Here are five key things investors need to know to start the trading day:
1. Back on track
2. Boom time for banks
Exterior view of JPMorgan Chase & Co. branch on January 14, 2025 in New York City, New York. JPMorgan Chase & Co. is scheduled to release earnings figures on January 15.
Kena Betancur | Corbis News | Getty Images
It’s a good time to be a banker. JPMorgan Chase, Goldman Sachs and Morgan Stanley all handily beat Wall Street estimates for the fourth quarter, boosted by surging trading activity and a pickup in deal flow — and the boom times are just getting started. Executives are anticipating more M&A and IPO activity in the months ahead as interest rates come down and regulation lightens up. That means more fees in the bank for Wall Street’s biggest firms.
3. All broken up
SpaceX’s mega rocket Starship launches for a test flight from Starbase in Boca Chica, Texas, on Jan. 16, 2025.
Eric Gay | AP
SpaceX launched its towering Starship rocket Thursday night in a key test flight and lost communication with the vessel after liftoff. The uncrewed spacecraft blew up somewhere near the Caribbean islands, and some commercial airline flights were diverted to avoid SpaceX debris. The company said “initial data indicates a fire developed” near the tail end of the rocket and destroyed the vehicle.
4. Pinch of SALT
A general view of the U.S. Capitol, on Capitol Hill in Washington, U.S., November 23, 2024.
Benoit Tessier | Reuters
There’s a battle brewing in Washington over SALT. Five House Republicans are threatening to derail President-elect Donald Trump’s proposed tax bill unless the current cap on state and local tax deductions is raised significantly. One of the officials, Rep. Nick LaLota, R-N.Y., told CNBC that even doubling the current limit won’t cut it: “The $20,000 is a nonstarter,” he said. “It’s almost laughable. It’s way too low to earn our vote.”
5. Dollars and Bessents
Scott Bessent, U.S. President-elect Donald Trump’s nominee to be secretary of treasury, speaks as he testifies during a Senate Committee on Finance confirmation hearing on Capitol Hill in Washington, U.S., January 16, 2025.
Kevin Lamarque | Reuters
Trump’s Treasury Secretary pick, Scott Bessent, testified before the Senate Finance Committee Thursday to argue his case for the position and outline the economic agenda of the incoming administration. Among the highlights, Bessent said Trump’s policies won’t cause inflation, said fiscal spending is “out of control” and said he believes the Fed should remain independent. Read the full recap of his testimony here.
– CNBC’s Lisa Kailai Han, Hugh Son, Michael Sheetz, Leslie Josephs, Emily Wilkins and Jeff Cox contributed to this report.
