Minutes from the Federal Reserve's December meeting released on Wednesday show officials are uncertain about the path of future rate cuts, as President-elect Donald Trump's policies and how they could <a href="https://www.benzinga.com/news/econ-s/25/01/42884303/fed-minutes-reveal-inflation-jitters-policymakers-signal-slower-interest-rate-easing-path-ahead">affect inflation remain unknown.</a><a href="https://www.benzinga.com/news/econ-s/25/01/42884303/fed-minutes-reveal-inflation-jitters-policymakers-signal-slower-interest-rate-easing-path-ahead"> </a>



Expert Ideas: Jeffrey Roach, chief economist for LPL Financial, highlighted the Federal Reserve's use of the word "uncertain or a derivation thereof" 12 times throughout the official record from the Federal Open Market Committee and noted that participants find it increasingly difficult to map out a path for interest rates in the face of uncertainty.&nbsp;



Read Next: <a href="https://www.benzinga.com/25/01/42878466/wildfire-rips-through-las-pacific-palisades-neighborhood-3000-acres-burned-30000-evacuated-homes-destroyed">Wildfire Rips Through LA&#8217;s Pacific Palisades Neighborhood Destroying Homes: 3,000 Acres Burned As 30,000 Residents Evacuate&nbsp;</a>



Roach also pointed to "surprising" comments indicating Fed officials think "the strength of economic activity was unlikely to be a source of upward inflation pressures."&nbsp;



He also referred to industry data that suggests hiring plans are softening and said markets could "get choppy" if Friday's payroll report surprises to the downside.&nbsp;



Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, projects the Fed to stay "on pause" for the next few meetings given ongoing sticky inflation and continued strength in the job market.&nbsp;



However, he also said there is "possible risk to the upside at 5.00% for 10-year yields" if Friday's nonfarm payrolls report comes in above forecast.&nbsp;



"Our view for investors is they should expect no rate cuts in Q1 2025 and 10-year US Treasury yields in the 4.50 to 5.00% range at least for the first quarter of 2025," Tentarelli wrote.&nbsp;



Markets React: Markets are ended Wednesday mixed following the release of the Fed minutes. The Dow Jones Industrial Average was up 0.25% and the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) also finished marginally higher on the session. The tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), was down 0.06% at the closing bell. 



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'No Rate Cuts In Q1 2025,' Strategist Says After Fed's December Minutes

A higher than average amount of NFL betting favorites won games in the 2024 season, which could be bad news for sportsbooks like Flutter Entertainment (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLUT#NYSE">FLUT</a>) owned<a href="https://www.benzinga.com/general/sports-betting"> FanDuel and others.</a>



Flutter calls out one Detroit Lions game as being particularly painful, while an analyst says revised guidance has often been a time to buy sportsbook stocks.



Lowered Guidance: On Tuesday, Flutter Entertainment announced it was <a href="https://www.benzinga.com/general/sports-betting/25/01/42862849/flutter-entertainment-stock-falls-as-fanduel-parent-cuts-guidance">lowering its full-year guidance</a> due to what it called customer-friendly results from U.S. sports.



"Continued strong U.S. player momentum has been offset by a period of very unfavorable U.S. sports results across the remainder of November and in December, primarily on NFL Parlay and Same Game Parlay outcomes," Flutter said.



The sports betting company said the 2024 NFL season has been the "most customer-friendly" since the launch of online sports betting, with the highest rate of favorites winning in nearly 20 years.



Flutter said the results reduced revenue by $390 million and adjusted EBITDA by $260 million for the Nov. 12 to Dec. 31 period, which is part of the fiscal fourth quarter. Overall fourth-quarter U.S. sports revenue saw an adverse impact of $550 million in revenue.



The company shared that US revenue is now estimated to be $5.78 billion for the full year, compared to previous guidance of $6.05 billion to $6.25 billion. U.S. adjusted EBITDA is now forecasted to be $505 million compared to prior guidance of $670 million to $750 million.



Parlays are often beneficial for sportsbooks as they include combining multiple bets into one bet that needs all elements to come true for the bet to pay out. While these bets can result in larger payouts, they have a lower hitting percentage. Parlays being unfavorable for Flutter could be something for investors to keep an eye on going forward.



While the full 2024 NFL season had many favorites win, one team and one game might have had the biggest impact on the quarter.



The <a href="https://www.businesswire.com/news/home/20250107289133/en/Flutter-Announces-Update-on-Short-Term-US-Sports-Results-Impact">footnotes </a>of Flutter's press release mention that they had "significant adverse results occurring on Dec. 30."



There was only one NFL game played on Dec. 30 with the Monday Night Football matchup between the Detroit Lions and San Francisco 49ers. The Lions were 3.5-point favorites against the 49ers and won the game 40-34, covering the spread.



According to sports betting writer Ben Fawkes, 91% of tickets and 94% of money at FanDuel was <a href="https://x.com/BFawkes22/status/1873753218376983004">on </a>the Lions -3.5 for the game. This could explain why the company saw such a negative result for this particular game.



The Lions ended the 2024 season with a 15-2 overall record and were 12-5 against the spread, tied for best ATS with the Denver Broncos and Los Angeles Chargers for the season.



Heading into the NFL Playoffs, the Detroit Lions are now the favorites to win Super Bowl LIX at odds of +320 at FanDuel. Back in February, the Lions had odds of closer to +1,200, which means FanDuel could be rooting against the Lions again depending on how many futures bets it has open on the NFL team.



FanDuel will report fourth-quarter financial results on March 4 and provide formal guidance for 2025, events that come after the completion of the NFL Playoffs and Super Bowl.



Read Also:<a href="https://www.benzinga.com/general/sports/25/01/42829221/how-to-watch-nfl-playoffs-super-bowl-lix-betting-odds-will-history-be-made-by-chiefs-or-lions"> How To Watch NFL Playoffs, Super Bowl LIX Betting Odds: Will History Be Made By Chiefs Or Lions?</a>



Flutter Analyst Ready To Buy The Dip?: Flutter preannouncing lower guidance was expected, Needham analyst Bernie McTernan said in a new investor note.



The analyst has a Buy rating and $300 price target on Flutter Entertainment.



"We expect structural hold and line accuracy to continue to be a debate among investors, however, we note the '24 season had the highest percent of favorites winning in nearly 20 years," McTernan said.



McTernan notes that historically lower guidance revisions from sportsbooks has "been a buying opportunity."



The analyst is hesitant to recommend buying the dip due to the timing of the guidance revision with governors proposing fiscal budgets, which can be risky for online sports betting tax increase announcements.



"At this point we continue to believe the '24 season for the NFL was bad luck for the sportsbooks given the historic performance by the favorites."



McTernan recommends waiting to buy the dip until after fiscal budgets are set, which often comes by the end of February.



FLUT Price Action: Flutter stock is up 1% to $254.50 on Wednesday versus a 52-week trading range of $174.03 to $284.79.



Read Next: 



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<li><a href="https://www.benzinga.com/general/sports-betting/24/09/40720484/which-4-teams-have-never-reached-the-super-bowl-betting-payouts-if-history-is-made-in-2024">Which 4 Teams Have Never Reached The Super Bowl? Betting Payouts If History Is Made In 2024 NFL Season</a></li>
</ul>



Photo: Shutterstock

Sports Betting

Price Target

Reiteration

Sports

Trading Ideas

FLUT

Detroit Lions Take Bite Out Of Sportsbooks: Analyst Advises Patience After Flutter Cuts Guidance

President-elect Donald Trump has reignited interest in acquiring Greenland, an idea first floated in 2019 during his first term. 



Initially dismissed as ludicrous, renewed interest has caught attention owing to the island's increasing importance in geopolitical competition in the Arctic and its vast <a href="https://www.benzinga.com/markets/commodities">natural resource potential</a>.



Notably, the Biden administration also showed interest in Greenland's resources, as Under Secretary of State for Economic Growth, Energy and the Environment Jose W. Fernandez visited Nuuk in November.



"Greenland wants to become the next mining frontier," he <a href="https://www.benzinga.com/24/11/42216178/biden-pushes-for-greenlands-minerals-trump-unlikely-to-reverse-course">said</a> after meeting Greenland's government officials and discussing foreign investment opportunities.



Despite its ambitions, the island faces challenges, including harsh terrain, insufficient mapping and an aging population. Nevertheless, Greenland remains rich in untapped resources, including oil, gas and rare earth elements critical to renewable energy and defense technologies.



A particular focus of interest is the Kvanefjeld project in southern Greenland near Narsaq. This site is one of the world's largest undeveloped deposits of rare earth elements, along with zinc and uranium. Over one billion tons of mineral resources have been delineated across three zones: Kvanefjeld, Sørensen and Zone 3.



Key elements include light and heavy rare earths, terbium, neodymium, dysprosium and uranium. These materials are critical for electric vehicle motors, renewable energy systems and advanced military technologies.



An Australian-listed micro-cap company, Energy Transition Minerals (formerly Greenland Minerals Ltd.), owns the project, while a Chinese firm, Shenghe Resources Holding Co., holds a 9.18% stake, making it the largest shareholder. This Chinese connection might fuel further concerns as Canada and the U.S. look to <a href="https://www.benzinga.com/markets/commodities/24/03/37513662/the-answer-cannot-be-china-canadas-wilkinson-says-mining-scrutiny-intensifies-as-srg-scraps-d">reduce Beijing's grasp</a> on rare earth resources.



Even so, China's Arctic strategy has also become a factor. 



As part of its Polar Silk Road initiative, China aims to utilize the Northern Sea Route (NSR), which could cut shipping distances to Europe by 23% compared to the Suez Canal route. Climate change-induced ice melt makes the NSR more accessible, enhancing the Arctic's strategic importance for Beijing. Keeping ties with Greenland, rich in resources and its proximity to Arctic shipping lanes, fits neatly into China's broader plans to reduce reliance on U.S.-controlled trade routes.



