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Stocks close higher, S&P 500 touches fresh record, bolstered by Trump optimism: Live updates

Traders work on the floor of the New York Stock Exchange during morning trading on January 22, 2025 in New York City.
Michael M. Santiago | Getty Images
Traders work on the floor of the New York Stock Exchange on Jan. 15, 2025, in New York City.
David Dee Delgado | Getty Images
Traders work on the floor of the New York Stock Exchange on Jan. 15, 2025, in New York City.

Stocks climbed on Wednesday, with the S&P 500 hitting a fresh all-time high, as technology shares such as Oracle and Nvidia rallied on artificial intelligence optimism and President Donald Trump's new term in office.

The S&P 500 advanced 0.61% after hitting an intraday record of 6,100.81, exceeding the last milestone touched in December before the market pullback. The broad index closed at 6,086.37, slightly below its all-time closing high.

The Nasdaq Composite popped 1.28% to 20,009.34, underscoring the outperformance of tech names. The Dow Jones Industrial Average rose 130.92 points, or 0.3%, to 44,156.73, boosted by Procter & Gamble's gain of nearly 2% on the back of strong earnings.

Stocks surged on strong earnings reports, with Netflix jumping more than 9% after the company surpassed 300 million paid memberships. Its fourth-quarter earnings and revenue also topped analyst expectations. The streamer's results got a boost from hit series "Squid Game" and live sporting events such as the Jake Paul and Mike Tyson boxing match.

Oracle shares jumped more than 6% and Nvidia climbed more than 4% as investors continued to pile into the AI trade following an announcement from the new White House. President Trump announced a joint venture dubbed "Stargate" on Tuesday, with OpenAI, Oracle and Softbank to invest "$500 billion, at least" in AI infrastructure within the United States.

"The combination of a resilient economy, easing inflation, stabilization in interest rates, an earnings season off to a strong start, and less day-one focus on tariffs by President Trump has provided a solid backdrop for the market," said Keith Lerner, Truist's co-chief investment officer. "Tech is reasserting its leadership on the back of the Stargate project, which highlights the secular tailwinds and transformative potential of AI."

"Today is yet another reminder that the dominant theme of this bull market is artificial intelligence and technology," Lerner added.

Market comeback

The S&P's move to all-time highs completes a comeback for investors from a late 2024 pullback. Despite the broad market index ending last year with a 23% gain, the benchmark shed 2.5% in December, as traders grew fearful that the Federal Reserve wouldn't be able to cut rates as much as anticipated.

That lackluster performance bled into the first few trading sessions of 2025, but some data indicating modest easing on the inflation front have helped the market recover.

Also driving this move to record levels is optimism around Trump's agenda, especially after he took office this week. Investors expect Trump to ease regulation and lower corporate taxes, which could lift profits.

Year to date, the S&P 500 is up 3.5%. The Dow and Nasdaq have also gained more than 3% each.

Stocks finish higher

The three major indexes ended Wednesday's session in the green.

The Nasdaq Composite led the way, jumping 1.3%. The S&P 500 and Dow added 0.6% and 0.3%, respectively.

— Alex Harring

Roth downgrades Reddit to neutral rating from buy

Roth Capital Partners downgraded shares of Reddit to a neutral rating from buy on Wednesday morning. Despite this ratings downgrade, analyst Rohit Kulkarni raised his price target to $195 from $116, implying that the social media stock could add 3.5% from its Tuesday close.

"We believe a higher multiple is justified given potential near-term revenue upside (while peers could see downside on FX pressure) and y/ y ad growth acceleration," Kulkarni wrote.

As reasons for the downgrade, the analyst pointed to mixed fundamentals, slowing user growth and incremental margins that could increasingly come under pressure. Reddit's fourth-quarter expectations also look hard to beat at this point.

"Over the past three quarters as a public company, Reddit has reported revenues about 10% above its high-end guidance range and provided next-quarter guidance about 6% to 9% above Street estimates at the time. RDDT shares are +64% since 3Q earnings. Thus, we believe expectations are elevated vs prior earnings," Kulkarni added.

