Leading cryptocurrencies charged higher Tuesday amid softer-than-expected wholesale inflation data.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+2.53%</td><td>$97,071.13</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+2.83%</td><td>$3,219.18</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+5.58%</td><td>$0.3576</td></tr></tbody></table></figure>



What Happened: Bitcoin soared to a weekly high of $97,350 early this morning, holding on to its gains for the remainder of the day.&nbsp;



The dramatic turnaround comes just a day after the leading cryptocurrency slipped below $90,000 for the first time since November 2024.



Ethereum, the second-largest cryptocurrency, reclaimed the $3,200 zone a day after dipping below $3,000.&nbsp;



About $185 million were liquidated from the cryptocurrency market in the last 24 hours, with bearish bets accounting for $122 million.&nbsp;



The percentage of Binance traders going long on Bitcoin dipped from 62% to 55% in the last 24 hours, suggesting that the market was bracing for another correction.



The "Greed" sentiment strengthened from 63 to 70 in the last 24 hours, according to the Crypto Fear &amp; Greed Index



Top Gainers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>ai16z (AI16Z)</td><td>+21.07%</td><td>$1.36</td></tr><tr><td>DeXe (DEXE)</td><td>+20.48%</td><td>$16.41</td></tr><tr><td>Kaspa (KAS)</td><td>+16.19%</td><td>$0.1375</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.36 trillion, rising by 2.77% in the last 24 hours.



Major stock indexes moved north on Tuesday. The Dow Jones Industrial Average rose 221.16 points, or 0.52%, to 42,518.28. The S&amp;P 500 gained 0.11% to close at 5,842.91. The tech-focused Nasdaq Composite was the outlier, ending 0.23% lower at 19,044.39.



The rise followed<a href="https://www.benzinga.com/25/01/42979267/markets-rebound-on-cool-inflation-data-experts-await-wednesdays-cpi"> cooler-than-expected</a> Producer Price Index data for December. Focus shifts to the all-important <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42988894/all-eyes-on-december-inflation-betting-odds-signal-risk-of-fed-struggling-to-tame">Consumer Price Index</a> report, due for release on Wednesday, as investors look for signals about whether the Federal Reserve may soften its interest rate policy.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Widely followed cryptocurrency analyst Rekt Capital noted the importance of Bitcoin's daily close above $91,000.



"The $91000-$101000 range and early-stage higher low on the RSI have been preserved," the analyst remarked. "The exaggerated bullish divergence remains intact."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> Daily Close above $91000 secured The $91000-$101000 range and early-stage Higher Low on the RSI have been preserved The exaggerated Bullish Divergence remains intact<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://t.co/UVZFMcEbfh">https://t.co/UVZFMcEbfh</a> <a href="https://t.co/GB3qPmyzrE">pic.twitter.com/GB3qPmyzrE</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1879181211412697600?ref_src=twsrc%5Etfw">January 14, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Another popular cryptocurrency trader, Michaël van de Poppe, expressed optimism that sentiment toward altcoins would shift starting this week.



"The sentiment, in a negative manner, has gone through new roofs, people are expecting the bull market to be over. The ideal climate for altcoins to perform well," he added.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I&#39;m confident the sentiment and climate for <a href="https://twitter.com/hashtag/Altcoins?src=hash&amp;ref_src=twsrc%5Etfw">#Altcoins</a> is going to shift from these weeks onwards. The sentiment, in a negative manner, has gone through new roofs, people are expecting the bull market to be over. The ideal climate for altcoins to perform well.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1879222698900910080?ref_src=twsrc%5Etfw">January 14, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo by CMP_NZ on Shutterstock



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42935597/mark-cuban-advocates-bitcoin-over-gold-during-economic-turmoil-i-think-it-has-more-value-than-gold">Mark Cuban Advocates Bitcoin Over Gold During Economic Turmoil: &#8216;I Think It Has More Value Than Gold&#8217;</a></li>
</ul>

Cryptocurrency

News

Markets

Movers

Trading Ideas

$BTC

$DOGE

$ETH

Bitcoin, Ethereum, And Dogecoin Rebound Sharply On Lighter Inflation Data: Top Trader Says Despite Expectations For Bull Market To Be Over, It's An Ideal Climate For Altcoins.

On Tuesday, the U.S. Securities and Exchange Commission initiated a lawsuit against Elon Musk, accusing him of failing to disclose his substantial stake in Twitter, now rebranded as X.



What Happened: The lawsuit outlines that before Musk completed his <a href="https://www.benzinga.com/general/education/25/01/42794433/if-you-invested-1000-in-dogecoin-when-elon-musk-acquired-twitter-heres-how-much-youd-have-now">$44 million acquisition of Twitter</a> in October 2022, he had already started amassing a significant number of shares.



By March 2022, Musk had acquired over 5% of Twitter&#8217;s common stock, a threshold that required disclosure to the SEC within 10 days.



This alleged non-disclosure allowed Musk to acquire shares at &#8220;artificially low prices,&#8221; according to the SEC.



The complaint, lodged in a federal court in Washington, D.C., accuses Musk and his wealth manager of withholding this crucial information to avoid a potential surge in Twitter&#8217;s stock price.



See Also: <a href="https://www.benzinga.com/25/01/42931833/hewlett-packard-enterprise-strikes-1b-ai-server-deal-with-elon-musks-x-report">Elon Musk&#8217;s X, Hewlett Packard Strike $1 Billion AI Server Deal: Report</a>



This alleged omission enabled Musk to underpay Twitter investors by more than $150 million for his stock purchases during this period.



According to the lawsuit, Musk increased his stake to 7% by purchasing nearly 3.5 million shares on March 25, 2022.



He later joined Twitter&#8217;s board and formally disclosed his stake in early April 2022, by which time he owned over 9% of the company, causing Twitter&#8217;s stock price to rise by more than 27%.



Why It Matters: Last month, <a href="https://www.benzinga.com/government/regulations/24/12/42487993/elon-musk-faces-deadline-to-settle-with-sec-over-twitter-buyout-lawyer-alleges-years-of-harassment">Musk faced a deadline</a> to settle with the SEC over his Twitter buyout, with his lawyer alleging &#8220;years of harassment&#8221; by the agency. The inquiry focused on Musk&#8217;s sale of Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares and his growing investment in Twitter before announcing a leveraged buyout of the social media platform in 2022.



In October 2024, the SEC rejected Musk&#8217;s offer to pay $2,923 for <a href="https://www.benzinga.com/news/24/10/41559160/elon-musks-2-9k-offer-rejected-by-sec-agency-requests-judge-to-sanction-billionaire-over-missed-depo">missing a deposition</a> related to his 2022 Twitter purchase, seeking sanctions against him instead.



Musk and Vivek Ramaswamy, co-leading the &#8220;<a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42035165/coinbase-ceo-brian-armstrong-says-doge-department-is-a-once-in-a-lifetime-opprtunity-advocates-abolishing-individual-income-tax">Department of Government Efficiency</a>&#8221; in Donald Trump's administration, have previously criticized the SEC, labeling it as a &#8220;weaponized institution.&#8221;&nbsp;Their statement came following the Fifth Circuit Court decision that the <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42469967/elon-musk-vivek-ramaswamy-slam-sec-just-another-weaponized-institution">SEC exceeded its authority</a> by approving Nasdaq&#8217;s diversity quota policy.



Read Next:



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<li><a href="https://www.benzinga.com/general/social-media/25/01/42833727/dana-white-wanted-elon-musk-mark-zuckerberg-in-cage-fight-now-hes-on-metas-board-of-directors">Dana White Wanted Elon Musk, Mark Zuckerberg In Cage Fight, Now He&#8217;s On Meta&#8217;s Board Of Directors</a></li>
</ul>



Image via Shutterstock



Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.

Legal

TSLA

Elon Musk Sued By SEC For Allegedly Hiding Twitter Stake That Allowed Him To Buy Stock At Artificially Low Prices

South Korean markets showed resilience Wednesday as President Yoon Suk Yeol was taken into custody, with the benchmark KOSPI rising 0.40% to 2,507.35 amid heightened political uncertainty.



Yoon, 64, was detained at 10:33 a.m. local time by a joint probe team investigating allegations related to his December martial law declaration, marking an unprecedented arrest of a sitting South Korean president. 



The arrest came after an initial failed attempt on Jan. 3 that resulted in a standoff between investigators and presidential security, <a href="https://www.koreaherald.com/article/10390439">reported</a> The Korean Herald.



Despite the political upheaval, major South Korean stocks held steady. SK Hynix Inc. led the gains, climbing 2.31% to 1,99,800 South Korean won ($136.90). Samsung Electronics Co. Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) rose 0.37% to 54,100 South Korean won ($37.06), while KB Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KB#NYSE">KB</a>) gained 0.90%, reaching 89,500 South Korean won ($61.31). Hyundai Motor (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HYMTF#OTC">HYMTF</a>) saw a slight decline of 0.23%, trading at 2,21,500 South Korean won ($151.76). 



The iShares MSCI South Korea ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWY#NYSE">EWY</a>), a key indicator for U.S. investors, gained 0.94% on Tuesday.



The Korean won remained stable against the U.S. dollar, trading at 1,460.52 South Korean won, down marginally by 0.063%. 



The arrest warrant for President Yoon, which expires Jan. 21, includes charges of power abuse and insurrection. The investigation is led by the Corruption Investigation Office for High-ranking Officials.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/01/42993322/elon-musk-faces-sec-lawsuit-for-allegedly-hiding-twitter-stake-allowing-him-to-buy-shares-at-artificially-low-prices">Elon Musk Sued By SEC For Allegedly Hiding Twitter Stake That Allowed Him To Buy Stock At Artificially Low Prices</a></li>
</ul>



Image Via Shutterstock 



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Asia

Equities

Government

HYMTF

SSNLF

South Korean President Yoon Suk Yeol Arrested — KOSPI Edges Higher Despite Political Upheaval, Won Stable

As both JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) and Wells Fargo &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) prepare to release their <a href="https://www.benzinga.com/earnings">fourth quarter earnings</a> on Wednesday before the market opens, the spotlight's on their technicals. 



