Analytics, 14 January 2020
Daily comment Jan 14
- Wall St opens lower as 4Q earnings season kicks-off
- US removes currency manipulator label from China
- JPM +1.90% on 4Q EPS beat
- Visa to acquire fintech startup
- Amazon seeks to block Microsoft from working on JEDI
- Bitcoin futures launch on CME
- WTI +0.62%
Market movers:
- JPMorgan (+1.90%): The Co. reported 4Q EPS and revenue beat. 4Q Managed revenue +9% y/y to $29.2bn vs est. $27.94bn driven by strength in its trading business and higher underwriting fees. GAAP EPS +21% y/y to $2.57 vs est. $2.35. https://bit.ly/2QR43jH
- Visa (+0.24%): The Co. agreed to acquire fintech startup Plaid for $5.3bn in a cash and debt issuance transaction. https://on.wsj.com/2TmYewo
- Amazon (-1.25%): The Co. filed a motion to temporarily block Microsoft from working on $10bn Pentagon cloud contract. https://reut.rs/30iuFNM Exchange-traded Bitcoin options on futures launched yesterday on the Chicago Mercantile Exchange. https://bit.ly/383P7EJs
Macro:
- The US Treasury Department removed China from a list of currency manipulating countries. The yuan advanced. https://on.wsj.com/2QSe5Bt
- US CPI for December: +2.3% y/y vs est. +2.3% y/y and +2.1% in November. Core CPI: +2.3% vs est. unchanged 2.3%. Bloomberg The US fiscal deficit increased 17.1% y/y to $1.02tn in 2019. https://cnb.cx/2Nq71tx
Commodities:
- WTI (+0.62%): Oil futures advanced as both US and China are prepared to sign a preliminary trade deal.
- China December crude oil imports +9.5% y/y to ~10.78mn bpd supported by demand growth from refineries. https://reut.rs/2tTU8kH Saudi’s EnMin said OPEC+ remain focused on using production cuts in order to achieve normal level of crude inventories. https://bloom.bg/36TO75U
Coming up:
- On Wed (1/15): Anticipated date of signing US-China preliminary trade deal. Companies to report earnings this week: Bank of America, Goldman Sachs, Morgan Stanley and BlackRock.