January 15, 2025

Markets:

Stock futures climbed on Wednesday after the latest consumer price index report showed core inflation unexpectedly slowed in December.

Futures tied to the Dow Jones Industrial Average rose 213 points, or 0.5%, increasing as the earnings results hit the tape. S&P 500 futures and Nasdaq 100 futures climbed 0.4% each.

December’s consumer price index showed that core inflation, which excludes food and energy, rose 3.2%, the Bureau of Labor Statistics reported Wednesday. This was a notch down from the previous month and better than the 3.3% estimated by economists surveyed by Dow Jones. Meanwhile, the 0.4% month-over-month rise in headline inflation came in slightly above the 0.3% forecast by economists.

Fourth-quarter earnings reporting season got off to a positive start Wednesday. JPMorgan Chase shares jumped nearly 3% after the bank reported EPS of $4.81 for the last period, much higher than the $4.11 estimate from analysts polled by LSEG. Revenue also topped expectations. Fixed income trading and investment banking drove the results.

Shares of Goldman Sachs added 1.5% after the bank posted a top- and bottom-line beat in the previous quarter. The investment bank’s earnings of $11.95 per share on $13.87 billion topped forecasts calling for $8.22 EPS and revenues of $12.39 billion, per LSEG.

Wells Fargo shares climbed 3% after the bank said net interest income would be 1% to 3% higher in 2025. Meanwhile, Citigroup popped nearly 4% after beating fourth-quarter estimates.

Portfolio:

Massive Island Bottom formed now with this market.  This can get absolutely wild the upside over the next few months.  Few understand this.  Yesterday we also saw a massive 4 million trade go off on SPX 6275C 4/17.  Keep this in mind. The Put to Call ratio was extremely high this week for OPEX Friday.  Again, the chase to swing is on.

Going to see how we hold and build early on.  Watching all sectors and technical.  No changes needed in HOOD and SOUN  Queue is igniting with force this morning to the liks we have not seen since the election.  Let's see what builds.