock



Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.

Legal

Elon Musk Sued By SEC For Allegedly Hiding Twitter Stake That Allowed Him To Buy Stock At Artificially Low Prices

The CNN Money Fear and Greed index remained in the &#8220;Fear&#8221; zone on Tuesday.



U.S. stocks settled mixed on Tuesday, with the Dow Jones index surging more than 200 points during the session following the release of PPI data. U.S. producer prices rose 0.2% month-over-month in December compared to 0.4% in November, and versus market estimates of 0.3%.



Big Tech shares fell on Tuesday, weighing on the Nasdaq index. Shares of NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) fell 1.1%, while Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) lost 2.3% during the session.



Investors are now awaiting the consumer price index report, due to be released today. Economists expect headline CPI to increase 0.3% in December.



Most sectors on the S&amp;P 500 closed on a positive note, with utilities, materials and financials stocks recording gains on Tuesday. However, communication services and health care stocks bucked the overall market trend, closing the session lower.



The Dow Jones closed higher by around 221 points to 42,518.28 on Tuesday. The S&amp;P 500 rose 0.11% to 5,842.91, while the Nasdaq Composite fell 0.23% at 19,044.39 during Tuesday's session.



Investors are awaiting earnings results from Citigroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) and JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) today.



At a current reading of 26.6, the index remained in the &#8220;Fear&#8221; zone on Tuesday, versus a prior reading of 26.7.



What is CNN Business Fear &amp; Greed Index?



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/25/01/42992639/how-to-earn-500-a-month-from-state-street-stock-ahead-of-q4-earnings">How To Earn $500 A Month From State Street Stock Ahead Of Q4 Earnings</a></li>
</ul>

Dow Rises Over 200 Points Ahead Of Inflation, Earnings Data: Greed Index Remains In 'Fear' Zone

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