Thus, the Arctic — an area that falls under maritime laws and doesn't have a special treaty like Antarctica — slides toward becoming a chessboard for resource competition among global powers, with Greenland at its center.



Price Watch: Energy Transition Minerals closed the day at Australian dollar $0.079. The stock is up 97.50% year-to-date.



Read Next:  • <a href="https://www.benzinga.com/25/01/42870103/lithium-woes-spillover-into-2025-but-us-and-china-quietly-build-reserves">Lithium Woes Spillover Into 2025, But US And China Quietly Build Reserves</a>



Photo: Andrey Muravin via Shutterstock

Commodities

Politics

Global

Markets

How Trump Could Impact China's Role In Emerging Greenland Mining Frontier

Unease about inflation's persistence and potential policy shifts under a new White House administration dominated the Federal Reserve's December meeting, leaving policymakers divided on the pace <a href="https://www.benzinga.com/topic/interest-rates">of future rate adjustments.</a>



Minutes from the Dec. 18 Federal Reserve meeting that were released Wednesday paint a cautious picture of the central bank's outlook on inflation and interest rates.



The Fed cut rates by 25 basis points at the meeting, bringing the federal funds rate to 4.25%-4.5%, and emphasized the path ahead would require a delicate balance between curbing inflation and supporting economic growth.



&#8220;Participants indicated that the Committee was at or near the point at which it would be appropriate to slow the pace of policy easing,&#8221; according to the Fed&#8217;s December minutes. 



The minutes also highlight rising uncertainty about inflation and the broader economy, particularly as fiscal and trade policies face potential shifts under the incoming Donald Trump administration.



<h3 class="wp-block-heading">Why Is Inflation Anxiety Rising Again?</h3>



While inflation has shown signs of moderating, "recent higher-than-expected readings on inflation" suggest it could take longer to return to the 2% target, the minutes say.



Cleveland Fed President Beth Hammack was the sole dissenting vote against an interest rate cut in December, favoring an unchanged rate target of 4.5%-4.75%.



Hammack indicated "uneven progress" toward the Fed's inflation target, alongside robust labor market and economic conditions, as key reasons not to cut interest rates further.



The prospect of significant policy shifts under Trump has left Fed officials navigating uncharted waters. Key campaign promises, such as reworking trade agreements, imposing tariffs and enacting tax reform, could have sweeping impacts on the U.S. economy, particularly on inflation.



"A number of participants indicated they had incorporated placeholder assumptions regarding potential trade and immigration policy changes into their projections," the minutes state, highlighting the Fed's uncertainty about the fiscal environment ahead.



"The effects of potential changes in trade and immigration policy suggested that the process [of reaching the 2% inflation target] could take longer than previously anticipated," the minutes say.



<h3 class="wp-block-heading">Inflation, Economic Projections Adjusted</h3>



The Fed updated its economic projections at the December meeting, and they showed a slower pace of cuts through 2025.



The central bank now projects two 25-basis-point rate reductions next year, down from the four forecasted in September. By the end of 2025, the federal funds rate is expected to hover around 3.9%, with a further decline to 3.4% in 2026.



Notably, the Fed raised its inflation forecasts. Headline Personal Consumption Expenditure inflation for 2025 is now expected to reach 2.5% compared to a prior estimate of 2.1%. Core PCE inflation, which excludes volatile food and energy prices, is projected at 2.5%, up from 2.2%.



Market Reactions



Markets showed muted responses to the Fed minutes, suggesting the hawkish tone from the December meeting had already been priced in by investors.



The U.S. dollar index – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – held steady at the 109 level, maintaining its 0.4% intraday gain.



Equities experienced a modest relief rally, with the S&amp;P 500, tracked by SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), reversing earlier losses to trade marginally higher for the session.



Treasury yields were largely unchanged. The 10-year yield hovered at 4.69%, while the 30-year yield remained stable at 4.93%, signaling little movement in bond markets.



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<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42881085/is-labor-market-cooling-or-raising-fed-concerns-what-to-watch-in-fridays-jobs-report">Is Labor Market Cooling Or Raising Fed Concerns? What To Watch In Friday&#8217;s Jobs Report</a></li>
</ul>



Photo created using artificial intelligence via Midjourney.

Currency ETFs

Econ #s

Economics

Fed Minutes Reveal Inflation Jitters, Policymakers Signal Slower Interest Rate Easing Path Ahead

Amplify ETFs announced Wednesday that it plans to liquidate the Amplify U.S. Alternative Harvest ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MJUS#NYSE">MJUS</a>), with trading set to end Jan. 27.



The Amplify U.S. Alternative Harvest ETF has a significant allocation to cannabis-related companies like Green Thumb Industries (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>) and Curaleaf Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CURLF#OTC">CURLF</a>). The fund&#8217;s price has eroded more than 50% over the last year as the cannabis sector continued to struggle with regulatory issues.



This uncertainty has weighed on cannabis stocks, as reflected in the 45% decline in the AdvisorShares Pure US Cannabis ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSOS#NYSE">MSOS</a>) in 2024.



Shareholders will receive a final cash distribution, based on the fund&#8217;s net asset value on or around Jan. 30. Amplify Investments said that it will cover all liquidation-related fees and expenses, barring brokerage fees and related costs.



Reads More: <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-pro">DEA Accused Of Bias In Cannabis Rescheduling Hearings: Weed Stocks Plummeted In 2024 As Process Drags On</a>



<h3 class="wp-block-heading">Regulatory Roadblocks Stifle Growth</h3>



A key reason behind the unsteadiness in the cannabis industry — and funds like MJUS — is the <a href="https://www.benzinga.com/markets/cannabis/24/06/39277690/dea-vs-biden-fda-health-agency-over-cannabis-rescheduling-whats-up-with-that">Drug Enforcement Administration&#8217;s role </a>in maintaining marijuana&#8217;s classification as a Schedule I drug under the Controlled Substances Act, a categorization reserved for substances with no medical use and a high potential for abuse. This has led to limitations on research, banking and taxation for cannabis businesses.



Although the U.S. Department of Health and Human Services <a href="https://www.benzinga.com/markets/cannabis/24/01/36620822/feds-finally-release-documents-confirming-recommendation-to-reschedule-cannabis-based-on-accepte">recommended rescheduling marijuana</a> to Schedule III, which would ease some federal restrictions, the DEA has the final say. The agency's cautious stance on cannabis rescheduling and the uncertainty around the decision is impacting investor confidence.



<h3 class="wp-block-heading">Broader Impact on Cannabis ETFs</h3>



MJUS is not alone in facing these challenges. ETFs with high exposure to cannabis stocks are also struggling from weak financial performance to limited capital access. The DEA's lack of action has left cannabis firms, and the funds that track them, vulnerable. Funds like AdvisorShares Vice ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VICE#NYSE">VICE</a>), Cambria Cannabis ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/TOKE#BATS">TOKE</a>) and Roundhill Cannabis ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/WEED#BATS">WEED</a>) did not have their best year in 2024.



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<li><a href="https://www.benzinga.com/25/01/42793407/cannabis-physician-surgeon-generals-alcohol-cancer-risk-warning-is-a-wake-up-call">EXCLUSIVE: Cannabis Physician Says Surgeon General's Alcohol Cancer Risk Warning Is ‘Wake-Up Call'</a></li>
</ul>



Photo: Shutterstock

Cannabis

Specialty ETFs

CURLF

GTBIF

MJUS

MSOS

TOKE

VICE

WEED

Amplify To Liquidate Cannabis-Focused MJUS ETF As Regulatory Uncertainty Weighs On Sector

Live sports, ad-supported plans and pricing strategies are among the items highlighted by a Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) analyst ahead of the company's fourth-quarter earnings report, which will include results from NFL games, a big boxing match and the premiere of a <a href="https://www.benzinga.com/24/12/42751367/netflix-posts-record-debut-with-squid-game-season-2-heres-how-many-people-watched-show">second season of "Squid Game."</a>



The Netflix Analyst: Goldman Sachs analyst Eric Sheridan reiterated a Neutral rating on Netflix and raised the price target from $750 to $850.



Read Also: <a href="https://www.benzinga.com/general/sports/24/12/42492251/netflix-ceo-says-paul-tyson-fight-really-phenomenal-strong-demand-for-nfl-game-advertising">Netflix CEO Says Paul-Tyson Fight &#8216;Really Phenomenal,&#8217; Strong Demand For NFL Game Advertising</a>



The Analyst Takeaways: Netflix outperforming the S&amp;P 500 over the past 12 months comes with several key themes, Sheridan said in a new investor note.



The analyst highlighted a competitive moat, a push into live sports and partnerships in advertising as key themes.



"Initial forays into live sports/entertainment are the beginning of a multi-year narrative of compounded growth that will build in momentum," Sheridan said.



Sheridan said the key investor debates going forward are the pace of price increases, management commentary on live sports and the overall media landscape and competition.



"With recent key live events being stimulative of user engagement and sign-ups, we continue to see an attractive advertising opportunity with live events continuing to contribute to Netflix's advertising over time."



Sheridan said Netflix has "an attractive advertising opportunity" with its live events, including sports.



The analyst also increased net subscriber additions for the fourth quarter due to third-party data trends.



"According to Antenna data and Netflix, the Jake Paul vs. Mike Tyson match brought in ~1.4mm new sign-ups in the U.S. to the streaming service."



The boxing match in November had around 65 million concurrent streams globally. Two NFL games on Christmas had around 30 million global viewers each.



"Against this backdrop, we continue to see an attractive advertising opportunity with live events continuing to contribute to Netflix's advertising over time."



Netflix's ad-supported tier represents around 56% of gross additions and around 43% of subscribers in the U.S., Sheridan added.



