What to Watch in the Day Ahead - Wednesday, January 15

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After last week's upbeat nonfarm payrolls report that supported the Federal Reserve's cautious stance toward further policy easing, investors will look forward to inflation figures from the U.S. Bureau of Labor Statistics. The increase in the Consumer Price Index (CPI) in December is expected to be the same as in November at 0.3%. Year-on-year, CPI probably advanced 2.9% last month. Meanwhile, rise in core CPI likely eased to 0.2% in December, after gaining 0.3% in November. On an annual basis, the core CPI rate in December is projected to remain at 3.3% reached in the previous month. Separately, the NY Fed manufacturing index reading for January is projected to be at 3, up from 0.20 recorded last month.

JPMorgan Chase is set to release fourth-quarter and full-year 2024 financial results. It is expected to report a jump in profit, driven by strong performance at its Wall Street business units, as investment banking recovers from multi-year lows. Analyst and investor focus is on the largest U.S. lender's outlook for 2025 as the U.S. Federal Reserve cuts rates and a new administration under Donald Trump begins its term.

Citigroup is expected to report a profit in the fourth quarter versus a loss a year earlier, as a recovery in dealmaking and share sales drove up investment banking fees. Analysts and investors will focus on the bank's plans for growth after completing its biggest reorganization in decades.

Wells Fargo is likely to report a fall in fourth-quarter profit, as the fourth-largest U.S. lender pays out more to hold onto customer deposits. The bank's 2025 forecast and the trajectory of interest income will be parsed by investors.

Goldman Sachs is projected to report a surge in fourth-quarter profit, as a rebound in dealmaking and debt sales strengthen its core investment banking business. Investors and analysts are expected to listen closely for executives' outlook for further recovery amid lower rates and a possible easing of the anti-trust environment.

World's largest asset manager BlackRock is set to report its fourth-quarter financial results for 2024, a year marked by record-high assets under management and the expansion in key growth areas such as private credit and infrastructure.

Several Federal Reserve speakers are scheduled to attend events through the day. Federal Reserve Bank of Richmond President Thomas Barkin is set to speak before a Maryland Chamber of Commerce event in Annapolis. (0920/1420) In a separate event, Federal Reserve Bank of Chicago President Austan Goolsbee is set to speak before the virtual Wisconsin Bankers Association Midwest Economic Forecast Forum in Chicago. (1200/1700) Federal Reserve Bank of Minneapolis President Neel Kashkari is expected to participate in a fireside chat before virtual Federal Reserve Bank of Minneapolis 2025 Regional Economic Conditions Conference. (1000/1500) Additionally, Federal Reserve Bank of New York President John Williams is scheduled to speak before the CBIA Economic Summit and Outlook 2025 event in Hartford. (1100/1600)

For Brazil, service sector activity is expected to have fallen 0.3% in November, after hitting 1.1% in October. On an annual basis, the services sector probably grew 3.4%. Separately, the country's central government is expected to post a primary budget deficit of 6.600 billion reais in November, compared with a budget surplus of 40.80 billion reais in the previous month.

Data from Statistics Canada is expected to show manufacturing sales in November rose at a slower rate of 0.5% in November, compared with a 2.1% advance in October. Meanwhile, wholesale trade probably fell 0.7% in November, after rising 1% in the prior month.

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(Compiled by Malini K; Editing by Vijay Kishore)

((Malini.K@thomsonreuters.com;))