Day Traders Diary

1/14/25

The major average went on a wild swing today opening higher, then lower only to finish in the green following lighter-than-expected producer price index report. The Dow Jones 221 points, or 0.52% to close at 42,518. The S&P 500 rose 6 points while the tech-heavy Nasdaq Composite fell 4 3 points or 0.23%.

The 10-year yield fell 2 basis points to 4.78% after hitting a fresh 14-month high in the previous session. The 2-year Treasury yield fell 4 basis points to 4.36%. The producer price index, which measures wholesale inflation, increased just 0.2% in December, according to a Bureau of Labor Statistics report. Economists polled by Dow Jones had estimated a 0.4% rise. Core PPI, which excludes food and energy, was flat.

The market is pricing in a 77.9% likelihood rates will stay at their current target range of 4.25%-4.5% until at least March, according to the CME FedWatch tool.

Earnings will start tomorrow with a number of bank earnings from JPMorgan Chase, Citigroup, Goldman Sachs, Wells Fargo, Morgan Stanley and Bank of America this week. Many of the big banks were higher today as the regional bank ETFs rose 3% on the day.

Big Tech, the big winner last year, slipped again today with the big caps lower today.

On the commodity front, oil was lower by a percent. Gold rose half a percent while bitcoin rose nearly 4% on the tame inflation data.