The analyst sees the live events and recent test cases of the boxing match and NFL games helping to boost its advertising efforts and seeing a higher average revenue per member for ad-supported subscribers. In the past, the ARM has been lower for ad-supported subscribers, which is an area Sheridan thinks Netflix will show improvement on in the fourth-quarter results.



Netflix's fourth quarter included the boxing match, two NFL games and the return of several hit shows, including "Squid Game" on Dec. 26.



One concern from the analyst is the current first quarter, which has a lower slate of original content.



Read Also: <a href="https://www.benzinga.com/24/12/42695495/netflix-nfl-games-show-super-bowl-contenders-mvp-frontrunner-poll-27-watch">Netflix NFL Games Show Off Super Bowl Contenders, MVP Frontrunner: Benzinga Poll Says 27% Watched</a>



What's Next: Netflix will report fourth-quarter financial results after market close Jan. 21.



Analysts expect the company to report fourth-quarter revenue of $10.13 billion, compared to $8.83 billion in last year's fourth quarter, according to data from Benzinga Pro.



The company has beaten analyst estimates for revenue in seven of the past 10 quarters.



Analysts expect the company to report fourth-quarter earnings per share of $4.20, up from $2.11 in last year's fourth quarter. The company has beaten analyst earnings estimates in eight of the last 10 quarters.



Netflix's quarterly results will come shortly after it kicked off its partnership with WWE with the <a href="https://www.benzinga.com/tech/25/01/42827316/netflix-brings-wwe-monday-night-raw-to-streaming-starting-january-6">first live event </a>streamed on Jan. 6. Commentary on the company's live sports events and the "Squid Game" second season will likely be among the most watched items from investors and analysts.



NFLX Price Action: Netflix stock is trading flat at $878.39 on Wednesday at publication versus a 52-week trading range of $472.97 to $941.75. Netflix stock is up 81% over the last year.



Read Next: 



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</ul>



Photo: Courtesy Netflix

Entertainment

Media

NFLX

Netflix Q4 To Show Advertising, Live Sports Strength, Analyst Says: 'Multiyear Narrative Of Compounded Growth'

Friday&#8217;s official jobs report is expected to shed light on the cooling U.S. labor market in December 2024, as economists project slower hiring that could ease pressure on the Federal Reserve amid renewed inflation concerns and policy uncertainty under <a href="https://www.benzinga.com/topic/donald-trump">Donald Trump</a><a href="https://www.benzinga.com/topic/donald-trump">&#8216;s incoming administration.</a>



In a preview shared Wednesday, ADP's National Employment Report—a private-sector-focused indicator—revealed that employers added 122,000 jobs in December, marking a drop from November&#8217;s 146,000 and <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42873182/us-private-businesses-add-122000-jobs-in-december-the-labor-market-downshifted-to-a-more-modest-pace-of-growth">coming in below expectations. </a>



Nela Richardson, ADP's chief economist, said: &#8220;The labor market downshifted to a more modest pace of growth in the final month of 2024, with a slowdown in both hiring and pay gains. Health care stood out, creating more jobs than any other sector.&#8221;



<h3 class="wp-block-heading">What To Expect: Nonfarm Payrolls, Unemployment, Wages</h3>



The consensus among economists – as tracked by TradingEconomics – is that nonfarm payrolls will show a net gain of 154,000 jobs in December, down sharply from the 227,000 added in November. 



Such a slowdown would reflect a labor market losing steam, as monthly payroll growth has averaged 140,000 over the past six months, compared to 220,000 earlier in 2024.



The unemployment rate is forecast to remain unchanged at 4.2%, while average hourly earnings are expected to rise 0.3% month-over-month, a deceleration from the 0.4% growth seen in November. 



On a yearly basis, wage growth is projected to hold at 4%, a sign that wage pressures are cooling after months of post-pandemic labor shortages.



<h3 class="wp-block-heading">Implications For Markets And The Fed</h3>



A weaker-than-expected jobs report on Friday could bolster U.S. stocks, weaken the dollar, and lower government bond yields, as investors may interpret it as a signal that the Fed has room to ease monetary policy further. 



On the flip side, stronger-than-expected job creation or lower unemployment could spur fears of a resilient labor market, which might delay the Fed&#8217;s easing timeline.



Wells Fargo analysts said they anticipate a return to trend-like payroll growth in December, highlighting that worker participation has softened slightly, with prime-age participation leveling off—a further indication of cooling labor demand.



Bank of America projects a 175,000 increase in December payrolls, slightly above consensus. Yet, economists at the investment bank indicate the jobs market is "normalizing," with moderating wage growth and low jobless claims suggesting an orderly slowdown.



&#8220;Our base case is that further modest labor market weakness will push the Fed to cut twice more, in March and June,&#8221; Bank of America&#8217;s economist Stephen Juneau said in a note. 



Uncertainty over the Federal Reserve&#8217;s policy path in 2025 remains elevated, with markets pricing in just 40 basis points of cumulative rate cuts by year-end—equivalent to only one fully priced interest rate reduction.



The stakes are high, as Treasury yields have recently surged to their highest levels in over a year, with the 30-year yield approaching the critical 5% threshold. All eyes now turn to Friday&#8217;s jobs report, set for release at 8:30 a.m. ET.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42878896/dollar-jumps-to-14-month-highs-30-year-yields-near-danger-zone-as-trump-mulls-national-economic-emergency-to-set-tariffs">Dollar Hits 14-Month High, 30-Year Yields Near Critical Threshold As Trump Reportedly Mulls Economic Emergency Tariffs</a></li>
</ul>



Photo: Shutterstock

Macro Economic Events

Bonds

Treasuries

Is Labor Market Cooling Or Raising Fed Concerns? What To Watch In Friday's Jobs Report

The U.S. dollar extended its rally to a 14-month high and Treasury yields continued their relentless rise on Wednesday as speculation grew that President-elect Donald Trump is considering invoking sweeping emergency powers to implement new tariffs, fueling fears of <a href="https://www.benzinga.com/topic/donald-trump">inflation and policy uncertainty.</a>



According to an exclusive CNN <a href="https://edition.cnn.com/2025/01/08/economy/trump-national-economic-emergency-tariffs/index.html">report </a>on Wednesday, sources familiar with the matter said Trump is mulling the use of the International Economic Emergency Powers Act to declare a national economic emergency.



This move could enable him to impose significant tariffs on imports without requiring congressional approval or the need to justify the tariffs on national security grounds.



Yet, sources told CNN that no final decision has been made regarding the declaration of a national emergency.



<h3 class="wp-block-heading">Dollar's Remarkable Rally, 30-Year Yields Near 5% Danger Zone</h3>



A measure of the greenback strength, tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), climbed to the highest levels since November 2023, up for the sixth consecutive week. 



The euro fell 0.4% to $1.03 and the British pound slumped 1.2% to $1.2340, with the latter hitting its weakest level since April 2024.



The dollar has now rallied in 14 of the last 15 weeks as investors expect Trump&#8217;s tariffs to damage other currencies.



&#8220;Perhaps more than even during his last term of office, traders will need to pay close attention to everything coming from the new president,&#8221; said David Morrison, senior market analyst at Trade Nation.



Meanwhile, the 30-year Treasury yield surged to 4.95%, inching closer to the critical 5% mark. Yields on longer-dated bonds, highly sensitive to inflation expectations, signal renewed fears of rising costs fueled by Trump's tariff threats and their potential disruption of global supply chains.



&#8220;The incoming Trump administration&#8217;s policies can lead to increased market volatility,&#8221; wrote Bank of America Securities on Tuesday. 



The iShares 20+Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) – the world&#8217;s largest Treasury-linked exchange traded fund – has fallen by more than 7% since Trump&#8217;s election victory in November.



The last time 30-year Treasury yields crossed the 5% threshold was in October 2023, a level previously unseen since July 2007.



&#8220;Trump's proposed immigration and tariff policies will boost U.S. inflation temporarily, limiting the Fed's ability to cut interest rates,&#8221; said Capital Economics in a recent report.



&#8220;The probability of an equity drawdown has increased to almost 30%,&#8221; Goldman Sachs&#8217; analyst wrote in a report on Wednesday. Analysts Andrea Ferrario and Christian Mueller-Glissman highlighted that &#8220;most of the increase in drawdown probability has been driven by inflation momentum turning from negative to positive.&#8221;



<h3 class="wp-block-heading">Chart: 30-Year Treasury Yields Head Toward 5% Threshold</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="541" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08093712/image-47-1024x541.png" alt="" class="wp-image-724153" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08093712/image-47-1024x541.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08093712/image-47-300x159.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08093712/image-47-768x406.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08093712/image-47-1536x812.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08093712/image-47.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">What's Behind Trump's Plan?</h3>



During a press conference on Tuesday at Mar-a-Lago, Trump called for aggressive measures to rebalance trade and geopolitical relationships with key partners, targeting Canada, Mexico, Europe and China. 



His comments included sharp criticisms of trade deficits, defense spending disparities, and alleged unfair practices.



On Canada, Trump said, &#8220;Why are we supporting a country with a $200 billion-plus deficit? Our military is at their disposal, and we give them so many subsidies.&#8221; 



He floated the provocative idea of Canada becoming the 51st U.S. state if economic <a href="https://www.benzinga.com/news/events/25/01/42860583/trump-floats-canada-as-51st-us-state-says-hes-ready-to-use-economic-force-to-achieve-it">relations didn't improve.</a>



With Mexico, Trump reiterated his long-standing frustrations, stating, &#8220;We are going to put very serious tariffs on Mexico… drugs are coming through at record numbers.&#8221; He accused the Mexican government of failing to control cartels and migration flows into the U.S.



On European countries, Trump reiterated the call for increased defense expenditure, emphasizing that NATO members delinquent on meeting the 2% of GDP target would not receive U.S. military protection. He described the current benchmark as insufficient, saying, "It should be 5%, not 2%."



