The Closer – Beige Book, CPI, Rates & Rotation – 1/15/25
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Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we lead off with a quantitative look at the Beige Book (page 1) followed by a dive into the CPI data (pages 2 and 3). We then look at the subsequent reaction in markets including the sharp drop in rates (page 4) and which areas of equities saw the biggest gains (page 5). We close out with a rundown of the latest EIA data (page 6).
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Daily Sector Snapshot — 1/15/25
Bespoke Baskets Update — January 2025
Q4 2024 Earnings Conference Call Recaps: Citigroup (C)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Citigroup’s (C) Q4 2024 earnings call.
Citigroup (C) is a global financial services leader offering a broad range of products, including consumer banking, wealth management, corporate lending, investment banking, and treasury and trade solutions (TTS). This quarter, Citi reported net income up 40% YoY to $12.7 billion and revenue rising 5% (ex-divestitures). Key drivers included a 9% growth in Services revenue, a record year for Equities (up 26%), and Wealth Management fee growth of 18%. Global operations benefited from emerging market strength, particularly in Asia, while the US consumer and corporate sectors led domestic growth. The bank accelerated its digital transformation, deploying AI to improve efficiency for 143,000 employees and launching Citi Payments Express in 18 countries. Challenges include ongoing regulatory and data investments, contributing to an updated 2026 ROTCE target of 10-11%. The Banamex IPO remains a focus, with timing dependent on market conditions. Citigroup reported a triple play this quarter, and the stock was up around 7.5% on 1/15 as a result…
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Q4 2024 Earnings Conference Call Recaps: BlackRock (BLK)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers BlackRock’s (BLK) Q4 2024 earnings call.
BlackRock (BLK), the world’s largest asset manager with $11.6 trillion in AUM, provides investment management, risk management, and technology services to institutional and retail clients globally and is known widely for its iShares ETFs and Aladdin technology platform. BLK closed 2024 with record net inflows of $641 billion, including $281 billion in Q4 alone, and reached new highs in revenue ($20.4 billion, up 14% YoY) and operating income ($8.1 billion, up 23%). The company emphasized its expanding private markets platform, now projected to contribute 20% of revenue with acquisitions like GIP and Preqin. ETFs remained a cornerstone, driving $390 billion in inflows, including $50 billion into its Bitcoin ETP. Retirement solutions grew with LifePath Paycheck, and Aladdin saw 12% ACV growth, thanks to major client wins. BLK beat EPS and revenue estimates as shares opened 6.4% higher on 1/15…
Continue reading our Conference Call Recap for BLK by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
Q4 2024 Earnings Conference Call Recaps: JPMorgan Chase (JPM)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers JPMorgan Chase’s (JPM) Q4 2024 earnings call.
JPMorgan Chase (JPM) is the largest bank in the US by assets, operating across consumer and commercial banking, investment banking, wealth management, and asset management. The bank’s performance offers insights into the broader economy, touching on consumer behavior, corporate activity, and macroeconomic trends. JPM reported Q4 2024 net income of $14 billion on $43.7 billion in revenue, reflecting a 10% YoY increase. Investment banking revenue surged, with advisory fees up 41% and markets revenue climbing 21%, supported by strong trading activity. Consumer banking saw 11% growth in card outstandings and a 7% rise in auto originations, while deposits stabilized. Asset and wealth management posted $76 billion in net inflows, with AUM hitting $4 trillion. The firm highlighted pressures on net interest income due to rate cuts but expects a recovery in the second half of 2025. After beating estimates, JPM shares rose 2% through midday on 1/15…
Continue reading our Conference Call Recap for JPM by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
Chart of the Day – AI’s Pullback
Bespoke’s Morning Lineup – 1/15/25
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“Mothers are often fondest of the child which has caused them the greatest pain.” ― Victor Hugo, The Hunchback of Notre-Dame
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
To view yesterday’s CNBC segment, click on the image below.
The last few days have seen a trickle of earnings reports, but this morning, the Q4 earnings season started in earnest with reports from six major banks/brokerages. After a very strong 2024, the banks have kicked off 2025 on a mixed note. Of the six companies reporting this morning, three are up YTD (C, JPM, and WFC), and three are lower (BK, BLK, and GS) for an average YTD change of 0.27% heading into today. Given the mixed returns, they are also all over the place regarding their trading ranges, although most finished yesterday below their 50-day moving averages. The outliers were JPMorgan Chase (JPM) and Citigroup (C).
All six of the banks scheduled to report this morning have now hit the tape, and at the headline level, the results were positive relative to expectations. Wells Fargo (WFC) is the only one of the six not to exceed sales results, and all six exceeded their profit forecasts. Given the better-than-expected results, all of them are trading higher in the pre-market with gains ranging from over 3% for WFC to JPM, which is up just fractionally.
The positive results have set the market up for a positive start to the trading day, but we still had to get through the December CPI report. Economists expected the headline reading to increase 0.4% m/m, with the core reading expected to rise 0.3%. At the headline level, the report was right in line with expectations while the core reading came in a tenth lower at 0.2% in what was the first weaker-than-expected core reading since the June report on 7/11/24. In response to the report, equity futures have built on their pre-market gains while the 10-year yield dropped down to 4.70%.
The Closer – PPI, BNPL, Freight – 1/14/25
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Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we begin with an overview of the latest PPI data (page 1) followed by a look into buy now, pay later lending markets (pages 2 and 3). We then finish with a look into freight volumes (page 4).
See today’s full post-market Closer and everything else Bespoke publishes by starting a 14-day trial to Bespoke Institutional today!