Investors are rejoicing after a second round of slightly cooler inflation figures. I’ll share the details in a minute. Suffice it to say stocks are surging, gold and silver are rallying, and interest rates and the dollar are dropping.So, what did the numbers show? The headline December Consumer Price Index (CPI) rose 0.4%, which was in-line with economists’ forecasts. But the core CPI that excludes food and energy climbed just 0.2%. That was less than the 0.3% rise expected. It also follows slightly cooler-than-expected wholesale inflation data yesterday. Because the figures come ahead of a late-January Federal Reserve meeting, Wall Street couldn’t be happier. The Fed probably won’t cut rates this time. But policymakers will likely strike a more-positive tone about potential future moves.
Source: BLS
“Big Finance” has had a big run, with the Financial Select Sector SPDR Fund (XLF) rising more than 28% in the last year. Now, some of the group’s biggest names are kicking off the earnings reporting season, with JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) among the large banks and brokers reporting quarterly results today.Chase (CCF) reported a 50% pop in fourth-quarter profit, with earnings per share of $4.81 easily beating the $4.09 average analyst estimate. Consumer banking results slipped amid tighter margins, but investment banking fees and trading revenue boomed. At Goldman, earnings more than doubled to $4.11 billion, or $11.95 per share, from $2.01 billion, or $5.48 per share. Strong revenue growth from underwriting bond and stock sales, as well as managing money for clients, buoyed results.Finally, Meta Platforms Inc. (META) said it would look to pare its workforce by 5%, or around 3,600 employees. CEO Mark Zuckerberg couched the move as designed to weed out poorly performing workers, and it comes on the heels of a plan announced in 2023 to eliminate 10,000 positions. The company said it will focus its efforts more intensely on Artificial Intelligence (AI), smart glasses, and social media.More By This Author:Top Picks For 2025: Dream Finders Homes
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