Early Look

Friday, January 12, 2024

U.S. equity futures are pointing to a lower open after major averages finished flat/mixed on Thursday despite volatility after the December CPI came in higher than expectations. Federal Reserve Bank of Cleveland President Loretta Mester said March is probably too early to lower rates, but had minimal impact on stocks, or Treasuries as yields closed near their lows despite an early bounce. Bank earnings in focus this morning with large caps JPM, Citi, Wells, Bofa, BK scheduled, and results thus far disappointing, sending futures lower. Healthcare giant UNH reported better results and in-line guidance but shares slip on higher MLR number. DAL, the first airline to report, beat estimates but lowered its yearly profit outlook. Oil prices jumped overnight with WTI crude +4.25% above $75 per barrel and Brent rising 4% to $80.50 per barrel after the US and UK launched airstrikes on Houthi rebel targets in Yemen, escalating a conflict with an Iranian proxy in response to a string of attacks that have disrupted commercial shipping in the Red Sea. Bitcoin pared gains after hitting $49,000, with trading starting for the first US exchange-traded funds that invest directly in the cryptocurrency. In Asian markets, The Nikkei Index jumped 527 points to 35,577, the Shanghai Index fell -4 points to 2,881, and the Hang Seng Index fell -57 points to 16,244. In Europe, the German DAX is up about 100 points to 16,651, while the FTSE 100 rises 50 points to 7,625. Next up, December PPI inflation data at 8:30 AM.

• The Dow Jones Industrial Average rose 15.29 points, or 0.04%, to 37,711.02.
• The Nasdaq Composite was little changed points, or 0.00%, to 14,970.19.
• The Russell 2000 Index declined -14.80 points, or 0.75% to 1,955.45.

• 8:30 AM ET                  Producer Price Index (PPI) Y/Y for December…est. +1.3%
• 8:30 AM ET                  Core PPI – Ex Food & Energy M/M for December…est. +0.2%
• 8:30 AM ET                  Core PPI – Ex Food & Energy Y/Y for December…est. +1.9%
• 10:00 AM ET                Fed’s Kashkari Speaks at Regional Economic Conditions Conference
• 1:00 PM ET                   Baker Hughes Weekly rig count data

• Good Times Restaurant (GTIM) qtrly same store sales increased 4.1% for its good times brand and decreased 6.2% for its bad daddy’s brand; same store sales up 4.1% for good times brand & down 6.2% for bad daddy’s brand for first fiscal quarter ended Dec 26, 2023.
• Tesla (TSLA) cuts China revamped model 3 by 5.9% to 245,900 yuan ($34,636), cuts model 3 long range to 285,900-yuan, cuts model Y to 258,900 yuan, and cuts model y long range to 299,900 yuan.

• Johnson Controls (JCI) downgraded to Underperform from Sector Perform at RBC Capital.

• JP Morgan (JPM) 4Q adj revs $39.94B vs. est. $40.23B; Q4 investment banking revs $1.58B, vs. est. $1.72B; Q4 provision for credit losses $2.76B vs. est. $2.42B; 4Q equities sales & trading revs $1.78B, vs. est. $1.93B; Q4 FICC sales & trading revs $4.03B vs. est. $3.84B.
• Wells Fargo (WFC) revenue in the fourth quarter rose 2% to $20.5 billion; Net income rose to $3.45 billion, or 86 cents per share, for the three months ended Dec. 31; Q4 provision for credit losses $1.28B vs. est. $1.32B.
• BlackRock (BLK) has agreed to buy private-equity firm Global Infrastructure Partners for roughly $12.5B in cash and stock, a significant push into private-market investments for the world’s largest asset manager – WSJ http://tinyurl.com/4ed38dch
• Blackrock (BLK) raises Quarterly Dividend 2% to $5.10 per share; Q4 adjusted EPS $9.66, tops consensus $8.84; Q4 revenue $4.63B vs. est. $4.61B; reports $10T in AUM in Q4; Investment advisory performance fees $311M, +36% y/y, vs. est. $219.3M.
• BNY Mellon (BK) Q4 adj EPS $1.28 vs. est. $1.13; Q4 revs $4.31B vs. est. $4.29B; reported a 50% fall in fourth-quarter profit due to some one-time charges, including one tied to the Federal Deposit Insurance Corporation’s (FDIC) deposit insurance fund.
• Robinhood (HOOD) announced that all 11-spot bitcoin exchange-traded funds are available for both retirement and brokerage accounts.