💴 More earnings are here

and Apple in trouble

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Good morning investors! S&P 500 snapped three-day win streak yesterday.

Today we cover:

  • Import prices show modest gains

  • More earnings ((Morgan Stanley, Bank of America, Target, and Richemont)

  • Reducing healthcare costs

📊 Economy and News 

U.S. Import Prices Show Modest Increase in December, Supporting Inflation Outlook

U.S. import prices posted a modest rise for the third consecutive month in December, edged up by 0.1%, mirroring the gains recorded in October and November, reflecting a mixed picture as higher costs for fuels and food were tempered by declines in other categories. This trend provides a positive signal for the inflation outlook.

Over the 12 months ending in December, import prices rose by 2.2%, an acceleration from November’s 1.4% annual gain.

Fuel and Food Prices See Notable Increases

Imported fuel prices surged by 1.4% in December, marking the largest increase since April, following a 0.9% rise in November. The uptick was driven by higher costs for natural gas and petroleum. Meanwhile, food prices climbed by 2.8%, significantly outpacing the 1.4% gain seen in November.

Core Import Prices Decline

Excluding fuels and food, import prices fell by 0.2% in December after remaining flat in November. Core import inflation has been dampened by the strength of the U.S. dollar against the currencies of key trading partners. Over the 12 months through December, core import prices rose by 1.9%.

This steadying of core import prices, coupled with the Federal Reserve's cautious approach, suggests that inflationary pressures remain under control despite fluctuations in specific commodity prices.

The Federal Reserve is anticipated to keep interest rates steady at its upcoming policy meeting. Financial markets currently project the next rate cut to occur in June.

Global hits:

Good to know: U.K. Robinhood rival Freetrade has been acquired by IG Group for £160 million ($195 million) — a 29% discount to its last valuation.

The deal is a potential signal for further consolidation coming to the wealth technology industry.

Last year, Hargreaves Lansdown was acquired for £5.4 billion by a consortium of investors including private equity giant CVC Group..

Something about oil: Oil prices fell back slightly on Thursday, a day after settling at multi-month highs on the latest U.S. sanctions on Russia and a larger-than-forecast fall in U.S. crude stocks. The 2 million-barrel draw was more than the 992,000-barrel decline analysts had expected in a Reuters poll.

Elsewhere, the U.S. Treasury announced fresh measures to deplete Russia’s energy revenues, including on 183 vessels that were  “largely oil tankers that are part of the shadow fleet as well as oil tankers owned by Russia-based fleet operators.”

The sanctions “could significantly disrupt Russian oil supply and distribution chains,” the International Energy Agency warned.

Lastly, oil major BP to cut thousands of jobs in cost-saving drive as it also reduces contractor numbers by 3,000..

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📈 Stocks

S&P 500 5,937.34 (-0.21%)
DJIA 43,153.13 (-0.16%)
NASDAQ 19,338.29 (-0.89%)
BRENT CRUDE 81.29 (-0.89%)
* Prices as of Jan 17th , 12:20 AM UTC

More earnings are here

Some big names announced earnings yesterday, here’s all you need to know:

  • Morgan Stanley topped estimates for fourth-quarter earnings and revenue as the firm’s equities and fixed income traders exceeded expectations. The bank said that quarterly profit more than doubled to $3.71 billion, or $2.22 a share, from a year earlier, when it had a pair of regulatory charges. It was the firm’s equities trading business that shone brightest in the quarter, producing a 51% jump in revenue to $3.3 billion.

  • Bank of America posted results that topped expectations for profit and revenue on better-than-expected investment banking and interest income. The company said fourth-quarter profit more than doubled to $6.67 billion, or 82 cents per share, from a year earlier. Perhaps more than other megabanks, the firm’s fortunes seem to hinge on rates and their impact on net interest income.

  • Target raised its fourth-quarter sales forecast, as customer traffic across stores and its website rose and deals attracted holiday shoppers. The discounter said Black Friday and Cyber Monday saw record-high sales. So far, data from the retail industry’s key season has been better than feared but has failed to impress investors.

