Here are the top news, trends, and analysis investors need to get their trading day started:
1. Dow to slide on bank profits, Biden stimulus plan
Traders on the floor of the New York Stock Exchange.
Source: New York Stock Exchange
Dow futures indicated a loss of over 100 points when it opened on Friday, with Dow stock JPMorgan Chase falling despite better-than-expected quarterly earnings and sales. Investors also examined the $ 1.9 trillion coronavirus stimulus plan announced after the market closed on Thursday for President-elect Joe Biden.
The Dow Jones Industrial Average fell 68 points on Thursday, reflecting the continuation of subdued market moves this week, mostly down as Wall Street continued to grow with President Donald Trump’s second impeachment and the aftermath of the unrest in the argued at the US Capitol last week. However, the Dow, S&P 500 and Nasdaq all stayed less than 1% off record highs. The stock exchange is closed on Mondays on the occasion of Martin Luther King Day.
2. JPMorgan unleashes a deluge of bank receipts
The headquarters of JP Morgan Chase & Co., the JP Morgan Chase Tower on Park Avenue, Midtown, Manhattan, New York.
Tim Clayton – Corbis | Corbis Sport | Getty Images
JPMorgan on Friday reported fourth quarter earnings and sales that exceeded Wall Street estimates. The bank posted earnings per share of $ 3.79, boosted by the release of funds previously earmarked for loan losses. Revenue for the quarter was $ 30.16 billion. JPMorgan’s shares fell about 2%, however, taking a breather from their recent sharp rise.
Citigroup’s shares fell more than 1% after the bank failed to meet fourth-quarter revenue estimates of $ 16.5 billion. Earnings per share of $ 2.08 exceeded expectations – and like JPMorgan, this was aided by the release of some loan loss provisions.
Wells Fargo stock fell over 4% after the bank posted unexpectedly low sales of $ 17.93 billion. The fourth quarter earnings of 64 cents per share, like both Citi and JPMorgan, is the best estimate. At Wells Fargo, stabilizing borrowing costs helped offset the effects of low interest rates.
December 3rd retail sales, producer prices out
People wear face masks as they walk through Herald Square in New York City on January 8, 2021.
Angela Weiss | AFP | Getty Images
Retail sales in December fell 0.7% from flat expectations as renewed measures to slow the spread of Covid-19 undercut restaurant spend and reduce traffic to shopping malls. The November data has been revised down to show a 1.4% drop in sales instead of the 1.1% previously reported. December producer prices rose 0.3%, a little less than expected. Excluding food and energy, producer prices rose 0.4% and were thus above estimates.
4. Biden proposes $ 1.9 trillion in Covid relief
President-elect Joe Biden speaks as he unveils his plan to fight the coronavirus and stimulate the economy on January 14, 2021 at the Queen Theater in Wilmington, Delaware.
Alex Wong | Getty Images
Biden’s proposed $ 1.9 trillion coronavirus stimulus package includes helping U.S. households and businesses in the wake of the pandemic. Here are some of the key provisions of the President-elect’s plan:
- Direct payments of $ 1,400 to most Americans, bringing the total relief to $ 2,000, including the $ 600 payments made in December
- Federal unemployment benefit increased to $ 400 per week and extended through September
- Federal minimum wage increased to $ 15 an hour
- $ 350 billion in state and local government aid that Republicans excluded from the $ 900 billion compromise bill in December.
- $ 50 billion for Covid-19 testing
- $ 20 billion for a national immunization program in partnership with states, places and tribes
5. The national Covid vaccination program is taking shape
Elementary workers and people over the age of 75 were vaccinated on January 10, 2021 in New York City, United States.
Tayfun Coskun | Anadolu Agency | Getty Images
Biden is expected to provide more details on Friday about his national Covid vaccination program, funded from his relief plan.
The president-elect unveiled a comprehensive plan to fight the pandemic on Thursday, which included the vaccination program as well as massive tests to support school opening and create 100,000 new healthcare jobs.
Biden’s Covid plan includes investments in new treatments beyond existing monoclonal antibody infusions and Gilead Sciences’ antiviral drug Remdesivir. Trump received remdesivir as part of his treatment for Covid in the fall.
– Reuters contributed to this report. Follow all developments on Wall Street in real time with CNBC Pro’s live market blog. Find out about the latest pandemics on our coronavirus blog.
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