Trump also floated the idea of acquiring Greenland, cautioning Denmark about the possibility of imposing tariffs.



As for China, Trump expressed concern about the country&#8217;s influence in strategic areas like the Panama Canal and the Arctic. 



&#8220;China is at both ends of the Panama Canal. They're running it,&#8221; he said, calling for renewed U.S. focus on containing Beijing&#8217;s geopolitical ambitions.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42873182/us-private-businesses-add-122000-jobs-in-december-the-labor-market-downshifted-to-a-more-modest-pace-of-growth">US Private Businesses Add 122,000 Jobs In December: &#8216;Slowdown In Both Hiring And Pay Gains&#8217;</a></li>
</ul>



Photo: Shutterstock

Asia

Emerging Markets

Eurozone

Dollar Hits 14-Month High, 30-Year Yields Near Critical Threshold As Trump Reportedly Mulls Economic Emergency Tariffs

Wall Street began Wednesday with muted trading, as investors braced for the release of the December Federal Open Market Committee meeting minutes. During that meeting, policymakers delivered their third consecutive interest rate cut but struck a hawkish tone on inflation and the monetary<a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral"> policy outlook for 2025.</a>



By midday in New York, major indices were little moved, with sectors showing tight variations. Traders appear to be holding their breath as they await insight into the Fed's future policy direction.



President-elect Donald Trump emerged in the spotlight as CNN reported his team is considering an &#8220;economic emergency plan&#8221; that would bypass Congress to expedite the use of broad-based tariffs.



The dollar, meanwhile, surged further, continuing its relentless rally. The greenback is now targeting its sixth consecutive week of gains, having risen in 14 out of the last 15 weeks. U.S. Treasury yields ticked higher early in the session before easing slightly as traders adjusted positions ahead of the FOMC minutes.



On the economic front, the latest ADP private employment data showed weaker-than-expected job creation in December, potentially signaling a cooling labor market heading into the new year.



In commodities, gold rose 0.8%, buoyed by increasing geopolitical and trade uncertainties. On Tuesday, Trump floated a series of controversial proposals, including <a href="https://www.benzinga.com/news/events/25/01/42860583/trump-floats-canada-as-51st-us-state-says-hes-ready-to-use-economic-force-to-achieve-it">the annexation of Canada</a>, the purchase of Greenland from Denmark, threats to NATO allies to increase defense spending and imposing higher tariffs on Mexico.



The cryptocurrency market extended its decline, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) falling more than 2% to trade below $95,000. Over the past two sessions, the leading cryptocurrency has shed over 7% of its value, erasing most of its year-to-date gains.



<h1 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices </td><td>Price</td><td>1-day % chg.</td></tr><tr><td>Nasdaq 100</td><td>21,148.10</td><td>-0.1%</td></tr><tr><td>S&amp;P 500</td><td>5,901.28</td><td>-0.1%</td></tr><tr><td>Dow Jones</td><td>42,374.01</td><td>-0.4%</td></tr><tr><td>Russell 2000</td><td>2,225.91</td><td>-1.1%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:15 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent010625&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) flattened at $588.43.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;was unchanged at $425.08.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) eased 0.1% to $514.72.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) dipped 1% to $220.91.</li>



<li>The&nbsp;Health Care Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) outperformed, up 0.4%; the&nbsp;Communication Services Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) lagged, down 0.9%.</li>
</ul>



<h1 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h1>



<ul>
<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) dropped 4.1% after HSBC downgraded the stock from &#8220;Buy&#8221; to &#8220;Reduce.&#8221;</li>



<li>Quantum-computing stocks took a significant hit after NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang stated &#8220;very useful&#8221; quantum computers are unlikely to be commercially viable for another 15 to 30 years. Key decliners included D-Wave Quantum Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>), down by 44%; Quantum Computing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>), down 48%; Rigetti Computing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGTI#NASDAQ">RGTI</a>), down 48% and IonQ Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>), down 45%.</li>



<li>eBay Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>) rallied 11% after Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) announced it would allow some users to browse eBay listings on its Facebook Marketplace platform. </li>
</ul>



Read Now: 



<ul>
<li><a href="https://www.benzinga.com/25/01/42878295/quantum-stocks-tumble-why-rigetti-ionq-and-d-wave-are-falling">Quantum Stocks Tumble: Why Rigetti, IonQ and D-Wave Are Falling</a></li>
</ul>



Photo: Shutterstock

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Tech

$BTC

EBAY

IONQ

NVDA

QBTS

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RGTI

Wall Street Mixed Ahead Of Fed Minutes, Dollar Bolsters Strength, Bitcoin Falls Below $95,000: What's Driving Markets Wednesday?

A destructive wildfire continues to rage through the Pacific Palisades section of Los Angeles on Wednesday, forcing more than 30,000 people to <a href="https://www.benzinga.com/25/01/42855962/los-angeles-ventura-counties-brace-for-windstorm-as-bad-as-it-gets-for-fire-weather">evacuate the area. </a>



The Details: Before the fire started, the National Weather Service issued an alert for extreme fire conditions, including wind gusts of between 50 and 80 miles per hour, for Los Angeles County from Tuesday through Thursday.  



From Tuesday morning to Wednesday morning, the fire burned more than 3,000 acres, according to Reuters. 



The Pacific Palisades fire, 0% contained, grew to encompass more than 4.5 square miles Wednesday morning, <a href="https://weather.com/news/weather/news/2025-01-07-los-angeles-palisades-fire-santa-ana-wind-california">according</a> to the Weather Channel. Authorities expect the worst conditions through Wednesday morning with wind gusts possibly reaching 100 miles per hour. 



"This is pretty much the worst possible scenario for a firefight," David Ortiz of the Los Angeles Fire Department told KTLA-TV.



Read Next: <a href="https://www.benzinga.com/general/biotech/25/01/42854890/us-records-first-human-bird-flu-death-high-levels-of-respiratory-illnesses-vaccine-stocks-rally">US Records First Human Bird Flu Death, High Levels Of Respiratory Illnesses: Vaccine Stocks Rally&nbsp;</a>



Los Angeles Fire Chief Kristin Crowley on Tuesday said at a press conference that more than 25,000 people in 10,000 homes were threatened.



Karen Bass, mayor of Los Angeles, encouraged residents to heed warnings from officials in an early Wednesday morning post on social media.&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">Our <a href="https://twitter.com/LAFD?ref_src=twsrc%5Etfw">@LAFD</a> and <a href="https://twitter.com/LAPDHQ?ref_src=twsrc%5Etfw">@LAPDHQ</a> teams continue to work overnight to protect Angelenos affected by fires in L.A. Angelenos should be advised that the windstorm is expected to worsen through the morning and to heed local warnings, stay vigilant and stay safe. Red flag parking restrictions…&mdash; Mayor Karen Bass (@MayorOfLA) <a href="https://twitter.com/MayorOfLA/status/1876938290395525605?ref_src=twsrc%5Etfw">January 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The Los Angeles Times <a href="https://www.latimes.com/california/live/pacific-palisades-fire-updates-los-angeles#p=pch-devastated-by-palisades-fire">reported</a> homes and businesses along the Pacific Coast Highway were leveled by the fire Tuesday night as high winds whipped the flames. The National Weather Service reported a gust of 99 mph near Altadena at 10:20 p.m. PT Tuesday and 84 mph at Hollywood Burbank Airport at 8:30 p.m. PT.&nbsp;



More than 160,000 power outages are reported in Los Angeles county, according to<a href="https://poweroutage.us/area/state/california"> data from </a>Poweroutage.us. Pacific Gas &amp; Electric Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PCG#NYSE">PCG</a>) currently has 5,700 customers without power. San Diego Gas &amp; Electric, a subsidiary of Sempra (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SRE#NYSE">SRE</a>), has more than 9,000 customers without electricity. 



Los Angeles International Airport is operating with minimal interruptions Wednesday morning. However, some flights have been diverted due to smoke in the area. Total delays stand at 56 with 8 cancellations reported so far on Wednesday, according to <a href="https://www.flightaware.com/live/cancelled/today/KLAX">data from </a>FlightAware. 



Delta Air Lines Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) and United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) are the largest airlines with flights out of LAX and could face operations disruptions in the coming days.



California Gov. Gavin Newsom toured part of the affected area in Pacific Palisades on Tuesday.



"Not a few — many structures already destroyed," Newsom said. 



Precise damage estimates will only be available after a thorough assessment once the fire is contained. Some of the largest property insurers in California include Allstate Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>) and The Travelers Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) and could face increased claims resulting from fire damage. 



President Joe Biden announced Tuesday that a federal grant had been approved to reimburse California for the fire response. 



&#8220;I have offered any federal assistance that is needed to help suppress the terrible Pacific Palisades fire,&#8221; Biden said in a statement.



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Image: Shutterstock

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Insurance

General

Wildfire Rips Through LA's Pacific Palisades Neighborhood Destroying Homes: 3,000 Acres Burned As 30,000 Residents Evacuate

Rigetti Computing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGTI#NASDAQ">RGTI</a>), IonQ, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>) and D-Wave Quantum Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>) shares are moving lower on Wednesday. The weakness in quantum-related stocks comes after Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang expressed skepticism about the timeline and <a href="https://www.benzinga.com/markets/equities/25/01/42867168/nvidias-jensen-huang-said-something-that-has-all-quantum-computing-stocks-tumbling-qubt-and-rgti-down-13-ionq-down-11">near-term usefulness of quantum computers.</a>



During Nvidia&#8217;s analyst day, Huang commented, "If you said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it's probably on the late side. If you picked 20, I think a whole bunch of us would believe it."



Huang highlighted that quantum computing is well-suited for small datasets and intense computing operations, but it falls short when it comes to handling larger sets of data.



