U.S. banks delivered another round of strong fourth-quarter earnings Thursday, with Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>), Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), U.S. Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>), First Horizon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>), and PNC Financial Services Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>) all surpassing <a href="https://www.benzinga.com/earnings">Wall Street earnings estimates.</a>



The results reinforced the sector's resilience, yet financial stocks showed a mixed reaction after Wednesday's sharp rally.



The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>), which tracks major banks, inched up 0.1% Thursday after a 2.6% gain the previous day. Meanwhile, regional banks, tracked by the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), dipped 0.7% following Wednesday's rally.



The reports followed upbeat earnings from Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), and Bank of New York Mellon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>), which fueled the biggest one-day surge in financial stocks since November.



Market strategist Ed Yardeni said the earnings reflected a "pickup in investment banking and markets activity as business confidence improved." He added that consumer loan growth remained slightly stronger than commercial loan growth.



<h3 class="wp-block-heading">Morgan Stanley Rides Trading Boom To Blowout Quarter</h3>



Morgan Stanley posted earnings per share of $2.22, crushing the $1.70 forecast. Revenue climbed to $16.22 billion, exceeding expectations by nearly 8%, according to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011625&amp;t=be2bearmibe3na1">Benzinga Pro</a> data. 



Its trading business drove the beat. Equities sales and trading revenue soared to $3.33 billion, easily topping the $2.63 billion estimate. Fixed income trading also outperformed, generating $1.93 billion versus the $1.68 billion forecast.



Wealth management, a key pillar of Morgan Stanley's business, delivered $7.48 billion in revenue, slightly above the $7.32 billion estimate. Net interest income hit $2.55 billion, well ahead of the $2 billion forecast.



The bank kept costs in check, with compensation expenses at $5.95 billion, lower than the projected $6.64 billion.



Shares rose 1.2%, extending Wednesday's 4.8% surge.



Read Also: <a href="https://www.benzinga.com/news/large-cap/25/01/43029150/morgan-stanley-q4-earnings-profit-doubles-ceo-calls-it-one-of-strongest-years-aims-for-prudent-dividend-growth">Morgan Stanley Q4 Earnings: Profit Doubles, CEO Calls It One Of Strongest Years, Aims For Prudent Dividend Growth</a>



<h3 class="wp-block-heading">Bank of America Tops Estimates, But 2025 Outlook In Focus</h3>



Bank of America also delivered a strong quarter, reporting EPS of 82 cents, above the 77 cents forecast. Revenue net of interest expenses came in at $25.35 billion, slightly exceeding expectations.



Key business lines performed well. Net interest income reached $14.36 billion, ahead of the $14.12 billion estimate. Investment banking revenue also beat, coming in at $1.65 billion versus the $1.47 billion forecast.



Goldman Sachs analyst Richard Ramsden noted that the results were "better than expected, given 1% higher NII and fees," but indicated that pre-provision net revenue of $8.4 billion fell 2% short of estimates. He added that investors would focus on expense and interest income guidance for 2025.



Bank of America shares were 0.7% lower, following Wednesday's 2.8% rally.



Read also: <a href="https://www.benzinga.com/25/01/43026092/bank-of-america-q4-earnings-67-billion-profit-revenue-jumps-15-investment-banking-and-deposit-growth">Bank of America Q4 Earnings: $6.7 Billion Profit, $1.7 Billion In Investment banking fees, Forecasts Higher NII In 2025</a>



<h3 class="wp-block-heading">PNC, U.S. Bancorp, First Horizon Deliver Mixed Results</h3>



PNC Financial Services posted EPS of $3.77, beating the $3.33 estimate. Revenue of $5.57 billion edged out expectations, but shares slipped 3.8% after gaining 2.4% on Wednesday.



U.S. Bancorp delivered EPS of $1.07, slightly above the $1.05 forecast, but revenue of $6.98 billion came in just below the $7 billion estimate. The stock was down 6.6% at the time of publication Thursday, after a 3.8% jump Wednesday.



First Horizon posted EPS of 43 cents, beating estimates of 39 cents, but revenue disappointed at $729 million, well short of the $820.7 million forecast. Shares were flat, following a 2.7% gain on Wednesday.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43027744/retail-sales-slow-jobless-claims-rise-is-us-consumer-loosing-steam">Retail Sales Disappoint, Jobless Claims Rise: Is US Consumer Losing Steam?</a></li>
</ul>



Photo: Shutterstock

Analyst Color

Earnings

Large Cap

Mid Cap

Sector ETFs

Analyst Ratings

ETFs

Big Banks Continue To Beat Q4 Earnings As Financial ETF Takes A Breather

Israeli Prime Minister Benjamin Netanyahu has postponed a cabinet meeting that was set to vote on a ceasefire agreement with Hamas. The meeting has been delayed due to what Netanyahu has described as &#8220;last minute concession&#8221; <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">demands from Hamas.</a>



What Happened: The vote, which was expected to take place on Thursday, has been put on hold by Netanyahu, who stated the meeting will only proceed once Hamas withdraws its demands. This development has cast doubt on the possibility of a ceasefire after 15 months of conflict, NPR <a href="https://www.npr.org/2025/01/16/nx-s1-5262339/israel-hamas-netanyahu-ceasefire">reports</a>.



Netanyahu stated the meeting will only proceed once mediators confirm all elements of the agreement have been fully accepted. He did not specify which parts of the deal Hamas had allegedly violated.



Senior Hamas official Sami Abu Zuhri has rejected Netanyahu&#8217;s claims, asserting that there is no foundation to the allegations that Hamas is backing out of parts of the ceasefire agreement.



Also Read: <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43017610/oil-prices-break-80-reach-6-month-highs-despite-israel-hamas-ceasefire-deal-why-is-crude-rallying">Oil Prices Break $80, Reach 6-Month Highs Despite Israel-Hamas Ceasefire Deal: Why Is Crude Rallying?</a>



Netanyahu has been under pressure from right-wing members of his coalition government who oppose any form of deal with Hamas, according to NPR. These members have warned they may exit the coalition if a deal is finalized, a decision that could potentially topple Netanyahu&#8217;s government.



Why It Matters: The conflict between Isreal and Hamas has a long history, with the ceasefire agreement being a significant development. The verbal agreement for a ceasefire in Gaza was reached after months of negotiations and has the potential to bring an end to the ongoing war in the Middle East.



This development has had a significant impact on the stock market, <a href="https://www.benzinga.com/news/global/25/01/43013312/defense-stocks-fall-on-gaza-ceasefire-while-broader-market-rallies-whats-going-on">with defense stocks</a>, including Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), Northrop Grumman (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) and Raytheon Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), experienced declines on Wednesday as news of a Gaza ceasefire gained traction.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/25/01/43019094/bidens-farewell-address-targets-tech-oligarchy-in-trump-2-0-era-president-says-americans-face-avalanche-of-misinformation">Biden&#8217;s Farewell Address Targets Tech Oligarchy In Trump 2.0 Era: President Says Americans Face &#8216;Avalanche Of Misinformation&#8217;</a></li>
</ul>



Photo: Shutterstock

News

Global

Netanyahu Postpones Ceasefire Vote, Raising Questions About Gaza Truce Prospects

Crypto exchange Coinbase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) has launched a new service allowing U.S. customers (excluding in the state of New York) to borrow (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">USDC</a>) against <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42142159/bitcoin-paying-for-your-mortgage-one-company-enables-it-but-theres-a-catch">their Bitcoin holdings</a>.



This new offering allows users to access liquidity without selling their Bitcoin, providing instant loans with flexible repayment terms and competitive interest rates powered by Morpho, an open-source lending protocol on Coinbase&#8217;s Layer-2 blockchain Base.



The loans are disbursed instantly in USDC, offering flexible repayment options and competitive interest rates set dynamically by Morpho&#8217;s open market lending pool.