— Lisa Kailai Han

TD Cowen downgrades Celsius, says beverage stock is at risk going 'ex-growth'

Energy drink stock Celsius declined on Wednesday after TD Cown said the stock is going to struggle to rebound from a recent slide.

Analyst Robert Moskow downgraded the stock to hold from buy, saying that increased competition in the industry is weighing on Celsius' growth rate. Moskow also lowered the price target on Celsius to $29 per share from $40. The new target is just 8% above where the stock closed Tuesday.

"Our retail tracking data indicates a deceleration in sales growth to 0.3% in the [last four weeks] ending January 11. The stock is already well below its highs, but the valuation multiple could contract even further if the company goes 'ex-growth,'" Moskow wrote.

Shares of Celsius are down more than 70% since last March, and were down more than 4% in Wednesday's session following the downgrade.

— Jesse Pound

S&P 500 heads for record close

With about one hour left in Wednesday's trading session, the S&P 500 is on track to notch a record close.

The broad index sat around 6.097 shortly before 3 p.m. If that holds, it would be its highest closing level in its history. The index last closed at a record on Dec. 6, when it finished at 6,090.27.

This rise to record highs comes as investors have grown optimistic about what a pro-business agenda under President Trump can mean for stocks. Though tariffs remain a reason for pause, market participants are enthusiastic over the focus on deregulation.

The other two major indexes were also on track to end the session up.

— Alex Harring

Small-cap stocks underperform

Small-cap stocks sat out of Wednesday's market rally.

The benchmark S&P 500 rose 0.7% and hit a new intraday high in the session. On the other hand, the Russell 2000 slid 0.6%.

— Alex Harring

Oklo shares jump to an all-time high

Shares of Oklo, the nuclear company backed by OpenAI's Sam Altman, are up 9.1% Wednesday to a new all-time high. The stock has soared 60% in 2025 and more than 200% over the last 12 months.

Altman has served as chairman of the board of directors at Oklo since 2015. President Donald Trump's energy secretary nominee Chris Wright is also currently a board member of Oklo.

— Hakyung Kim

Stocks making the biggest midday moves

Check out some of the companies making headlines in midday trading.

Netflix — The streaming giant soared nearly 12% to an all-time high on the heels of better-than-expected results in the fourth quarter. Netflix reported earnings per share of $4.27 on revenue of $10.25 billion. Analysts polled by LSEG forecast $4.20 per share and $10.11 billion in revenue. The company also announced plans to raise prices for both its advertising supported and premium subscriptions.

Johnson & Johnson — Shares fell more than 2% after the pharmaceutical maker's sales forecast for this year was lower than analyst estimates. J&J edged past fourth-quarter estimates, however.

Trump Media and Technology Group — The Truth Social parent pulled back more than 4%, continuing a post-inauguration sell-off from Tuesday.

Read the full list here.

— Brian Evans

Earnings will need to back up stock valuations this year, JPMorgan portfolio manager says

Phil Camporeale, multi-asset portfolio manager at J.P. Morgan Asset Management, said he is overweight stocks this year, but said earnings will have to come through to justify lofty valuations.

"The number one risk that we're looking at heading into this year are the valuations, which is why we feel very strongly that you need to have earnings back this up," Phil Camporeale, multi-asset portfolio manager at J.P. Morgan Asset Management, told CNBC's "Money Movers."

"We're overweight stocks," Camporeale said. "It's not like we're saying we're underweight stocks because valuations are too expensive. We believe in the 'E' of the 'PE.' We don't need multiple expansion to get the return this year, because we think we can get it through earnings."

— Sarah Min

Strong profits for Travelers, but insurer expects "material impact" going forward from L.A. wildfires

A view shows the remains of homes destroyed by the Palisades Fire in the Pacific Palisades neighborhood in Los Angeles, California, U.S. January 11, 2025. 
David Ryder | Reuters
A view shows the remains of homes destroyed by the Palisades Fire in the Pacific Palisades neighborhood in Los Angeles, California, U.S. January 11, 2025. 

Dow component Travelers capped off a record year of profits with another very strong quarter. The insurance giant reported fourth quarter adjusted earnings of $9.15 per share – well above the $6.63 per share that Wall Street expected. Revenues – as measured by net premiums written – were in line with estimates, but jumped 7% from a year ago as the company continued to flex strong pricing power on renewals rates.

