15 JAN 2025 Market Close & Major Financial Headlines: Consumer Price Index Report And Blowout Bank Earnings Send Wall Street Markets Skyrocketing Higher

Gary Hall

and

Steven Hansen

Jan 15, 2025

The Dow closed up7031 points or 1.65%,
Nasdaq closed up 467 points or 2.45%,
S&P 500 closed up 107 points or 1.83%,
Gold $2,720 up $37.60 or 1.390%,
WTI crude oil settled at $81 up $3.02 or 3.91%,
10-year U.S. Treasury 4.786 down 0.019 points or 0.395%,
USD index $109.06 down $0.21 or 0.19%,
Bitcoin $99,715 up $3,601 or 3.31%, (24 Hours),

*Stock data, cryptocurrency, and commodity prices at the market closing

Today’s Highlights – Market Summary

US stocks rallied significantly on Wednesday. This surge was driven by two key factors: better-than-expected bank earnings and a favorable Consumer Price Index (CPI) report. [editor's note: we believe traders are misinterpreting CPI data.] This positive inflation news led to a drop in the 10-year Treasury yield and increased optimism about potential Federal Reserve rate cuts later in the year. Major banks, including JPMorgan Chase, Goldman Sachs, and BlackRock, reported strong profits, further boosting market sentiment4. The rally was particularly strong in tech stocks, with all of the "Magnificent Seven" tech companies seeing gains of over 1.5%.

Click here to read our current Economic Forecast – January 2025 Economic Forecast: Little Change And Still Indicating a Weak Economy – One Recession Flag Removed

Today’s Economic Releases Compiled by Steven Hansen, Publisher:

The all-items Consumer Price Index (CPI) rose 2.9% for the 12 months ending December 2024, after rising 2.7% over the 12 months ending November. The all items less food and energy index rose 3.2% over the last 12 months. This marks the largest increase since July 2024. This uptick was primarily driven by higher energy and food prices. Despite the increase, there were some encouraging signs. The core CPI, which excludes volatile food and energy costs, rose 3.2% annually, lower than the expected 3.3%. This may suggest that underlying inflationary pressures are easing but I have seen no indication of this in other inflation pressure data. Some economists caution that the incoming Trump administration's economic plans, including potential tariffs and tax cuts, could reignite inflation. Still, there is a clear trend of worsening inflation data in the last 6 months of the Biden administration resulting from their lack of inflation-fighting measures. The Federal Reserve, which has been working to bring inflation down to its 2% target, may need to reassess its rate-cutting plans in light of this data.

The New York Fed's Empire State Manufacturing Survey for January 2025 showed a significant decline in business activity. The headline general business conditions index fell fifteen points to -12.6, well below the expected +3.0, indicating a contraction in manufacturing activity in New York State. New orders decreased modestly, while shipments remained largely unchanged. The survey revealed slightly longer delivery times and stable supply availability. Inventories grew slightly, and labor market indicators suggested steady employment levels but a shorter average workweek. There is no doubt that the recession in manufacturing is continuing in the U.S.

Economic activity across the twelve Federal Reserve Districts showed slight to moderate growth in late 2024 and early 2025 according to the January 2025 Beige Book. Consumer spending increased moderately, with strong holiday sales exceeding expectations in most areas. Vehicle sales saw modest growth, while construction activity declined due to high material and financing costs. Manufacturing decreased slightly, with some stockpiling in anticipation of higher tariffs. Residential real estate remained stagnant due to high mortgage rates, but commercial real estate sales edged up. The non-financial services sector grew slightly, particularly in leisure, hospitality, and air travel, though truck freight volumes decreased. Financial services reported modest lending growth, with concerns about delinquencies among small businesses and lower-income households. Agricultural conditions remained weak, and energy activity was mixed. Despite some concerns about immigration and tariff policies, more contacts expressed optimism about the 2025 economic outlook than pessimism. Overall, this Beige Book seems more economically positive - but it is OPINION from Federal Reserve personnel and industry contacts.