&#8220;Getting a Bitcoin-backed loan on Coinbase is now easier and faster than ever. In under a minute, you can get a loan in USDC without ever having to sell your bitcoin,&#8221; the company stated.



This development aims to bridge the gap between holding crypto assets for the future and accessing funds for immediate needs.



When a user borrows USDC against their Bitcoin, the collateral is automatically converted to Coinbase Wrapped Bitcoin (cbBTC) on a 1:1 basis and transferred to the Morpho protocol.



This cbBTC, which was launched in September to allow customers to move and use their Bitcoin on-chain, remains within the Coinbase ecosystem while being used as collateral.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43026792/bitcoin-consolidates-around-99000">Bitcoin Consolidates Around $99,000 After $750 Million ETF Inflows On Wednesday</a>



Users can borrow up to $100,000 USDC, depending on the amount of Bitcoin they pledge as collateral. 



The interest rates are variable and adjusted in real-time by Morpho based on market conditions, changing dynamically with each block creation on the Base blockchain. 



The loan terms offer users flexibility in repayment, with no fixed repayment schedule, while users can monitor their loan status via the Coinbase app. 



Users will be subject to liquidation if the loan amount, including accrued interest, reaches a predetermined level compared to their collateral value.



Coinbase emphasizes the benefits of borrowing against Bitcoin rather than selling it, citing potential tax advantages in delaying capital gains or losses. 



The launch of these Bitcoin-backed loans marks another step in Coinbase&#8217;s effort to empower customers with &#8220;greater control over their financial lives,&#8221; according to Coinbase. 



By combining the accessibility of Coinbase with the transparent, decentralized features of on-chain protocols, the company aims to offer &#8220;vastly improved financial services.&#8221;



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43014100/akash-network-founder-reveals-unexpected-ai-energy-crisis">Akash Network Founder Reveals Unexpected AI Energy Crisis Driving Decentralized Cloud Adoption</a></li>
</ul>



Image: Shutterstock

Cryptocurrency

$USDC

COIN

Coinbase Launches Bitcoin-Backed Loans For US Users

On Thursday,&nbsp;Morgan Stanley&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) reported a fourth-quarter adjusted EPS of $2.22, up from $0.85 a year ago and beating the consensus of $1.70. Net earnings more than doubled from $1.52 billion to $3.7 billion.



The U.S. bank&nbsp;<a target="_blank" href="https://www.morganstanley.com/content/dam/msdotcom/en/about-us-ir/shareholder/4q2024.pdf" rel="noreferrer noopener">reported</a> fourth-quarter revenue of $16.22 billion, up 26% year over year, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $15.03 billion</a>.



The Firm's expense efficiency ratio was 71% in 2024 compared to 77% a year ago, reflecting stronger revenues and expense discipline. Certain expense items negatively impacted the prior year. The expense ratio decreased from 84% to 69% in the quarter.



Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/24/12/42479974/us-lenders-file-joint-lawsuit-against-consumer-finance-watchdog-for-capping-overdraft-fees-wells-fargo-jpmorgan-citigroup-stocks-in-focus" rel="noreferrer noopener">US Lenders File Joint Lawsuit Against Consumer Finance Watchdog For Capping Overdraft Fees: Wells Fargo, JPMorgan, Citigroup Stocks In Focus</a>



Ted Pick, Chairman and CEO said, "An excellent fourth quarter with a 20% ROTCE followed three quarters of consistent execution for Morgan Stanley, capping off one of the strongest years in the Firm's history&#8230;Total client assets grew to $7.9 trillion across Wealth and Investment Management supported by markets and healthy net new assets."



Morgan Stanley delivered Return on Tangible Common Equity of 20.2% during the fourth quarter and 18.8% in 2024.



The provision for credit losses in the fourth quarter was $115 million, up from $3 million a year ago.



Institutional Securities reported net revenues of $7.3 billion compared with $4.9 billion a year ago. Sales in 2024 reached $28.1 billion, reflecting higher results across business lines and regions on strong client activity and improved market conditions.



Investment Banking revenues were up 25% from a year ago to $1.64 billion. Advisory revenues increased to $779 million on higher completed M&amp;A transactions.



Equity net revenues reached $3.33 billion, up 51%. Increased client activity drove equity net revenues across business lines and regions, with notable strength in Prime Brokerage and regional strength in Asia.



Wealth Management reported net revenues of $7.5 billion in the current quarter compared with $6.6 billion a year ago.



Asset management revenues at $4.42 billion were a record on higher asset levels and the cumulative impact of positive fee-based flows.



Transactional revenues increased by 18%, excluding mark-to-market's impact on DCP investments. Higher levels of client activity drove the increase.



In 2024, investment Management reported net revenues of $5.9 billion driven by asset management revenues on higher average AUM. The year included long-term net inflows of $18 billion.



In the quarterly conference call, CEO Ted Pick said the bank will continue to grow the dividend prudently and opportunistically repurchase stock.



Price Action:&nbsp;At last check Thursday, MS stock was up 2.15% at $133.36 during the premarket session.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/43027043/target-posts-strong-holiday-sales-stock-surges" target="_blank" rel="noreferrer noopener">Target's Holiday Sales Surge 2.8%: Digital Growth And Black Friday Wins Drive Results</a></li>
</ul>



Photo via Shutterstock

Movers

Trading Ideas

General

Morgan Stanley Q4 Earnings: Profit Doubles, CEO Calls It One Of Strongest Years, Aims For Prudent Dividend Growth

BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) discussed the role of exchange-traded funds (ETFs) in its growth strategy during its <a href="https://www.benzinga.com/25/01/42997625/blackrock-beats-q4-estimates-fueled-by-record-inflows-116-trillion-aum-milestone">fourth-quarter earnings commentary</a>. Its Q4 results showed significant achievements and robust momentum across its ETF business. The asset management giant reported $390 billion in ETF net inflows in 2024, representing 11% organic asset growth and 7% organic base fee growth.



Crunching The Inflow Numbers



The fourth quarter alone saw $143 billion in ETF inflows, driven by seasonal portfolio reallocations and investor re-risking as U.S. equity indices and spot Bitcoin prices hit record highs. iShares products helped clients diversify and invest in key investment themes.



ETFs are a core driver of BlackRock&#8217;s growth strategy. &#8220;Since our acquisition of iShares, Blackrock has led in expanding the market for ETFs by making them more accessible and by delivering new asset classes like bonds or crypto and investment strategies like Active. Approximately a quarter of our $390 billion of ETF net inflows were into products launched in the last five years,&#8221; said BlackRock CEO Larry Fink.



Notably, its Bitcoin ETP emerged as the largest ETF launch in history, amassing over $50 billion in assets under management (AUM) within a year. Active ETFs also had a great year, recording $22 billion in net inflows in 2024.



European Expansion



In Europe, BlackRock scaled its ETF platform considerably, with $90 billion in net inflows in the year, driving the European platform's AUM closer to $1 trillion. The region has seen double-digit organic growth for two straight years, thanks to the rise of individual investors using online platforms and ETF savings plans. Moreover, increasing financial education among first-time investors also enabled them to enter the markets.



A large part of BlackRock's growth story constitutes acquisitions, including GIP, Preqin, and HPS, which continues to complement the firm's long-term vision of integrated public and private markets and a larger suit of technology offerings. According to Bloomberg analyst Eric Balchunas, the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) raked in the second largest amount of inflows in 2024, at $86.8 billion. 