Quantum computing stocks have seen a wave of momentum from investors over the last few months. However, following Huang's remarks, investors may now be revisiting their expectations for the quantum industry.



Particularly, investors could be reassessing their outlook on the timeline for practical quantum applications which could prompt a shift in investing strategies. Investors may also start to pay closer attention to companies that can demonstrate tangible progress.



Nonetheless, quantum-related stocks are trending across various social media platforms as of Wednesday morning.



See Also: <a href="https://www.benzinga.com/media/25/01/42874155/nvidia-teams-up-with-mediatek-to-challenge-intel-and-amd-in-desktop-cpu-market">Nvidia Teams Up With MediaTek to Challenge Intel and AMD in Desktop CPU Market</a>



Price Action: At the time of writing, Rigetti shares are trading 44.8% lower at $10.13, IonQ stock is moving 39.5% lower at $30.10 and D-Wave stock is moving 43.8% lower at $5.35, according to data from <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>.



Image: Courtesy of IonQ, Inc.

Movers

Quantum Stocks Tumble: Why Rigetti, IonQ and D-Wave Are Falling

Private employers added 122,000 new jobs in December, marking a slowdown from November's 146,000 and falling short of expectations. With hiring contracting in key industries like manufacturing, the labor market appears to be losing <a href="https://www.benzinga.com/topic/labor-market">steam heading into 2025.</a>



In a report published Wednesday, Automatic Data Processing Inc. highlighted the results of its National Employment Report, which comes ahead of Friday's crucial non-farm payroll data from the government. 



&#8220;Hiring slowed in several industries. Employment in manufacturing shrank for the third straight month,&#8221; according to the December ADP National Employment Report.



Nela Richardson, ADP's chief economist, said: "The labor market downshifted to a more modest pace of growth in the final month of 2024, with a slowdown in both hiring and pay gains. Health care stood out in the second half of the year, creating more jobs than any other sector."



The ADP National Employment Report sets the stage for the jobs report from the Bureau of Labor Statistics on Friday, where economists forecast a significant reduction in the pace of employment growth from November's 227,000 to 154,000.



In a separate release, initial jobless claims fell to 201,000 for the week ending Jan. 4, down from 211,000 the previous week and below the forecast of 218,000. This marks the fourth consecutive decline in weekly jobless claims, suggesting that while hiring has slowed, companies are still holding on to workers.



Continuing claims edged higher, rising from 1.844 million to 1.867 million, though coming in just under expectations of 1.87 million.



<h3 class="wp-block-heading">December Highlights: Where Did Jobs Grow?</h3>



In December, the U.S. labor market showed mixed results, with gains concentrated in service-providing industries, while goods-producing sectors struggled.



Goods-producing industries added 10,000 jobs in December, led by construction, which gained 27,000 payrolls.



Manufacturing shed 11,000 jobs, marking its third consecutive month of declines.



Service-providing industries added 112,000 jobs, down from November's 140,000. The strongest gains came from education and health services, which added 56,000 payrolls, while leisure and hospitality contributed 22,000. Trade, transportation and utilities — a barometer of consumer demand — grew by 8,000 jobs.



Overall, private employment grew by 122,000 in December, missing economist expectations of 140,000, as tracked by TradingEconomics.



The ADP report showed continued cooling in wage growth. Salary increases for job stayers eased to 4.6% year-over-year in December, down from 4.8% the previous month. For job changers, pay gains edged lower to 7.1%, compared to 7.2% in November.



The deceleration in wage growth is likely to provide some relief to the Federal Reserve, which has been closely monitoring labor market conditions as part of its fight against inflation.



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



Markets showed a measured response to the ADP report, with investors keeping an eye on minutes expected Wednesday afternoon from the latest Federal Reserve meeting and geopolitical developments.



The U.S. dollar initially gained ground on Wednesday, fueled by renewed comments from President-elect Donald Trump on potential tariffs. Yet the greenback eased slightly after the ADP report, with the U.S. dollar index, tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), up by 0.4%, trimming heavier early morning gains.



In bond markets, yields on longer-dated Treasuries softened after the data release but remained elevated. The 10-year yield rose 2 basis points to 4.7%, near its highest levels since November.



Equity markets were mixed during premarket trading in New York. Futures for the S&amp;P 500 edged up 0.1%, while Nasdaq 100 futures climbed 0.2%. Futures tied to the Dow Jones dipped 0.2%. On Tuesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 1.1%.



Read Next: 



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<li><a href="https://www.benzinga.com/25/01/42868387/us-stocks-to-open-higher-as-futures-advance-christopher-wood-expects-trumps-inflationary-policies-to-hurt-market">US Stocks To Open Higher As Futures Advance: Christopher Wood Expects Trump&#8217;s Inflationary Policies To Hurt Market</a></li>
</ul>



Photo via Shutterstock.

US Private Businesses Add 122,000 Jobs In December: 'Slowdown In Both Hiring And Pay Gains'

Despite finding some footing in 2024, the lithium market's main concerns, oversupply and slower-than-expected <a target="_blank" href="https://www.benzinga.com/electric-vehicles" rel="noreferrer noopener">electric vehicle (EV) adoption</a> could persist this year.



"This swing supply dynamic could serve as a cap on price increases in 2025, as rapid restarts may lead to a more oversupplied market than currently forecast," Federico Gay, principal lithium analyst at Benchmark Mineral Intelligence said, according to the <a target="_blank" href="https://www.bnnbloomberg.ca/business/international/2025/01/08/stubbornly-resilient-lithium-supply-remains-hurdle-to-recovery/" rel="noreferrer noopener">BNN Bloomberg's report</a>.



Current analyst projections estimate lithium carbonate prices will stabilize around $10,685 per ton in 2025. As prices have dropped over 80% since 2022, the market's "invisible hand" stepped in.



Suspended outputs and delayed expansion plans helped lithium regain its footing, but significant rebounds remain unlikely.



BloombergNEF recently downgraded its EV adoption forecast, citing geopolitical and economic uncertainties.



Donald Trump's return to the U.S. presidency has shifted policy focus back to fossil fuels, which may further dampen demand for battery metals.



Despite these headwinds, China has solidified its position in the lithium market, raising its reserves from 6% to 16.5% of the global total, making it the second-largest global market.



New reserves include spodumene mines in Tibet and lithium salt lakes in the Qinghai-Tibet Plateau—now the third largest in the world. With a low-cost alternative, China aims to reduce reliance on imports and further strengthen its influence on the EV market.



Yet, the U.S. is quietly growing its reserves, with Nevada in the center.



Lithium Americas (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LAC#NYSE">LAC</a>) has significantly increased reserves at its Thacker Pass project near the Nevada-Oregon border, with proven and probable reserves jumping 286% (since 2022) to 14.3 million tons of lithium carbonate equivalent (LCE).



The project's expanded lifespan and increased capacity position it as a critical supplier for General Motors' EV production. Lithium Americas also appointed Luke Colton as CFO to guide the project's development, which is set to commence later this decade.



Meanwhile, Nevada Lithium's (OTCQB:<a class="ticker" href="https://www.benzinga.com/stock/NVLHF#OTCQB">NVLHF</a>) Bonnie Claire project has made remarkable progress. The company <a target="_blank" href="https://nevadalithium.com/news-release/nevada-lithium-to-commence-trading-on-tsx-venture-exchange/" rel="noreferrer noopener">announced</a> a 68% increase in inferred resources at its Lower Zone, now holding 25.6 Mt of LCE at an average grade of 3,085 ppm lithium.



This development represents a threefold improvement in grade compared to prior estimates, with additional high-grade boron resources adding further value. The company was recently listed on the Toronto Venture Stock Exchange, where it trades under the ticker NVLH.



Read Next:



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<li><a href="https://www.benzinga.com/news/guidance/25/01/42840568/chiles-codelco-targets-turnaround-with-modest-copper-output-increase-and-strategic-lithium-ventures" target="_blank" rel="noreferrer noopener">Chile's Codelco Targets Turnaround with Modest Copper Output Increase and Strategic Lithium Ventures</a></li>
</ul>



Photo via Shutterstock

NVLHF

Lithium Woes Spillover Into 2025, But US And China Quietly Build Reserves

Eiji Hashimoto, CEO of&nbsp;Nippon Steel (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NISTF#OTC">NISTF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NPSCY#OTC">NPSCY</a>), has criticized tariffs as insufficient for strengthening the U.S. steel industry. 



What Happened: Hashimoto is pursuing legal action to prompt a review of his proposed $15 billion acquisition of U.S. Steel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) by the incoming Trump administration. This comes after President Joe Biden blocked the takeover last week, citing national security concerns, Financial Times <a href="https://www.ft.com/content/01a9fd91-d277-479c-93de-64f95d856891">reported</a> on Wednesday.



Hashimoto, speaking in Tokyo, argued that the merger would bolster&nbsp;U.S. national security by creating&nbsp;a more robust company. 



He stated, &#8220;We&nbsp;don't think there is any&nbsp;other route that can strengthen&nbsp;the U.S. steel industry more&nbsp;than this deal. We never think that industry can become stronger through tariffs alone."



The legal cases filed on Monday claim Biden&#8217;s decision constitutes &#8220;wrongful interference.&#8221;



The debate centers on whether a Japanese acquisition of US Steel would weaken the industry or enhance it through capital and technology. Biden&#8217;s order gives the companies 30 days to abandon the deal&nbsp;unless the Committee on Foreign&nbsp;Investment in the U.S. (CFIUS) grants an extension. Hashimoto urged Cfius to reconsider under a new administration, aiming for another review.



Legal experts suggest the&nbsp;challenge to the CFIUS process&nbsp;may be difficult due to broad national security definitions. However, the case tests the limits of the Executive Branch&#8217;s authority over foreign investments.