But casting a shadow after a banner year in 2024 are the tragic events in Los Angeles this month. Travelers launched Wednesday's earnings release and analyst call with an emphasis on the human tragedy unfolding around those wildfires.  It said its strong financial position allows it to respond to its customers in need – and that's why a record year of net written premiums (up 8% year-over year to $43.4B) is so important.

Travelers said that the California wildfires will have a material impact on first quarter earnings, but the company pointed out it needs more time to refine its estimate on the exact financial impact.  Also – there's a $100 million deductible per event (and the fires count as two separate events plus a wind event in LA). In areas where there's no appetite to cover fire, the company writes homeowners policies that exclude fire.  Homeowners then might add fire coverage from the Fair Plan.

On the heels of a very strong 2024, growing profitability is a PR problem for insurers – not just because of cancelling policies in catastrophe prone areas, but also because across the country policy holders are getting sticker shock opening their insurance bills.  Travelers reported 80% of its middle market accounts saw rate hikes. Meanwhile, Travelers recent earnings figures have mostly come in well above analyst estimates.

Travelers: Recent Earnings Per Share Performance

Date                   Actual    Estimate         vs. Consensus

Q4 2024             $9.15     $6.63                38% above

Q3 2024            $5.24     $3.55                48% above

Q2 2024            $2.31     $1.98                27% above

Q1 2024            $4.69     $4.90                4% below

Q4 2023            $7.01     $5.09                38% above

 

— Contessa Brewer & Robert Hum

 

Bernstein upgrades Darden Restaurants to outperform

Bernstein upgraded shares of restaurant operator Darden Restaurants to an outperform rating from market perform on Wednesday morning. Darden Restaurants is the parent company of chains such as Olive Garden. The Capital Grille and Cheddar's Scratch Kitchen.

Shares of Darden have added 15% in the last twelve months. Bernstein's price target of $215, raised from $180, implies additional upside of more than 15%.

As catalysts, Bernstein pointed to an Uber Direct partnership as well as a focus on quality and pricing at some of Darden's specific brands.

"We believe that tactical increase in ad spends, product (re)introductions and stabilized consumer environment will drive sustained inflection in Olive Garden, beyond 2Q25," the firm wrote. "We believe favorable commodities, improving labor productivity and sales leverage to drive 2025 margins above consensus expectations."

— Lisa Kailai Han

S&P 500 hits fresh record in midday trading

The S&P 500 hit a fresh all-time high in midday trading, as technology stocks rallied on artificial intelligence optimism, and earnings came in stronger than expected.

The broader index touched 6100.11 shortly before the 12 o'clock hour, exceeding the last record it hit in early December before the market pullback. It was last up 0.8%.

— Sarah Min

Information technology stocks outperform, boost S&P 500

Information technology stocks gained Wednesday, lifting the S&P 500's information technology sector more than 2.1% during morning trading.

The sector was the best performer in the broad index, led to the upside by semiconductor and software stocks. Seagate Technology and Monolithic Power Systems were the best performers, rallying about 8% each. Oracle and Arista Networks added about 7%. Super Micro Computer and Nvidia rose at least 4%.

Communication services was another big winner, rising 1.6% thanks to a nearly 11% gain from shares of Netflix.

— Samantha Subin

Jamie Dimon calls U.S. stock prices ‘kind of inflated’ and highlights risks

Jamie Dimon, CEO of JP Morgan Chase, speaking on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22nd, 2025.
Gerry Miller | CNBC
Jamie Dimon, CEO of JP Morgan Chase, speaking on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22nd, 2025.

JPMorgan Chase CEO Jamie Dimon on Wednesday called the U.S. stock market inflated and said that he felt more cautious than others in the business world.

The 68-year-old Dimon, who has headed the nation's largest bank since 2006, noted risks from deficit spending, inflation and geopolitical upheaval.

"Asset prices are kind of inflated, by any measure," Dimon told CNBC's Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland. U.S. stocks "are in the top 10% or 15%" of historical valuations, he said.