Infographic of the Day from Visual Capitalist:

Map showing life expectancy at birth across 30 major economies.

Statista Graphic of the Day:

Infographic: Boeing & Airbus: Making Money or Losing Money? | Statista

You will find more infographics at Statista

Here are the headlines moving the markets:

Weather Outlook for the U.S. for Today Through at Least 22 Days and a Six-Day Forecast for the World: – Posted on January 15, 2025

This article focuses on what we are paying attention to in the next 48 to 72 hours. The article also includes weather maps for longer-term U.S. outlooks (up to four weeks) and a six-day World weather outlook which can be very useful for travelers.

Aluminum Market Wavers Amidst Tariff Uncertainty

The Aluminum Monthly Metals Index (MMI) remained consolidated, falling by a modest 1.29% from December to January. Meanwhile, LME aluminum prices continued to trend sideways during the first half of January. Aluminum Prices Sideways, Midwest Premium Futures Up The aluminum market remained uncertain during the first few weeks of the new year. Less than a week from Trumps inauguration, markets appear tentative. Most analysts expect a new round of tariffs from the President, which poses a bullish risk to end-user prices. Source: MetalMiner

Armenia Forges Strategic Partnership with US, Deepening Western Ties

January 2025 may go down as Armenias geopolitical inflection point, a time when Yerevan decisively moved to shun its longtime protector Russia and pin its political and economic future on integration with Western institutions, thus scrambling the strategic balance in the Caucasus. Armenian officials have taken steps in recent days to formalize the countrys improving relationship with the United States and European Union. On January 14, US and Armenian diplomats signed a strategic partnership agreement, paving the way for stronger

EU Braces for Impact of Trump's Presidency in 2025

Much of what happens in the EU in 2025 will hinge on the incoming U.S. presidency of Donald Trump. Speaking to EU officials over the last few weeks, they all seem to be waiting for his inauguration on January 20 to see what challenges his new administration might bring. There are a few specifics, however, that they are bracing for. One is tariffs, with the belief that Trump's campaign promise of a universal tariff on imports of between 10 and 20 percent will happen and is manageable, even though there are fears certain products will be slapped

Sweden Starts Building 100,000-Year Nuclear Waste Repository

Sweden has commenced construction of a final storage facility for spent nuclear fuel, where highly radioactive waste will be stored for 100,000 years. Currently, there are thousands of metric tons of used solid fuel from nuclear power plants worldwide and millions of liters of radioactive liquid waste from weapons production sitting in temporary storage containers, some of which have begun leaking their toxic contents. Nuclear waste is notorious for the fact that it can remain dangerously radioactive for many thousands of years. "It is hard

BYD Closing the Gap on Tesla in Global EV Market Share

Tesla retained the biggest market share among all battery electric vehicles (BEVs) sold worldwide in 2024, but only slightly. In 2023, Tesla's share stood at 19 percent before dropping to 18 percent in first nine months of 2024, according to analyses by EV Volumes published on CleanTechnica. The competition is now hot on Tesla's heels. As Statista's Florian Zandt shows in the chart below, the Chinese conglomerate BYD, which produces standalone electric vehicle batteries and associated electronics in addition to plug-in hybrid and fully electric

EU Mulls Gradual Ban on LNG Imports From Russia

The European Union is drafting the 16th package of sanctions against Russia over its invasion of Ukraine, which could include a gradual ban on EU imports of LNG from Russia, sources with knowledge of plans told Bloomberg on Wednesday. The EU no longer imports pipeline natural gas from Russia via Ukraine, after the latter refused to negotiate an extension to the transit gas deal that expired on December 31, 2024. The EU, however, has significantly boosted imports of Russian LNG in recent months. Russian LNG accounted for 20% of the EUs liquefied