See Next: 



<ul>
<li><a href="https://www.benzinga.com/25/01/43015310/etfs-to-tackle-2025s-global-risks-insights-from-wef-at-annual-meeting-in-davos">Davos 2025: ETFs To Tackle Geopolitical, Climate, Cyber Risks</a></li>
</ul>



Photo: Shutterstock

BlackRock's ETF Business Excels In 2024 With Record $390 Billion Net Inflows

Quantum computing stocks continued their upward momentum in Thursday&#8217;s premarket, building on <a href="https://www.benzinga.com/markets/equities/25/01/42998134/qubt-qbts-up-12-rgti-gains-3-in-wednesday-premarket-quantum-computing-stocks-gain-momentum-after-microsoft-says-we-are-right-on-the-cusp-of-seeing-quantum-computers-solve-meaningful-problems">Wednesday&#8217;s strong gains.</a> The surge followed Microsoft Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) call for businesses to embrace a &#8220;quantum-ready&#8221; future by 2025, signaling growing optimism around the sector&#8217;s potential.



What Happened: According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, shares of Quantum Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>) rose by 15.58%, Rigetti Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGTI#NASDAQ">RGTI</a>) increased by 3.47%, IONQ Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>) up by 1.93% and D-Wave Quantum Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>) climbed 9.67% in pre-market trading on Thursday. 



Mitra Azizirad, president and COO of Microsoft&#8217;s strategic missions and technologies, on Tuesday, highlighted in a blog post that we are entering a reliable quantum computing era capable of solving significant problems and unlocking new business value.



The rally gained further momentum as Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) <a href="https://www.benzinga.com/news/25/01/43001201/nvidia-announces-first-ever-quantum-day-at-gtc-2025-days-after-jensen-huang-said-quantum-computing-is-20-years-away">announced a &#8220;Quantum Day&#8221; </a>at its upcoming GTC conference in March. Microsoft also launched a program to help businesses prepare for this transformative era, emphasizing the urgency for business leaders to act. Quantum computing stocks had previously surged last year following Google&#8216;s breakthrough with its Willow quantum computing chip.



Despite Nvidia CEO Jensen Huang&#8216;s assertion that<a href="https://www.benzinga.com/markets/equities/25/01/42966492/jensen-huang-said-quantum-computing-is-20-years-away-but-nvidia-bets-big-on-strategic-hiring"> practical quantum computing</a> is likely two decades away, the company is not waiting to invest in its future. Nvidia is actively hiring for roles that will strengthen its quantum computing capabilities, indicating a long-term commitment to integrating quantum and classical computing systems.



Furthermore,&nbsp;Jim Cramer&nbsp;has been steering investors toward <a href="https://www.benzinga.com/markets/equities/25/01/42993388/jim-cramer-eyes-quantum-computing-stocks-like-rigetti-after-gamestop-sell-off-warns-against-super-micro-computer-they-are-trying-so-hard-to-walk-it-up-now">quantum computing stocks</a> like Rigetti, especially following the GameStop sell-off. Cramer highlighted the extraordinary trading volume of Rigetti shares, suggesting a strong interest in the sector. 



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.



Read Also: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/01/43022654/taiwan-semiconductor-q4-earnings-3nm-and-5nm-nodes-lead-topline-growth-expands-margins-issues-strong-q1-outlook">Taiwan Semiconductor Q4 Earnings: 3nm and 5nm Nodes Lead Topline Growth, Expands Margins, Issues Strong Q1 Outlook</a></li>
</ul>



Image via Rawpixel

Equities

Pre-Market Outlook

Markets

IONQ

MSFT

NVDA

QBTS

QUBT

RGTI

Quantum Computing Stocks Continue Their Wild Surge In Thursday Premarket: QUBT Up 15%, QBTS Climbs 9%, RGTI Gains Over 3%

U.S. stock futures were mixed on Thursday following Wednesday&#8217;s <a href="https://www.benzinga.com/news/earnings/25/01/43021827/dow-jumps-700-points-following-inflation-data-greed-index-remains-in-fear-zone">rally</a>. Futures of the S&amp;P 500, Nasdaq 100, and Dow Jones were higher, whereas the gauge of small-cap stocks Russell 2000 was trading lower in premarket trade.



Traders responded to better-than-expected inflation data on Wednesday as most stocks rallied. The headline Consumer Price Index rose 2.9% year-over-year in December, up from November's 2.7%, matching economist forecasts.



The 10-year Treasury note yielded 4.66%, while the two-year note yielded 4.28%. The CME Group&#8217;s FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a> indicated a 97.3% probability that the Federal Reserve will hold interest rates steady at its upcoming meeting on Jan. 31, 2025.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.48%</td></tr><tr><td>S&amp;P 500</td><td>0.33%</td></tr><tr><td>Dow Jones</td><td>0.06%</td></tr><tr><td>Russell 2000</td><td>-0.19%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) both experienced positive premarket trading on Thursday. SPY rose 0.35% to $594.86, and QQQ climbed 0.45% to $519.01, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



U.S. stocks surged on Wednesday, experiencing their largest single-day <a href="https://www.benzinga.com/news/earnings/25/01/43021827/dow-jumps-700-points-following-inflation-data-greed-index-remains-in-fear-zone">gain</a> since Nov. 6, 2024.



Inflation data released on Wednesday showed a slight uptick in consumer prices in December, matching economists&#8217; expectations. However, the monthly increase was the largest since March.



Several major banks, including JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Goldman Sachs Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), and Citigroup Inc.(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) reported strong fourth-quarter earnings, with Citigroup also announcing a significant share buyback program.



Most sectors within the S&amp;P 500 experienced gains, particularly consumer discretionary, communication services, and financial stocks. Conversely, consumer staples stocks bucked the trend and closed lower.



The Dow Jones Industrial Average closed with a substantial gain of around 703 points. The S&amp;P 500 and Nasdaq Composite also recorded significant increases.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>2.45%</td><td>19,511.23</td></tr><tr><td>S&amp;P 500</td><td>1.83%</td><td>5,949.91</td></tr><tr><td>Dow Jones</td><td>1.65%</td><td>43,221.55</td></tr><tr><td>Russell 2000</td><td>1.99%</td><td>2,263.29</td></tr></tbody></table></figure>



Insights From Analysts



After Wednesday&#8217;s rally, Charlie Bilello, the chief market strategist at Creative Planning said in an X post that about one-third of the S&amp;P 500&#8217;s composition was concentrated in the &#8216;Magnificent Seven&#8217; stocks. According to a chart shared by him the concentration in these stocks rose to 33.5% from 28% a year ago.



<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">Over a third of the S&amp;P 500 is now concentrated in the &quot;Magnificent Seven&quot; stocks, up from a fifth of the index two years ago. Video: <a href="https://t.co/CRei7RqnLO">https://t.co/CRei7RqnLO</a> <a href="https://t.co/P69ATuGRHv">pic.twitter.com/P69ATuGRHv</a>&mdash; Charlie Bilello (@charliebilello) <a href="https://twitter.com/charliebilello/status/1879733848822403087?ref_src=twsrc%5Etfw">January 16, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Talking about inflation, Collin Martin, director, of fixed income strategy at the Schwab Center for Financial Research said, &#8220;CPI was a step in the right direction, but we&#8217;ll need to see more reports like this for evidence that the disinflationary trend has resumed.&#8221;



At the same time, Liz Ann Sonders, the chief investment strategist, at Charles Schwab highlighted that the spread between S&amp;P 500's forward earnings yield and 10-year Treasury yield has reached a new 23-year low.



<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">Spread between S&amp;P 500's forward earnings yield and 10y Treasury yield has reached new 23-year low <a href="https://t.co/SxoQO7TU9K">pic.twitter.com/SxoQO7TU9K</a>&mdash; Liz Ann Sonders (@LizAnnSonders) <a href="https://twitter.com/LizAnnSonders/status/1876605073117122574?ref_src=twsrc%5Etfw">January 7, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



According to RMB Capital, the U.S. consumer remained resilient while U.S. government spending continued unchecked despite sticky inflation and higher interest rates.



&#8220;The incoming administration appears focused on the challenging task of bolstering economic growth while at the same time reducing the deficit. The most critical element of this endeavor will be curtailing the deficit while keeping longer-term yields contained, so as not to disrupt economic expansion,&#8221; it added.



