Wednesday, January 16, 2019
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WHAT TO WATCH
It will be another big earnings day for some of the largest U.S. banks. Bank of America (BAC), BlackRock (BLK), Goldman Sachs (GS), PNC Financial (PNC) and U.S. Bancorp (USB) are set to report before market open.
So far, it hasn’t been all that rosy for some of the largest U.S. banks, and expectations remain modest on Wall Street. Investors will be paying close attention to loan-growth trends for Bank of America, while Goldman Sachs’s legal woes related to 1MDB will take center stage.
Analysts are expecting Bank of America to have earned 63 cents per share on $22.36 billion in revenue during Q4, and earnings of $4.53 per share on $7.54 billion in revenue for Goldman Sachs. BlackRock is expected to report earnings of $6.28 per share on $3.43 billion in revenue, while consensus estimates for PNC are $2.78 per share on $4.40 billion of revenue. U.S. Bancorp is expected to report earnings of $1.06 per share on $5.73 billion in revenue for Q4.
Britain is on the cusp of another general election and a delayed Brexit: rime minister Theresa May only just survived a rebellion by her own MPs back in December. But after a devastating defeat in parliament over her Brexit deal last night, she now faces a confidence vote — further paving the way for a potential general election. [Yahoo Finance UK]
Also: The pound has recovered after a volatile night [Yahoo Finance UK]
World Economic Forum warns globe is 'sleepwalking into a crisis': The world risks “sleepwalking into a crisis” as geopolitical tensions make it increasingly difficult for leaders to come together to solve pressing global problems, according to the World Economic Forum (WEF), the independent international organization warned on Wednesday as it released its annual ‘Global Risks Report.’ [Yahoo Finance UK]
Sears chairman prevails in bankruptcy auction: Sears Holdings Corp. (SHLDQ) Chairman Eddie Lampert prevailed in a bankruptcy auction for the U.S. department store chain with an improved takeover bid of roughly $5.2 billion, allowing the 126-year-old retailer to keep its doors open, people familiar with the matter said Wednesday. [Reuters]
Trump orders thousands back to work: The Trump administration has ordered thousands of furloughed federal employees back to work without pay to inspect planes, issue tax refunds, monitor food safety and facilitate the sale of offshore oil drilling rights. The efforts in recent days illustrate how President Donald Trump is trying to limit the impact of the partial government shutdown and shield favored industries. [Bloomberg]
Snap finance chief resigns after just eight months: Snap Inc. (SNAP) Chief Financial Officer Tim Stone is resigning after eight months in the job, another sign of volatility at the social-media company that sent shares tumbling in extended trading. [Bloomberg]