Investors are betting big on both, but only one can come out on top when the numbers drop. Let's take a quick spin through the charts and see who's in the driver's seat ahead of the big reveal.



<h2 class="wp-block-heading">JPM Stock: Strong Bullish Momentum</h2>



JPM stock is cruising, and it's not just the bull market that's pushing it. 



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011425&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="490" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14145142/Screenshot-2025-01-15-at-1.20.02-AM.png" alt="" class="wp-image-733331" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14145142/Screenshot-2025-01-15-at-1.20.02-AM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14145142/Screenshot-2025-01-15-at-1.20.02-AM-300x233.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011425&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>



Trading at $245.75, JPM stock is firmly parked above its eight, 20, and 50-day simple moving averages (SMAs), signaling a roaring bullish trend. The stock has been soaking up buying pressure like a sponge, with investors clearly confident about its upcoming earnings report. 



The eight-day SMA of $242.38, 20-day SMA of $240.09 and 50-day SMA of $240.73 are all flashing bullish signals &#8211; an indication that JPM stock is firing on all cylinders.



Looking ahead, analysts are forecasting strong results: $4.11 in EPS and $41.7 billion in revenue. Given the strong upward momentum and positive technicals, JPMorgan looks primed to continue its bull run post-earnings, barring any major surprises.



With its 200-day SMA sitting at $214.20, the long-term bullish trend is also clearly intact.



Read Also: <a href="https://www.benzinga.com/markets/equities/25/01/42938578/jamie-dimon-calls-elon-musk-an-extraordinary-talent-jp-morgan-ceo-shares-why-trumps-election-victory-didnt-surprise-him">Jamie Dimon Calls Elon Musk &#8216;An Extraordinary Talent&#8217; — JP Morgan CEO Shares Why Trump&#8217;s Election Victory Didn&#8217;t Surprise Him</a>



<h2 class="wp-block-heading">WFC Stock: Cautionary Signals Amid Long-Term Strength</h2>



Meanwhile, WFC stock is a bit more on the fence. 



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011425&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="490" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14145416/Screenshot-2025-01-15-at-1.20.16-AM.png" alt="" class="wp-image-733334" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14145416/Screenshot-2025-01-15-at-1.20.16-AM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14145416/Screenshot-2025-01-15-at-1.20.16-AM-300x233.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011425&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>



Trading at $71.17, WFC stock is still above its eight, 20 and 200-day moving averages, suggesting a bullish short and long-term outlook. But the medium-term charts aren't quite as rosy. The 50-day SMA of $71.73 is giving off a bearish signal, indicating that WFC stock could be in for a bit of a pause, or even a minor pullback, before earnings. 



The 50-day SMA trading above the price further confirms this potential weakness, even though the 200-day SMA of $61.67 continues to signal bullishness in the long run.



<h2 class="wp-block-heading">The Verdict: JPM Looks Stronger for Now</h2>



In the grand scheme of things, Wells Fargo's longer-term trend is still bullish, but with technicals showing some indecision in the medium-term. So, WFC stock will need a solid earnings beat to kick things back into gear. 



JPM stock, on the other hand, is looking incredibly strong across the board, and its solid bullish momentum makes it the clear technical winner going into Wednesday's earnings report.



Read Next: 



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42984073/banks-kick-off-earnings-season-on-wednesday-retail-traders-bet-big-on-financials-ahead-of-regulatory-tailwinds">Banks Kick Off Earnings Season On Wednesday: Retail Traders Bet Big On Financials Ahead Of Regulatory Tailwinds</a></li>
</ul>



Image created using photos from Shutterstock.

Technicals

Previews

Tech

JPMorgan Vs. Wells Fargo: 1 Bank Stock Technically Stronger Ahead Of Earnings

Wednesday&#8217;s release of the December Consumer Price Index will provide fresh insights into inflation's trajectory, potentially influencing the Federal Reserve&#8217;s policy stance amid mounting <a href="https://www.benzinga.com/topic/interest-rates">uncertainty over interest rates.</a>



The eagerly awaited report follows Tuesday&#8217;s release of the Producer Price Index for December, which showed wholesale prices advancing 3.3% year-over-year, slightly below <a href="https://www.benzinga.com/25/01/42973016/producer-prices-rise-less-than-expected-offer-opportunity-for-market-rebound">the 3.4% expected. </a>



<h3 class="wp-block-heading">December CPI Preview: What To Watch</h3>



The headline inflation rate is projected to rise 2.9% year-over-year, according to TradingEconomics, marking an increase from November's 2.7% pace. On a monthly basis, headline inflation is expected to grow by 0.3%, maintaining the same pace as the prior month.



Core inflation, which excludes volatile food and energy prices, is forecasted to remain steady at 3.3% year-over-year, while core prices are anticipated to advance 0.2% month-over-month, down from 0.3% in November. 



Bank of America economist Stephen Juneau said his team expects core CPI to register a "soft 0.3% m/m, with risks of rounding down to 0.2%."



Juneau anticipates cooling in core goods prices while core services remain largely unchanged. Categories like airfares and lodging, which surprised to the upside in November, are projected to moderate.



"Shelter prices have cooled relative to earlier in 2024, but there is still room for improvement," Juneau added.



Juneau also indicated that the Fed is likely to remain on hold for an extended period but flagged the risk of a rate hike if inflation remains sticky. 



&#8220;If core PCE inflation exceeds 3% and long-term inflation expectations become unanchored, hikes will be in play,&#8221; he said.



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Metric</th><th>Econ. consensus</th><th>November 2024</th></tr></thead><tbody><tr><td>Headline CPI YoY</td><td>2.9%</td><td>2.7%</td></tr><tr><td>Headline CPI MoM</td><td>0.3%</td><td>0.3%</td></tr><tr><td>Core CPI YoY</td><td>3.3%</td><td>3.3%</td></tr><tr><td>Core CPI MoM</td><td>0.3%</td><td>0.2%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Betting Markets Signal Confidence In Inflation Staying Elevated</h3>



According to data from CFTC-regulated prediction platform Kalshi:



<ul>
<li>There is a 99% probability of headline inflation coming in above 2.7% year-over-year.</li>



<li>75% probability it exceeds 2.8%.</li>



<li>28% probability it surpasses 2.9%.</li>



<li>Just 2% probability it breaks the 3.0% level.</li>
</ul>



Traders betting on headline CPI above 2.9% – an outcome that would top economist consensus estimates – stand to receive $3 for every $1 wagered if the event resolves to YES.


<iframe loading="lazy" style="border: 0;" src="https://kalshi.com/external-widgets/events/KXCPIYOY-24DEC?color_scheme=light&amp;widget_size=large&amp;utm_campaign=benzingawidget" width="552px" height="400px"></iframe>


For core CPI, the market shows:



<ul>
<li>A 99% chance it comes in above 2.9%.</li>



<li>96% probability it surpasses 3.0%.</li>



<li>93% chance it breaks 3.1%.</li>



<li>62% chance it exceeds 3.2%.</li>



<li>Only a 20% probability it rises above 3.3%.</li>
</ul>



A $1 wager on core CPI exceeding 3.3% could yield $4 if the event resolves positively.



Betting on monthly shelter inflation also reflects significant interest:



<ul>
<li>99% chance shelter inflation exceeds 0.1%.</li>



<li>81% chance it surpasses 0.2%.</li>



<li>A 51% probability it comes in above 0.3%.</li>



<li>A slim 7% chance it breaks 0.4%.</li>
</ul>



Those betting $1 on shelter inflation exceeding 0.4% stand to win $5 for every $1 wagered if the outcome resolves to YES.



<h3 class="wp-block-heading">Fed&#8217;s Dilemma: Hawkish Or Dovish?</h3>



The December inflation data will play a pivotal role in shaping expectations for the Federal Reserve's next policy moves. 



While Fed futures currently assign a 97% chance of holding rates steady in January and 78% in March, inflation&#8217;s persistence above the Fed's 2% target is complicating the outlook for 2025.



Bank of America no longer anticipates rate cuts this year, revising its forecast following December&#8217;s stronger-than-expected jobs report. "Inflation appears to have stalled moderately above the Fed&#8217;s target," Juneau said. The bank also flagged the risk of debates shifting towards rate hikes. 



Fed futures point to a 55% chance of a rate cut by June, but that likelihood increases to 70% by October, as per the CME FedWatch Tool. However, if inflation prints above expectations, markets could see further delays in rate cuts, with the first reduction potentially pushed into late 2025 or even 2026.



Conversely, a lower-than-expected inflation print could bolster the case for cuts as early as mid-2025, reinforcing speculation of monetary easing by summer.



Read now: 



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<li><a href="https://www.benzinga.com/markets/25/01/42965857/oil-could-hit-90-goldman-sachs-says-trump-may-not-ease-sanctions-on-russia">Oil Could Hit $90, Goldman Sachs Says: &#8216;Trump May Not Ease Sanctions&#8217; On Russia</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Analyst Color

Fintech

Macro Economic Events

Econ #s

Economics

All Eyes On December Inflation: Betting Odds Signal Risk Of Fed Struggle

As investors look to navigate the volatility of <a href="https://www.benzinga.com/premium/ideas/2025-market-outlook-navigating-uncertainty-with-high-yield-strategies/">global markets in 2025</a>, Direxion's CEO, Douglas Yones, sees the technology and energy sectors as key growth areas.