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



Upcoming Economic Data



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



<li>December&#8217;s U.S. Retail Sales figures will be announced.</li>



<li>The Import Price Index for December will be published.</li>



<li>The Philadelphia Fed Manufacturing Survey for January will be released.</li>



<li>At 10:00 a.m., ET, the business inventories data for November will be released.</li>



<li>The Home Builder Confidence Index for January will be published.</li>



<li>On Friday, at 8:30 a.m. ET, the Housing Starts and Building Permits data for December will be released.</li>



<li>At 9:15 a.m., ET, the Industrial Production and Capacity Utilization figures for December will be announced.</li>
</ul>



Stocks In Focus:



<ul>
<li>Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) was up 0.38% in premarket on Thursday as Wall Street expects it to report quarterly earnings of 77 cents per share on revenue of $25.19 billion before the opening bell.</li>



<li>Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) was up 1.49% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.70 per share on revenue of $15.03 billion.</li>



<li>UnitedHealth Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) was up 0.4% as Wall Street expects it to report quarterly earnings of $6.72 per share on revenue of $101.76 billion before the opening bell.</li>



<li>Taiwan Semiconductor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) was up 4.83% after it beat the fourth quarter revenue and EPS estimate. Its top client Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was also up 2.04%.</li>



<li>Synovus Financial Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNV#NYSE">SNV</a>) was up 0.46% after reporting upbeat fourth-quarter financial results on Wednesday.</li>



<li>Powell Max Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PMAX#NASDAQ">PMAX</a>) was up 84.66% as it is targeting firms with between $1 million and $5 million in revenue to expand into the Hong Kong and Asian financial communications market.</li>



<li>Douyu International Holdings Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DOYU#NASDAQ">DOYU</a>) was up 23.76% after naming Simin Ren as co-CEO and announced a special cash dividend of $9.94/ADS.</li>



<li>BigBear.ai Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBAI#NYSE">BBAI</a>) was up 14.45% as it appointed Kevin McAleenan as CEO and a member of the company&#8217;s board, effective as of Wednesday. McAleenan will replace Mandy Long, who is transitioning to an advisory role.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.30% to hover around $78.47 per barrel.



The gold spot index was up by 0.71% to $2,737.06 per ounce. The Dollar Index was down 0.01% at 109.083 level.



Asian markets closed higher on Thursday 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, Japan&#8217;s Nikkei 225 and South Korea&#8217;s Kospi index rose. European markets were also trading higher.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/43021065/cash-app-parent-block-inc-eyes-395-upside-bofa-believes-us-centric-re-acceleration-story-will-drive-the-stock">Jack Dorsey&#8217;s Block Eyes Over 39% Upside: BofA Says US-Centric Re-Acceleration Story Will Drive The Stock</a></li>
</ul>



Photo courtesy: Wikimedia

Macro Economic Events

Market Summary

Broad U.S. Equity ETFs

Economics

BBAI

DOYU

PMAX

US Stocks Could Open Higher After Big Banks Report Strong Earnings: Mag 7 Now Account For A Third Of S&P 500's Market Capitalization, Raising Alarms

In his farewell address from the Oval Office Wednesday night, President Joe Biden raised concerns about an emerging tech oligarchy and social media&#8217;s impact on American democracy, signaling potential regulatory headwinds for the technology sector.



Biden, who announced his withdrawal from the 2024 presidential race in July, warned that Americans face &#8220;an avalanche of misinformation&#8221; while social media platforms abandon fact-checking efforts. 



&#8220;I&#8217;m equally concerned about the potential rise of a tech industrial complex that could pose real dangers for our country,&#8221; Biden <a href="https://www.whitehouse.gov/live/">said</a>, suggesting increased scrutiny of social media companies may be forthcoming.



Biden highlighted his administration&#8217;s recent diplomatic achievement in brokering a ceasefire between Israel and Hamas. The deal, <a href="https://www.benzinga.com/news/global/25/01/43013312/defense-stocks-fall-on-gaza-ceasefire-while-broader-market-rallies-whats-going-on">finalized earlier Wednesday</a>, includes provisions for releasing American hostages in its first phase.



The 81-year-old President endorsed Vice President Kamala Harris as the Democratic Party&#8217;s presidential candidate. However, Harris ultimately lost the election to President-elect Donald Trump. 



In his endorsement, Biden emphasized the critical importance of preserving American institutions as the foundation of a free and democratic society.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/global/25/01/43013312/defense-stocks-fall-on-gaza-ceasefire-while-broader-market-rallies-whats-going-on">Defense Stocks Fall On Gaza Ceasefire While Broader Market Rallies: What&#8217;s Going On?</a></li>
</ul>



Image Via Shutterstock



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

Biden's Farewell Address Targets Tech Oligarchy In Trump 2.0 Era: President Says Americans Face 'Avalanche Of Misinformation'

The CNN Money Fear and Greed index remained in the &#8220;Fear&#8221; zone on Wednesday.



U.S. stocks settled higher on Wednesday, with all three major indices recording their best day since Nov. 6.



On the economic data front, the headline Consumer Price Index rose 2.9% year-over-year in December, up from November&#8217;s 2.7%, matching economist forecasts. On a monthly basis, headline inflation increased 0.4%, accelerating from the 0.3% surge in November and marking the largest monthly rise since March 2024.



JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reported upbeat fourth-quarter FY24 results. Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) reported better-than-expected fourth-quarter financial results. Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) also reported better-than-expected fourth-quarter financial results and announced a $20 billion buyback.



Most sectors on the S&amp;P 500 closed on a positive note, with consumer discretionary, communication services, and financials stocks recording gains on Wednesday. However, consumer staples stocks bucked the overall market trend, closing the session slightly lower.



The Dow Jones closed higher by around 703 points to 43,221.55 on Wednesday. The S&amp;P 500 rose 1.83% to 5,949.91, while the Nasdaq Composite climbed 2.45% at 19,511.23 during Tuesday's session.



Investors are awaiting earnings results from Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>), and UnitedHealth Group Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 29.11, the index remained in the &#8220;Fear&#8221; zone on Wednesday, versus a prior reading of 29.14.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/01/42998360/wall-streets-most-accurate-analysts-give-their-take-on-3-defensive-stocks-delivering-high-dividend-yields-2">Wall Street&#8217;s Most Accurate Analysts Give Their Take On 3 Defensive Stocks Delivering High-Dividend Yields</a></li>
</ul>



Photo courtesy: Shutterstock

Dow Jumps 700 Points Following Inflation Data: Greed Index Remains In 'Fear' Zone

On Thursday, Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) fourth-quarter results beat forecasts, fueled by demand for advanced processor node technologies for artificial intelligence applications.



The contract chipmaker, which supplies chips for&nbsp;Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) graphics processing unit&nbsp;(GPU)&nbsp;and Apple, Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) smartphones, guided first-quarter revenue <a target="_blank" href="https://investor.tsmc.com/english/quarterly-results/2024/q4" rel="noreferrer noopener">above the consensus</a>.



Taiwan Semiconductor reported fourth-quarter revenue of $26.88 billion (NT$868.46 billion), up 38.8% year-over-year, topping the analyst consensus estimate of $26.28 billion.



Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43013634/opecs-optimism-clashes-with-ieas-conservative-2025-oil-growth-projections" rel="noreferrer noopener">OPEC&#8217;s Optimism Clashes With IEA&#8217;s Conservative 2025 Oil Growth Projections</a>



Net income and earnings per share were NT$374.68 billion and NT$14.45 per share ($2.24) versus <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus of $2.23</a>.



In dollar terms, revenue growth was 37.0% year over year and 14.4% quarter over quarter. <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41373163/nvidia-supplier-tsmc-reports-q3-revenue-earnings-beat-amid-rising-demand-for-ai-chips" rel="noreferrer noopener">The top-line performance</a> aligned with the company&#8217;s guidance of $26.1 billion—$26.9 billion.



