After four consecutive 0.3% MoM prints, December's core inflation figure posted an improved 0.2% outcome. Nonetheless, the trend remains too hot for comfort and the Fed is likely to extend its well telegraphed pause in rate cuts beyond March.
Consumer spending will play a large role in the economy in 2025, driven by employment growth, wage gains in excess of inflation, and accumulated savings and investments.
In response to the 2008 stock market and real estate crash, the Federal Reserve stimulated the economy by reducing interest rates to (almost) zero under its ZIRP – Zero Interest Rate Policy.
Shares of work management software maker Asana (NYSEASAN)
jumped 9% in the morning session as the major indices soared (Nasdaq +1.9%, S&P 500 +1.6%) after the Bureau of Labor Statistics reported that core CPI (Consumer Price Index - a measure of inflation which strips out volatile food and energy prices) for December 2024 came in better than expected, rising 3.2% year over year, compared to the consensus estimate for a 3.3% increase. This means that PPI and CPI both came in slightly below expectations. It is important because the results take additional rate hikes off the table, which some investors and market participants were beginning to whisper about.
Shares of social network Snapchat (NYSESNAP)
jumped 7.8% in the morning session after the major indices soared (Nasdaq +1.9%, S&P 500 +1.6%) after the Bureau of Labor Statistics reported that core CPI (Consumer Price Index - a measure of inflation which strips out volatile food and energy prices) for December 2024 came in better than expected, rising 3.2% year over year, compared to the consensus estimate for a 3.3% increase. This means that PPI and CPI both came in slightly below expectations. It is important because the results take additional rate hikes off the table, which some investors and market participants were beginning to whisper about.
Shares of online community and discussion platform Reddit (NYSERDDT) jumped 7.8% in the morning session after the major indices soared (Nasdaq +1.9%, S&P 500 +1.6%) after the Bureau of Labor Statistics reported that core CPI (Consumer Price Index - a measure of inflation which strips out volatile food and energy prices) for December 2024 came in better than expected, rising 3.2% year over year, compared to the consensus estimate for a 3.3% increase. This means that PPI and CPI both came in slightly below expectations. It is important because the results take additional rate hikes off the table, which some investors and market participants were beginning to whisper about.
Wall Street soared on Wednesday, riding a wave of euphoria as bullish bank earnings smashed expectations. A critical inflation report delivered a pleasant surprise, hinting at a slowing pace of core price hikes.
Sugar, as shown in the weekly chart, has broken down under the 200-WMA for the first time since December 2020. However, it is holding the August 2024 low.
Core CPI, which excludes food and energy, rose 0.2% in December after increasing 0.3% in each of the previous four months. The index rose 3.2% over the last 12 months, lower than an expected 3.3% rise.
Apple is exploring partnerships with Barclays and Synchrony to replace Goldman Sachs as its credit card partner as Goldman scales back its consumer finance ambitions.
Given that a strong consumer and a resilient labor market have defined much of 2024, analysts are looking closely at loan growth, credit quality, and net interest margins across the banking sector.
Yesterday, the overall market received support from a Bloomberg report that President-elect Trump’s economic team is considering a gradual increase in trade tariffs.
