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Traders work on the trading floor of the New York Stock Exchange on January 15, 2025 in New York City.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Core CPI lower than expected
U.S. consumer price index rises on seasonally adjusted basis 0.4% for the month In December, the U.S. Bureau of Labor Statistics put the 12-month inflation rate at 2.9% report Wednesday. The core inflation rate, which excludes food and energy prices, rose 0.2% month-on-month and 3.2% for the year. The full-year reading fell 0.1 percentage points from November. Both core readings also missed expectations by 0.1 percentage points.
Israel and Hamas reach ceasefire agreement
Wednesday Israel and Hamas Agreement reached on ceasefire and hostage release end a 15 months of war In the Gaza Strip. Israel’s security cabinet still must vote on the deal before it can be implemented. U.S. President Joe Biden said the first phase of the deal, if approved, would include a comprehensive ceasefire and the withdrawal of Israeli troops from densely populated areas of the Gaza enclave.
Markets have best day in months
US stocks Show up on wednesday With inflation data lower than expected and Treasury yields slow. Pan-European Stoxx 600 Index increased by 1.33%, Ending three-game losing streak and recorded its best performance since August. UK government bond yields sharp decline After official data shows UK inflation rate drops to 2.5% December.
JPMorgan Chase earnings beat expectations
JPMorgan Chase Published Fourth quarter earnings surge. During the period, the bank’s profits rose 50% to $14 billion, while revenue rose 10% to $43.74 billion. That was thanks to net interest income of $23.47 billion, nearly $400 million higher than StreetAccount’s forecast. JPMorgan Chase executive says the bank will Promote share buybacks Even though CEO Jamie Dimon called the stock expensive in May.
Goldman Sachs profits roughly double
Goldman Sachs fourth quarter earnings Trading revenue stronger than expected, beating expectations. The bank said profits doubled from a year earlier to $4.11 billion, while revenue rose 23% to $13.87 billion. “There was once a A meaningful shift in CEO confidenceEspecially after the U.S. election results,” CEO David Solomon said on a conference call Wednesday.
(PRO) Be cautious about profits next week
About 7% of companies S&P 500 Index The index is scheduled to report earnings next week. CNBC Pro sifted through companies reporting earnings next week, looking for companies where analysts are increasingly bearish and found six Earnings forecast cut past three months.
bottom line
Finally, a slew of good news for bulls, who have seen markets decline every week on lingering inflation concerns after a dismal start to the year.
Top of page: US inflation fell below expectations in December. To be sure, headline inflation for the month was 0.1 percentage point higher than the Dow Jones consensus estimate.
But the Fed focuses more on core inflation because it strips out fluctuations in energy and food prices and more accurately reflects price changes in the economy. On a monthly and annual basis, core inflation was lower than expected.
In fact, as CNBC’s Jeff Cox puts it famous“The CPI increase was largely driven by a 2.6% increase in energy prices during the month, driven by a 4.4% increase in gasoline prices. This accounted for approximately 40% of the index’s increase, according to the Bureau of Labor Statistics. “
John Kerschner, head of U.S. securitized products and portfolio manager at Janus Henderson Investors, said: “Today’s CPI data suggests that further rate hikes have been ruled out, with some market participants Already starting to digest this prematurely.”
this U.S. 10-year Treasury bond yield The rate fell sharply as traders lowered their rate forecasts and is now at 4.655%, compared with Friday’s close of 4.774%.
This gives stocks some breathing room. this S&P 500 Index up 1.83% Dow Jones Industrial Average up 1.65%, Nasdaq Composite Index Soared 2.45%. It was the best day for the three major stock indexes since November 6.
Upbeat earnings reports from banks also added to the cheer. Their financial performance often serves as a predictor of the economy’s overall direction: When businesses and consumers engage in more financial activity, banks’ revenues grow, which in turn helps the economy grow.
The stars aligned Wednesday for investors. But just as the skies are constantly changing, volatility from new U.S. administrations and policies remains.
—CNBC’s Jeff Cox, Hakyung Kim and Lisa Kailai Han contributed to this report.