Taiwan Semiconductor said its business was supported by demand for its 3-nm and 5-nm technologies. However, it expects smartphone seasonality to impact the first quarter, partially offset by continued growth in AI-related demand.



The company said 3-nm accounted for 26% of the total revenue, 5-nm accounted for 34%, and 7-nm technologies accounted for 14%. 7-nm and more advanced technologies comprised 74% of the total wafer revenue.



Margin Profile:&nbsp;Taiwan Semiconductor&#8217;s AI technology moat helped it expand its fourth-quarter gross margins by 600 bps to 59%, as its 3-nm and 5-nm chips gain traction at the cost of&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and&nbsp;Samsung Electronics&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>),&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/42825523/taiwan-semi-likely-for-upside-backed-by-ai-demand-and-advanced-node-pricing-analyst-says" rel="noreferrer noopener">which struggled to transition</a>&nbsp;into advanced nodes. Taiwan Semiconductor&#8217;s operating margin expanded by 740 bps to 49%.



Outlook: Taiwan Semiconductor is guided for first-quarter 2025 revenue of $25.0 billion-$25.8 billion versus the <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$24.97 billion consensus estimate</a>. It expects a gross margin of 57%—59% and operating profit margins of 46.5%—48.5%.



The company earmarked fiscal 2025 capex worth $38 billion-$42 billion (versus $29.8 billion a year ago) amid intensifying geopolitical tensions between the U.S. and China, with the former eying tougher <a target="_blank" href="https://www.benzinga.com/25/01/43003008/taiwan-semi-samsung-intel-may-face-stricter-us-rules-on-chip-exports-to-china-over-security-concerns" rel="noreferrer noopener">artificial intelligence technology</a> restrictions on the latter, citing national security concerns.



Taiwan Semiconductor stock surged over 103% in the last 12 months.



Investors can gain exposure to semiconductor manufacturing stocks through the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).



Price Action: TSM stock traded higher by 4.86% at $216.85 premarket at the last check on Thursday.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43008511/broadcoms-latest-san-switch-offers-scalable-energy-efficient-solution-for-growing-storage-demands" target="_blank" rel="noreferrer noopener">Broadcom&#8217;s Latest SAN Switch Offers Scalable, Energy-Efficient Solution for Growing Storage Demands</a></li>
</ul>



Photo by wakamatsu.h via Shutterstock

Guidance

Tech

AAPL

INTC

SOXX

SSNLF

Taiwan Semiconductor Q4 Earnings: 3nm and 5nm Nodes Lead Topline Growth, Expands Margins, Issues Strong Q1 Outlook

Cathie Wood, the founder of asset management firm Ark Invest, said Wednesday that the firm's conviction in the $1.5 million bull case for Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) in 2030 has strengthened thanks to several bullish developments last year.



What happened: During an X Spaces discussion on Wednesday, Wood stated, "Our bull case is at $1.5 million. Our conviction in that bull case has grown," owing to what she described as "greenlights" in 2024.



<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://t.co/CeCr8fphhq">https://t.co/CeCr8fphhq</a>&mdash; ARK Invest (@ARKInvest) <a href="https://twitter.com/ARKInvest/status/1879649774875578695?ref_src=twsrc%5Etfw">January 15, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Wood, a veteran stock picker and long-time Bitcoin proponent, has set a base target price of $650,000 by 2030, with an<a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42019038/bitcoin-to-hit-up-to-1-5-million-by-2030-says-cathie-wood"> optimistic scenario</a> reaching $1.5 million.



She cited the launch of <a href="https://www.benzinga.com/etfs/currency-etfs/25/01/42971053/bitcoin-etfs-enter-2025-after-massive-first-year#:~:text=Bitcoin%20ETFs%20amassed%20%24129%20billion,in%20December%2C%20driving%20prices%20higher.">spot Bitcoin exchange-traded funds</a>, the <a href="https://www.benzinga.com/money/what-is-bitcoin-halving">halving</a> that slowed Bitcoin's supply growth, and the presidential victory of <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43008666/sec-under-trump-administration-to-revise-crypto-policies-report">pro-cryptocurrency</a> Donald Trump as crucial bullish catalysts for the apex cryptocurrency.&nbsp;



See Also:<a href="https://www.benzinga.com/24/12/42735744/pharma-bro-martin-shkreli-predicts-doom-for-michael-saylors-microstrategy-as-stock-dips-below-300-in-after-hours-trading"> </a><a href="https://www.benzinga.com/government/regulations/25/01/42994641/italys-largest-bank-leaps-into-bitcoin-trading-with-1-million-test-investment-but-ceo-says-he-doesnt-invest-in-btc-personally">Italy&#8217;s Largest Bank Leaps Into Bitcoin Trading With $1 Million &#8216;Test&#8217; Investment But CEO Says He Doesn&#8217;t Invest In BTC Personally</a>



Wood also believed that the victory of a cryptocurrency-friendly candidate would have far-reaching implications for political support for the asset class.



&#8220;I think in the next administration we will probably see more bipartisanship.&#8221;



When asked what interesting narratives cryptocurrency investors should look out for in 2025, Wood said she was &#8220;intrigued&#8221; by the growing intersection of technologies, particularly <a href="https://www.benzinga.com/markets/cryptocurrency/24/06/39151600/ai-and-bitcoin-mining-what-core-scientifics-unexpected-partnership-with-nvidia-backed-ai-f">between Bitcoin and artificial intelligence</a>.



&#8220;We think there are convergences among technologies that are going to cause explosive growth opportunities,&#8221; Wood stated. 



Why It Matters: Should Cathie Wood&#8217;s bullish prognosis of Bitcoin hitting $1.5 million by 2030 come true, it would mean a 1400% upside in five years. Interestingly enough, the digital asset has gained 1030% in the last five years.



Notably, Ark Invest was the first public asset manager to gain Bitcoin exposure at $250 in 2015. 



Ark Invest also launched a spot Bitcoin exchange-traded fund last year in conjunction with 21Shares, namely&nbsp;ARK 21Shares Bitcoin ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKB#BATS">ARKB</a>). As of this writing, it was the <a href="https://sosovalue.com/assets/etf/us-btc-spot">fourth-largest</a> Bitcoin fund, with nearly $4.73 billion in assets under management.



Price Action: At the time of writing, Bitcoin was exchanging hands at&nbsp;$98,703.88, up 1.86% in the last 24 hours, according to <a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA..">data from Benzinga Pro</a>.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/25/01/42993521/michael-saylors-microstrategy-not-alone-in-bitcoin-acquisition-says-bitwise-chief-investment-officer-its-a-bona-fide-megatrend">Michael Saylor&#8217;s MicroStrategy Not Alone In Bitcoin Acquisition, Says Bitwise Chief Investment Officer: &#8216;It&#8217;s A Bona Fide Megatrend&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

$BTC

$LTC

$TRX

ARKB

Ark Invest's Cathie Wood Says Belief In Bitcoin's $1.5 Million Price Target By 2030 Has Grown

Leading cryptocurrencies surged Wednesday amid softer-than-expected consumer inflation and a friendlier regulatory environment under Donald Trump.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><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>+3.08%</td><td>$99,743.07</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>+5.46%</td><td>$3,394.95</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>+5.54%</td><td>$0.3787</td></tr></tbody></table></figure>



What Happened: Bitcoin topped the $100,000 mark for the first time in nearly 10 days as the leading cryptocurrency reacted to key bullish developments. 



While the latest Consumer Price Index data showed hints of slowing inflation, a report raised hopes for <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43008666/sec-under-trump-administration-to-revise-crypto-policies-report">clear cryptocurrency regulations under new SEC leadership</a>.&nbsp;



Ethereum, the second-largest cryptocurrency, reentered the $3.400 zone, hitting an intraday high of $3,465.



Over $350 million were liquidated from the cryptocurrency market in the last 24 hours, with 63% accounting for downside bets.



