CNBC Business News Update - Market Open: Stocks Rally, Inflation "Under Control" In December, Bank Earnings Strong 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 Edinger, CNBC. Wall Street soaring this morning on strong bank earnings and consumer inflation that's under control. And the idea of a Fed rate increase could be off the table. Bond yields pulling back. The Dow up 659 points, 1.5%. It's being led higher by shares of Goldman Sachs. They're up almost 5%.

The S&P 500 index up 89 points, 1.5%. The NASDAQ is up 351 points. That's almost 2%. NVIDIA shares are popping a little more than 1% this morning. 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's 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 Buchvar 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 1% to 2% trend that we saw pre-COVID.

J.P. Morgan 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 J.P.. Morgan, 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. J.P. Morgan 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. Colonial Pipeline has shut down the main line moving gasoline from the Gulf Coast to the East Coast because of a potential spill in Georgia. Colonial is the largest U.S. fuel pipeline operator. 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. When you think of wealth, what do you see? Is it money in the bank? Is wealth a life filled with purpose? Find opportunity. Unleash potential. Keep your future in focus. CNBC. Live ambitiously.