Wall Street futures pointed to a slightly higher open (SPY +0.1%) as major banks kicking off the reporting season, but investors are concerned whether Trump will follow up to put high tariffs on Chinese imports in the U.S. Oil prices dropped by around 1% and the US dollar is volatile.
Here is the current market situation from CNN Money
European markets are higher today with shares in France leading the region. The CAC 40 is up 0.84% while Germany's DAX is up 0.57% and London's FTSE 100 is up 0.40%.
Looking at the last three columns, the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.
Wells Fargo reported 4Q profit of $0.96 per share, missing the estimate for $1.00. Revenue was $21.6 billion. The estimate was for $22.45 billion.
The nation's biggest bank by assets revealed 4Q earnings per share of $1.71 on managed revenue of $24.3 billion. It is not known right away if the numbers are comparable. Analysts expected profit per share of $1.44 on revenue of $23.94 billion.
Bank of America reported 4Q profit of $0.40 per share, which topped the estimate for $0.38. Adjusted revenue of $20.0 billion, missed the estimate for $20.85 billion
(Reuters) - JPMorgan Chase & Co , the No. 1 U.S. bank by assets, reported stronger-than-expected quarterly earnings and revenue on Friday, helped by a surge in investor activity related to the U.S. presidential election.
(Reuters) - Bank of America Corp reported a near-50-percent jump in fourth-quarter profit on Friday due to cost cuts and higher trading revenue, and its finance chief forecast sturdy income growth ahead thanks to rising interest rates.
PARIS/MILAN (Reuters) - European carmakers were drawn into widening investigations into diesel emissions cheating on Friday, with French prosecutors examining Renault and British authorities seeking answers from Fiat Chrysler Automobiles NV.
NEW YORK (Reuters) - BlackRock Inc , the world's biggest asset manager, reported better-than-expected quarterly profits on Friday as it clamped down on expenses and investors stormed into lower-cost funds to take advantage of a year-end rally.
BEIJING (Reuters) - China's massive export engine sputtered for the second year in a row in 2016, with shipments falling in the face of persistently weak global demand and officials voicing fears of a trade war with the United States that is clouding the outlook for 2017.
MUNICH/BERLIN (Reuters) - Senior Volkswagen managers have been warned not to travel to the United States, legal and company sources told Reuters, after six current and former managers were indicted for their role in the German carmaker's diesel test-cheating scheme.
In a report that was somewhat similar to that of Bank of America, JPM reported Q4 revenues of $23.4 billion, beating estimates of $23.1 billion, on EPS of $1.71, far higher than the expected $1.42, which however like in the case of BofA was due to a cut in expenses, which came in at $6.87 billion, far below the $7.2 billion, suggesting even greater expense - i.e. compensation - reductions.
While JPM's net Interest Income was up $553mm YoY and up $163mm QoQ, this happened even as NIM declined by 2bps QoQ. That said, like BofA, JPM said it expects firmwide net interest income to be up "modestly" QoQ.
On the key, trading side, JPM reported that while investment banking revenue rose by $17mm Y/Y to $1.49 billion, it missed expectations of $1.59bn, and while FICC of $3.37 billion rose by $795 million, beating expectations of $3.26 bn, equity markets revenue of $1.15 billion came in weaker than the $1.29 billion expected.
Some details from the report:
IB revenue of $1.5B, up 1% YoY, driven by higher debt underwriting fees, largely offset by lower advisory and equity underwriting fees
Fixed Income Markets of $3.4B, up 31% YoY, driven by strong performance across products
Equity Markets revenue of $1.2B, up 8% YoY, driven by strong performance in derivatives
The better than expected net income in the investment bankin group was mostly the result of a big drop in expense of $4.2 ...
Trump Needs Vaccine Experts, Not Conspiracy Theorists ... Trump could have turned to any number of reputable experts to learn about vaccine safety. Instead, he went straight for the fringe. -Daily Beast
Donald Trump supposedly picked Robert Kennedy Jr. to head a commission on vaccines and autism, causing a good deal of anxiety among mainstream media.
Trump has since denied that any decision has been made, but Kennedy has been telling people the offer was extended and presumably accepted.
This is the same mainstream media that take a huge bundles of cash from pharmaceutical advertisers. Because of this it is hard to tell how many spokespeople are genuinely behind government pro-vaccine positions and how many are merely doing what they're told when it comes to voicing hyper-partisan positions.
They're certainly a lot of pro-vaccine types in the world and they have a lot of negatives about diminishing vaccines in the slightest or in any other way cutting back on them.
The Obama administration just handed even more power to the incoming Trump administration to invade the privacy of American citizens. The recent approval of new procedures for an existing executive order will allow the NSA to share the private data it collects with all 16 agencies of the United States intelligence community. The 23-page outline of the new procedures lifts previous limits placed on the way information was filtered before being disseminated to individual agencies.
"As he hands the White House to Trump, Obama just unchained NSA from basic limits on passing raw intercepts to others," NSA whistleblower Edward Snowden tweeted Thursday.
As he hands the White House to Trump, Obama just unchained NSA from basic limits on passing raw intercepts to others https://t.co/JkbJhTrUsI
— Edward Snowden (@Snowden) January 12, 2017
Gone are the already-flimsy privacy protections that required NSA analysts to review data before handing it over to other agencies like the CIA, DEA, DHS, or others. Whereas prior restrictions required analysts to shield the identities of innocent parties and other personal data before sharing only the information deemed pertinent, there are now ...
Oil prices rallied the last couple of days on the heels of Saudi jawboning about just how much they cut production, after concerns on US shale production surging. However, prices are falling back as despite near-record imports of crude reported overnight in China, it appears that historical demand has 'glutted' refiners (who exported record product in 2016) leaving a slew of oil tankers stranded off the Chinese coast.
As Reuters reports, China's crude oil imports jumped to a record high in December as refiners stepped up purchases ahead of a possible OPEC deal to cut supply and bolster prices, and as more independent refiners won import permits.
Exports of refined fuel also surged to a new high as the country's giant state refiners shipped more product offshore in the face of a growing domestic surplus, adding to pressure on Asian refining margins.
Crude imports hit 36.38 million tonnes in December, data from the Chinese General Administration of Customs showed, or 8.57 million barrels per day (bpd).
This was up 9 percent from November and well above the previous record of 8.04 million bpd set last September.
Inbound shipments to China rose to a record average of 7.63 million barrels a day in 2016, boosted by the teapots, Bloomberg notes that government data shows. The purchases were one of the factors that helped crude prices recover from ...
The House Republican plan to adjust taxes at the border, essentially subsidizing exports and taxing imports, has this week become one of the most talked about features of a broad corporate-tax reform plan.
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