Traders are preparing for a volatile earnings season as options markets indicate an average 4.7% move for S&P 500 companies following earnings reports, marking the largest expected post-results swings on record. This heightened volatility comes ahead of key inflation readings, including the Consumer Price Index (CPI) report scheduled for January 17, 2025. In the previous Q3 2024 earnings season, companies that exceeded sales and earnings expectations outperformed the S&P 500 by the widest margin in five years. As investors await the CPI report and bank earnings, stock futures have shown a slight increase, reflecting cautious optimism in the market.