The market was getting overleveraged, and nearly $1 billion in longs risked liquidation if Bitcoin reversed to $93,000.&nbsp;



About 53% of Binance traders expected Bitcoin to correct, as the Long/Short ratio fell below 1.



The "Greed" sentiment increased from 70 to 75 in the last 24 hours, according to the Crypto Fear &amp; Greed Index, indicating a surge in buying pressure.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Virtuals Protocol (VIRTUAL)</td><td>+24.02%</td><td>$3.70</td></tr><tr><td>Fartcoin (FARTCOIN)</td><td>+23.04%</td><td>$1.26</td></tr><tr><td>XDC Network (XDC)</td><td>+19.26%</td><td>$0.1328</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.51 trillion, rising 4.37% in the last 24 hours.



Stocks lifted on Wednesday following the release of consumer inflation data. The Dow Jones Industrial Average popped 703.27 points, or 1.65%, to 43,221.55 The S&amp;P 500 lifted 1.83% to close at 5,949.91. The tech-heavy Nasdaq Composite erased losses from the previous day, surging 2.45% to 19,511.23.



December's Consumer Price Index report <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43001512/inflation-rises-to-29-in-december-core-slows-yet-rising-energy-costs-put-feds-target-at-risk">revealed core inflation grew slower than expected</a>, sparking excitement in the market and driving the stocks up. Notably, the headline Consumer Price Index matched analysts' expectations.



That said, investors expected the current interest rate range of 4.25%–4.50% to remain unchanged at the upcoming Federal Reserve meeting, <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">according </a>to the CME FedWatch tool.



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



Analyst Notes: Popular on-chain analytics firm CryptoQuant <a href="https://cryptoquant.com/insights/research/6786ce381001ca2735a9a73c-14-January-2025-2025-Bitcoin-Price-Outlook-Institutional-Flows-Could-Drive-Bitco">projected </a>Bitcoin to hit $145,000-$249,000 in 2025, spurred by substantial institutional capital flows.



A mixture of a positive regulatory environment under a pro-cryptocurrency Trump administration, "accommodative" monetary policy, and the fact that Bitcoin was in the most bullish phase of its 4-year cycle could accelerate momentum, according to the research firm.



Widely followed cryptocurrency trader Michaël van de Poppe predicted the market would shift from this point on as Bitcoin breaks $100,000 and Ethereum confirms a bullish divergence.



<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/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> above $100,000. Yields drop 3% on the day (15bps). <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> breaks back upwards and confirms the bullish divergence and higher low.<a href="https://twitter.com/hashtag/Altcoins?src=hash&amp;ref_src=twsrc%5Etfw">#Altcoins</a> outperform Bitcoin. The rotation has started. <a href="https://t.co/Mvevi94sdX">pic.twitter.com/Mvevi94sdX</a>&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1879623548534464876?ref_src=twsrc%5Etfw">January 15, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



"Dollar will become weaker, rates will go down, altcoins will go up," he remarked.&nbsp;



<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">Now we're getting into the stage where markets are turning, Dollar will become weaker, rates will go down, <a href="https://twitter.com/hashtag/Altcoins?src=hash&amp;ref_src=twsrc%5Etfw">#Altcoins</a> will go up. And people won't believe it.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1879582423345959210?ref_src=twsrc%5Etfw">January 15, 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/25/01/43014100/akash-network-founder-reveals-unexpected-ai-energy-crisis">Akash Network Founder Reveals Unexpected AI Energy Crisis Driving Decentralized Cloud Adoption</a></li>
</ul>

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Rally On Positive Inflation Data, Trump's Pro-Crypto Moves: Analyst Projects BTC Could Top $200K Range In 2025

Hindenburg Research, the influential short-selling firm that rattled global markets with high-profile exposés of companies like Adani Group and Nikola Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NKLA#NASDAQ">NKLA</a>), <a href="https://www.benzinga.com/news/management/25/01/43017547/hindenburg-research-is-closing-up-shop-we-shook-some-empires-that-we-felt-needed-shaking">announced its closure Wednesday</a> after a seven-year run that reshaped modern activist investing.



What Happened: Founder Nathan Anderson, who started Hindenburg in 2017, cited personal reasons for disbanding the 11-person firm, marking the end of an era that saw the boutique research shop take on corporate giants and billionaires worldwide.



The firm&#8217;s investigations led to nearly 100 civil and criminal charges against various executives and companies, according to Anderson&#8217;s farewell <a href="https://hindenburgresearch.com/gratitude/">note</a>. One of its most impactful reports targeted India&#8217;s Adani Group in 2023, wiping more than $100 billion in market value and eventually leading to U.S. prosecutors indicting founder Gautam Adani for alleged fraud.



Hindenburg&#8217;s methodical approach to exposing corporate misconduct first gained prominence in 2020 with its report on electric vehicle maker Nikola. The investigation revealed that the company had staged a video of its electric truck rolling downhill to appear self-powered, ultimately leading to founder Trevor Milton&#8216;s four-year prison sentence for fraud.



See Also: <a href="https://www.benzinga.com/news/global/25/01/43013312/defense-stocks-fall-on-gaza-ceasefire-while-broader-market-rallies-whats-going-on">Defense Stocks Fall On Gaza Ceasefire While Broader Market Rallies: What&#8217;s Going On?</a>



Why It Matters: The firm&#8217;s departure follows a broader trend of high-profile <a href="https://www.benzinga.com/topic/jim-chanos">short-sellers stepping back</a>, including Jim Chanos, known for exposing Enron&#8216;s fraud, who closed his hedge fund in 2023. Unlike traditional investment firms, Hindenburg managed only its own capital while publishing detailed research that often triggered regulatory investigations and market selloffs.



Recent targets included Carl Icahn&#8216;s Icahn Enterprises LP (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IEP#NASDAQ">IEP</a>) and Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), led by Twitter co-founder Jack Dorsey. In its final report on Jan. 2, the firm accused Carvana Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>) of accounting irregularities, though the company denied these allegations.



Anderson plans to spend the next six months documenting Hindenburg&#8217;s investigative methods, potentially enabling a new generation of market watchdogs. &#8220;My hope is that someone embraces the same passion, learns the craft, and finds the confidence to shed light on subjects that need it,&#8221; he wrote.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/01/43013717/fed-beige-book-flags-moderate-growth-yet-tariffs-immigration-policies-spark-concerns">Fed Beige Book Flags Moderate Growth, Yet Tariffs, Immigration Policies Spark Concerns</a></li>
</ul>



Photo courtesy: Hindenburg Research



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

Short Sellers

CVNA

NKLA

From Adani To Nikola: How Hindenburg Research Reshaped Short-Selling Before Its Final Bow

Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is reportedly exploring new partnerships to take over from Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) as its <a href="https://www.benzinga.com/government/24/10/41501333/apple-goldman-sachs-fined-89-million-over-apple-card-missteps-government-watchdog-orders-victim-comp">credit card partner</a>.



What Happened: The discussions with Barclays (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BCS#NYSE">BCS</a>) have been ongoing for several months, but a deal may still take time to finalize, reported Reuters.



Apple has also engaged Synchrony Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYF#NYSE">SYF</a>) in discussions regarding the card partnership.



Apple, Barclays, and Synchrony did not immediately respond to <a href="https://pro.benzinga.com/dashboard">Benzinga's</a> request for comments.



See Also: <a href="https://www.benzinga.com/25/01/42993561/is-openais-chatgpt-about-to-make-amazons-alexa-apples-siri-and-google-assistant-a-thing-of-the-past" target="_blank" rel="noreferrer noopener">Siri, Alexa And Google Assistant May Become A Thing Of The Past Thanks To ChatGPT Tasks — Here's How To Use The New Feature</a>



JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) has also been in <a href="https://www.benzinga.com/news/24/09/40907844/jpmorgan-in-talks-to-take-over-apple-credit-card-what-investors-need-to-know">talks with Apple since last year</a>.