Why It Matters: The decision by President Biden to block the <a href="https://www.benzinga.com/trading-ideas/movers/25/01/42787508/biden-blocks-14-9b-us-steel-takeover-shares-plunge">$14.9 billion acquisition</a> of&nbsp;U.S. Steel&nbsp;by&nbsp;Nippon Steel Corp.&nbsp;was announced on Jan. 3, 2025. The administration cited concerns that foreign ownership could jeopardize national security and disrupt essential supply chains. The White House emphasized the vital role of steel in maintaining the nation's infrastructure, defense, and industrial base.



Following this, Nippon Steel filed a lawsuit on Jan. 6, 2025, challenging the <a href="https://www.benzinga.com/markets/equities/25/01/42835417/nippon-steels-lawsuit-against-biden-administration-may-extend-us-steel-deal-timeline">Biden administration&#8217;s decision</a>. The lawsuit alleges that the President&#8217;s opposition was influenced by political motives, particularly to gain union support in Pennsylvania. Legal experts indicate that while the lawsuit faces significant hurdles, it might extend the timeline for the deal, allowing for potential alternative arrangements.&nbsp;



Read Also: 



<ul>
<li><a href="https://www.benzinga.com/25/01/42868387/us-stocks-to-open-higher-as-futures-advance-christopher-wood-expects-trumps-inflationary-policies-to-hurt-market">US Stocks To Open Higher As Futures Advance: Christopher Wood Expects Trump&#8217;s Inflationary Policies To Hurt Market</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 by Poetra.RH via Shutterstock

NISTF

NPSCY

Nippon Steel CEO Slams Tariffs, Defends $15 Billion US Steel Merger Amid National Security Concerns: 'We Never Think That Industry Can Become Stronger Through Tariffs Alone'

U.S. stock futures advanced on Wednesday after closing lower on Tuesday. Futures of all four major indices rose in premarket trade.



After a mixed close on Monday and a fall on Tuesday, the U.S. market has remained sluggish in yet another truncated week as it will remain closed for former President Jimmy Carter&#8217;s &#8216;National Day of Mourning&#8217; on Thursday, Jan. 9.



The 10-year and two-year Treasury notes yielded 4.67% and 4.28%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025, FOMC meeting was at 95.2%, <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">according to</a> 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>0.38%</td></tr><tr><td>S&amp;P 500</td><td>0.30%</td></tr><tr><td>Dow Jones</td><td>0.24%</td></tr><tr><td>Russell 2000</td><td>0.11%</td></tr></tbody></table></figure>



In premarket trading on Wednesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 0.33% to $590.60&nbsp;and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.36% to $517.02, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



U.S. stocks experienced a <a href="https://www.benzinga.com/25/01/42867409/sp-500-down-over-1-amid-decline-in-nvidia-fear-greed-index-remains-in-fear-zone">downturn </a>on Tuesday, with the S&amp;P 500 closing more than 1% lower. This decline was primarily driven by a decline in major technology companies.



Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares retreated significantly after reaching a new peak. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock faced a setback following a downgrade by BofA Securities. Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) also saw a decline in its share price.



Economic data released on Tuesday showed a widening of the U.S. trade deficit. Imports increased at a faster pace than exports, contributing to the deficit.



Most sectors within the S&amp;P 500 ended the day in negative territory. Consumer discretionary, communication services and information technology were among the hardest hit. However, energy and healthcare sectors bucked the trend and closed higher.



<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>-1.89%</td><td>19,489.68</td></tr><tr><td>S&amp;P 500</td><td>-1.11%</td><td>5,909.03</td></tr><tr><td>Dow Jones</td><td>-0.42%</td><td>42,528.36</td></tr><tr><td>Russell 2000</td><td>-0.74%</td><td>2,249.80</td></tr></tbody></table></figure>



Insights From Analysts



Talking about Donald Trump&#8216;s policy agenda, Christopher Wood from Jefferies wrote in his GREED &amp; Fear note dated Jan. 2 that it&#8217;s clear that certain aspects of Trump&#8217;s policy, such as the proposed tariffs and the crackdown on immigration could be inherently inflationary, something the Federal Reserve is likely aware of.



According to the note, there is a fundamental contradiction between the expectations of a disinflationary, productivity-driven boom fueled by AI and deregulation, which the U.S. stock market has been celebrating since the presidential election, and the potential economic impact of tariffs and immigration restrictions.



Regarding the latter, even if mass deportations do not occur, as is GREED &amp; Fear's base case, a substantial reduction in new arrivals could still lead to stagflationary effects.



According to the chief market strategist at Carson Research, Ryan Detrick an average year sees gains of 9.5%. This jumps to 10.6% after a 20% gain, &#8220;Suggesting better than average returns,&#8221; he said in a <a href="https://www.carsongroup.com/insights/blog/what-happens-after-stocks-gain-20/">note </a>dated Jan. 7. 



&#8220;The bull very well might have a little more up his sleeves this year. But taking this one step further shows that after back-to-back 20% gains, the next year is up 20% on average and never lower,&#8221; he added.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="961" height="463" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08050221/RYAN-DETRICK-IMAGE.png" alt="" class="wp-image-723523" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08050221/RYAN-DETRICK-IMAGE.png 961w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08050221/RYAN-DETRICK-IMAGE-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/08050221/RYAN-DETRICK-IMAGE-768x370.png 768w" sizes="(max-width: 961px) 100vw, 961px" /></figure>



According to Charles Schwab <a href="https://international.schwab.com/story/stock-market-update-open">commentary</a>, &#8220;The month lacked a significant &#8216;Santa Claus Rally,&#8217; but investor sentiment appeared bullish, particularly at the start and end of December. Many clients appeared to close out the year by rebalancing their portfolios, adding exposure to underperforming sectors such as health care and energy and trimming positions in outperformers like information technology and communication services.&#8221; &#8211;



Louis Navellier of Navellier &amp; Associates said that there&#8217;s no reason to be overly concerned by the recent volatility; the trend remains positive.



&#8220;If interest rates are up because the economy is strong, that will be good for earnings growth, which will outshine any small increments in financing costs. And global market yields will likely tie the Fed's hands from being too restrictive anyway,&#8221; he added.



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



Upcoming Economic Data



Several important data points will be released in this truncated week that will help investors determine the future course of action.



<ul>
<li>On Wednesday, December&#8217;s ADP employment data will be released at 8:15 a.m., ET.</li>
</ul>



<ul>
<li>The minutes of the Fed&#8217;s December FOMC meeting will be released at 2:00 p.m., ET.</li>
</ul>



<ul>
<li>Consumer credit data for December will be announced at 3:00 p.m., ET.</li>
</ul>



<ul>
<li>On Thursday, initial jobless claims till Jan. 4 will be announced at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Wholesale inventories data for November will be released at 10:00 a.m., ET.</li>
</ul>



<ul>
<li>On Friday, the U.S. employment report, unemployment rate, and hourly wages data for December along with hourly wages year over year will be released at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>The preliminary consumer sentiment data for January will be announced at 10:00 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Cal-Maine Foods Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CALM#NASDAQ">CALM</a>) was up 3.78% in premarket on Wednesday after it posted better-than-expected results for its second quarter. The company said it set a quarterly record for total dozens sold and specialty dozens sold. It also announced a cash dividend of approximately $1.49 per share.</li>
</ul>



<ul>
<li>Acuity Brands Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AYI#NYSE">AYI</a>) was up 2.35% in premarket as analysts expect it to post quarterly earnings at $3.89 per share on revenue of $956.18 million. The company will release earnings before the markets open.</li>
</ul>



<ul>
<li>AAR Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIR#NYSE">AIR</a>) was up 2.36% in premarket after it posted stronger-than-expected second-quarter results. The company reported quarterly earnings of 90 cents per share, which beat the analyst consensus estimate of 84 cents.</li>
</ul>



<ul>
<li>Fubotv Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUBO#NYSE">FUBO</a>) was down 19.05% as Halper Sadeh LLC, an investor rights law firm, initiated an investigation on whether its merger with the Walt Disney Company's Hulu + Live TV business is fair to FuboTV shareholders.</li>
</ul>



<ul>
<li>Blue Hat Interactive Entertainment Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BHAT#NASDAQ">BHAT</a>) was up 70.70% after it announced a $4.4 million registered direct offering of 55,200,000 Ordinary Shares.</li>
</ul>



<ul>
<li>XTI Aerospace Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XTIA#NASDAQ">XTIA</a>) was down 49.08% in premarket after it announced a public offering of over 363 million shares at $0.055 per share and a 1-for-250 share consolidation as part of its 2025 strategic initiatives.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were higher in the early New York session by 1.19% to hover around $75.13 per barrel.



The gold spot index was up by 0.07% to $2,667.29 per ounce. The Dollar Index was up 0.29% to 108.858 level.



Asian markets were mostly lower on Wednesday as Hong Kong&#8217;s Hang Seng, Japan&#8217;s Nikkei 225, and China&#8217;s CSI 300 index declined. Whereas, Australia&#8217;s ASX 200, South Korea&#8217;s Kospi index ended higher. European markets were mostly higher in trade.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/01/42867184/yield-curve-normalization-cheap-valuation-eps-growth-to-boost-banks-in-2025-truist-initiates-coverage-on-these-14-regional-names">Yield Curve Normalization, Cheap Valuation, EPS Growth To Boost Banks In 2025: Truist Initiates Coverage On These 14 Regional Names</a></li>
</ul>



Photo courtesy: Wikimedia

Market Summary

Futures

Pre-Market Outlook

BHAT

CALM

FUBO

TSLA

XTIA

US Stocks To Open Higher As Futures Advance: Christopher Wood Expects Trump's Inflationary Policies To Hurt Market

Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and Contemporary Amperex Technology Co. Limited, two of China&#8217;s leading technology companies, are preparing legal challenges after being added to the U.S. Department of Defense&#8217;s list of Chinese Military Companies on Wednesday.



