U.S. stock futures advanced on Wednesday following Tuesday&#8217;s mixed close. Futures of all four major indices rose in premarket trade.



Traders await the December Consumer Price Index will provide fresh insights into inflation&#8217;s trajectory, potentially influencing the Federal Reserve's policy stance amid mounting uncertainty over interest rates.



The headline inflation rate is <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42988894/all-eyes-on-december-inflation-betting-odds-signal-risk-of-fed-struggling-to-tame">projected </a>to rise 2.9% year-over-year, according to TradingEconomics, marking an increase from November&#8217;s 2.7% pace. On a monthly basis, headline inflation is expected to grow by 0.3%, maintaining the same pace as the prior month. 



Amid rotation, technology stocks dragged the Nasdaq down on Tuesday as well, whereas Dow Jones, which has the least number of tech constituents, rose over 220 points.



The 10-year and two-year Treasury notes yielded 4.77% and 4.35%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 97.3%, according <a href="http://The 10-year and two-year Treasury notes yielded 4.77% and 4.35%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 97.3%, according to CME Group's FedWatch tool. --https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">to</a> CME Group&#8217;s FedWatch tool.



<figure class="wp-block-table"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.22%</td></tr><tr><td>S&amp;P 500</td><td>0.14%</td></tr><tr><td>Dow Jones</td><td>0.18%</td></tr><tr><td>Russell 2000</td><td>0.51%</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 0.18% to $583.22&nbsp; and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.23% to $506.25, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



U.S. stock market closed with a mixed performance on Tuesday. The Dow Jones Industrial Average saw a significant intraday surge following the release of Producer Price Index data.



PPI increased by 0.2% in December, lower than the expected 0.3% and November&#8217;s 0.4% increase. This positive economic indicator boosted investor sentiment.



However, Big Tech stocks weighed heavily on the Nasdaq. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) experienced notable declines, contributing to the index&#8217;s negative performance.



Sectoral performance was varied across the S&amp;P 500. Utilities, materials, and financial sectors closed higher, while communication services and healthcare sectors underperformed.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.23%</td><td>19,044.39</td></tr><tr><td>S&amp;P 500</td><td>0.11%</td><td>5,842.91</td></tr><tr><td>Dow Jones</td><td>0.52%</td><td>42,518.28</td></tr><tr><td>Russell 2000</td><td>1.13%</td><td>2,219.24</td></tr></tbody></table></figure>



Insights From Analysts



Howard Marks, a veteran investor who accurately predicted the dot-com bubble, warns of <a href="https://www.benzinga.com/markets/equities/25/01/42995814/billionaire-investor-who-predicted-the-dot-com-crash-25-years-ago-warns-of-another-market-storm-brewing-in-the-us">potential market risks</a> in his latest memo, &#8220;On Bubble Watch.&#8221; 



Marks highlights several concerning signs:



<ul>
<li>Over-optimism: High market exuberance and elevated S&amp;P 500 valuations.</li>



<li>AI Hype: Excessive enthusiasm for AI may be inflating valuations in the tech sector.</li>



<li>Magnificent 7 Reliance: Over-reliance on the continued success of a small group of dominant tech companies.</li>



<li>Index Investing Bias: Index fund inflows may be driving up prices regardless of intrinsic value.</li>
</ul>



While not definitively declaring a bubble, the co-founder and co-chairman of Oaktree Capital Management, Marks stresses the importance of acknowledging these risks. He acknowledges counterarguments, such as reasonable valuations for the &#8220;Magnificent Seven&#8221; and a moderate P/E ratio for the S&amp;P 500.



Ultimately, Marks concludes that the market may be expensive and slightly overheated, but it doesn&#8217;t yet display the irrational exuberance typical of a true bubble.



&#8220;The markets are likely to remain listless until Monday&#8217;s Inauguration Day, when President Donald Trump is expected to issue numerous Executive Orders which might muddy rather than clarify the economic outlook,&#8221; said Ed Yardeni of Yardeni Research in his QuickTakes.



Carson Research in their 2025 markets outlook, released on Tuesday said that they expect U.S. growth likely to outpace other global economies this year. They expect a 12-15% return from stocks.



&#8220;Looking at forward 12-month S&amp;P 500 earnings we once again see new highs, now at $271 per share, up from $225 in early 2023,&#8221; the report said.