Why It Matters: This discussion comes as Goldman Sachs, which launched the credit card with Apple in 2019, has decided to <a href="https://www.benzinga.com/news/23/10/35262321/goldman-sachs-wants-to-opt-out-of-consumer-lending-including-apple-card-general-motors-card">step back from its consumer finance</a> ambitions.&nbsp;



Goldman&#8217;s current credit card agreement with Apple is set to last until 2030, but it might conclude earlier.



Internal challenges and financial difficulties have prompted the bank to reevaluate its position in the consumer finance sector.



This strategic shift aligns with Goldman&#8217;s decision to transfer its General Motors credit card business to Barclays.



Several financial institutions are interested in partnering with Apple. However, some view the original deal terms as risky and unprofitable, the report noted.



Price Action: Apple&#8217;s shares rose 1.97% on Wednesday, closing at $237.87. In after-hours trading, they climbed an additional 0.31% to reach $238.60, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/25/01/42900737/stephen-king-slams-elon-musks-h-1b-visa-stance-musk-thinks-smart-immigrants-can-stay-the-rest-of-you-washing-dishes-get-lost" target="_blank" rel="noreferrer noopener">Stephen King Slams Elon Musk's H-1B Visa Stance: ‘Musk Thinks Smart Immigrants Can Stay – The Rest of You Washing Dishes … Get Lost'</a></li>
</ul>



Disclaimer:&nbsp;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.

Media

Apple Eyes Barclays And Synchrony To Replace Goldman Sachs As Credit Card Partner: Report

Investors and analysts could turn attention to how UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) will replace its insurance unit CEO Brian Thompson, who was fatally shot in December, and how the company will keep public trust as the sector comes under increased scrutiny when the company reports fourth-quarter financial results before <a href="https://www.benzinga.com/earnings">market open Thursday.</a>



Earnings Estimates: Analysts expect UnitedHealth to report fourth-quarter revenue of $101.75 billion, up from $94.43 billion in last year's fourth quarter, according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011525&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company has missed analyst revenue estimates in two straight quarters, while beating estimates in eight of the last 10 quarters.



Analysts expect the company to report fourth-quarter earnings per share of $6.73, up from $6.16 in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in nine of the last 10 quarters.



Read Also: <a href="https://www.benzinga.com/general/health-care/25/01/43001214/unitedhealth-the-number-one-company-on-sale-ahead-of-q4-earnings-report">UnitedHealth: The &#8216;Number One Company On Sale&#8217; Ahead Of Q4 Earnings Report</a>



Key Items to Watch: Thursday's earnings report marks the first quarterly report from UnitedHealth since the company lost Thompson.



Thompson, who was the CEO of UnitedHealthcare, was <a href="https://www.benzinga.com/general/health-care/24/12/42316904/unitedhealthcare-ceo-brian-thompson-fatally-shot-outside-nyc-hotel">shot and killed </a>on Dec. 4 in New York City. Luigi Mangione was arrested for the murder and is facing state and federal charges that include<a href="https://www.benzinga.com/24/12/42605759/luigi-mangione-faces-death-penalty-details-show-attack-planned-for-months-the-target-is-insuranceit-checks-every-box"> first degree murder.</a> Mangione faces potential sentences of life in prison without parole and the possibility of the death penalty if found guilty.



Analysts and investors may be ready to hear if UnitedHealth will address the challenges of replacing Thompson and moving forward after his passing. Sources told <a href="https://www.bloomberg.com/news/articles/2025-01-15/ceo-brian-thompson-s-death-looms-over-unitedhealth-earnings-call?sref=TBDibEcD">Bloomberg </a>the company is not ready to immediately replace Thompson.



UnitedHealth Group CEO Andrew Witty<a href="https://www.benzinga.com/general/health-care/24/12/42744629/unitedhealth-group-ceo-reportedly-says-company-will-hit-financial-records-execs-murder-public-outcry-are-backdrop-for-q4-earnings"> recently reportedly told </a>executives the company will hit financial records in the current fiscal year, which could put the company and stock back in the spotlight a month after Thompson's death.



The company's revenue through the first nine months is $299 billion, a company record, and up from $277 billion through the first nine months of 2023.



Health insurance companies like UnitedHealth have come under increased attention and pressure after Thompson's death. A notebook found on Mangione at the time of his arrest mentioned how insurance companies were focused on profits over the public's health.



An entry in the notebook dated Aug. 15 said: "The details are finally coming together." The entry said procrastination had allowed Mangione to learn more about the company he was targeting; the name of the company was redacted.



"The target is insurance…it checks every box," was also written in the notebook alleged to belong to Mangione, according to the federal complaint against him.



Despite being on trial for murder, Mangione has gained a level of public support, with Thompson's death becoming a rallying cry for critics of the health insurance industry, often accused of denying medical claims.



Along with navigating the fallout from Thompson's death and the increased attention on insurance claims, UnitedHealth has found itself a target of incoming President Donald Trump, who<a href="https://www.benzinga.com/24/12/42517567/cvs-cigna-unitedhealth-shares-slide-as-trump-targets-drug-middleman"> recently spoke out</a> about pharmacy benefit managers.



Trump said he would "knock out" PBMs from the industry, referring to them as drug middlemen, a role they are commonly associated with.



"You know the middleman, right? The horrible middleman that makes more money frankly than the drug companies, and they don't do anything except they're a middleman. We're going to knock out the middleman," Trump said.



UnitedHealth is also facing bipartisan pressure from Congress to push for the breakup of health care conglomerates over PBM practices.



The insurance company also faces scrutiny from the Department of Justice, which has blocked United's $3.3 billion <a href="https://www.benzinga.com/24/12/42704893/amedisys-and-unitedhealth-extend-merger-deadline-whats-going-on">deal to acquire </a>Amedisys Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMED#NASDAQ">AMED</a>).



Along with any commentary on how the new White House administration and public pressure could impact the company's future growth and operations, investors and analysts may be looking for an update on guidance.



UnitedHealth <a href="https://www.benzinga.com/general/health-care/24/12/42317793/unitedhealth-introduces-2025-guidance-ahead-of-now-stopped-investor-conference">shared 2025 revenue guidance </a>of $450 billion to $455 billion and earnings per share guidance of $28.15 to $28.65 ahead of Thompson's death in December.



UNH, DIA Price Action: UnitedHealth stock trades at $544.11 versus a 52-week trading range of $436.38 to $630.73. UnitedHealth stock is up 4.8% over the last year, but has fallen around 11% since Thompson's death.



The SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) and other ETFs that track the Dow Jones Industrial Average will also be in the spotlight Thursday after UnitedHealth's report. United is the second largest component of the Dow Jones Index due to its price-weighted methodology.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/12/42544499/luigi-mangione-documentaries-in-the-works-from-award-winning-creators-and-possibly-rapper-50-cent">Luigi Mangione Documentaries In The Works From Award-Winning Creators — And Possibly Rapper 50 Cent</a></li>
</ul>



Photo: Shutterstock

Previews

AMED

UnitedHealth Group Q4 Earnings Preview: First Report Since Insurance CEO's Murder Comes With Questions On Company's Future

Defense stocks are moving slightly lower Wednesday after Israel and Hamas verbally agreed on a <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">ceasefire in Gaza</a>.



What Happened: Hamas accepted a draft agreement on Wednesday for a ceasefire in Gaza that includes the release of several hostages, according to <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">multiple reports</a>. 



The agreement follows months of negotiations and paves the way for a potential end to the ongoing war in the Middle East that began about 15 months ago. The verbal agreement also comes just days before President-elect Donald Trump&#8217;s inauguration. 



&#8220;We have a deal for the hostages in the Middle East. They will be released shortly. Thank you!&#8221; Trump&nbsp;said in a post on Truth Social.



The deal reportedly includes a six-week ceasefire and the release of 33 Israeli hostages in exchange for the release of Palestinian prisoners. Israel still needs to ratify the deal, but a vote is expected by Thursday. 



