Company / Analytics

Daily comment Jan 16

• Wall St opens higher as investors digest “phase one”
• Apple sold 60mn AirPods in 2019
• MS +7% on record FY results
• BAC +0.5%, BLK +0.4% on 4Q beats
• TSLA -2.1% on Morgan Stanley downgrade
• WTI +0.6%

Market movers:

• Morgan Stanley (+7%): The bank’s 4Q revenue and EPS marked a record year. Net revenue +27% y/y to $10.86bn vs est. $9.72bn. Net interest income +18% y/y to $1.43bn due to lower interest expense. 4Q Adj. EPS +46% y/y to $1.2 vs est. $1.02. https://mgstn.ly/36XQxk0
• Bank of America (+0.5%): The bank reported 4Q beats helped by loans, deposits. 4Q net interest income -3% y/y to $12.14bn. Avg loan balances +6% y/y to $936bn; avg deposit balances +5% y/y to $1.4tn. 4Q EPS +5.7% y/y to 74c vs est. 69c. https://bwnews.pr/2R2cMA1
• Black Rock (+0.4%): The Co’ 4Q revenue and profit topped estimate. Q4 total revenue +16% y/y to $3.98bn vs est. $3.84bn. AUM +6.7% y/y to $7.43tn. Adj. EPS +37% y/y to $8.34 vs est. $7.65. https://bit.ly/30sa5e7
• Tesla (-2.1%): Morgan Stanley downgraded the stock to “underweight” from “equal weight”. https://cnb.cx/2FU9TdZ
• Apple (+1.2%): The Co. AirPods sales jumped 100% y/y to ~60mn in 2019. That was ~71% of total wireless headphone revenue. https://bit.ly/2QXcPgk

Macro:

• President Trump said the US and China in a great position for “Phase two” talks. https://reut.rs/37027uX
• US retail sales for December: +0.3% y/y vs est. +0.4% y/y and prior revised +0.3% y/y. Core retail sales: +0.7% y/y vs est. +0.5% and 0% prior. https://bit.ly/2TrsOES

Commodities:

• WTI (+0.6%): The oil market can sustain geopolitical risks of supply disruption due to non-OPEC output, according to IEA. https://reut.rs/2uUJRoN

Coming up:

• On Fri (1/17): China GDP for December is due
• Companies to report earnings this week: Schlumberger.