US stock market, economy and companies update (January 14, 2014)
January 14, 2014, Tuesday, 17:05 GMT | 12:05 EST | 21:35 IST | 00:05 SGT
- JPMorgan offers tepid Q4 results, Wells Fargo better
- Goldman Sachs chief economist extends Fed rate hike forecast to after 2016
- House and Senate appropriators get to work on $1T stop-gap spending measure
- After a week of flat or down sessions - including yesterday's big slide - buyers have stepped in and sent US equities higher. Note however that the DJIA is heavily weighed down and lagging other indices this morning. As of writing, the DJIA is up 0.31%, the S&P500 is up 0.58% and the Nasdaq is up 1.06%.
- JPMorgan fourth quarter results were pretty slack, hampered by more legal woes and a decline in the bank's investment banking business. Earnings after items were $1.30, down a few percent y/y, although on a non-gaap basis they looked ok at $1.40. The bank's revenue fell 1% to $24.1 billion. Executives warned that the mortgage market would be roughly flat in Q1, which would impact margins. Wells Fargo's profits were up 11% or so, slightly topping expectations. However, the bank's mortgage business took a hit from a slowdown in refinancing activity in the quarter. Shares of JPM are up slightly, while WFC is down slightly.
- Gamestop is a major mover to the downside this morning, with shares of GME down more than 18%. Gamestop reported holiday season same-store sales for the months of November and December up 10.8% y/y driven by new video game console sales. However, these sale were offset by declines in legacy Xbox 360 and PS3 software sales. The firm also cut its Q4 and FY13 guidance well below the prior outlook.
- As expected, Charter Communications hiked its unsolicited offer for Time Warner Cable to $132.50/shr ($83 in cash and $49.50 in stock), up from $127/shr in October and $114/shr in June. Also as expected, Time Warner's board unanimously rejected the offer. Recall that back in late December, Time Warner's board informed Charter it would be open to deal at or above $160/shr.
- Shares of Boeing are losing altitude this morning on reports from Tokyo that another Japan Airlines 787 is having trouble with its battery pack, this time the main battery pack rather than the backup system that caused headaches in 2013.
- The 3D printing names are getting hit hard after Stratasys offered initial FY14 guidance that fell well short of consensus expectations. Executives had nothing but positive things to say about the space, but analysts may have gotten ahead of themselves. Shares of SYSS are donw 10%, while DDD was down 6% at one point but has recovered a bit.
- 11:30 (US) Treasury to sell $15B in 4-Week Bills
- 12:45 (US) Fed's Plosser speaks on the Economic Outlook in Philadelphia
- 13:00 (ES) Spain PM Rajoy addresses the U.S. Chamber of Commerce
- 13:00 (DE) German Bundesbank member Lautenschlaeger
- 13:20 (US) Fed's Fisher speaks on U.S. and Regional Economy in Dallas
- 13:30 (IT) Italy PM Letta in Mexico
- 16:30 (US) Weekly API Oil Inventories
- (US) House may vote on stopgap spending bill
- (MX) Mexico Dec ANTAD Same-Store Sales Y/Y: 1.0%e v 3.4% prior
- (IS) Iceland Dec Unemployment Rate: 4.2% v 4.1% prior
- (US) Dec NFIB Small Business Optimism: 93.9 v 93.1e
- (US) ICSC Chain Store Sales w/e Jan 11th: w/w -1.0%; y/y: +1.3%
- (PL) Poland Dec M3 Money Supply M/M: 2.5% v 2.3%e; Y/Y: 6.1% v 5.8%e
- (US) Dec Advance Retail Sales M/M: 0.2% v 0.1%e; Retail Sales Ex Auto M/M: 0.7% v 0.4%e; Ex Auto and Gas: 0.6% v 0.3%e; Control Group: 0.7% v 0.3%e
- (US) Dec Import Price Index M/M: 0.0% v 0.4%e; Y/Y: -1.3% v -0.6%e
- (US) Redbook Retail Sales w/e Jan 10th : +2.9% y/y, Jan MTD: -0.3% m/m
- (CA) Canada Dec Teranet/National Bank HPI M/M: +0.1% v -0.1% prior; Y/Y: 3.8% v 3.4% prior; House Price Index: 159.29 v 159.21 prior
- (EU) Weekly ECB Forex Reserves: €205.2B v €204.2B prior
- (US) Nov Business Inventories: 0.4% v 0.3%e