&#8220;We are overweight equities and believe current forward earnings growth expectations remain supportive of stock gains given the economic backdrop.&#8221;



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



Upcoming Economic Data



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



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



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



<li>Chicago Fed President Goolsbee will speak at noon, ET.</li>



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



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



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



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



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



Stocks In Focus:



<ul>
<li>JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) was up 0.21% in premarket on Wednesday as Wall Street expects it to report quarterly earnings of $4.04 per share on revenue of $41.56 billion before the opening bell.</li>



<li>Wells Fargo &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) was up 2.39% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.35 per share on revenue of $20.58 billion.</li>



<li>Goldman Sachs Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) was up 0.26% as analysts expect it to post quarterly earnings of $8.35 per share on revenue of $12.46 billion before the opening bell.</li>



<li>Citigroup Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) was up 0.39% ahead of its earnings before the opening bell. Analysts expect it to post quarterly earnings of $1.24 per share on revenue of $19.51 billion. The company will release earnings before the markets open.</li>



<li>Applied Digital Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLD#NASDAQ">APLD</a>) was down 6.21% despite beating the second-quarter revenue and EPS estimates on Tuesday.</li>



<li>Safe &amp; Green Holdings Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SGBX#NASDAQ">SGBX</a>) was up 122.22% as it decided to acquire 100% of New Asia Holdings, including its subsidiaries Olenox Corp and Machfu.com.</li>



<li>Vision Marine Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VMAR#NASDAQ">VMAR</a>) was up 46.43% after it filed its patent application with the United States Patent and Trademark Office for a Battery Authentication Encryption Technology.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 0.62% to hover around $76.84 per barrel.



The gold spot index was up by 1.04% to $2,710.19 per ounce. The Dollar Index was down 0.20% at 109.050 level.



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



Read Next:



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



Photo courtesy: Wikimedia

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US Stocks To Open Higher Ahead Of December Inflation Data: All Eyes On Banking Stocks As JPMorgan, Goldman, Citi, Wells Fargo Report Quarterly Earnings

On Tuesday, January 14th, U.S. markets closed mixed, with the S&amp;P 500 edging higher and the Nasdaq slipping after a volatile session. Investors evaluated inflation data and prepared for quarterly earnings reports. The producer price index rose less than expected, while elevated Treasury yields and uncertainty surrounding Federal Reserve policy fueled caution. Earnings season kicks off Wednesday, led by major banks.



According to economic data, U.S. producer prices increased by 0.2% in December, down from 0.4% in November, and below market expectations of a 0.3% rise.



Most S&amp;P 500 sectors rose, led by utilities, materials, and financials, while communication services and healthcare declined.



The Dow Jones Industrial Average was up 0.52% and closed at 42,518.28, the S&amp;P 500 closed higher by 0.11% at 5,842.91, while the Nasdaq Composite slid 0.23% to finish at 19,044.39.



Big banks are supposed to kick off the fourth-quarter earnings season today.



Aisa Markets Today



<ul>
<li>On Wednesday, Japan&#8217;s Nikkei 225 closed higher by 0.09% at 38,471.50, led by gains in the Transportation Equipment, Chemical, Petroleum &amp; Plastic and Insurance sectors.</li>



<li>Australia&#8217;s S&amp;P/ASX 200 fell 0.22%, ending the session at 8,213.30, led by losses in the IT, Telecoms Services, and Industrials sectors.</li>



<li>India&#8217;s Nifty 50 closed higher by 0.23% at 23,228.55, and the Nifty 500 gained 0.36%, closing at 21,558.75, led by gains in the Power, Real Estate, and Technology sectors.</li>



<li>China&#8217;s Shanghai Composite fell 0.43% and closed at 3,227.12, and the Shenzhen CSI 300 slid 0.64%, finishing the day at 3,796.03.</li>



<li>Hong Kong Hang Seng closed the session higher by 0.34% at 19,286.07.</li>
</ul>



Eurozone at 06:00 AM ET



<ul>
<li>The European STOXX 50 was up 0.36%.</li>



<li>Germany&#8217;s DAX gained 0.67%.</li>



<li>France&#8217;s CAC rose 0.36%.</li>



<li>U.K.&#8217;s FTSE index 100 traded higher by 0.74%.</li>
</ul>



Commodities at 06:00 AM ET



<ul>
<li>Crude Oil WTI was trading higher by 0.21% at $76.57/bbl, and Brent was up 0.15% at $80.04/bbl.</li>



<li>Natural Gas gained 0.78% to $3.999.</li>



<li>Gold was trading higher by 1.05% at $2,710.76, Silver was up 1.32% to $30.750, and Copper rose 0.10% to $4.3470.</li>
</ul>



U.S. Futures at 06:00 AM ET



Dow futures were up 0.19%, S&amp;P 500 futures rose 0.16% and Nasdaq 100 futures gained 0.21%.