Also at Davos, Goldman Sachs CEO David Solomon similarly acknowledged that stock market valuations were high, although he indicated they could be justified by enthusiasm over the impact of both artificial intelligence and President Trump's expected moves to relax regulation for American companies.

— Hugh Son, Scott Schnipper

Citi resumes coverage of Disney at a buy, says 'risk-reward looks favorable'

Wall Street's 2025 earnings expectations may still be a "tad heavy" for Walt Disney, but the "risk-reward looks favorable" for the stock, said Citi analyst Jason Bazinet as he resumed coverage of the entertainment company at a buy.

"At current levels, we see $13 downside and $25 upside," he added, setting a $125 price target for the stock. Disney shares were down slightly in trading Wednesday at around $108. The stock has fallen 2% since the year began.

Bazinet expects Disney to hit its own 2025 outlook, but the consensus earnings estimate is about 2% higher than his prediction of $5.35 per share after adjustments.

"We like Disney as we see scope for the market to fully embrace the firm's [direct-to-consumer] pivot
as profitability continues to improve and the firm utilizes its Sports content more aggressively push into streaming with ESPN Flagship," he wrote. Bazinet is also optimistic that movie ticket sales will improve in the U.S. and that Disney will benefit from investments it's made in its Experiences division.

—Christina Cheddar Berk

Oracle rises on heavier-than-normal volume

Sheldon Cooper | SOPA Images | Lightrocket | Getty Images

Oracle shares were up about 6%, with volume already more than double its 30-day average.

Nearly 20 million shares have exchanged hands less than an hour into the session, per FactSet. The 30-day average for the software giant is 9.8 million.

The move and heavy trading volume follow enthusiasm around artificial intelligence following President Donald Trump's announcement of the Stargate project, a joint venture between OpenAi, Oracle and Softbank to invest in AI infrastructure in the U.S.

— Fred Imbert

Netflix hits record high after blockbuster earnings

Netflix surged more than 12% to a record high, eclipsing a previous all-time high set in December. The stock traded as high as $999 before easing to around $979.

The gain put Netflix's market cap near $420 billion — more than double that of Disney's.

— Fred Imbert

Stocks open higher

Stocks kicked off Wednesday's session in the green.

The Nasdaq Composite led the three major indexes higher with a 0.8% gain. The Dow and S&P 500 rose 0.3% and 0.5%, respectively.

— Alex Harring

Stocks making the biggest moves Wednesday morning

Nurphoto | Nurphoto | Getty Images

Check out some of the companies making headlines before the bell:

  • Netflix — Shares popped more than 15% after the company announced a top- and bottom-line beat on Tuesday night. The streaming service earned $4.27 per share on $10.25 billion in revenue for the fourth quarter. Analysts surveyed by LSEG had expected earnings of $4.20 per share and revenue of $10.11 billion. Netflix also topped 300 million paid subscribers in the quarter.
  • United Airlines — The airline stock rose 5% after issuing a better-than-expected outlook. United expects to earn 75 cents to $1.25 per share, after adjustments, in the first three months of 2025, which is more than the 54 cents analysts had expected, per LSEG.
  • Trump Media & Technology — The parent company of Truth Social shed 2%, continuing its post-inauguration slide. Shares dropped around 11% on Tuesday. 

The full list can be found here.

— Hakyung Kim

Wells Fargo upgrades 3M stock to overweight

There's a rosy outlook ahead for shares of 3M, according to Wells Fargo.

Analyst Joseph O'Dea upgraded the industrials stock to an overweight rating from equal weight. The analyst's price target of $170, raised from $140, implies a rough upside of approximately 16% for the stock.

Shares of 3M have popped 63% in the past twelve months.

O'Dea highlighted that 3M's stocks buybacks represents management's view of the current stock price as attractive and optimism in the opportunities that lie ahead.

"Early days of significant margin expansion ambition, at a time of uncertainty about the trajectory of an industrial recovery, is attractive," he wrote. "A willingness to work down cash and do buybacks is a strong statement on confidence in operational execution."

— Lisa Kailai Han

Procter & Gamble rises on earnings beat

Proctor & Gamble Charmin brand bathroom tissues on display at a store in Vallejo, California, US, on Saturday, Oct. 7, 2023.
David Paul Morris | Bloomberg | Getty Images
Proctor & Gamble Charmin brand bathroom tissues on display at a store in Vallejo, California, US, on Saturday, Oct. 7, 2023.

