NextFin News - As of 8:30 a.m. ET
Pre‑Market Performance
- U.S. index futures — Nasdaq 100: 25,781.8 (−124.25, −0.48%); S&P 500: 6,976.3 (−25.5, −0.36%); Dow Jones: 49,271 (−138, −0.28%).
- Europe — FTSE 100: 10,172.1 (+0.34%); CAC 40: 8,351.31 (+0.05%); DAX: 25,333.14 (−0.34%).
- Commodities — Brent crude $65.27 (−0.3%); WTI $60.92 (−0.4%), as Venezuelan shipments resume while Iran risks linger (Reuters). Gold trades near record highs around $4,590–$4,630/oz after this week’s surge (Yahoo Finance/Reuters, Financial Times).
- FX — U.S. dollar index ~99.2 (+0.3%); USD/JPY near 159.45 as the dollar firms post‑CPI and the yen weakens on snap‑election chatter (Reuters via Investing.com, Reuters).
Macroeconomic Policy and Data
December CPI (released Tuesday, Jan 13): Headline +0.3% m/m and +2.7% y/y (in line with estimates); core +0.2% m/m and +2.6% y/y (softer than the +0.3%/2.7% expected). Prior month: headline 2.7% y/y; core 2.6% y/y (Reuters, Yahoo Finance).
Today’s slate: Markets await December PPI and November Retail Sales later this morning. Consensus looks for PPI to rise ~+0.3% m/m (roughly +3.2% y/y) and retail sales to firm modestly (~+0.4% m/m), which will help set the tone for Q4 growth tracking (CFI).
Policy dynamics: With CPI largely in line, investors expect the Fed to hold rates at the January meeting while watching incoming activity data. The dollar’s rebound and a slight drift lower in Treasury yields reflect a market leaning toward rate cuts later in 2026, but near‑term policy is seen as steady (Reuters).
Fed independence in focus: Prominent bank CEOs publicly backed Fed independence amid a Justice Department probe involving Chair Jerome Powell; officials stressed that political pressure should not shape monetary policy. The headline added a layer of uncertainty but hasn’t meaningfully altered rate expectations for January (Reuters).
Hot News
- Oil pauses after run‑up — Brent and WTI eased slightly as Venezuelan shipments resumed and U.S. inventories rose, though Iran‑related supply risks keep a bid under crude (Reuters).
- EU digital rulemaking — A planned Digital Networks Act overhaul would lean on voluntary frameworks and stop short of tougher obligations for Big Tech, easing regulatory overhang near‑term (Reuters).
U.S. Stock Focus
- Bank of America — Q4 2025 EPS $0.98 beat ($0.96 est.) as record net interest income ($15.75B, +9.7% y/y) and a 10% jump in sales & trading ($4.5B) offset macro volatility; shares ticked higher pre‑market. Management guides Q1 NII +7% and sees 2026 NII +5–7% (Reuters, Bank of America IR).
- Wells Fargo — EPS ex‑items $1.76 (vs $1.67 est.) with net income $5.36B, but net interest income of $12.33B missed estimates ($12.46B), pushing shares down pre‑market. The bank booked $612M in severance and ended 2025 with ~205K employees (Reuters, Wells Fargo IR).
- Delta Air Lines — Guides 2026 EPS to $6.50–$7.50 (~20% y/y growth) and orders 30 Boeing 787‑10s (options for 30 more) as premium demand outperforms; stock eased on outlook and a modest Q4 revenue miss (Reuters, Delta IR).
- Boeing — Logged 600 jet deliveries in 2025 (highest since 2018) and 1,175 gross orders, signaling a turnaround as airlines add long‑haul capacity; investors eye 737 MAX 10 certification path in 2026 (Reuters).
- Nvidia — China has limited H200 AI chip purchases to “special circumstances,” per The Information; a potential headwind to China revenue despite U.S. approvals for some shipments. Shares were marginally softer pre‑market amid policy uncertainty (Reuters, Barron’s).
- Apple — Strikes a multi‑year deal to use Google’s Gemini models to bolster Siri and Apple Intelligence features, with on‑device and private‑cloud implementations highlighted by both companies (Axios).
- Amazon — Will appeal an Italian decision that left in place a reduced €752.4M antitrust fine tied to logistics practices; regulatory overhang persists across the EU despite partial relief (Reuters, Reuters).
- Meta Platforms — Launches “Meta Compute” to secure multi‑gigawatt AI infrastructure and long‑dated power agreements, underscoring capex intensity as it pursues next‑gen AI capabilities (Reuters).
Market context: Futures softness reflects digestion of bank earnings, a firm dollar, and record‑level precious metals prices, with crude consolidating after a multi‑day climb. The PPI/Retail Sales combo later today could sway rate‑cut timing expectations into the next Fed meeting window (Reuters).
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