OPEC Projects Robust Oil Demand Growth For 2025 And 2026

The Organization of Petroleum Exporting Countries (OPEC) has released its latest Monthly Oil Market Report (MOMR) that covers major issues affecting global oil markets and provides the outlook for crude oil market developments. OPEC has reiterated its earlier forecast thatglobal oil demand will expand at a robust clip at 1.4 mb/d in 2025, largely driven by strong non-OECD (Organization for Economic Co-operation and Development) growth. OPEC sees non-OECD demand growth clocking in at 1.3 mb/d, compared with just 0.1 mb/d for the 38-member

Oil Rises as Crude Inventories Continue to Draw

Crude oil prices moved higher today, after the U.S. Energy Information Administration reported an inventory dip of 2 million barrels for the second week of the year. The change estimated by the EIA compared with a modest draw of around 1 million barrels for the previous week, which also saw sizable builds in fuel inventories that dragged oil prices lower. For the week to January 10, the EIA estimated an inventory build of 5.9 million in gasoline, with production averaging 9.3 million barrels daily. This compared with a build of as much as 6.3 million

India Races to Settle Payments for Russian Oil Before U.S. Sanctions Bite

Indian state-held refiners are targeting to settle the payments for Russian oil in half the time they have taken so far, as part of efforts to complete the deals before the seven-week wind-down period in the latest U.S. sanctions ends at the end of February. Refiners are now looking to settle the payments in just two days instead of five days, sources with knowledge of the matter told Bloomberg on Wednesday. The outgoing U.S. Administration on Fridayimposedthe most severe sanctions on Russias oil yet, designating two major Russian

LNG Market in Flux: Europe and Asia Compete for Supply

The global energy landscape has entered a transformative era as Europe decisively shifts away from Russian natural gas. Once the cornerstone of Europes energy supply, Russia now faces the economic and geopolitical fallout of losing its largest market. New research published in Nature Communications, led by Professors Michael Bradshaw of Warwick Business School and Steve Pye of UCL, explores the wide-ranging implications of Russias pivot to Asian markets in a world increasingly shaped by energy diversification and sustainability goals.

Trumps Energy Secretary Nominee Pledges Domestic Expansion

President-elect Donald Trumps pick for Secretary of Energy, Chris Wright, pledged on Wednesday to help unleash a major expansion in U.S. domestic energy production, including oil, LNG, and nuclear power. The security of our nation begins with energy, Wright said in remarks prepared for his confirmation hearing at the Energy and Natural Resources Committee today. Previous administrations have viewed energy as a liability instead of the immense national asset that it is, said Wright, who is the founder and CEO of

Saudi Oil Giant Aramco to Invest in Lithium Production

The worlds top crude oil exporter, Saudi Aramco, is set to announce on Wednesday a push to invest in lithium production and developments to capture part of the supply chain and diversify from oil, sources close to the largest oil firm globally told the Financial Times. The move to boost investments in lithium is part of a wider plan at the Saudi oil giant to become a mining hub and diversify into the material critical for the energy transition, according to FTs sources. Last year, Saudi Arabias first electric vehicle (EV) brand

IEA Sees U.S. Sanctions on Russia Disrupting Oil Flows

The new expansive U.S. sanctions on the Russian oil industry and exports could affect global oil flows, complicating trade logistics for producers using shadow fleets such as Russia, Iran, and Venezuela, the International Energy Agency (IEA) said on Wednesday. Despite the prospect of declining supply from Russia and Iran, with the latest sanctions against Moscow from the outgoing U.S. Administration and expected stricter sanctions and sanction enforcement from the incoming Trump Administration, the global oil market is likely to remain in a surplus

Indonesia Considers Importing Russian Oil After Joining BRICS

After joining BRICS last week, Indonesia is considering the possibility of importing cheap Russian crude oil, as long as it complies with the rules, Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, said on Wednesday. Last week, Indonesia became the first Southeast Asian country the one with the biggest economy and largest population at that to join the BRICS group of developing economies, said Brazil, which holds the 2025 presidency of the alliance. After Indonesia joined the group, BRICS (originally standing

Shell Invests in Expanding Chinese Petrochemicals Business

Shell is investing in the expansion of its joint-venture petrochemicals complex in China as the supermajor bets on continued petrochemicals demand in the worlds top crude oil importer. Shell said on Wednesday that CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd, had taken a final investment decision to expand its petrochemical complex in Daya Bay, Huizhou, in southern China. The expansion will include a third ethylene cracker with a planned capacity

Dow surges 700 points, S&P 500 posts best day since November after tame inflation report: Live updates

Stocks surged on Wednesday after the latest consumer price index report showed core inflation unexpectedly slowed in December.

