CNBC Business News Update - Market Midday: Stocks Soar, Inflation "Under Control," JP Morgan Chase Reports Record Profit 1/15/25

Episode Date: January 15, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Ettinger, CNBC. Wall Street's been soaring on strong bank earnings and consumer inflation that seems under control. And the idea of Fed rate increases could be off the table. Bond yields were pulling back today. The Dow up 557 points this afternoon. It's off its earlier highs, but it's up 1.3 percent, being led higher by shares of

Goldman Sachs, up 5 percent. The S&P 500 index soaring up 76 points. The Nasdaq up 330 points. That's almost 2 percent. Companies whose shares have hit fresh all-time highs today include American Express, Discover, Boston Scientific, Intuitive Surgical, GE Vrnova, and NRG Energy. Inflation at the consumer level, the CPI, rose for the third straight month in December, but the headline year-over-year number came in as expected. Year-over-year numbers, here we go, on the headline year-over-year up 2.9, as expected, two tenths higher than our last look, which was 2.7. CNBC's Rick Santelli. Here's CNBC senior economics reporter Steve Leisman. It's a good number. You can see how concerned the market has been with this possibility that

inflation was going to get out of control. So this now sort of says, all right, the Fed can be on hold, but we don't have to talk about the idea of hiking rates. And Bleakley's Peter Bookvar tells CNBC that he's watching whether inflation not only comes down, but stays down. It's the sustainability of keeping inflation lower that still remains to be seen because, yes, we've got a good inflation number. It's still kind of sideways around this three-ish level, which is still quite different from the one to two percent trend that we saw pre-COVID. JPMorgan chased the biggest U.S. bank out with better than expected quarterly results. Overall, some good numbers from the big banks. Top and bottom line beats a JPMorgan, Goldman Sachs and Citi. Wells Fargo beat on EPS, but missed slightly on revenue. Excess capital broadly a big topic of conversation on the calls this morning. JPMorgan executives

saying on its media call that it's prudent to hold excess capital given the risks they see in the broader environment. CNBC's Leslie Picker. Those risks can include new White House policies on tariffs and immigration. Citi announced a stock buyback. Elon Musk being sued by the Securities and Exchange Commission, which claims Musk didn't properly disclose that he owned shares in Twitter that he bought before he bought the whole company at an artificially low price. Incoming President Trump says he'll create a new government agency and new hiring for an external revenue service to collect tariffs on goods coming into the U.S. Capital One being accused of cheating customers out of more than $2 billion in interest by the Consumer Financial Protection Bureau. The CFPB says Capital One used deceptive marketing practices to obscure savings account interest

rates. Capital One denied the allegations. Disney won the 2024 box office with three big movies, Deadpool and Wolverine, Inside Out 2 and Moana. Disney racked up a quarter of all movie ticket sales last year, although 24 didn't beat 23 overall for ticket sales. The total box office fell 3% from the year before. I'm Jessica Ettinger, CNBC.