Day Traders Diary

1/15/25

The major averages surged Wednesday thanks to strong bank earnings and a tame inflation consumer price index report. The Dow Jones Industrial Average advanced 703 points, or 1.65%. The S&P 500 rose 107 points or 1.8% while the Nasdaq Composite rallied 2.45% or 466 points to 19,511.

December's consumer price index showed that core inflation, which excludes food and energy, rose 3.2%, the Bureau of Labor Statistics reported Wednesday. This was a notch down from the previous month and lower than the 3.3% estimated by economists surveyed by Dow Jones. Headline inflation increased 2.9% on a 12-month basis, in line with forecasts.

The 10-year Treasury yield dropped 13 basis points to 4.65%, further pulling back from the 14-month high reached on Monday. The yield on the 2-year Treasury fell 10 basis points to 4.27%.

The lower rates were music to the banking ears as the big cap banks all reported strong earnings.

JP Morgan Chase, Wells Fargo, Citigroup, Goldman Sachs, Blackrock and BNY Mellon were all higher by 2% or more following earnings this morning. Goldman and Wells Fargo were up 5% while the big winner was Citigroup up 7%.

Besides the financials, tech had a big day with big cap techs all up 2% or more. Tesla jumped 8% even as the SEC subpoenaed the firm.  

Oil continued its run up nearly 3% as energy remains the top sector year to date. Gold rose 1.5% while bitcoin jumped 3% just under $100,000 a coin again.