Forex at 06:00 AM ET



<ul>
<li>The U.S. Dollar Index fell 0.11% to 109.06, USD/JPY declined 0.72% to 156.80, and USD/AUD slid 0.14% to 1.6119.</li>



<li>Global stocks rose cautiously ahead of U.S. inflation data and bank earnings, while bond yields dipped. December&#8217;s tame producer price data eased pressure on Treasuries.</li>
</ul>



Photo by Pavel Bobrovskiy via Shutterstock

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USDU

Dollar Cools Off Ahead Of Bank Earnings, Asia Markets Mixed, Europe Up - Global Markets Today While US Slept

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



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



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



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



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



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



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



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



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



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



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



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



Read Next:



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



Image via Shutterstock



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

Legal

TSLA

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

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



U.S. stocks settled mixed on Tuesday, with the Dow Jones index surging more than 200 points during the session following the release of PPI data. U.S. producer prices rose 0.2% month-over-month in December compared to 0.4% in November, and versus market estimates of 0.3%.



Big Tech shares fell on Tuesday, weighing on the Nasdaq index. Shares of NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) fell 1.1%, while Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) lost 2.3% during the session.



Investors are now awaiting the consumer price index report, due to be released today. Economists expect headline CPI to increase 0.3% in December.



Most sectors on the S&amp;P 500 closed on a positive note, with utilities, materials and financials stocks recording gains on Tuesday. However, communication services and health care stocks bucked the overall market trend, closing the session lower.



The Dow Jones closed higher by around 221 points to 42,518.28 on Tuesday. The S&amp;P 500 rose 0.11% to 5,842.91, while the Nasdaq Composite fell 0.23% at 19,044.39 during Tuesday's session.



Investors are awaiting earnings results from Citigroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) and JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) today.



At a current reading of 26.6, the index remained in the &#8220;Fear&#8221; zone on Tuesday, versus a prior reading of 26.7.



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/markets/25/01/42992639/how-to-earn-500-a-month-from-state-street-stock-ahead-of-q4-earnings">How To Earn $500 A Month From State Street Stock Ahead Of Q4 Earnings</a></li>
</ul>

Earnings

Dow Rises Over 200 Points Ahead Of Inflation, Earnings Data: Greed Index Remains In 'Fear' Zone

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



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



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



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



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



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



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



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



Top Gainers (24-Hours)



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



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



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



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



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



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



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



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



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



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



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



Photo by CMP_NZ on Shutterstock



Read Next:    



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

Cryptocurrency

Movers

$BTC

$DOGE

$ETH

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

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



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



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



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



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



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



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



Read Next: 



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



Image Via Shutterstock 



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

Government

HYMTF

SSNLF

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



Read Next: 



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



Image created using photos from Shutterstock.

Technicals

Previews

Tech

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

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



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



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



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



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



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



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



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



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



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



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



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



According to data from CFTC-regulated prediction platform Kalshi:



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



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



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



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



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


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


For core CPI, the market shows:



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



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



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



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



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



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



Betting on monthly shelter inflation also reflects significant interest:



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



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



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



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



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



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



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



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



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



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



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



Read now: 



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</ul>



Image created using artificial intelligence via Midjourney.

Fintech

Macro Economic Events

Econ #s

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

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



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



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



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



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



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



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



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



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



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



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



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



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/01/42918486/this-nasdaq-100-nuclear-stock-is-charging-up-for-a-clean-energy-boom">Constellation Energy, A Nasdaq-100 Nuclear Stock, Appears Ripe For Future Gains Following Calpine Deal</a></li>
</ul>



Photo: Shutterstock

Long Ideas

Sector ETFs

Specialty ETFs

Exclusives

Interview

ETFs

SOXL

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



Read Next: 



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



Photo: Shutterstock

Large Cap

Broad U.S. Equity ETFs

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

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



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



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



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



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



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



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



Did You Know?



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



Read Next: 



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<li><a href="https://www.benzinga.com/news/global/24/11/42220682/trump-tariffs-on-mexico-could-affect-beer-why-your-modelo-corona-could-cost-more-next-year">Trump Tariffs On Mexico Could Affect Beer: Why Your Modelo, Corona Could Cost More Next Year</a></li>
</ul>



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