In an exclusive interview with Benzinga, he asserted that while broader market uncertainty persists, the <a href="https://www.benzinga.com/topic/semiconductors">semiconductor</a> and <a href="https://www.benzinga.com/topic/energy">energy</a> industries are poised to stand out.



<h2 class="wp-block-heading">Semiconductors: A Key Growth Sector</h2>



Yones points to the semiconductor industry, driven largely by the increasing demand for AI technology. "Technology, particularly the AI and semiconductor industries, stands out as a key area for growth," he shares. 



As AI applications expand, the need for more advanced chips is set to rise, making this a high-potential sector. For traders looking to capitalize on this, Yones recommends leveraged ETFs such as the Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>), which offer significant exposure to the semiconductor industry.



Read Also: <a href="https://www.benzinga.com/25/01/42961753/analyst-sees-broadening-rally-in-semis-coming-in-2025-2-top-stock-picks-and-2-to-avoid">Analyst Sees &#8216;Broadening Rally&#8217; In Semiconductors In 2025: 2 Top Stock Picks, 2 To Avoid</a>



<h2 class="wp-block-heading">Energy Sector Boosted By Policy Shifts</h2>



The energy sector is also expected to thrive in 2025, with favorable policies likely to drive growth in fossil fuel companies. "The Trump administration has made its stance on drilling very clear, and the administration may be more friendly to fossil fuel companies," says Yones. 



He believes this will likely hurt alternative energy stocks, but make energy ETFs like the Direxion Daily Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>) an appealing choice for traders.



<h2 class="wp-block-heading">Looking Ahead: 2025's Growth Potential</h2>



With AI driving technological advances and President-elect Donald Trump&#8216;s administration continuing its pro-fossil fuel stance, both semiconductors and energy stocks are expected to dominate investor portfolios in the year ahead.



"We expect energy and semiconductor stocks to benefit from both technology trends and government policies," Yones said.



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EXCLUSIVE: Energy, Semiconductors Could Dominate Portfolios In 2025, Says Direxion CEO

Banks reporting fourth-quarter earnings on Wednesday will take center stage, with investors watching closely for insights on the health <a href="https://www.benzinga.com/news/econ-s">of the U.S. economy. </a>



Traditionally seen as a barometer for broader economic performance, strong results from banks could set a positive tone for other sectors and the outlook for 2025.



Meanwhile, retail investors seem to have flocked to financial stocks ahead of earnings, anticipating strong results and positive commentary on the regulatory landscape going forward. 



<h1 class="wp-block-heading">What To Expect From Banks Q4 Results: Earnings And Revenue Projections</h1>



According to data from <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011425&amp;t=be2bearmibe3na1">Benzinga Pro</a>:



<ul>
<li>Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) is projected to report an estimated earnings per share of $8.17, a significant 49% increase from the $5.48 it posted in the same quarter of 2023. Revenue is forecast at $12.25 billion, reflecting an 8% gain from $11.32 billion a year earlier.</li>



<li>JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) is forecast to post EPS of $4.11, a 35% increase from $3.04 in the fourth quarter of 2023. Revenue is projected to grow 8% year-over-year to $41.71 billion, up from $38.57 billion.</li>



<li>Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) is anticipated to show a sharp turnaround with an expected EPS of $1.22 compared to a loss of $1.16 in the fourth quarter of 2023. Revenue is estimated to rise 12% to $19.48 billion, up from $17.44 billion.</li>



<li>Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) is likely to report EPS of $1.35, up 57% from 86 cents in the same quarter last year. Revenue is expected to remain largely flat, edging up 0.5% to $20.59 billion compared to $20.48 billion.</li>



<li>Bank of New York Mellon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>) is projected to deliver EPS of $1.56, a substantial improvement from 33 cents a year earlier, with revenue increasing 8% to $4.65 billion, a slight rise from $4.31 billion.</li>



<li>BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) is expected to report EPS of $11.22, an increase of 16% from $9.66 in the fourth quarter of 2023. Revenue is estimated to grow 19% to $5.52 billion, up from $4.63 billion.</li>
</ul>



<h1 class="wp-block-heading">Retail Investors Bet Big On Financials</h1>



Retail investors appear optimistic about bank earnings, as financial stocks saw the largest weekly inflows since March 2023. 



Bank of America's private client data revealed that $297 million flowed into financial stocks last week, reversing the $102 million outflows from the final week of December 2024. This bullish sentiment could fuel additional momentum if earnings exceed expectations.



The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) closed last year with gains of 28%, outperforming the broader S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — by 5 percentage points.



<h1 class="wp-block-heading">Regulatory Tailwinds On The Horizon?</h1>



Banks could be positioned to benefit from a shifting regulatory landscape as Donald Trump's new administration assumes office. 



The recent announcement of Fed Vice Chair for Supervision Michael Barr's early departure could mark the beginning of a more favorable era for the financial sector, according to veteran Wall Street investor Ed Yardeni. 



Yardeni, president of Yardeni Research, highlighted that financials could be entering a &#8220;sustained period of more favorable regulatory change&#8221; after more than a decade of heightened oversight following the 2008 financial crisis.



Barr, a staunch proponent of tighter regulations, had advocated for the &#8220;Basel III endgame,&#8221; which would have imposed stricter capital requirements on banks.



With his exit, the analyst now expects a scaled-back version of these proposals, potentially easing compliance burdens for banks.



Yardeni sees Fed Gov. Michelle Bowman and Gov. Christopher Waller, both considered more bank-friendly, as frontrunners to replace Barr.



Additionally, Trump's administration may push for regulatory rollbacks across agencies such as the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, creating further upside potential for the sector.



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Photo: Shutterstock

Large Cap

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Banks Kick Off Earnings Season On Wednesday: Retail Traders Bet Big On Financials Ahead Of Regulatory Tailwinds

President-elect Donald Trump has made tariffs one of the most talked about items ahead of his inauguration on Jan. 20. So far, he has not backed down from plans to place or increase tariffs on <a href="https://www.benzinga.com/topic/tariffs">various trade partners</a>, including Canada, Mexico and China.



What Happened: On Tuesday, Trump took things a step further by naming a new agency tasked with overseeing tariffs.



"For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS). Though soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves," Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/113827650534234057">said </a>in a post on Truth Social. "I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties and all Revenue that come from Foreign sources."



Trump intends for Jan. 20 — inauguration day — to be the birthdate for the so-called &#8220;External Revenue Service.&#8221; Normally, a new law would need to be passed first to create a new bureau or statutory body.



"We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share,&#8221; Trump added. 



It&#8217;s worth noting that the U.S. Customs and Border Protection (CBP), under the Department of Homeland Security, already oversees tariffs and revenue from foreign countries. Its key functions include collecting customs duties and tariffs. The CBP also enforces trade laws and ensures revenue accountability as one of the federal government's largest revenue collectors.



Meanwhile, Democratic lawmakers are already scrutinizing Trump&#8217;s External Revenue Service plan. "No amount of silly rebranding will hide the fact that Trump is planning a multi-trillion-dollar tax hike on American families and small businesses to pay for another round of tax handouts to the rich," Oregon Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, <a href="https://www.finance.senate.gov/chairmans-news/wyden-statement-on-trumps-so-called-external-revenue-service">said</a> in a statement.



Did You Know?



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<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent011425">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



Why It's Important: Trump's plans to place tariffs on three of the country's largest trade partners have led to many question marks on how the other countries will respond and if items will get more expensive for American consumers as a trade off.



<a href="https://www.benzinga.com/trading-ideas/24/12/42536470/costco-warns-that-tariffs-raise-prices-trump-team-says-trade-policies-will-make-life-affordable">Retail executives</a> Costco Wholesale (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>) and Dollar Tree (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DLTR#NASDAQ">DLTR</a>) have already warned about tariffs on earnings calls. Tariffs <a href="https://www.benzinga.com/news/global/24/12/42402629/trump-to-change-dollar-stores-for-good-dollar-tree-exec-says-prepared-to-act">could mean higher prices</a> for consumers, less product assortment or a change to product sizes, they say.



Trump joked that Canada <a href="https://www.benzinga.com/news/global/24/12/42300450/trump-told-trudeau-canada-could-avoid-tariffs-by-becoming-51st-state-a-look-at-sectors-trade-war-could-impact">could become the</a> 51st state of America to avoid tariffs. While the country <a href="https://apnews.com/article/canada-trump-chretien-51st-state-ad9749047d0b627eed56be22f43ea7cd">isn't ready</a> to do that, a new report signals the country could be working on avoiding the tariffs.



Canadian ambassador Kirsten Hillman said Canada is prepared to buy more items from the U.S., as <a href="https://apnews.com/article/canada-ambassador-us-trump-hillman-9ced5ba12cd6526a2bbb4a810fa9af18">reported </a>by the Associated Press. The move would ensure that there is not a deficit for America in its trade with Canada.



Hillman warned that a plan to put tariffs on all Canadian products will lead to prices going up for Americans.



"And at a time when the cost of living is challenging, when food prices are high, it seems like the wrong direction to go in," Hillman said.



Top items exported from Canada to the U.S. include oil, gas and automotive parts. These industries could see higher-priced goods under Trump's tariff plan.



Large Canadian oil companies Suncor Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SU#NYSE">SU</a>), Enbridge (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENB#NYSE">ENB</a>), Canadian Natural Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNQ#NYSE">CNQ</a>) and TC Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRP#NYSE">TRP</a>) could face significant impacts from the tariffs and a potential blow to the sector.



Railway company Canadian Pacific Kansas City Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CP#NYSE">CP</a>) and trucking companies Old Dominion Freight Line (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>) and Knight-Swift Transportation Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNX#NYSE">KNX</a>) could also be impacted by the tariffs and the negative impact on trade between the United States and Canada.