Israel and Hamas reach Gaza hostage deal, ceasefire to begin Sunday

A ceasefire and hostage deal between Israel and Hamas has been reached in the bloody war in Gaza.

Here's the inflation breakdown for December 2024 — in one chart

The consumer price index, an inflation gauge, rose 2.9% on an annual basis in December 2024 on the back of higher food and energy prices.

DOT sues Southwest, fines Frontier for 'chronically delayed flights'

The Department of Transportation has sued Southwest Airlines, alleging the carrier operated chronically delayed flights.

TikTok’s U.S. operations could be worth as much as $50 billion if ByteDance decides to sell

Business moguls should be prepared to spend tens of billions of dollars for TikTok's U.S. operations should parent company ByteDance decide to sell.

Live confirmation updates: Trump's AG pick Bondi questioned on access to abortion drug

Trump's picks face Senate confirmation hearings for six top administration posts.

Bitcoin rebounds after core inflation unexpectedly slows in December: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Alan Orwick of Quai Network reacts to bitcoin's rise after encouraging inflation data.

Cushion your portfolio in 2025 with these fixed income assets. Where to put your cash to work

The prospect of elevated rates isn't all bad news for fixed income investors.

There's been a 'meaningful shift' in CEO confidence since Trump's election, says Goldman's Solomon

The Wall Street CEO discussed growing confidence among business leaders after his bank's strong fourth-quarter report.

Biden administration seeks to avoid default crisis for student loan borrowers as garnishments resume

In a new memo obtained by CNBC, a top official at the U.S. Department of Education lays out ways to avoid a wave of new defaults by student loan borrowers.

Investigators comb a scorched slope to solve a mystery: How did the Palisades Fire start?

So far, the probe is focusing on potential human causes, which could include arson, fireworks, unauthorized camping or a rekindling of an earlier fire, law enforcement sources said.

YouTube donating $15 million in LA wildfire relief, support for creators days before TikTok ban

Google and YouTube will donate $15 million to support the Los Angeles community and content creators impacted by wildfires.

Here are 7 steps homeowners and renters should take after a wildfire, experts say

If your primary residence was affected or completely destroyed in a wildfire, here are seven steps to take immediately, according to experts.

LA Police Chief Says 3 Suspected Arsonists Arrested After Being Caught Amid Deadly Wildfires

Authored by Jack Phillips via The Epoch Times (emphasis ours),

Los Angeles Police Department (LAPD) Chief Jim McDonnell on Tuesday gave more details on the arrests of three arson suspects, in light of wildfires that have scorched thousands of acres in Los Angeles in recent days.

Firefighters watch as water is dropped on the Palisades Fire in Mandeville Canyon in Los Angeles on Jan. 11, 2025. Jae C. Hong/AP Photo

“On Sunday night, our North Hollywood officers responded to a call of a possible arson suspect who was using a barbecue lighter to light fires. Officers arrived on the scene, and the suspect was arrested for an outstanding felony warrant for arson an ...

Watch: Amazon Uses Huge Diesel Generator To Charge Electric Delivery Van Fleet

Amazon closed out 2024 with more than 20,000 electric delivery vans manufactured by Rivian in its fleet nationwide. The e-commerce giant highlights on its website that the electric vans are part of its "urgent" climate change initiative to "remove carbon emissions from transportation systems."

However, Amazon faces mounting criticism for gaslighting the public about its net zero goals and actual operational fleet practices.