Procter & Gamble jumped more than 3% in Wednesday's premarket after earnings topped Wall Street expectations.

The household product maker earned $1.88 per share on $21.88 billion in revenue for the second fiscal quarter. Analysts polled by LSEG had expected $1.86 a share and $21.54 billion, respectively.

Shares have pulled back about 3.5% so far in 2024, taking a chunk out of last year's gain of more than 14%.

— Alex Harring, Amelia Lucas

Shares of Johnson & Johnson pop 2% on fourth-quarter earnings beat

Johnson & Johnson added 2% after posting a fourth-quarter earnings and revenue beat.

The pharmaceutical giant reported fourth-quarter adjusted earnings of $2.04 per share on revenue of $22.52 billion. Analysts polled by LSEG had expected adjusted per-share earnings of $2.01 and $22.42 billion in revenue.

Johnson & Johnson also expects its full-year adjusted earnings to come in between $10.50 and $10.70, while FactSet had estimated this figure towards the bottom of the range at $10.53.

Shares of Johnson & Johnson have tumbled nearly 9% over the last 12 months.

— Lisa Kailai Han

Trump says he’s considering a 10% tariff on China

President Donald Trump said that his team was discussing a 10% tariff on China and that the duty could take effect as early as Feb. 1.

"We're talking about a tariff of 10% on China based on the fact that they're sending fentanyl to Mexico and Canada," the president said, speaking to reporters at the White House on Tuesday evening.

"Probably Feb. 1 is the date we're looking at," he added.

— Darla Mercado

Here are the stocks making the biggest moves after hours

Check out the companies making headlines in extended trading.

Netflix — Shares soared more than 13% after the streaming giant surpassed 300 million paid memberships. Netflix also beat fourth-quarter expectations on the top and bottom lines, and it raised its revenue expectations for the full year 2025.

United Airlines — Shares popped more than 3% after United Airlines' fourth-quarter results came in better than expected. The airline operator posted adjusted earnings of $3.26 per share on revenues of $14.70 billion. Analysts surveyed by LSEG had expected per-share earnings of $3.00 on revenues of $14.47 billion. The company also issued a strong forecast for first-quarter earnings.

Read the full list here.

— Sarah Min

Trump says he's open to Elon Musk or Larry Ellison buying TikTok

A 3D-printed miniature model of U.S. President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025.
Dado Ruvic | Reuters
A 3D-printed miniature model of U.S. President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025.

President Donald Trump said he's open to Elon Musk or Oracle's Larry Ellison buying TikTok.

"I would be, if [Musk] wanted to buy it, yes," Trump said when asked if he'd be open to the Tesla CEO buying the social media company. "I'd like Larry [Ellison] to buy it, too."

"I have the right to make a deal," Trump continued. "What I'm thinking about saying to somebody is buy it, and give half to the United States of America. Half, and we'll give you the permit. And they'll have a great partner, the United States, and they'll have something that's actually more valuable because they have the ultimate partner — the United States."

— Sarah Min

Trump announces AI infrastructure investment backed by Oracle, OpenAI and Softbank

President Donald Trump on Tuesday announced a joint venture dubbed "Stargate," with OpenAI, Oracle and Softbank to invest $500 billion in artificial intelligence infrastructure in the United States.

"These world-leading technology giants are announcing the formation of Stargate. So, put that name down in your books, because I think you're going to hear a lot about it in the future," Trump said at the White House. "A new American company that will invest $500 billion, at least, in AI infrastructure in the United States."

OpenAI CEO Sam Altman, Oracle executive chairman Larry Ellison and SoftBank CEO Masayoshi Son were each in attendance.

Shares of Oracle jumped nearly 4% in extended trading.

— Sarah Min

U.S. S&P 500 futures open slightly higher Tuesday night

U.S. S&P 500 futures opened slightly higher Tuesday night.

S&P 500 futures rose 0.15%, while Nasdaq 100 futures gained 0.39%. Dow Jones Industrial Average futures added 17 points, or 0.04%.

— Sarah Min

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