Mexican President Claudia Sheinbaum has recently shown a serious focus on migration and security, two of Trump's vocal demands to keep the U.S. from placing tariffs on the country, as reported by Reuters.



Sheinbaum has <a href="https://www.benzinga.com/markets/cannabis/25/01/42895985/trump-and-mexican-president-sheinbaum-spirited-clash-over-territorial-renaming-tariffs-and-cartels">publicly sparred with Trump</a>, but it remains to be seen if she will be able to avoid tariffs for Mexico.



Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), General Motors Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Honda Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>) are among the automotive companies that <a href="https://www.benzinga.com/government/regulations/24/12/42688941/are-us-vehicles-under-30000-a-thing-of-the-past-trumps-mexico-tariff-plans-could-change-auto-market">have sub-$30,000 vehicles </a>that are partially or fully built in Mexico and Canada.



Higher tariffs on China could rattle the American economy as the country remains a major source of many exported goods. To get ahead of potential tariff increases, China saw its exports up 10.7% in the month of December, NPR <a href="https://www.npr.org/2025/01/13/nx-s1-5258024/china-exports-us-tariffs">reported</a>.



The growth was higher than estimates of 7% and could show that companies and China are taking proactive approaches to get ahead of higher-costing goods.



ETF Price Action: The iShares MSCI Canada ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWC#NYSE">EWC</a>) is up 0.3% to $39.94 on Tuesday. The ETF is up 11% over the last year and down 4.5% over the last month.



The iShares MSCI Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>) is up 1.5% to $48.15 on Tuesday. The ETF is down 25.3% over the last year and down 6.4% over the last month.



The iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) is up 2.3% to $44.89 on Tuesday. The ETF is up 19.2% over the last year and down 5.5% over the last month.



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Trump Wants Trade Partners To 'Start Paying,' Plans External Revenue Service To Oversee Tariffs

Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) shares are trading lower. The company on Tuesday announced performance-based job cuts that could impact about 5% of the <a href="https://www.benzinga.com/news/24/10/41377833/meta-cuts-jobs-in-whatsapp-instagram-and-reality-labs-in-latest-reorganization">company&#8217;s total workforce</a>.



What Happened: According to a Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-01-14/meta-is-planning-to-cut-5-of-lowest-performers-memo-shows?srnd=homepage-americas&amp;embedded-checkout=true">report</a> citing an internal memo to employees, Meta is cutting approximately 5% of its 72,000 workers based on performance. 



&#8220;I've decided to raise the bar on performance management and move out low-performers faster," Meta CEO Mark Zuckerberg reportedly said in an internal memo.



"We typically manage out people who aren't meeting expectations over the course of a year &#8230; but now we're going to do more extensive performance-based cuts during this cycle."



Meta dubbed 2023 the company&#8217;s &#8220;year of efficiency&#8221; as it slashed jobs in an effort to cut costs. This time around, the job cuts appear to be aimed at strengthening the company for what Zuckerberg expects will be an &#8220;intense year&#8221; focused on AI, smart glasses and social media innovations. 



Meta said U.S. employees impacted by the performance cuts will be notified by Feb. 10 and be eligible for &#8220;generous severance.&#8221; Employees outside of the U.S. are expected to be notified at a later date. 



META Price Action: <a href="http://benzinga.com/quote/meta">Meta Platforms shares</a> were down 1.8% at $597.40 at the time of publication, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



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Photo: Shutterstock.

Meta Platforms Announces Performance-Based Job Cuts: What's Going On?

The Los Angeles area is bracing Tuesday for another stretch of "extreme fire weather&#8221;: the National Weather service issued a &#8220;Particularly Dangerous Situation" red flag warning for<a href="https://www.benzinga.com/general/sports/25/01/42963718/beyonce-pledges-25-million-to-help-california-wildfire-relief-efforts-nfl-donates-5-million-moves-mondays-playoff-game-to-arizona"> Southern California. </a> 



The Details: Firefighters are again facing high winds of 40 to 70 miles per hour as they fight to contain the wildfires that have caused at least 25 deaths and burned more than 60 square miles in the Los Angeles area.&nbsp;



The Los Angeles Fire Department reports the Eaton Fire is now at 35% containment and the Palisades Fire is now at 17% containment as of Tuesday morning.&nbsp;



"Severe fire weather conditions will continue through tomorrow," Los Angeles County Fire Chief Anthony C. Marrone said.



"The worst winds are predicted today for the late afternoon and into Wednesday," Marrone added.&nbsp;



Approximately 88,000 Los Angeles County residents are under evacuation orders and more than 84,000 residents are under evacuation warnings, county Sheriff Robert Luna said Tuesday during a news conference, as reported by CNN.



Read Next: <a href="https://www.benzinga.com/news/legal/25/01/42979220/biden-announces-more-student-loan-forgiveness-bringing-debt-relief-to-nearly-5-million-borrowers">Biden Announces More Student Loan Forgiveness, Bringing Debt Relief To Nearly 5 Million Borrowers</a>



Edison Faces Lawsuits: At least five lawsuits were filed against Southern California Edison, a subsidiary of Edison International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EIX#NYSE">EIX</a>), on Monday, according to an ABC News <a href="https://abc7.com/post/california-wildfires-2-lawsuits-filed-southern-edison-eaton-fire-pasadena-altadena/15796131/">report</a>.&nbsp;



The lawsuits allege Edison failed to de-energize its electrical equipment that potentially ignited the Eaton fire despite red flag warnings issued by the National Weather Service.



California fire agencies also confirmed on Monday they are investigating Southern California Edison over the possibility that downed utility equipment contributed to the Hurst fire, according to<a href="https://www.latimes.com/california/story/2025-01-12/officials-investigating-whether-southern-california-edison-equipment-ignited-hurst-fire"> a report</a> from the Los Angeles Times. 



The company said<a href="https://www.benzinga.com/pressreleases/25/01/b42935494/edison-international-provides-latest-update-on-southern-california-wildfires-and-sce-power-outages"> in a statement</a> on Sunday that it filed two Electric Safety Incident Reports, one related to the Eaton fire and one related to the Hurst fire.&nbsp;



SCE said a downed power line was discovered at a time and location near the Hurst fire ignition, but it does not yet know whether the damage occurred before or after the start of the fire.&nbsp;



&#8220;We&#8217;ve seen in your reporting the videos, we&#8217;ve seen the photos, so we know that there was fire there. We don&#8217;t know what caused it,&#8221; Edison CEO Pedro Pizarro <a href="https://abc7.com/post/california-wildfires-2-lawsuits-filed-southern-edison-eaton-fire-pasadena-altadena/15796131/">told ABC7 </a>on Monday.



&#8220;Again, there was the obvious signature that we would see normally, but we have not been able to get up close to those lines because firefighters have determined that it hasn&#8217;t been safe to do that yet. Whatever we find, we&#8217;ll be transparent with our public,&#8221; Pizarro added.



In 2021, SCE agreed to pay $550 million in fines and penalties related to fires that year which burned more than 380,000 acres and destroyed thousands of homes.



Edison International stock has fallen nearly 28% since the fires began last week. Pacific Gas &amp; Electric Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PCG#NYSE">PCG</a>), another California utility, has seen its stock fall nearly 20% in the past week.  



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Image: Shutterstock.

LA Braces For More 'Extreme Fire Weather,' Multiple Lawsuits Filed Against Edison Over Eaton Fire Damages

President-elect Donald Trump may have saved himself from a conviction in the 2020 election case by winning <a href="https://www.benzinga.com/news/24/11/41768178/donald-trump-defeats-kamala-harris-to-win-2024-election">the 2024 presidential election.</a>



That's the key point from the final report released Tuesday from special counsel Jack Smith, who recently resigned from his role.



What Happened: A case that alleged Trump attempted to reverse <a href="https://www.benzinga.com/25/01/42962689/trump-appointed-federal-judge-green-lights-jan-6-report-could-be-made-public-as-early-as-tuesday">the 2020 election outcome </a> is one of several that will go away after Trump's 2024 election win.



Special counsel Jack Smith said in his report that while Trump's case will go away, it is only his return to the White House that kept him from being convicted, as reported by <a href="https://www.politico.com/news/2025/01/14/jack-smith-trump-report-00198025">Politico</a>.



"The admissible evidence was sufficient to obtain and sustain a conviction," Smith wrote in the report.



The Justice Department was forced to shut down the prosecution of Trump after he won the election, Smith said. 



"The Department's view that the Constitution prohibits the continued indictment and prosecution of a President is categorical and does not turn on the gravity of the crimes charged, the strength of the Government's proof, or the merits of the prosecution."



The second part of Smith's report, which details classified documents held at Mar-a-Lago and details on how Trump allegedly obstructed the investigation, has been withheld by the Justice Department under court order.



While many parts of Smith's report have been made public through indictments and court filings, the comments from Smith on his confidence in having the evidence to convict Trump are new and the latest in the battle between the incoming president and the Justice Department.



Smith's report, which includes evidence from interviews and transcripts, alleges Trump tried to stay in power with a scheme of spreading false claims of election fraud to the public after losing the 2020 election.



After gaining public support, Trump then pushed on his Republican allies in Congress to contest and overturn the results, the report says.



Cases against Trump <a href="https://www.benzinga.com/news/legal/24/11/41857183/trump-2020-election-interference-case-paused-how-2024-election-win-is-impacting-president-elects-legal-troubles">faced multiple delays </a>as he ran for president in the 2024 election. The Supreme Court ruled that Trump<a href="https://www.benzinga.com/general/politics/24/07/39577351/trump-granted-partial-immunity-by-supreme-court-ruling-says-the-president-is-not-above-the-law-d"> had partial immunity</a> from prosecution for most of his acts while in the White House.



