Dow Jones Futures Rise With CPI Inflation Due; JPMorgan Beats, Quantum Stocks Jump

Dow Jones futures rose slightly early Wednesday, while S&P 500 futures and Nasdaq futures rose modestly. The consumer price index (CPI) report for December is due before the open, with investors hoping for a slowdown in inflation that could renew hopes for more interest rate cuts in 2025. JPMorgan Chase (JPM), Goldman Sachs (GS), and Wells Fargo (WFC) beat earnings estimates before the open, with Citigroup (C) on tap. Meanwhile, highly speculative quantum computing stocks surged before the open, led by D-Wave Quantum (QBTS).



The CPI report is expected to show a slowdown in core inflation, which excludes volatile food and energy prices. Economists expect the core CPI to rise 0.2% from November and ease to 3.2% after staying stuck at 3.3% since September 2024. The headline CPI is expected to increase 0.4% from November and jump 0.2 percentage points to an annual rate of 2.9%. The slowdown in core inflation could signal that the recent bout of inflation is abating, which may prompt the Federal Reserve to consider further rate cuts to support economic growth.

JPMorgan Chase reported record quarterly and annual earnings and revenue, reinforcing its status as the biggest and most profitable bank in U.S. history. Here's what the company reported:

* Earnings: $4.81 a share vs. $4.11 LSEG estimate
* Revenue: $43.74 billion vs. $41.73 billion expected
* Net interest income: $23.47 billion, up 10% year-over-year and above the StreetAccount estimate by almost $400 million
* Investment banking revenue: $2.48 billion, up 49% year-over-year and topping the $2.39 billion estimate

JPMorgan stock rose 1.1% in morning trading, while Wells Fargo and Citigroup each added more than 6%. Goldman Sachs stock climbed modestly, signaling a move above their 50-day lines and perhaps near early entries within a base. BlackRock (BLK) stock rose modestly early Wednesday, but is well below its 50-day line.



Quantum computing stocks rallied Wednesday, a day after a Microsoft (MSFT) blog post called 2025 "the year to become quantum-ready," mitigating a string of recent losses spurred by high-profile bearish comments on the sector. Shares of Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) each soared 20%, while IonQ (IONQ) surged 35%, and Quantum Computing (QUBT) rocketed 40% in recent trading.

In conclusion, investors are hoping for a slowdown in inflation that could renew hopes for more interest rate cuts in 2025. JPMorgan Chase reported strong earnings, while quantum computing stocks surged on optimism about the sector's future. As the market awaits the CPI report, investors will be watching for any signs of a slowdown in inflation that could influence the Fed's rate-cutting plans.