What Happened: The designation, which primarily affects U.S. defense procurement, triggered significant market reactions. Tencent&#8217;s shares fell 7.8% in Hong Kong trading on Tuesday, while CATL&#8217;s stock dropped 6% in Shenzhen. Both companies strongly denied any military connections and announced plans to engage with U.S. authorities.



Tencent, a major gaming and social media conglomerate, stated in a regulatory filing that it is &#8220;neither a Chinese military company nor a military-civil fusion contributor.&#8221; The company, led by Chairman Ma Huateng, emphasized that the listing wouldn&#8217;t affect its broader business operations or securities trading.



Tencent owns Riot Games, and Supercell, and has stakes in Reddit, Snap, and Epic Games.



CATL, a key supplier to Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), similarly rejected the designation, stating it has &#8220;never engaged in any military-related business or activities.&#8221; The company assured shareholders that the listing would not substantially impact its operations.



Both Tencent and CATL have initiated reconsideration processes and indicated their willingness to pursue legal action if necessary.



See Also: <a href="https://www.benzinga.com/25/01/42860759/10-best-stock-traders-in-congress-in-2024-where-do-nancy-pelosi-pete-sessions-susan-collins-marjorie-taylor-greene-rank">Top 10 Stock Traders In Congress For 2024: How Nancy Pelosi, Pete Sessions, Susan Collins, Marjorie Taylor Greene Rank</a>



Why It Matters: This development comes amid escalating <a href="https://www.benzinga.com/government/24/05/39057312/chinese-firms-blacklisted-in-us-rebrand-themselves-as-american-to-avoid-sanctions-imposed-by-biden-a">U.S.-China trade tensions</a>. China&#8217;s Ministry of Commerce recently imposed new trade controls, adding 28 U.S. companies to an export control list and restricting major defense contractors like Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) from operating in China.



Despite these challenges, Tencent continues to show <a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/42827152/tencent-strengthens-video-leadership-showcases-revenue-growth-potential-analyst">strong business fundamentals</a>. Goldman Sachs recently maintained a Buy rating on the company, citing its leadership in video entertainment and artificial intelligence development. The company&#8217;s WeChat ecosystem remains robust, with users accessing the app 40-50 times daily.



The Pentagon&#8217;s designation specifically relates to <a href="https://www.benzinga.com/news/global/25/01/42838053/us-adds-tencent-tesla-supplier-catl-to-chinese-military-blacklist-shares-tumble">Section 1260H list compliance</a>, which serves as a warning mechanism for U.S. entities but does not prohibit general business dealings or securities transactions with listed companies. 



Price Action: Tencent&#8217;s stock is trading at HK$ 373.60 ($48.04) on Wednesday, down 1.58% for the day. Over the past year, the stock has gained 29.51%. 



CATL&#8217;s stock is currently trading at CNY 246.28 ($33.59) on Wednesday, down 1.27% for the day. Over the past year, the stock has surged 64.09%.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/events/25/01/42860583/trump-floats-canada-as-51st-us-state-says-hes-ready-to-use-economic-force-to-achieve-it">Trump Floats Canada As 51st US State, Says He&#8217;s Ready To Use &#8216;Economic Force&#8217; To Achieve It</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.

Legal

TCEHY

Tesla Supplier CATL, Riot Games Owner Tencent Plan Legal Action Over Pentagon Blacklist, Deny Military Ties

Leading cryptocurrencies nosedived, on Tuesday, as the latest economic data poured cold water on interest rate-cut expectations.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:15 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-4.76%</td><td>$97,056.00</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>-7.59%</td><td>$3,402.50</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>-9.40%</td><td>$0.3507</td></tr></tbody></table></figure>



What Happened: Bitcoin fell to $96,200 late afternoon before dip-buying propelled the leading cryptocurrency up a few notches. This comes a day after it hit $100,000 after a gap of more than two weeks.



Ethereum's decline was steeper as the second-largest cryptocurrency lost nearly 8% of its value in 24 hours, plunging to $3,880.



Cryptocurrency liquidations hit $559 million in the last 24 hours, the highest since Dec. 20. More than $500 million in long liquidations was witnessed.



Top traders on Binance seemed to be buying the dip, as over 63% of them were long on Bitcoin, compared to 36% shorting the cryptocurrency.&nbsp;



About $555 million in short positions risked liquidation if Bitcoin rebounds to $100,000.&nbsp;



The slump cooled the sentiment from "Extreme Greed" to "Greed," according to the Crypto Fear &amp; Greed Index.



Top Losers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Losses </td><td>Price (Recorded at 8:15 p.m. ET)</td></tr><tr><td>dYdX (DYDX)</td><td>12.33%</td><td>$1.43</td></tr><tr><td>Pudgy Penguins (PENGU)</td><td>11.88%</td><td>$0.03761</td></tr><tr><td>Lido DAO (LDO)</td><td>11.85%</td><td>$1.78</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization slumped 5.29% to $3.39 trillion in the last 24 hours.



Stocks faced heavy sell-offs on Tuesday. The Dow Jones Industrial Average lost 178.20 points, or 0.42%, to close at 42,528.36. The tech-heavy Nasdaq Composite slipped 1.89%, ending at 19,489.68, while the S&amp;P 500 fell 1.11% to 5,909.03.



The decline followed a report revealing <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42850914/us-services-sector-growth-tops-forecasts-but-price-pressures-tariff-concerns-cloud-outlook">stronger-than-expected U.S. services sector growth</a>, but a steep increase in the Prices Index stoked fears about inflationary pressures.



According to the CME FedWatch tool, traders priced in a 95% chance that the current interest rate range of 4.25%-4.50% would remain unchanged, up from 91% the day before.



While the equities sold off, yields on risk-free debt rose. The benchmark Treasury yield hit 4.69, its highest since late April.



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



Analyst Notes: Popular cryptocurrency analyst Michaël van de Poppe weighed in on Bitcoin's latest correction.



"Couldn&#8217;t hold above $98-100,000 and we&#8217;re dropping down. Likely this is going to give a period of consolidation," the analyst predicted.



However, he added that once the correction ends, the entire market will rally, with altcoins witnessing the "strongest bounces."



<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">The chop on <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> continues. Couldn&#39;t hold above $98-100K and we&#39;re dropping down. Likely this is going to give a period of consolidation. Correction over? Bounce on the entire markets, strongest <a href="https://twitter.com/hashtag/Altcoins?src=hash&amp;ref_src=twsrc%5Etfw">#Altcoins</a> have the strongest bounces.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1876702282533757386?ref_src=twsrc%5Etfw">January 7, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Ali Martinez, a widely followed cryptocurrency expert,&nbsp; highlighted the significance of $97,000 as support for Bitcoin.



"If this support holds, BTC may rebound. A break below $97,000, however, could open the door for a dip to $92,000," Martinez projected.



<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">The TD Sequential indicator flashes a buy signal on the <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> hourly chart, right above the setup trend line and the 200-hour MA, near $97,000. If this support holds, <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> may rebound. A break below $97,000, however, could open the door for a dip to $92,000. <a href="https://t.co/jevgNgKyEf">pic.twitter.com/jevgNgKyEf</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1876684037416186305?ref_src=twsrc%5Etfw">January 7, 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/25/01/42815711/bitcoin-is-the-the-grand-daddy-and-outshines-wall-street-anthony-pompliano-says">Bitcoin Is The &#8216;The Grand Daddy&#8217; And Outshines Wall Street, Anthony Pompliano Says</a></li>
</ul>

Cryptocurrency

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Join Equities In Sell-Offs As Economic Data Pours Cold Water On Rate Cut Hopes: $97K Holds Significance For BTC — Here's Why

On Tuesday, Cathie Wood-led Ark Invest made some significant adjustments to its portfolio. The most notable of these was the sale of shares in Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) across multiple ETFs, coupled with a substantial sale of ARK 21Shares Bitcoin ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKB#BATS">ARKB</a>).



The Palantir Trade



Ark Invest&#8217;s decision to offload Palantir shares may come as a surprise to many, given the company&#8217;s impressive 355% surge over the past 12 months. The investment firm continued to dump shares of the hot stock. On Tuesday, it offloaded 4,890 shares valued at $342,251 through ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>), ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>) and Ark Fintech Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKF#NYSE">ARKF</a>). Palantir stock ended the day sharply lower by 7.8% at $69.99. Tuesday&#8217;s sale follows Ark&#8217;s <a href="https://www.benzinga.com/trading-ideas/technicals/25/01/42843542/palantir-stock-the-ark-is-rocking-as-palantirs-rally-hits-resistance">disposal of shares</a> worth roughly $15 million on Monday. Despite the sale, Wood remains a long-time supporter of tech disruptors. However, this move underscores growing concerns about Palantir's valuation, especially following Morgan Stanley&#8217;s <a href="https://www.benzinga.com/markets/equities/25/01/42835613/jim-cramer-predicts-palantir-buying-surge-tonight-after-morgan-stanleys-underweight-rating-unless-another-analyst-starts-with-a-sell">recent downgrade</a> to "underweight," setting a $60 price target on the stock.



The ARK 21Shares Bitcoin ETF Trade



On the same day, Ark Invest also made a significant sale of its Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) ETF. The firm sold 18,239 ARK 21Shares Bitcoin ETF units from ARKW. On Tuesday ARKB ended the day 5.8% lower at $96.19. Bitcoin was seen trading 5.2% lower at $96,728.42 at the time of writing. Significantly lower than the psychologically important $100K mark.