Trump <a href="https://www.benzinga.com/news/25/01/42916780/donald-trump-receives-unconditional-discharge-in-new-york-hush-money-case-will-enter-white-house-as-convicted-felon">was recently given </a>an "unconditional discharge" sentence in his New York hush money case after previously being found guilty of felonies for falsified business records.



Trump will be a convicted felon when sworn into office on Monday, Jan. 20.



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Late-Night Release Angers Trump: Smith's report was released in the early hours Tuesday, leading Trump, who tried to keep the report private, to lash out on social media. 



U.S. District Judge Aileen Cannon said she could keep the classified documents case information private, but was not able to keep the 2020 election case private, according to an order that came after 11 p.m. Monday night.



Following the Tuesday morning release of Smith's report, Trump took to Truth Social to share his thoughts. 



"Deranged Jack Smith was unable to successfully prosecute the Political Opponent of his ‘boss,' Crooked Joe Biden, so he ends up writing yet another ‘Report,'" Trump wrote.



The president-elect also alleged that evidence that showed his innocence was "illegally destroyed and deleted."



Trump went on to call Smith "a lamebrain prosecutor."



Using a rally cry similar to his reaction to the hush money case sentencing, Trump said "the voters have spoken" with his landslide victory in the 2024 election.



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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42466189/trump-talks-stocks-bitcoin-ai-economy-with-jim-cramer-youre-going-to-see-some-very-good-days-ahead">Trump Talks Stocks, Bitcoin, AI, Economy With Jim Cramer: &#8216;You&#8217;re Going To See Some Very Good Days Ahead&#8217;</a></li>
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Photo via Shutterstock.

Trump's 2024 Election Win Spares Him From 'Conviction' In January 6 Case, Special Counsel Says: 'Admissible Evidence Was Sufficient'

Investors found relief on Tuesday as December&#8217;s producer prices came in below expectations, alleviating inflation concerns that have threatened to derail the Federal Reserve&#8217;s plans for potential policy <a href="https://www.benzinga.com/25/01/42973016/producer-prices-rise-less-than-expected-offer-opportunity-for-market-rebound">easing during 2025.</a>



Major U.S. indices moved higher in early trading as Treasury yields stalled, giving traders space to reassess interest rate expectations ahead of Wednesday&#8217;s pivotal consumer inflation report.



<h3 class="wp-block-heading">Softer Producer Inflation Provides Market Oxygen</h3>



In December 2024, the Producer Price Index rose 3.3% year-over-year, slightly below forecasts of 3.4%. Core producer inflation, which excludes volatile food and energy prices, remained steady at 3.5% annually, but monthly core prices flattened, reflecting softer price pressures across underlying components.



The S&amp;P 500 – tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – gained 0.5%, while the tech-heavy Nasdaq 100, mirrored by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose by a similar margin. Small caps led the charge, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up 0.9%, as traders rotated into economic-sensitive stocks battered by recent selloffs.



Blue-chip stocks, however, lagged as energy shares took a breather following a multi-day rally.



Still, Wall Street's broader gains may remain capped as investors await further clarity from Wednesday&#8217;s consumer price index report. Economists predict CPI to rise from 2.7% to 2.9% year-over-year in December, while core inflation is forecast to hold steady at 3.3%.



Treasury yields held steady, signaling that traders are pausing adjustments to their interest rate cut expectations. 



According to the CME FedWatch tool, the probability of a 25-basis-point rate cut rose slightly to 60% by July 2025 and 70% by October. 



<h3 class="wp-block-heading">Tesla Leads Discretionary Stocks Higher</h3>



Consumer discretionary stocks were among the day's top performers, driven by a 3% rally in Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). 



Shares of the EV giant climbed after a bullish note from Morgan Stanley, which raised Tesla's price target from $400 to $430 and projected a best-case scenario of $800. The firm cited the company's growing potential in autonomous rideshare and robotaxi services as key <a href="https://www.benzinga.com/tech/25/01/42967935/tsla-stock-rises-3-in-tuesday-pre-market-whats-going-on">drivers for long-term growth.</a>



The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) advanced 1%, reflecting broad strength across the sector.



<h3 class="wp-block-heading">Tech and Semiconductors Rebound</h3>



Tech stocks rebounded after several days of volatility, with semiconductors leading the way. 



Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rose more than 2%, while Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) and Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) also gained. The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) climbed nearly 1%, snapping a three-day losing streak during which it had dropped over 3%.



<h3 class="wp-block-heading">Chinese Stocks Surge On Policy Support</h3>



Chinese equities rallied as news of government intervention boosted investor sentiment. 



The China Securities Regulatory Commission announced plans to collaborate with the People's Bank of China to build a market stabilization mechanism, signaling support for the country's struggling markets.



Shares of PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) rose over 3%, while Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) and Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) advanced 2.4% and 2%, respectively.



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<li><a href="https://www.benzinga.com/general/health-care/25/01/42974082/nvidia-eyes-1-billion-in-healthcare-ai-revenue-next-growth-frontier">Nvidia Eyes $1 Billion In Healthcare AI Revenue: Is This The Next Growth Frontier?</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

BABA

BIDU

NVDA

PLTR

SOXX

Wall Street Rebounds As Producer Inflation Misses Estimates, Tesla Gains, Chinese Stocks Rally

The U.S. automotive industry saw a record number<a href="https://www.benzinga.com/electric-vehicles"> of electric vehicles</a> sold in 2024, with 1,301,411 units breaking last year's record with a 7.3% year-over-year increase.



A record fourth quarter saw 365,824 units sold in the U.S., <a href="https://www.benzinga.com/trading-ideas/movers/25/01/42766117/tesla-stock-tumbles-on-q4-deliveries-whats-going-on">despite some weakness</a> from sector leader Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). Fourth-quarter EV sales were up 15.2% year-over-year in the U.S., as <a href="https://www.coxautoinc.com/market-insights/q4-2024-ev-sales/">reported </a>by Cox Automotive's Kelley Blue Book.



Here's a look at the top 10 bestselling EVs in the U.S. for 2024,<a href="https://www.benzinga.com/news/24/01/36615986/top-10-bestselling-electric-vehicles-in-u-s-2023-where-do-tesla-ford-general-motors-rank"> their 2023 ranking</a> and year-over-year change.



<ol>
<li>Tesla Model Y: 372,613 units, -6.6%, last year 1st</li>



<li>Tesla Model 3: 189,903 units, -17.4%, last year 2nd</li>



<li>Ford Mustang Mach-E: 51,745 units, +26.9%, last year 4th</li>



<li>Hyundai Ioniq 5: 44,400, +30.9%, last year 6th</li>



<li>Tesla Cybertruck: 38,965 units, new in year, last year N/A</li>



<li>Ford F-150 Lightning: 33,510 units, +38.7%, last year 8th</li>



<li>Honda Prologue: 33,017 units, new in year, last year N/A</li>



<li>Chevrolet Equinox: 28,874 units, new in year, last year N/A</li>



<li>Cadillac Lyriq: 28,402 units, +210.3%, last year not in top 10</li>



<li>Rivian R1S: 26,934 units, +23.4%, last year 7th</li>
</ol>



The 2024 list included five of last year's top 10 with four new vehicles joining the list and one existing model seeing a large increase to soar into the top 10.



You may not be a billionaire like Elon Musk, but you can uncover hidden gems in the stock market using our proprietary data and pattern recognition — <a href="https://www.benzinga.com/25/01/42927075/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet">check out five stocks flying under the radar that deserve your attention.</a>



Winners and Losers: Tesla continued to lead the way in unit sales with 633,762 units sold for the full year. The bad news is this figure was down 5.6% year-over-year.



Tesla led the way in EV market share hitting 48.7% for the full 2024 year and was at 44.4% in the fourth quarter. In 2023, Tesla's EV market share was 55%, dropping from 65% in 2022.



While Tesla remains the market leader for EVs, its market share continues to decline as other companies join the sector and launch more models.



The Model Y and Model 3 made up 28.6% and 14.6% of U.S. EV sales respectively in 2024. The company once again had three vehicles in the top 10 after last year's 1st, 2nd and 9th place (Model X) rankings. This year, the company ranked 1st, 2nd and saw its new Cybertruck rank 5th in its first full year.



Honda Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>) and General Motors Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) were listed as the big winners in the report, with a nearly 80,000 increase in EV sales between the two companies.



These were the top gainers by unit sales increases in 2024:



<ul>
<li>Honda: +40,408</li>



<li>General Motors: +38,543</li>



<li>Hyundai: +30,065</li>



<li>Ford: +25,257</li>
</ul>



Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) was also a 2024 winner with two models in the 2024 and the Mach-E and F-150 Lightning both seeing year-over-year increases for the year. The company had the second-highest U.S. EV market share behind Tesla at 7.5% in 2024.



Here were the top EV companies by U.S. market share in 2024:



<ul>
<li>Tesla: 48.7%</li>



<li>Ford: 7.5%</li>



<li>Chevrolet: 5.2%</li>



<li>Hyundai: 4.7%</li>



<li>Rivian: 4.0%</li>
</ul>



Rivian Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) saw higher sales of the R1S in 2024, but the vehicle fell from 7th place to 10th place in 2024. The company has more models on the way, which could help boost its future market share in the U.S.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/01/42938610/ford-sold-more-electric-mustangs-than-gas-mustangs-in-2024">Ford Sold More Electric Mustangs Than Gas Mustangs In 2024</a></li>
</ul>



Image: Shutterstock

RIVN

US Electric Vehicle Sales Hit Record 1.3 Million Units In 2024, Despite Tesla Declines: Top 10 Bestselling Models

A federal judge delayed a pivotal hearing on the Biden administration's <a href="https://www.benzinga.com/markets/cannabis/24/03/37552483/biden-calls-for-cannabis-reform-in-state-of-the-union-a-historic-first-no-one-should-be-jailed-f">proposal to ease restrictions on marijuana</a>, citing serious allegations of misconduct within the Drug Enforcement Administration (DEA). 