Take, for instance, Amazon's website. Within the Sustainability section, the company laid out its approach to fight so-called global warming:

"To reach this target, we're also expanding the use of zero-emission transportation such as electric delivery vans, cargo e-bikes, and on-foot deliveries, and we engage in industry initiatives to remove carbon emissions from transportation systems like ocean shipping, aviation, and trucking. We're also using innovative construction techniques and building materials to make our fulfillment centers, data centers, offices, and physical retail locations more sustainable."

Amazon's climate pledge on its website.

Preventable Deaths And Vitamin D3

Authored by Robert W. Malone via The Epoch Times (emphasis ours),

We had an inexpensive life-saving solution both before and during the pandemic…

The inconvenient truth is that even at the beginning of the COVID-19 pandemic, a very simple, inexpensive and effective treatment was available that could have saved the majority of lives lost (1-3). All that the WHO and public health bureaucracy had to do was to recommend and support people taking sufficient Vitamin D3.

Vitamin D3 could have saved countless lives during the pandemic...

This failure to act traces back to the unscientific bias and pro-vaccine obsession of Dr. Anthony Fauci. And once again the legacy media, while being paid by the US government and the pharmaceutical industry to promote vaccination, acted by censoring, defaming and suppressing the ...

LA Landlords Hike Rent As Much As 124% As Fires Force Thousands To Flee

Landlords in fire-stricken Los Angeles are jacking rents in violation of California law as thousands of residents seek shelter due to multiple fires burning in the area.

Santa Monica rental listed for $12,500 in Feb. 2024 was going for $28,000 before the listing was pulled.

A search of local listings by several outlets reveal several landlords who have raised prices by as much as 124%, flouting a state law that prohibits rent hikes in excess of 10% after a state of emergency has been declared.

California’s state of emergency, declared by Gov. Gavin Newsom on Tuesday, bans price gouging for a range of goods and services, including rental housing. That means any rent increase above 10 percent since the start of the state of emergency is illegal for ...

Borrowing costs fall after inflation surprise

Investors are now betting on an interest rate cut next month from the Bank of England.

Surprise fall in inflation boosts interest rate cut hopes

Inflation falls for the first time in three months, sparking expectations rates may be cut to 4.5% in February.

Why a small drop in inflation matters to you

The marginal dip in UK inflation is unusually important and offers some respite to the chancellor.

CEAT Q3 Results: Net profit falls 46% to Rs 97 crore on high raw materials cost

CEAT Ltd's Q3 consolidated net profit fell by 46.48% to Rs 97.03 crore due to high raw material costs. Revenue grew to Rs 3,299.9 crore, driven by the replacement segment. The company partially offset increased costs through selective price hikes. Demand is stable, and a robust order book is expected for Q4.

Tech View: Nifty’s near-term trend weak; breakout above 23,350 may trigger upside bounce. How to trade on Thursday

The Nifty's near-term trend remains weak, with the lower tops and bottoms pattern intact. The current pullback aligns with a potential new lower top, pending confirmation. A decisive move above 23,300-23,350 could strengthen the upside, while 23,050 serves as key support. Nagaraj Shetti of HDFC Securities highlights these crucial levels for market direction.

L&T Tech Q3 Results: Cons PAT falls 4% YoY to Rs 322 crore, revenue rises 9%

L&T Tech Q3 Results: On a sequential basis, net profit for the reporting quarter rose marginally by 0.9%, while revenues increased by 3%. In constant currency (CC) terms, revenue growth for the quarter was nearly 9% year-on-year (YoY), and in USD terms, revenues stood at $312 million.

Oil prices end higher as traders weigh demand prospects, supply risks

Oil futures settled higher Wednesday, finding support after snapping a three-day winning streak that had been driven in part by wider U.S. sanctions on Russia as well as cold weather in much of the U.S. and Europe.

2-year yield plunges by most since September on mild core CPI inflation reading

U.S. government debt aggressively rallied after the monthly core inflation reading from Wednesday’s consumer-price index came in softer than expected, handing yields their biggest one-day declines since September-November.

Most mutual funds don’t beat the market — but what’s ‘the market’ anyway?

The S&P 500 is a high bar for fund managers. The Dow? Not as much.

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