This trade comes amidst a favorable environment for crypto gains. Former BitMEX CEO Arthur Hayes predicted Bitcoin&#8217;s <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42854789/bitcoin-could-peak-by-late-march-arthur-hayes-says-heres-why">price could peak</a> in late March 2025 due to increased dollar liquidity. He highlighted liquidity injections from the Fed&#8217;s Reverse Repo Facility and Treasury&#8217;s General Account, cautioning the positive trend may reverse with debt ceiling pressures.



Other Key Trades:



<ul>
<li>Ark Purchased shares of Gitlab. and Illumina.</li>



<li>The firm loaded up on shares of Pacific Biosciences of California </li>



<li>Ark sold shares of Archer Aviation, Cloudflare and Adaptive Biotechnologies.</li>
</ul>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/trading-ideas/movers/25/01/42857121/southwest-airlines-cashes-in-on-sale-and-leaseback-of-36-aircraft-details">Southwest Airlines Cashes In On Sale And Leaseback Of 36 Aircraft: Details</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKB

ARKF

ARKK

ARKW

PLTR

Cathie Wood's Tuesday Double Dump: Ark Invest Trims Both Palantir And Bitcoin ETF Holdings

The CNN Money Fear and Greed index showed an increase in the overall fear level, while the index remained in the &#8220;Fear&#8221; zone on Tuesday.



U.S. stocks settled lower on Tuesday, with the S&amp;P 500 falling more than 1% during the session amid a decline in major tech stocks.



NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares dipped 6.2% on Tuesday after hitting a record high level. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares fell over 4% after BofA Securities downgraded the stock from Buy to Neutral, while Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) lost nearly 2% during the session.



On the economic data front, the U.S. trade deficit increased to $78.2 billion in November versus a revised $73.6 billion gap in the previous month and is in line with market estimates. Imports increased 3.4% to $351.6 billion, while exports rose 2.7% to $273.4 billion.



Most sectors on the S&amp;P 500 closed on a negative note, with consumer discretionary, communication services, and information technology stocks recording the biggest losses on Tuesday. However, energy and health care stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by around 178 points to 42,528.36 on Tuesday. The S&amp;P 500 fell 1.11% to 5,909.03, while the Nasdaq Composite dipped 1.89% at 19,489.68 during Tuesday's session.



Investors are awaiting earnings results from UniFirst Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNF#NYSE">UNF</a>), Acuity Brands, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AYI#NYSE">AYI</a>) and PriceSmart, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSMT#NASDAQ">PSMT</a>) today.



At a current reading of 35.7, the index remained in the &#8220;Fear&#8221; zone on Tuesday, versus a prior reading of 37.8.



What is CNN Business Fear &amp; Greed Index?



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/analyst-ratings/price-target/25/01/42846607/bank-of-new-york-mellon-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call">Bank of New York Mellon Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call</a></li>
</ul>



Photo courtesy: Shutterstock

Earnings

PSMT

S&P 500 Down Over 1% As Nvidia, Tesla Tumble: Greed Index Remains In 'Fear' Zone

The trading activity of Congress members is drawing increasing attention from retail traders and political analysts, with platforms like Benzinga's Government Trades page providing <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent010725">detailed analysis of their trades.</a>



A new report shows that several members of Congress beat the overall market by a significant margin in 2024.



What Happened: The overall stock market soared in 2024 with major stock indexes like the S&amp;P 500, which is tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), making multiple new all-time highs throughout the year.



A new <a href="https://unusualwhales.com/congress-trading-report-2024">report </a>from Unusual Whales shows that the majority of members of Congress who held five or more stocks in 2024 saw their portfolios post a higher gain than the S&amp;P 500 for the year.



The average gains were 31.1% for Democrats and 26.1% for Republicans, versus a gain of 24.9% for the SPY, based on the Dec. 29, 2024 to Dec. 30, 2024 time period.



Check This Out:



<ul>
<li>Lawmakers Made Huge Investments This Year. <a href="https://www.benzinga.com/gov-trades">Get Tips </a><a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent010725">On </a><a href="https://www.benzinga.com/gov-trades">What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



Top 10 Stock Traders in Congress: Unusual Whales compiled the returns of the members of Congress. The returns are based on the gains from the start of 2024 to the end and do not take the holding time into account.



Here's a look at the top 10 for 2024:



<ol>
<li>David Rouzer (R-N.C.), Representative, +149.0%</li>



<li>Debbie Schultz (D-Fla.), Representative, +142.3%</li>



<li>Ron Wyden (D-Ore.), Senator, +123.8%</li>



<li>Roger Williams (R-Texas), Representative, +111.2%</li>



<li>Morgan McGarvey (D-Ky.), Representative, +105.8%</li>



<li>Larry Bucshon (R-Ind.), Representative, +98.6%</li>



<li>Pete Sessions (R-Texas), Representative, +77.5%</li>



<li>Susan Collins (R-Maine), Senator, +77.5%</li>



<li>David Kustoff (R-Tenn.), Representative, +71.5%</li>



<li>Nancy Pelosi (D-Calif.), Representative, +70.9%</li>
</ol>



This year's list includes two Senators and eight Representatives. The list also includes four Democrats and six Republicans.



Several of these figures have appeared on past lists. Rouzer was ranked fourth in the 2023 report and seventh in the 2021 report. Schultz ranked second in the 2022 report. Wyden ranked sixth in the 2023 report. Sessions ranked 10th in the 2023 report. Pelosi was ranked ninth in the 2023 report and ranked sixth in the 2021 report.



Ranking outside the top 10 are several notable names, including Dan Crenshaw, 13th at +61.3%, Mitch McConnell, 21st at +42.4%, and Marjorie Taylor Greene, 23rd at +30.2%.



Greene, who took a small break from trading, has been actively buying stocks in the second half of 2024, including many technology names.



For more on Congress trading history on an annual basis, see Benzinga's coverage of the Unusual Whales reports from <a href="https://www.benzinga.com/general/politics/24/01/36459015/10-best-stock-traders-in-congress-in-2023-spoiler-nancy-pelosi-is-back-on-the-list">2023</a>, <a href="https://www.benzinga.com/government/23/01/30260466/10-best-stock-traders-in-congress-in-2022-spoiler-nancy-pelosi-isnt-no-1">2022 </a>and <a href="https://www.benzinga.com/news/22/02/25337519/10-best-stock-traders-in-congress-in-2021-spoiler-nancy-pelosi-isnt-no-1" target="_blank" rel="noreferrer noopener">2021</a>.



Unusual Whales notes that Rouzer mainly holds ETFs and is not an active trader. His ownership of NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and other stocks helped boost his 2024 return.



While most the names included own at least five stocks, Bucshon is an exception with his only active stock held being Trump Media &amp; Technology Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>). Unusual Whales said the representative bought the stock in 2021 and hit break even in 2024.



The report also makes special mention of Pelosi, calling her "the greatest options trader of all time." Pelosi's transactions have <a href="https://www.benzinga.com/markets/options/24/10/41459593/nvidia-stock-hits-all-time-highs-heres-how-much-nancy-pelosis-500-call-options-are-worth-today">gained a wide following</a> with the transactions coming from her husband Paul Pelosi and later disclosed by the former Speaker of the House.



Some top options for Pelosi include Palo Alto Networks (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Nvidia, which were up 93%, 97% and 273% respectively in 2024.



Pelosi's trades are often in-the-money options years from expiration that can later be exercised into stock positions.



McGarvey had one of the more <a href="https://www.benzinga.com/markets/equities/24/12/42447434/democratic-congressman-bought-djt-stock-after-2024-election-months-after-saying-donald-trump-unfit-to-serve">unusual trades in 2024</a> with a disclosure saying the Democrat bought shares of Trump Media &amp; Technology Group shortly after Donald Trump won the 2024 presidential election. The Representative later disclosed that the stock was sold for a loss, and the purchase was made without McGarvey's knowledge.



Bucshon appeared on the 2024 list, but could be left off in the future, as he did not seek re-election in the 2024 election and is now out of Congress.



What's Next: Several members of Congress have pushed for a ban on Congressional trading, including Representative Ro Khanna (D-Calif.).



Khanna told <a href="https://www.benzinga.com/general/politics/24/05/39096827/exclusive-khanna-says-shameful-congress-members-profited-from-stocks-calls-for-trading-ban-makin">Benzinga last year </a>that he will continue advocating for a congressional vote to ban the practice.



Khanna said that despite his continued speeches in the House advocating for a ban on stock trading, there is a "collective shrug" in Congress regarding the issue.



&#8220;It is shameful that over three years after the pandemic with the shenanigans from those senators who sold their stock after learning of the pandemic&#8221; there still hasn&#8217;t been a vote, Khanna said.



Khanna said that people were outraged at the time when several senators sold their stocks in tourism and other sectors that would be hurt, knowing that the economy could crash from the COVID-19 pandemic.



&#8220;Senators making money when the rest of the country was suffering during the pandemic.&#8221;



Without a bill to vote on, members of Congress are currently allowed to buy and sell stocks, options and <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42778468/congressman-buys-more-ski-mask-dog-coin-will-meme-coin-hit-new-all-time-highs-on-latest-disclosure">even meme cryptocurrencies</a> as long as they properly disclose the transaction within 45 days.



Investors can get exposure to the disclosed trading activity of members of Congress with the Series Portfolios Trust Unusual Whales Subversive Democratic Trading ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NANC#BATS">NANC</a>) and the Series Portfolios Trust Unusual Whales Subversive Republican Trading ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/KRUZ#BATS">KRUZ</a>).



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42747345/marjorie-taylor-green-went-christmas-shopping-for-stocks-heres-what-she-bought-before-holiday">Marjorie Taylor Greene Went Christmas Shopping For Stocks, Here&#8217;s What She Bought Before Holiday</a></li>
</ul>



Photo: Shutterstock

AVGO

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NANC

PANW

Top 10 Stock Traders In Congress For 2024: How Nancy Pelosi, Pete Sessions, Susan Collins, Marjorie Taylor Greene Rank

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