On Monday afternoon, Administrative Law Judge John Mulrooney canceled the Jan. 21 hearing, extending the process for at least three months, <a href="https://www.marijuanamoment.net/dea-judge-cancels-marijuana-rescheduling-hearings-amid-legal-challenges-pushing-back-reform-for-at-least-three-months/">according</a> to Marijuana Moment, which first reported the story.



The hearing was set to evaluate the Department of Health and Human Services&#8216; (HHS) <a href="https://www.benzinga.com/markets/cannabis/24/05/38880719/biden-announces-monumental-marijuana-rescheduling-doj-to-take-next-steps">recommendation to reclassify marijuana</a> under the Controlled Substances Act (CSA) from Schedule I, the strictest category, to Schedule III. This change could benefit the cannabis industry by allowing standard business tax deductions and improving access to banking services.



Mulrooney's decision followed a motion from cannabis policy reform advocates <a href="https://www.benzinga.com/news/legal/24/11/41923948/dea-faces-lawsuit-alleging-bias-in-marijuana-rescheduling-process">alleging improper communications</a> between DEA officials and groups opposing the proposed rule. The motion also claimed that DEA administrator <a href="https://www.benzinga.com/topic/anne-milgram">Anne Milgram</a> had unfairly selected witnesses for the hearing. While Mulrooney denied a request to remove the DEA from the proceedings, he granted leave for an interlocutory appeal, halting the hearing.



Read Also: <a href="https://www.benzinga.com/government/regulations/25/01/42882766/dea-accused-of-bias-in-cannabis-rescheduling-hearings-weed-stocks-plummeted-in-2024-as-process-drags-on">DEA Accused Of Bias In Cannabis Rescheduling Hearings: Weed Stocks Plummeted In 2024 As Process Drags On</a>



<h2 class="wp-block-heading">Judge Flags ‘Disturbing And Embarrassing' Allegations</h2>



In his ruling, Mulrooney acknowledged allegations of improper conduct, describing them as "disturbing and embarrassing." 



However, he concluded that even if true, the claims did not irreparably taint the rescheduling process. "I can no more remove or re-designate the Administrator than I can hold parties in contempt and fine them," Mulrooney said, per the outlet. "The strangeness of this unsupported approach is amplified by the fact that the appointment of a new DEA Administrator by a different political party is imminent."



The judge criticized DEA officials, stating their alleged conduct displayed "a puzzling and grotesque lack of understanding and poor judgment" in managing the rulemaking process.



<h2 class="wp-block-heading">DEA Reprimanded For Defying Evidence Submission Rules</h2>



Mulrooney also took issue with the DEA's failure to comply with his instructions regarding evidence submission. Despite being repeatedly directed to provide hard copies of evidence by Jan. 3, the agency attempted to submit thousands of public comments digitally via compact discs. Mulrooney rejected this move, calling it an "unprecedented and astonishing" act of defiance.



"The Government's deliberate disobedience of an unequivocal directive from the tribunal is unprecedented," Mulrooney said. &nbsp;



The judge ordered updates on the appeal every 90 days, ensuring no further delays in the review process. This development marks another hurdle for federal cannabis reform, reflecting ongoing challenges in navigating the bureaucratic landscape coupled with the DEA&#8217;s now obvious inclination to disrupt the process.



Now Read:



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<li><a href="https://www.benzinga.com/news/legal/25/01/42957309/can-a-k-9-drug-sniffer-land-you-in-jail-for-cannabis-florida-court-sets-new-limits">Can A K-9 Drug Sniffer Land You In Jail For Cannabis? Florida Court Sets New Limits</a></li>
</ul>



Photo: DEA Live stream

Cannabis

DEA Judge Cancels Marijuana Rescheduling Hearing Amid 'Disturbing' Allegations Of Improper Conduct

<a target="_blank" href="https://www.benzinga.com/topic/chinese-stocks" rel="noreferrer noopener">US-listed Chinese stocks</a>, including&nbsp;Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>),&nbsp;Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>),&nbsp;JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>),&nbsp;PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>),&nbsp;NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>),&nbsp;Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), and&nbsp;XPeng Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>), gained momentum Tuesday in sympathy with China&#8217;s foreign trade results, which set a new record in 2024 and retained the title of leading trader in goods in 2024.



China&#8217;s imports and exports grew by 5% in 2024 to 43.85 trillion yuan ($5.98 trillion), Global Times <a target="_blank" href="https://www.globaltimes.cn/page/202501/1326795.shtml" rel="noreferrer noopener">cites</a> the General Administration of Customs (GAC).



China&#8217;s trade growth reached 2.1 trillion yuan in 2024, matching the annual trade volume of a medium-sized economy, Global Times cites Wang Lingjun, deputy head of the GAC.



Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42920173/jack-ma-highlights-ais-future-impact-amid-biden-governments-sanction-speculations-on-china" rel="noreferrer noopener">Jack Ma Highlights AI&#8217;s Future Impact Amid Biden Government&#8217;s Sanction Speculations on China</a>



In 2024, China&#8217;s total exports grew 7.1% to 25.45 trillion yuan, while imports grew by 2.3% to 18.39 trillion yuan.



China&#8217;s trade volume with the Belt and Road Initiative (BRI) partner countries grew by 6.4%, accounting for over 50% of the nation&#8217;s total trade for the first time.



Trade under the BRICS cooperation framework grew by 5.5%, China and the EU&#8217;s bilateral trade grew by 1.6%, and China and US trade grew by 4.9%.



The Chinese stock rally also reflects reports that the U.S. President-elect Donald Trump administration is exploring a&nbsp;gradual approach&nbsp;to raising tariffs, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-14/asian-stocks-rise-as-china-bounces-back-after-six-day-loss?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.



Bloomberg cites a briefing Tuesday afternoon from the China central bank and State Administration of Foreign Exchange officials, who pledged to keep the yuan&nbsp;stable&nbsp;and ensure liquidity.



Zhaopeng Xing of Australia &amp; New Zealand Banking told Bloomberg the upgraded use of its two capital market tools to offer a floor for the equity market, enabling an economic recovery.



Goldman Sachs strategists <a target="_blank" href="https://www.benzinga.com/25/01/42822512/goldman-sachs-backs-chinese-equities-as-markets-react-to-economic-slowdown-and-tariff-concerns" rel="noreferrer noopener">reiterated their bullish</a> stance on Chinese stocks <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-13/goldman-strategists-see-tumbling-china-stocks-rising-20-in-2025?sref=TBDibEcD" rel="noreferrer noopener">to</a> Bloomberg, predicting the benchmarks to rise ~20% by year-end. The firm expects sentiment and liquidity to improve in the late first quarter of 2025 due to better tariff and policy clarity.



Goldman Sachs expressed optimism over government consumption proxies, emerging market exporters that will gain from a weaker yuan, and specific tech and infrastructure companies.



Goldman Sachs maintained an overweight call on online retail, media, and healthcare stocks while upgrading consumer services shares to overweight.



Last week, HSBC voiced a similar opinion on Chinese stocks to Bloomberg. Alibaba is considered the tech barometer of China.



Last November, Goldman Sachs predicted that Chinese shares could gain about 20% over the next 12 months, backed by stimulus measures to support the economy. The MSCI China Index has lost about 10% since then due to economic weakness, with additional U.S. tariffs posing a double whammy.



Investors can gain exposure to Chinese equities through iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) and KraneShares Trust KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>).



Also Read:



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<li><a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/42827152/tencent-strengthens-video-leadership-showcases-revenue-growth-potential-analyst" target="_blank" rel="noreferrer noopener">Tencent Strengthens Video Leadership, Showcases Revenue Growth Potential: Analyst</a></li>
</ul>



Photo by Oleg Elkov via Shutterstock

Regulations

Emerging Markets

Media

KWEB

XPEV

US Listed Chinese Stocks Rally on Strong Trade Data, Central Bank Support, Goldman Forecasts 20% Growth

Producer prices rose less than anticipated in December, offering a potential reprieve for the Federal Reserve as it aims to bring inflation under control <a href="https://www.benzinga.com/news/econ-s">without derailing economic growth.</a>



The data, released by the Bureau of Labor Statistics on Tuesday, showed the Producer Price Index rising 3.3% year-over-year, up from November's 3% but below forecasts of a 3.4% increase. On a monthly basis, prices rose 0.2%, decelerating from November's 0.4% and falling short of the 0.3% analysts had expected.



Driving the December rise in prices for final demand goods, gasoline prices surged 9.7%. Residential electric power, meats, motor vehicles, gas fuels and fresh fruits and melons also saw price increases. On the other hand, prices for fresh and dry vegetables dropped sharply by 14.7%, while carbon steel scrap and residual fuels also declined.



Core PPI, which excludes volatile food and energy costs, rose 3.5% annually in December, holding steady from November and coming in below expectations of 3.8%. On a monthly basis, core producer inflation flattened, decelerating from the prior month&#8217;s 0.2%, and below forecasts of a 0.3% rise. 



The weaker-than-expected figures mark a departure from November's data, which showed a surprise acceleration in producer inflation. 



<h3 class="wp-block-heading">Why Producer Inflation Data Matters</h3>



The PPI is a key gauge of upstream price movements, often serving as a leading indicator for shifts in consumer inflation. Stronger producer price growth can signal relief for businesses and consumers, particularly if companies face less pressure to pass along higher input costs.



The moderation in monthly core PPI is especially notable, as it indicates that price pressures are less widespread across underlying components. 