Related Link: <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">Israel, Hamas Agree To Cease-Fire Deal With Hostage Exchange: What You Need To Know</a>



Defense stocks including Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), Northrop Grumman Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) and RTX Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) moved lower as the ceasefire reports surfaced despite a strong session from broader indices. The Global X Funds Global X Defense Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHLD#NYSE">SHLD</a>) and the SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) also pulled back from highs on the news. 



At the time of writing, Lockheed Martin shares were down about 0.7%, while Northrop Grumman and RTX shares were down about 0.8%. It&#8217;s worth noting that the SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 1.77% at last check.



Defense stocks have benefitted from the ongoing war in the Middle East with the Global X Funds Defense ETF having gained more than 35% over the past year, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. Defense stocks tend to rally in periods of elevated conflict given their heavy reliance on government contracts. 



Energy stocks including BP P.L.C (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>), Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) and ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) also pulled back slightly on the ceasefire news, but bounced back pretty quickly. 



The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) hit new 52-week highs on Wednesday on continued momentum from last week after the U.S. announced its most extensive sanctions on Russian oil exports to date.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/42948649/goldman-sachs-warns-of-90-oil-risk-trump-may-not-ease-sanctions-once-he-takes-office">Oil Could Hit $90, Goldman Sachs Says: &#8216;Trump May Not Ease Sanctions&#8217; On Russia</a></li>
</ul>



Photo: courtesy of Lockheed Martin.

SHLD

Defense Stocks Fall On Gaza Ceasefire While Broader Market Rallies: What's Going On?

Economic activity expanded slightly to moderately across the Federal Reserve&#8217;s 12 districts during late November and December, yet concerns over looming changes to U.S. immigration and tariff policies cast a shadow on the future, according to the Fed <a href="https://www.benzinga.com/topic/federal-reserve">Beige Book released Wednesday. </a>



The latest Fed Beige Book report highlighted moderate growth in consumer spending, strong holiday sales and rising wages.



According to anecdotal economic insights from businesses and other contacts across the country, several Fed districts showed potential economic headwinds tied to expected policy shifts under President-elect Donald Trump.



<h3 class="wp-block-heading">How Expected Tariffs, Immigration Policies Shape Business Sentiment</h3>



Businesses are increasingly wary of the Trump administration&#8217;s plans to tighten immigration rules and impose steep tariffs. Trump has floated the idea of raising tariffs on Chinese goods to as much as 60% and applying 10% universal tariffs on imports from other nations.



The manufacturing sector appears particularly vulnerable, with contacts reporting efforts to stockpile raw materials in anticipation of higher tariffs.



Additionally, some businesses fear that restrictions on immigration could exacerbate labor shortages, especially in industries like construction and agriculture.



Business leaders across industries within the New York Fed District &#8220;expressed concern that potential import tariffs would push up prices,&#8221; the Beige Book stated.



In the Richmond Fed District, firms from various sectors expressed concerns and uncertainties about tariffs, port worker strikes and overall economic conditions heading into the new year.



<h3 class="wp-block-heading">Wage Growth Picks Up, Inflationary Pressures Remain Modest</h3>



The labor market showed signs of strength, with wage growth accelerating to a moderate pace across most districts. Yet businesses reported growing uncertainty about future staffing needs, especially in light of potential policy changes.



Prices rose modestly overall, with businesses reporting a mix of flat, moderate or even declining selling prices in certain sectors like retail and manufacturing.



Input costs, particularly for health insurance and fuel, continued to climb, and some contacts predicted that higher tariffs would contribute to broader inflation in 2025.



While inflationary pressures remain contained for now, many businesses are bracing for price hikes if the new tariffs go into effect.



The agricultural sector struggled under weak farm incomes and adverse weather conditions. The spread of avian flu further tightened egg supplies, leading to a spike in prices. Energy activity, meanwhile, was mixed, with optimism about 2025 tempered by uncertainty over global demand.



Despite these challenges, the Beige Book revealed cautious optimism for the year ahead. More contacts reported a positive outlook for 2025 than a negative one, reflecting the resilience of the U.S. economy in the face of shifting political landscape.



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



Markets showed little reaction to the Fed Beige Book release. 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>), maintained its session gains of 1.8%.



Tech stocks rallied further during early afternoon trading in New York. The Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was 2.3% higher, eyeing its strongest session since Nov. 6, 2024, when tech stocks showed a post-election rally.



The U.S. dollar index was also little moved, with the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) down 0.1% for the day.



Crude oil added gains, with the West Texas Intermediate light crude up by over 3% to $80 a barrel by 2:20 p.m. ET. 



Read now: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/01/43007354/big-banks-crush-q4-earnings-forecasts-financial-stocks-set-for-biggest-1-day-rally-since-trumps-election">Big Banks Crush Q4 Earnings Forecasts: Financial Stocks Set For Biggest 1-Day Rally Since Trump&#8217;s Election</a></li>
</ul>



Photo via Shutterstock.

Federal Reserve

Fed Beige Book Flags Moderate Growth, Yet Tariffs, Immigration Policies Spark Concerns

Edison International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EIX#NYSE">EIX</a>) shares are trading higher on Wednesday. Brokerage firm <a href="https://www.benzinga.com/analyst-ratings/upgrades/25/01/43010675/edison-international-shares-are-moving-higher-wednesday-whats-driving-the-action">Ladenburg Thalman upgraded the stock from Sell to Neutral</a>. They believe the recent sell-off is overdone.



The chart of Edison illustrates that even when there is significant news regarding a company, it is still important for traders and investors to understand technical analysis dynamics. This is why it is our Stock of the Day.



The sell-off was driven by concerns about the potential impact caused by the Los Angeles fires. Edison is an electric power generator and distributor that operates in Southern California. The company will lose revenue because it is no longer supplying energy to the destroyed areas.



There are also concerns over possible legal issues. A lawsuit has been filed alleging that faulty equipment owned by Edison started the fire.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="545" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6-1024x545.png" alt="" class="wp-image-735468" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6-1024x545.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6-300x160.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6-768x409.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/15143839/1-6.png 1528w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>







Read Also: <a href="https://www.benzinga.com/news/earnings/25/01/43007354/big-banks-crush-q4-earnings-forecasts-financial-stocks-set-for-biggest-1-day-rally-since-trumps-election">Big Banks Crush Q4 Earnings Forecasts: Financial Stocks Set For Biggest 1-Day Rally Since Trump&#8217;s Election</a>



Despite this news, as you can see on the chart technical analysis dynamics still come into play.



In financial markets, certain price levels are more important than others. These are called support and resistance levels.



&#8220;Markets have memories&#8221; is an old Wall Street expression. It means important price levels can retain their importance for a long time. It could be weeks, months or even years.



The $55 level has been support for Edison since October 2020. Each time the stock dropped to this price, the buyers flooded the market and put a floor under the stock.



This isn't a coincidence. There tends to be support at prices that were support previously.



Some investors and traders regret selling at a support level if the price rallies after. A number of these remorseful sellers decide that if they can, they will buy their shares back at the same price they were sold.



As a result, if and when the stock reverses and drops back to the support level they place buy orders. If there is a significant number of these orders, it will create support at the same price where there had been support before.



Markets do in fact, have memories. The chart of Edison International shows it. The $55 has been a support level for more than four years.



Read Next: • <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43001512/inflation-rises-to-29-in-december-core-slows-yet-rising-energy-costs-put-feds-target-at-risk">Inflation Rises To 2.9% In December: Core Slows, Yet Rising Energy Costs Put Fed&#8217;s Target At Risk</a>



Photo: Shutterstock

Technicals

Stock Of The Day: Time To Buy Edison International?

The Symbol MGTC was not found. Here are some similar symbols and popular symbols to consider.

Symbol Similar to: MGTC

Top Gaining Stocks

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO