January 2025 Stock Market Insights: JPMorgan Hits $39.94B Revenue, Delta Forecast Slumps

Market highlights for January 12, 2024

JPMorgan Chase shares climbed following a revenue report that surpassed analyst expectations, while Delta Air Lines shares fell after lowering its earnings outlook. Here's a detailed breakdown of today's critical market developments for investors.

1. JPMorgan Chase Surpasses Revenue Expectations Despite Profit Pressures

JPMorgan Chase (JPM) shares rose over 1.5% in pre-market trading after the banking titan announced revenue of $39.94 billion, exceeding forecasts of $39.78 billion. Although profits fell short due to $2.9 billion in fees linked to last year's regional bank rescues, JPMorgan's strong top-line performance stood out. Other major banks faced declines with Bank of America (BAC) down 1.8%, Wells Fargo (WFC) dropping 1.6%, and Citigroup (C) sliding 1.3% in early trading following their earnings releases.

2. Delta Air Lines Shares Drop 5% on Reduced 2024 Earnings Guidance

Delta Air Lines (DAL) saw a 5% pre-market decline after revising its 2024 earnings forecast downward, despite posting a net income of $2.04 billion in Q4 2023—more than double the $828 million from the same quarter last year. The airline credited rising international travel demand for boosting quarterly revenue to $13.66 billion, surpassing the $13.52 billion analysts predicted. However, its adjusted earnings per share guidance of $6 to $7 for 2024 fell short of last year's expected figure exceeding $7 per share.

3. Oil Stocks Rally as Middle East Tensions Drive Prices Up

Oil sector stocks gained momentum in pre-market trading amid escalating conflicts in the Middle East, which disrupted Red Sea shipping lanes and pushed oil futures up 4%. ExxonMobil (XOM) and BP (BP) shares each increased approximately 1.6%, while Chevron (CVX) rose 1.4%, reflecting investor optimism in energy markets.

4. Cryptocurrency Stocks Decline Following Spot Bitcoin ETF Launch

Crypto-related stocks experienced declines in pre-market trading after the debut of spot Bitcoin exchange-traded funds (ETFs), which recorded $4.6 billion in trading volume on day one. Marathon Digital (MARA) dropped 12% overall and was down 1.6% pre-market. Other notable declines included Riot Platforms (RIOT) and Coinbase (COIN), down 1.6% and 1.2% respectively, with MicroStrategy (MSTR) also falling 0.8%.

5. Wholesale Inflation Expected to Rise Slightly in December

Following a recent uptick in consumer inflation, the Producer Price Index (PPI) report scheduled for 8:30 a.m. ET anticipates a 0.1% increase in wholesale inflation for December, after a flat reading in November. Core wholesale prices are projected to climb 0.2%, up from a 0.1% rise the previous month, signaling continued inflationary pressures in the supply chain.

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