The timing of this report is critical, as it precedes Wednesday's release of the Consumer Price Index. 



Economists expect the December CPI to rise from 2.7% to 2.9% annually, while core inflation is forecast to hold steady at 3.3%. The softer PPI data may temper concerns of a significant upside surprise in consumer inflation, offering hope that the Federal Reserve&#8217;s 2% target remains achievable.



<h3 class="wp-block-heading">Market Reactions</h3>



The cooler-than-expected PPI report provided some relief to markets, which have been grappling with uncertainty over the Fed's policy direction.



According to CME Group's FedWatch tool, expectations for rate cuts in 2025 ticked slightly higher following the report. 



Markets are now pricing in rising likelihoods of one 25-basis-point cut by the end of the summer.



Treasury yields slightly fell in response to the data. The two-year yield, which is particularly sensitive to Fed policy expectations, dropped 2 basis points to 4.37%. The dollar weakened modestly, with a key index tracking the greenback holding steady during the session.



Stock futures were higher in premarket trading. Contracts on the S&amp;P 500 edged up 0.5%, while Nasdaq 100 futures rallied 0.9%.



On Monday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.1%, touching levels last seen on Nov. 5, 2024, the day before the U.S. presidential election results were announced.



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<li><a href="https://www.benzinga.com/general/market-summary/25/01/42968927/us-stocks-poised-to-gain-a-day-after-tech-stocks-dragged-nasdaq-down-analyst-calls-markets-overly-optimistic-as-sp-500-trades-at-23x-forward-earnings">US Stocks Poised To Gain A Day After Tech Stocks Dragged Nasdaq Down: Analyst Calls Markets &#8216;Overly Optimistic&#8217; As S&amp;P 500 Trades At 23x Forward Earnings</a></li>
</ul>



Photo via Shutterstock.

Producer Price Inflation Rises Less Than Expected, Offers Opportunity For Market Rebound

Bitcoin and Ethereum spot ETFs experienced significant net outflows on Jan. 13, signaling a <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42942291/exclusive-bitcoin-tumbling-but-bull-market-top-isnt-in-yet-experts-say">potential shift in market sentiment</a>.



What Happened: Bitcoin ETFs saw a combined net outflow of $284 million, while Ethereum ETFs recorded a total net outflow of $39.4 million, extending the outflow streak to four consecutive days for Ethereum products.



These outflows come as both assets have seen recent price corrections, prompting analysts to weigh in on the market's current trajectory.



Despite the overall outflow trend, BlackRock&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>) and (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETHA#NASDAQ">ETHA</a>) ETFs posted the largest individual net inflows, with $29.4 million and $12.8 million, respectively, according to <a href="https://sosovalue.com/assets/etf/us-eth-spot">data</a> from SoSo Value.



However, these inflows were not enough to offset the broader market trend. 



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was trading up 6% around $96,500, on Tuesday morning European time, after making a low of $89,800 late Monday night.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42956569/tether-to-relocate-headquarters-to-el-salvador">Tether To Relocate Headquarters To El Salvador</a>



What Experts Are Saying: Thomas Lee, CIO at Fundstrat Capital, <a href="https://x.com/btcjvs/status/1878898399636066710">noted</a> that the recent correction in Bitcoin's price, roughly 15% from its highs, is &#8220;a pretty normal correction for a hyper-volatile asset.&#8221;



&#8220;In the near term, again, our technician thinks 70,000 is where we can sort of make a stand… There&#8217;s retracement level… So 70 is one level, it could go as low as the 50s, but that&#8217;s again not a new level.&#8221; he added.



Lee maintains a bullish long-term view on Bitcoin, despite the short-term pullback, predicting it will be one of the best-performing assets.



In a note to Benzinga, Avinash Shekhar, Co-founder, and CEO of Pi42, described the current market as &#8220;a turbulent balance between the macroeconomic restraints and market optimism.&#8221; 



He further said that while Bitcoin gained about 37% over 90 days, it is experiencing the headwinds of profit-booking, decreased institutional flows, and regulatory challenges. 



However, Shekhar also pointed to an annualized futures premium of 11%, indicating &#8220;investor confidence for the next bull run,&#8221; while also suggesting short-term caution.



Technical analysis from Fairlead Strategies painted a bearish picture for both Bitcoin and Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) in the short-term. 



Their analysis stated in a note to Benzinga that Bitcoin &#8220;recently made a lower high and has fallen back into the daily cloud in a setback, keeping its corrective phase intact.&#8221; 



The analysts identified support near $87,500, with resistance near $100,000. 



For Ethereum, Fairlead noted a &#8220;steepsell−off, resulting in a breakdown below initial support at the daily cloud ($3225), which is an intermediate-term bearish development.&#8221; 



They see Ethereum testing its 200-day MA near $2980. 



Despite these bearish short-term perspectives, Fairlead remains long-term bullish on both assets.



Alex Kuptsikevich, chief market analyst at FxPro&nbsp;told Benzinga that the drop late last week may well have been the bottom for the market.



&#8220;Despite the prolonged correction, this is still a bull market where it is preferable to look for <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42940555/bitcoin-slides-to-91000-ahead-of-upcoming-key-inflation-data">buying dips rather than selling</a> highs,&#8221; he said.



Among major altcoins, Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>), Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>), Cardano (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/ada/usd">ADA</a>), Sui (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">SUI</a>) and Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>) are trading up 5%, 8.8%, 6%, 5.5% and 4.0%, respectively.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42946219/microstrategy-acquires-2530-bitcoin-for-243m-reaching-450000-btc-in-total-holdings">MicroStrategy Acquires 2,530 Bitcoin For $243M, Reaching 450,000 BTC In Total Holdings</a></li>
</ul>



Image: Shutterstock

$ADA

$SHIB

$SOL

$SUI

ETHA

IBIT

Bitcoin Rebounds To $96,500, Defies $284M ETF Outflows: Here's What Experts See Happening Next

Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock experienced a 2.68% rise on Tuesday during pre-market hours, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>. 



This uptick was driven by a combination of factors,<a href="https://www.benzinga.com/markets/equities/25/01/42965139/tesla-soars-over-2-after-hours-on-morgan-stanleys-430-target-upgrade-and-breakthrough-fsd-advancements-says-gary-black"> including a revised price target </a>from Morgan Stanley and advancements in Tesla&#8217;s Full Self-Driving (FSD) technology, as highlighted by Tesla enthusiast Gary Black.



Morgan Stanley elevated Tesla&#8217;s price target from $400 to $430, with a bullish scenario reaching $800. The firm cited potential growth in autonomous rideshare and robotaxi services as key factors.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">What's causing TSLA's stock price to take flight (+$8/share, +2.1%) after hours? It's always difficult to discern cause and effect, but here's my guess: 1/ Elon's re-post of a tweet from <a href="https://twitter.com/philipengberg?ref_src=twsrc%5Etfw">@philipengberg</a> that FSD v13.2 is showing a 750% efficacy increase to 724 miles per… <a href="https://t.co/V5kRuRlPXQ">https://t.co/V5kRuRlPXQ</a>&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1878957721988555229?ref_src=twsrc%5Etfw">January 14, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Additional gains were fueled by positive reviews of Tesla&#8217;s updated Model Y and <a href="https://www.benzinga.com/25/01/42894743/tesla-ceo-elon-musk-says-fsd-will-be-safer-than-human-drivers-in-q2-2025">significant improvements in its FSD </a>technology. Version 13.2 of the FSD showed a remarkable 750% increase in efficacy, achieving 724 miles per disengagement on highways, compared to 89 miles in the previous version, as shared by CEO Elon Musk.



Meanwhile, Tesla sold 12,991 Cybertrucks in the fourth quarter of 2024 in the U.S., bringing the <a href="https://www.benzinga.com/25/01/42967593/cybertruck-sales-rise-in-2024-weighed-down-on-tesla-model-s-deliveries-in-us-shows-data">total for the year to 38,965 units,</a> according to the data. The company began delivering the Cybertruck in late November 2023, making 2024 its first full year of deliveries for the vehicle.



Read Also: 



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<li><a href="https://www.benzinga.com/25/01/42960104/congressman-who-wanted-airport-named-after-donald-trump-buys-bitcoin-solana-xrp-token-ahead-of-inauguration" target="_blank" rel="noreferrer noopener">Congressman Who Wanted Airport Named After Trump Buys Bitcoin, Solana, XRP Token Ahead Of Inauguration</a></li>
</ul>



Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.



Image via Shutterstock

General

TSLA Stock Rises 3% In Tuesday Pre Market: What's Going On?

U.S. stock futures advanced on Tuesday following Monday&#8217;s mixed close. Futures of all four major indices rose in premarket trade. Technology stocks dragged the Nasdaq down on Monday, whereas Dow Jones which has the least number of tech constituents rose in trade.



Members of President-elect Donald Trump&#8216;s incoming economic team are considering a gradual increase in tariffs over several months, <a href="https://www.bloomberg.com/news/articles/2025-01-13/trump-team-studies-gradual-tariff-hikes-under-emergency-powers">reported </a>Bloomberg. This approach is designed to enhance negotiating leverage while minimizing the risk of a sudden rise in inflation.



Traders now await the consumer price inflation data this week on Wednesday, which will further clear the case for the Fed to pause the rate cuts.



The 10-year and two-year Treasury notes yielded 4.77% and 4.38%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 97.3%, according to CME Group&#8217;s FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>. 



