Stock Market Today: Inflation Data and Earnings Season in Focus
As of Tuesday, January 14, 2025, the stock market is poised for a cautiously optimistic start, with investors closely watching key inflation data and the kickoff of the fourth-quarter earnings season. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average are all showing signs of recovery after a tumultuous start to the year, driven by concerns over interest rates and inflation.
Market Performance
Futures indicate a positive opening for Wall Street, with S&P 500 futures up 0.5%, Dow Jones Industrial Average futures adding 0.3%, and Nasdaq 100 futures gaining 0.7%. This comes after a mixed performance on Monday, where the Dow advanced 0.9%, the S&P 500 closed 0.2% higher, and the Nasdaq Composite ended down 0.4%.
The recent market volatility can be attributed to several factors:
1. Treasury yields: The 10-year Treasury yield reached 4.79%, its highest level in over a year, reflecting investor concerns about inflation and potential delays in interest rate cuts.
2. Tech sector pressure: Major tech stocks, including most of the “Magnificent Seven,” faced downward pressure on Monday. Nvidia (NVDA) fell about 2% following new U.S. export restrictions on advanced chips.
3. Cryptocurrency decline: Bitcoin (BTCUSD) and Ethereum (ETHUSD) experienced sharp drops, trading around $93,500 and $3,100 respectively.
Upcoming Market Events
Several critical events are on the horizon that could significantly impact market sentiment:
1. Inflation data: The Consumer Price Index (CPI) report, due on Wednesday, January 15, is eagerly anticipated. Economists expect a 0.3% increase on a monthly basis. Today’s Producer Price Index (PPI) release will also be closely watched for signs of inflationary pressures.
2. Earnings season: Major banks including JPMorgan Chase (JPM), Wells Fargo (WFC), and Goldman Sachs (GS) will kick off the fourth-quarter earnings season on Wednesday. Analysts project S&P 500 companies’ earnings to have risen 5.1% in the quarter year-over-year.
3. Federal Reserve policy: Recent strong economic data, particularly the robust December jobs report, has led markets to push out expectations for the next interest rate cut to June. Investors will be looking for clues about the Fed’s future moves in upcoming economic releases.
Major Stock News
Several companies are making headlines in today’s market:
1. Moderna (MRNA): The biotech giant slashed its 2025 sales guidance by $1 billion, causing its stock to plunge 16.8% on Monday. The company expects revenue to be weighted toward the second half of the year, primarily from COVID-19 and respiratory syncytial virus vaccines.
2. Apple (AAPL): The tech giant’s stock fell 1% following a report from Counterpoint Research indicating a decline in iPhone sales in the fourth quarter, reducing Apple’s global smartphone market share.
3. Mosaic (MOS) and CF Industries (CF): These fertilizer manufacturers saw significant gains, with Mosaic jumping 8% after announcing the sale of its Brazilian phosphate mine, and CF Industries rising 7.6% following an analyst upgrade.
4. Healthcare stocks: Companies with exposure to managed care plans, such as CVS Health (CVS) and Humana (HUM), saw gains following a proposal to boost Medicare Advantage reimbursement rates.
Looking Ahead
As we move further into 2025, investors remain cautious about potential market risks. The revival of inflation, uncertainty surrounding President-elect Donald Trump’s policy plans, and the ongoing debate about the timing of Federal Reserve interest rate cuts continue to be key factors influencing market sentiment.
With critical economic data and corporate earnings on the horizon, market participants are bracing for potential volatility in the coming days. The interplay between economic indicators, corporate performance, and policy decisions will likely shape the market’s trajectory in the near term.
