The nominee for Treasury Secretary, Scott Bessent, said he would support tougher sanctions against Moscow in an effort to end the Ukraine war, if President-elect Donald Trump were to request them.

“If I’m confirmed, and if President Trump requests, and as a part of his technique to end the Ukraine war…I might be 100% on board for taking sanctions up, especially on Russian oil majors, to levels that can bring the Russian Federation to the table,” said Bessent during a Senate confirmation hearing on Capitol Hill.

The US Treasury recently announced broad-based sanctions against Russian energy in an effort to cut off Moscow’s revenue amid the continuing war in Ukraine. Bessent questioned the timing of those wider measures recently announced, which have sent oil prices higher just before Trump takes office.

Nevertheless he expressed support for using tough sanctions as a part of a negotiation tactic to bring the Ukraine-Russia conflict to and end.

Throughout the hearing, Bessent also stated his support for sanctions against Iran.

Yahoo Finance’s David Hollerith reports:

Fourth-quarter 2024 profits at Bank of America (BAC) and Morgan Stanley (MS) greater than doubled, cementing a Wall Street revival that has dealmakers optimistic in regards to the coming Trump era in 2025.

Strong investment banking and trading results also helped push profits higher at other big banks within the fourth quarter, including JPMorgan Chase (JPM), Goldman Sachs (GS), Citigroup (C), and Wells Fargo (WFC).

The six major US banks which have reported earnings to date this week showed a combined profit of more $36 billion within the fourth quarter and $145.7 billion for all of 2024.

The fourth quarter mark was greater than double their collective profit within the fourth quarter of 2023, and the annual haul was 19% higher.

Read more here.

Yahoo Finance’s Claire Boston reports:

Mortgage rates rose this week to the very best level since May 2024 during a volatile period for the bonds that closely track them.

The typical 30-year mortgage rate jumped to 7.04% through Wednesday, up from 6.93% per week earlier, after strong employment data pushed yields higher on the Treasury bonds which are most closely linked to mortgage rates. Average 15-year mortgage rates also rose to six.27%, from 6.14%, based on Freddie Mac.

Read more here.

Share of Apple and Tesla led the Nasdaq (^IXIC) lower on Thursday. The tech-heavy index dropped about 0.3%.

Apple stock declined greater than 3%, on target for its lowest close since November. The iPhone maker has been under pressure over concerns of slowing sales in China.

Share of EV maker Tesla (TSLA) shares also dropped on Thursday, falling greater than 3.5%. The corporate is offering recent discounts on Cybertrucks, a sign that the electrical vehicle pickup could also be affected by a slump.

The nominee for Treasury Secretary Scott Bessent called out US federal spending in response to Senator Grassley’s comments a couple of fiscal imbalance during Thursday’s confirmation hearing.

“Yes, we shouldn’t have a revenue problem in the US of America, we now have a spending problem,” said Bessent.

“This spending is uncontrolled. We’re spending about 24% or 25% of GDP… we now have never seen this before when it just isn’t a recession or not a war,” said Bessent.

He added, “I’m concerned, because several times, the Treasury of the US has been called upon to save lots of the nation.” Bessent cited major borrowing amid events like World War II, the Great Depression, and the recent pandemic.

Scott Bessent, the nominee for Treasury Secretary highlighted a possibility for a recent ‘Golden Age’ for the US during opening remarks at his confirmation hearing.

“Today, I think that President Trump has a generational opportunity to unleash a recent economic Golden Age that can create more jobs, wealth, and prosperity for all Americans,” Bessent told lawmakers on Thursday morning.

The nominee highlighted his life’s work within the private sector has given him a understanding of the economy and markets.

“Having never served in government, I intend if confirmed, to be in close contact with each of you and your offices, and seek your council,” said Bessent.

He also highlighted the necessity for the federal government to make sure the US Dollar stays the world’s reserve currency.

Lawmakers were making opening remarks on Thursday morning on the confirmation hearing for President-elect Donald Trump’s nominee for Treasury secretary, Scott Bessent.

The hearing is prone to last about two and a half hours.

Likely topics Bessent will face questions on include policies surrounding tariffs and Republican tax initiatives and spending plans for 2025.

President-elect Donald Trump’s nominee for Secretary of the US Department of the Treasury, Scott Bessent, will face questions from lawmakers on Capitol Hill today starting at 10:30 a.m ET.

Yahoo Finance’s Ben Werschkul reports on two issues to look at for in the course of the hearing: One is around a swirl of seemingly competing tariff plans before President-elect Donald Trump, a few of which Bessent himself is reportedly pushing.

A second is whether or not Republicans will have the ability to disregard debt concerns and go big with their 2025 tax and spending plans.

Read more here.

Builders are starting the yr with more optimism than ultimately of 2024, despite elevated mortgage rates.

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index rose to 47 in January, up one point from December and better than economists’ estimates of 45, per Bloomberg data.

Still, a reading under 50 indicates more builders view conditions as poor quite than good.

The dilemma of high housing costs persists, with mortgage rates hovering closer to 7% over the past 4 consecutive weeks, based on Freddie Mac. Markets expect the Fed will likely leave rates unchanged this month, especially after fresh inflation data released Wednesday showed some signs of easing. The Fed doesn’t set mortgage rates but its actions influence the direction of yields, which in turn affect borrowing costs.

The NAHB survey showed builders proceed to supply concessions in January. The survey found that 60% of builders used some form of sales incentive to shut the deal, while 30% of builders cut home prices to bolster sales in January. The typical price reduction was 5%, matching December’s price cut.

US stocks were mixed on Thursday following the S&P 500’s (^GSPC) best day by day performance since November and robust quarterly bank earnings.

The broad based index rose greater than 0.1% while the Nasdaq Composite (^IXIC) increased about 0.3%. The Dow Jones Industrial Average (^DJI) hovered near the flatline.

Investors were looking forward to a continuation of Thursday’s performance when stocks ripped higher on the heels of higher than expected inflation data and robust quarterly bank earnings.

Traders have been assessing what number of rate cuts the Federal Reserve will implement this yr following a greater than expected jobs report last Friday but a cooling inflation print on Wednesday.

Goldman Sachs analysts said in a recent note they “now forecast two 25bp cuts this yr in June and December (vs. three cuts previously in March, June, and September) followed by one other cut in June 2026.”

Yahoo Finance’s Josh Schafer reports:

Retail sales grew at a slower pace than Wall Street had expected in December as investors keep a detailed eye on the pace of economic growth amid questions over how quickly the Federal Reserve will cut rates of interest.

Retail sales rose 0.4% in December. Economists had expected a 0.6% rise in spending, based on Bloomberg data. Meanwhile, retail sales in November were revised as much as 0.8% from a previous reading that showed a 0.7% increase within the month, based on Census Bureau data.

Read more here.

Good chart by the Vanda Research team Mag 7 flows from the retail trading community.

You may see activity having slowed down in January with names like Nvidia under pressure.

Dare I say it’s refreshing to see traders nibble at the opposite 493 stocks within the S&P 500!

Goal (TGT) dropped its holiday sales results this morning, and the stock is up within the pre-market.

Undecided why Goal didn’t blow me away!

Sales barely grew and the corporate reiterated its EPS outlook — an outlook that at the highest end is $0.20 below current sell-side consensus.

Bottom line: That is one more quarter from Goal that sheds light on its continued market share loss to Walmart (WMT). Here’s what Walmart CEO Doug McMillon told me when accepting our 2024 Company of the Yr award.

PS: I like Walmart’s recent blue logo color that ties back to founder Sam Walton’s iconic trucker hat.