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.71%</td></tr><tr><td>S&amp;P 500</td><td>0.54%</td></tr><tr><td>Dow Jones</td><td>0.38%</td></tr><tr><td>Russell 2000</td><td>0.67%</td></tr></tbody></table></figure>



In premarket trading on Tuesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 0.54% to $584.53&nbsp;and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.73% to $509.23, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



Wall Street experienced mixed trading on Monday. The Dow Jones comprised of 30 major companies, saw a substantial increase, driven by a shift of investment towards sectors outside of technology. In contrast, the Nasdaq, heavily weighted towards technology companies, experienced a slight dip. The broader S&amp;P 500 index saw a modest increase.



This market activity follows a period of two weeks of declining stock prices, primarily attributed to a sell-off in technology stocks. However, the Russell 2000 index, which tracks smaller-company stocks, showed a slight increase.



While technology stocks faced headwinds, the energy sector outperformed the market, fueled by rising oil prices. The healthcare and materials sectors also witnessed gains.



Dow rose 358.67 points, or 0.86%, to close at 42,297.12. Nasdaq dropped 0.38% to 19,088.10. The S&amp;P 500 inched up 0.16%, ending at 5,836.22. Russell 2000, on the other hand, rose 0.24% to 2,194.50 points.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.38%</td><td>19,088.10</td></tr><tr><td>S&amp;P 500</td><td>0.16%</td><td>5,836.22</td></tr><tr><td>Dow Jones</td><td>0.86%</td><td>42,297.12</td></tr><tr><td>Russell 2000</td><td>0.24%</td><td>2,194.50</td></tr></tbody></table></figure>



Insights From Analysts



Despite Monday&#8217;s fall in technology stocks, Jeremy Siegel, the senior economist to WisdomTree said that growth stocks, particularly in the tech sector, remain dominant. &#8220;The AI-driven investment narrative continues to support these high-growth names, with no signs yet of a definitive shift toward value,&#8221; he added.



He described the markets as &#8220;overly optimistic&#8221; as the S&amp;P 500, trades at 23x forward earnings. According to Siegel, the consensus earnings growth of 16% for 2025 is likely too high and an 8–9% increase is more realistic. &#8220;Consequently, the market could see a correction as valuations adjust to higher rates and moderated growth expectations,&#8221; he said.



Analysts at BlackRock, on the other hand, said that they were &#8220;pro-risk&#8221; and overweight in U.S. stocks. However, they highlighted three areas that could change their view, which includes how U.S. tariffs and fiscal policy shape up.



They are also looking out for &#8220;corporate earnings and lofty tech valuations amid the artificial intelligence buildout&#8221; to see if this will sour the investor risk appetite. And lastly, the analysts said, &#8220;We look for elevated vulnerabilities, like surging bond yields as markets price out rate cuts and corporate debt refinancing at higher interest rates.&#8221;



CNBC&#8217;s Jim Cramer has offered <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42967410/jim-cramer-says-one-two-punch-from-government-and-meta-ceo-mark-zuckerberg-led-to-nasdaqs-monday-decline-may-have-been-too-much-for-everyone">insights </a>into the recent struggles of the Nasdaq Composite, which failed to rally despite gains in other major indices. Cramer attributed the Nasdaq's decline to a "one-two punch" from the U.S. government. Over the weekend, the Biden administration introduced new restrictions on semiconductor exports, which Cramer criticized as "short-sighted," on Monday. 



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a>



Upcoming Economic Data



<ul>
<li>NFIB optimism index for December will be released at 6:00 a.m., ET.</li>
</ul>



<ul>
<li>December&#8217;s headline and core producer price index data will be announced at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Kansas City Fed President Jeffrey Schmid will be speaking at 10:00 a.m. ET.</li>
</ul>



<ul>
<li>Fed will release its Beige Book at 2:00 p.m., ET.</li>
</ul>



<ul>
<li>New York Fed President Williams will deliver his opening remarks on the policy at 3:05 p.m., ET.</li>
</ul>



<ul>
<li>On Wednesday, the headline and core consumer price index for December and the Empire State manufacturing survey data for January will be announced at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Richmond Fed President Barkin will speak at 9:00 a.m., ET.</li>
</ul>



<ul>
<li>New York Fed President Williams will speak at 11:00 a.m., ET.</li>
</ul>



<ul>
<li>Chicago Fed President Goolsbee will speak at 12:00 p.m., ET.</li>
</ul>



<ul>
<li>On Thursday, initial jobless claims till Jan. 11 will be released at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>December&#8217;s U.S. retail sales, import price index and Philadelphia Fed manufacturing survey will be announced at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Business inventories data for November and Home builder confidence index for January will be released at 10:00 a.m., ET.</li>
</ul>



<ul>
<li>On Friday, housing starts and building permits data for December will be released at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>The industrial production and capacity utilization for December will be announced at 9:15 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Calavo Growers Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CVGW#NASDAQ">CVGW</a>) was 3.56% up in premarket as analysts expect it to report quarterly earnings at 30 cents per share on revenue of $161.93 million after the closing bell.</li>
</ul>



<ul>
<li>KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) was up 8.82% after it posted better-than-expected fourth-quarter revenue of $2 billion, beating analyst estimates of $1.99 billion.</li>
</ul>



<ul>
<li>Aehr Test Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEHR#NASDAQ">AEHR</a>) was down 19.07% after it reported worse-than-expected financial results for the second quarter on Monday</li>
</ul>



<ul>
<li>Applied Digital Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLD#NASDAQ">APLD</a>) was up 5.34% as analysts expect it to post a quarterly loss at 15 cents per share on revenue of $63.4 million after the closing bell.</li>
</ul>



<ul>
<li>Nature&#8217;s Miracle Holding Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NMHI#NASDAQ">NMHI</a>) was up 100% as it entered into a Securities Purchase Agreement with a single institutional investor to sell up to $29.7 million in the aggregate of a newly designated class of convertible preferred stock.</li>
</ul>



<ul>
<li>P3 Health Partners (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PIII#NASDAQ">PIII</a>) was up 33.04% after the news that it will participate in the 43rd Annual J.P. Morgan Healthcare Conference in San Francisco, California later today.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.72% to hover around $76.74 per barrel.



The gold spot index was down by 0.02% to $2,678.14 per ounce. The Dollar Index was down 0.34% at 109.587 level.



Asian markets closed higher on Tuesday as Hong Kong&#8217;s Hang Seng, India&#8217;s S&amp;P BSE Sensex, China&#8217;s CSI 300, Australia&#8217;s ASX 200, and South Korea&#8217;s Kospi index advanced. However, Japan&#8217;s Nikkei 225 index fell. European markets were also trading higher.



Read Next:



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<li><a href="https://www.benzinga.com/general/market-summary/25/01/42967576/meta-investors-push-mark-zuckerberg-to-replace-72b-cash-with-bitcoin-to-combat-inflation-heres-what-it-means-for-investors">Meta Investors Push Mark Zuckerberg To Replace $72B Cash With Bitcoin To Combat Inflation: Here&#8217;s What It Means For Investors </a></li>
</ul>



Image Via Shutterstock

Market Summary

Pre-Market Outlook

Analyst Ratings

AEHR

APLD

CVGW

NMHI

PIII

US Stocks Poised To Gain A Day After Tech Stocks Dragged Nasdaq Down: Analyst Calls Markets 'Overly Optimistic' As S&P 500 Trades At 23x Forward Earnings

Biden administration reportedly brushed off Tesla Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) application for about $100 million to fund a big-rig charging corridor, to the exasperation of the EV giant&#8217;s CEO Elon Musk.



What Happened: TechCrunch <a href="https://techcrunch.com/2025/01/13/biden-admin-snubs-teslas-100-million-big-rig-charging-funding-request-again/">reported</a> on Monday that Tesla had applied for funding for a big-rig charging corridor project. The information was confirmed by its project partner California's South Coast Air Quality Management District. 



However, Tesla was not named in the list of 49 applicants to whom the Department of Transportation (DOT) gave over $635 million in funding on Friday to build EV charging infrastructure. 



Tesla first requested funding in 2023 from the Charging and Fueling Infrastructure program to build nine semi-truck charging stations between its former headquarters in California to the southern border of Texas, officially called <a href="https://www.benzinga.com/news/23/08/33495327/tesla-seeks-100m-for-semi-charging-route-between-california-and-texas">Project TESSERACT</a>. However, the department chose other applicants over Tesla even then. 



CEO Responds: Musk responded to the news on social media platform X with a brief, &#8220;Sigh.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Sigh&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1878902938640515082?ref_src=twsrc%5Etfw">January 13, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: The status of the big rig charging corridor is unclear. Tesla did not immediately respond to Benzinga&#8216;s request for comment. 



Tesla has its own fast charging network. Earlier this month, the company said that it opened over 11,000 supercharger stalls in 2024, taking the total number of superchargers to over 65,000.



The growth of Tesla's supercharger network was in question after the company announced&nbsp;layoffs of at least 10% of its global workforce in April. The layoffs impacted&nbsp;<a href="https://www.benzinga.com/news/24/05/38846223/elon-musk-fired-supercharger-chief-rebecca-tinucci-and-her-entire-team-after-she-refused-to-lay-off" target="_blank" rel="noreferrer noopener">500 members of the supercharging team</a>&nbsp;and&nbsp;Rebecca Tinucci, Tesla's then Senior Director of Charging Infrastructure, left the company.



During Tesla's annual shareholder meeting in June, Musk, however, slammed rumors of the <a href="https://www.benzinga.com/news/24/05/38757383/elon-musk-announces-500m-investment-in-teslas-supercharger-network-expansion-in-2024" target="_blank" rel="noreferrer noopener">death of the supercharger network </a>as "greatly exaggerated."



"Our supercharger network is continuing to grow," Musk said while adding the company will invest $500 million into expanding the network in 2024. 



Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>



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Photo courtesy: Shutterstock

Biden Admin Brushes Off Tesla's $100M Big-Rig Charging Funding Application, Says Report: Elon Musk Sighs

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