OP Wire 1/15 (OP – Lite)

Good morning, OptionsPlayers! Here’s your premarket rundown for today, covering everything you need to prepare for market action:

U.S. Markets Edge Higher Ahead of CPI Data

U.S. stock futures are ticking upward in cautious trading as investors gear up for the release of key Consumer Price Index (CPI) inflation data at 8:30 ET. After a choppy session on Tuesday, with weakness in tech stocks, Wall Street remains on edge.

• Tuesday Recap:
  • S&P 500: +0.1%
  • Dow Jones: +0.5%
  • NASDAQ: -0.2%

Economists expect the CPI to rise 0.4% month-over-month for December (vs. 0.3% in November). On a year-over-year basis, CPI is projected at 2.9%, up from 2.7%. Core CPI (excluding food and fuel) is forecasted to rise 0.3% MoM and 3.3% YoY, matching last month.

Why It Matters:
The CPI report is expected to offer fresh insights into the Federal Reserve’s future rate decisions, especially after last week’s strong employment data. Markets are pricing in a slower pace of rate cuts in 2025, which could weigh on risk assets.

Major Banks Set to Announce Quarterly Earnings

The earnings season heats up with major banks reporting before the bell, including:

• JPMorgan Chase (JPM)
• Goldman Sachs (GS)
• Citigroup (C)
• BlackRock (BLK)

What to Watch:

• Investment banking and trading revenues in the wake of last year’s market rally.
• Impacts of lower corporate borrowing costs and regulatory shifts post-2024 elections.

Crude Oil Rises on Inventory Drop, Russian Sanctions

Oil prices are climbing this morning:

• WTI Crude: +0.3% to $76.61
• Brent Crude: +0.2% to $80.08

The gains come after a report from the American Petroleum Institute showed a decline in U.S. crude stockpiles. However, uncertainty around new sanctions on Russian oil exports continues to drive volatility.

Key Analyst Updates

Walgreens Boots Alliance (WBA):

• RBC Capital raises its price target to $12 (from $9), citing progress in store closures and turnaround efforts.

Apple (AAPL):

• BofA maintains a Buy rating with a $256 price target, highlighting a 5% reduction in manufacturing costs for the iPhone 16 Pro Max, boosting gross margins.

Tesla (TSLA):

• Wells Fargo: Underweight with a $125 price target. Concerns about declining Model 3 and Y sales, competitive pressures from China, and the potential repeal of U.S. EV tax credits in 2025.
• Barclays: Raises target to $325 and notes Tesla’s focus on autonomous vehicles and energy but warns the stock is detached from fundamentals.

Other Headlines

• Meta Platforms (META): Meta dismantles its viral hoax identification system and ends its U.S. fact-checking program, citing shifts under the incoming Trump administration.
• Elon Musk vs. SEC: The SEC sues Musk over failing to disclose his 2022 Twitter stock purchase, alleging harm to investors who sold at lower prices.

How to Navigate Today

Stay tuned in the chat for live updates and analysis. With CPI data on deck and key earnings in focus, clarity on market-moving catalysts will be your edge.

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