Stocks rebound after bank earnings and inflation data

Hello there! A product that goes viral can be a double-edged sword for retailers. Just ask Walmart. The big-box retailer’s e-commerce market got a boost from a Hermès knockoff Birkin bag that was making the rounds, but it’s also tricking cause brand relationship headaches.

In today’s great story, The impressive profits of American banks and a hopeful report on inflation have stocks rising again.

What’s on deck

Markets: Anthony Scaramucci offers some economic forecasts for Trump’s second term.

Technical: The VC world is starting to heal as Insight Partners raises new crowdfunding.

Business: The billionaires are booked and busy next week thanks to a scheduling conflict between them inauguration and Davos.

But first, we’re back a lot.

If this has been forwarded to you, register here.

The big story

Don’t call it a comeback

It’s alive!

After a slow start to the year, the stock market finally showed signs of life bank earnings burst and better-than-expected inflation data. The S&P 500 ended Wednesday up 1.83%, while the Dow (1.65%) and the tech-heavy Nasdaq composite (2.45%) posted strong days.

Let’s start with Wall Street. The big US banks represent the unofficial start of earnings season, and they did not disappoint. JPMorgan, Goldman Sachs, Citigroup and Wells Fargo all exceeded analysts’ expectations.

JPMorgan saw a 50% year-over-year rise in earnings for the fourth quarter, while Goldman’s earnings rose 105%. The banking boom was largely fueled by classic Wall Street businesses such as corporate deals, capital raising and trading.

December inflation report also put extra wind in the market’s sails.

At first glance – inflation rose for the third month in a row – the reading may not look good. But a closer look showed that year-over-year growth in the consumer price index was in line with consensus expectations, which is good.

What’s even better, though, is core inflation, which strips out volatile food and energy prices, was slightly below expectations. It was also lower than November’s number.

Before you get ahead, don’t expect a bunch of rate cuts. Instead, the data calmed investor nerves by slowing the troubling rise in the 10-year Treasury yield, which fell 0.14%.

“Core inflation is not accelerating and that’s the story. The market may have had their hair on fire for inflation to run away again, but the data doesn’t support that conclusion,” said Jamie Cox, Managing Partner for Harris Financial Group.

So what’s next for Wall Street?

In the short term, bankers can finally enjoy some healthy rewards after a few lean years. The workers have started to learn about their year-end comparison.

The bigger picture is more momentum for the industry’s job market. After a lull in activity, firms are strengthening their ranks across the board for what looks set to be an active 2025.

Private markets are an area that will remain in focus. The sector, which includes less liquid investments such as private equity and private credit that come with higher fees, is of particular interest to BlackRock. The $11.6 trillion asset manager sees it as the key to its next stage of evolutionaccording to CEO Larry Fink.

One evolution Fink didn’t discuss was who will take over when he leaves. This despite the recent departure of executive Mark Wiedmanwhich revived questions about what life will look like after Larry at BlackRock.

JPMorgan CEO Jamie Dimon was a little closer with his retirement plans … kind of. When asked by an analyst who his successor was, Dimon said there are a number of excellent candidates, but a decision has not been made.

And even if the bank did have someone in mind, there’s no guarantee things won’t change, Dimon added.

News summary

Main headlines

3 things in the market

1. One of Trump’s opps is to feel good about the economy. Despite being a longtime critic of Trump, Anthony Scaramucci is quite optimistic on the economy under the incoming 47th president. He sees Trump’s pro-growth policies and potential crypto legislation as an economic boon — but he’s still worried about some of Trump’s other promises.

2. Hindenburg Research is bugged out. Nate Anderson, founder of the short-selling firm, said he will disband it after all outstanding projects are completed. Hindenburg gained notoriety for his financial forensic research, often focusing on what he claimed was fraudulent or fraudulent corporate behavior. Anderson he said plans to publicly share the firm’s investigative tactics.

3. Dividend stocks have returned so much. Large-cap stocks have dominated the market, but a change could be coming, according to Morningstar. As their valuations continue to rise, dividend stocks may become more attractive. Morningstar pointed out Dividend stocks in four distinct sectors Savvy investors should pay attention.

3 things in technology

1. Mark Zuckerberg lost $60 billion in five years — and he’ll keep spending. Despite constant predictions that the VR and AR headset market will boom, consumers just aren’t interested. The meta has lost a lot in tech in recent years, but that hasn’t deterred Zuck, who continues to tell investors they should expect more losses in the future.

2. Exclusive: Insight Partners raises $12.5 billion for its newest fund group. It’s the largest amount raised by a venture capital firm in more than two years, according to PitchBook data. Insight is $12.5 billion it may be less than the original funding target, but it’s still an impressive gain as the industry looks set to bounce back.

3. “TikTok refugees” flock to Chinese app RedNote. While some Americans are facing a possible ban on TikTok through memescompetitors like Texas-based Clapper App they are seizing the moment. Other Americans are turning to the Chinese app Xiaohongshu, also known as RedNote. It might be worth learning how to use it – but some members of Congress they are already taking aim.

3 things in business

1. WFH + Friday = OOO. For some remote workers, the W on WFH Friday is a little difficult. They’re coming back every weekend for a three-day weekend, and they don’t feel too bad about it either.

2. Home Depot’s co-founders were investigated by the FBI in the 1970s and 1980s, new public records show. The FBI was investigating Bernie Marcus and Arthur Blank over allegations that they used a slush fund in an attempt to bribe California Handy Dan workers to decertify their union. show the newly acquired data. The investigation ended in 1983 when a prosecutor determined the case was too old and the evidence was “insufficient.”

3. Double billionaires. January 20 is not only Trump’s inauguration, but also the first day of the World Economic Forum’s high-profile conference in Davos, Switzerland. Guests in the conflict will have to choose between the lack of potential face time with the new president or a day to face the global elite. Jeff Bezos Google CEO Sundar Pichaiand Uber CEO Dara Khosrowshahi will not be absent from Trump’s big day.

In other news

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Grace Lett, editor, in Chicago. Ella Hopkins, Associate Editor, London. Hallam Bullock, senior editor, London. Amanda Yen, associate editor, in New York. Elizabeth Casolo, friend, in Chicago.