Market Round-Up: Stock Futures Rise Amid Strong Earnings, Cooling Inflation, and Key Developments Across Industries
U.S. stock index futures edged higher Thursday, continuing Wednesday’s strong rally fueled by encouraging inflation data and robust bank earnings. The S&P 500 gained 1.8%, the NASDAQ Composite surged 2.5%, and the Dow Jones Industrial Average rose 1.7%. Markets also found relief in a U.S.-brokered ceasefire between Israel and Hamas, easing geopolitical tensions in the Middle East.
Inflation Eases, Rate Cut Bets Build
Investor sentiment was buoyed by December’s Consumer Price Index (CPI), which showed cooling inflation. Core CPI came in slightly below expectations, and markets are now pricing in two rate cuts for 2025 instead of the four initially projected. This follows a lower-than-expected Producer Price Index (PPI) earlier in the week, which added to the narrative of easing price pressures.
More economic data is expected Thursday, including December retail sales, which analysts forecast will show a 0.6% rise (down from November’s 0.7%), and weekly jobless claims.
Banks Shine in Earnings Season
Earnings from Morgan Stanley (MS) and Bank of America (BAC) will be in focus Thursday after impressive results from banking heavyweights Wednesday.
- JPMorgan Chase (JPM) achieved an all-time high annual profit, with markets rebounding in Q4.
- Goldman Sachs (GS) posted record quarterly income.
- Citigroup (C) returned to profitability.
- Wells Fargo (WFC) exceeded expectations on its bottom line.
Oil Prices Cool After Hitting Highs
Oil prices dipped slightly Thursday, with WTI crude down 0.4% at $78.40 per barrel and Brent crude lower by 0.5% at $81.66. This follows a 2% surge on Wednesday as softer inflation data and tighter U.S. crude inventories—down by 2 million barrels—boosted sentiment.
Major Industry Updates
LiveOne celebrated reaching over 500,000 Tesla users, expanding its partnership rollout. CEO Robert Ellin highlighted LiveOne’s transformation into a data-driven company, forecasting $25M+ in revenue from new partnerships with major media players like Spotify, TikTok, and Facebook.
Goodfood Market embraced Bitcoin as a treasury asset, with a $1M initial investment. The move reflects a growing trend of companies leveraging digital currencies to create long-term value.
Target announced a 2.8% holiday sales increase, driven by strong Black Friday and Cyber Monday results. Digital sales rose 9%, with same-day delivery growth powered by Target Circle 360. Categories like beauty, apparel, and toys saw notable gains.
TikTok faces a looming U.S. shutdown on January 19 unless blocked by the Supreme Court, following its inclusion in recent political debates. Meanwhile, stocks like Meta Platforms (META) and Snap (SNAP) may see added volatility.
Wolfe Research downgraded AMD, citing weaker data center GPU revenue expectations. The firm anticipates reduced 2025 spending as hyperscalers shift back to AI but acknowledges AMD’s potential for market share growth in enterprise.
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