  • Cartier owner Richemont reported a 10% increase in fiscal third-quarter sales even as China demand weighed. Sales rose to 6.2 billion euros ($6.38 billion) at constant exchange rates in the three months to the end of December, which the Swiss luxury brand dubbed its “highest ever” quarterly sales. The results provide a positive early signal for the health of Europe’s luxury sector over the holiday shopping period.

Worth knowing: Polestar expects delayed profitability as demand for EVs weakens, competition hurts. Also, Nintendo has revealed long-awaited Switch 2 console set to launch this year. Lastly, Spirit Airlines cuts 200 jobs in bankruptcy cost-cutting scramble

As predicted: Apple stock closed down 4% on Thursday, its worst day since Aug. 5, following several reports of lackluster iPhone sales in China. The iPhone maker’s stock price is down nearly 12% from its most recent peak in December, and it’s the worst-performing of the seven largest technology stocks so far in 2025.

Elsewhere, Snap shares closed down 5% on Thursday after the Federal Trade Commission said it would refer a complaint against the company to the Department of Justice. The FTC’s non-public complaint involves allegations that Snapchat’s My AI chatbot poses “risks and harms to young users,” the commission said in a statement.

Good to know: More than 3.2 million “electrified” vehicles were sold last year, making about 20% of total sales. The figure includes 1.9 million hybrid vehicles, including plug-in models, and 1.3 million all-electric models. Tesla continued to dominate sales of pure EVs but Cox Automotive estimated its annual sales fell and its market share dropped to about 49%.

💵 Personal Finance

Do this to reduce healthcare costs

Whether you’re planning to retire or change how you manage things, it’s important that you take a look at healthcare costs as they amount to about 30% of one's total expenditure.

DON’T avoid going to the doctor to save money.

Instead, do this:

  • Ask your doctor if it is possible to choose generic medicines instead of branded drugs. Also, do not be afraid of asking for cheaper alternatives. According to the FDA, generic drugs are just as effective as their branded counterparts. but cost about 85% less.

  • Make good use of available benefits and discounts. Some credit cards, for example, offer discounts on medicines and diagnostics. Our top picks include AccessOne Medcard, Wells Fargo Health Advantage® Card, and CareCredit.

  • People in the US see doctors less often than those in most other countries. Moreover, some people avoid going to the doctor to save money. However, this is a mistake as not going to a doctor means not getting to know about conditions that might be there. A great way to reduce healthcare costs is to be proactive and go for regular checkups (twice a year if you are healthy and more if you have existing conditions) to ensure there are no issues.

  • Get insurance! About 92 percent of the population in the US has healthcare insurance but the number is down in countries like Egypt, India, and the UK. To avoid hassles and financial burden, try to get at least basic insurance that covers medicines and doctor visits.

  • Choose clinics over hospitals. Though not always effective, this trick could end up helping you save money since clinics tend to be cheaper than hospitals. However, there’s a downside as they usually come with fewer facilities.

  • Double check your bills since about 80% of medical bills have errors. Review invoices and ask for itemized bills as they reduce the risk of errors. These errors cost American families about $500 per year. Being careful ensures you don’t end up wasting money.

  • Save for medical emergencies and utilize healthcare savings accounts such as Health Savings Accounts, Medical Savings Accounts, Flexible Spending Arrangements, and Health Reimbursement Arrangements. With these accounts, you'll be able to set aside tax-exempt money for your health care expenses.

Shocker: The US spends more on health care than any other country but still has the 47th lowest life expectancy at birth and the highest rate of people with multiple chronic diseases.

We’d like you to ponder over this and share your feedback with us. Why do you think this happens and what can we do improve the system?

💰 Be a Better Investor

“Compound interest is the eighth wonder of the world; he who understands it, earns it, he who doesn’t pays it.’’

Albert Einstein

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.