f
  •  
© Reuters.  © Reuters.

Investing.com -- Wall Street kicks off earnings season, Blackrock (NYSE:BLK) goes green and China's external trade bounced sharply at the end of last year. Plus Visa (NYSE:V) spends $5.3 billion in an effort to stop being leapfrogged by new payments technologies. Here's what you need to know about in financial markets on Tuesday, 14th January.

1. Banks kick off earnings season.

The U.S. earnings season kicks off with a bang as JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) all report their results for the fourth quarter of 2019.

Of these, JPMorgan (NYSE:JPM), the biggest and – in recent years – the most dynamic of Wall Street’s blue bloods, will be most closely watched, especially as its U.S. operations shed a light on the health of the broader economy.

Consensus estimates are for a 19% rise in earnings per share to $2.35, while revenue is expected to rise 4.3% to $27.96 billion. FactSet expects the bank’s net interest margin to be stable at 2.37%.

Citigroup’s EPS are expected to have risen 13% to $1.82, on a 4.5% increase in revenue to $17.89 billion.

Wells Fargo’s earnings are expected to have fallen to $1.12 a share from $1.21 a year ago.

2. Blackrock (NYSE:BLK) shakes up portfolio to address climate challenge

Blackrock (NYSE:BLK), the world’s biggest portfolio investor, warned of a profound shift in the allocation of capital as investors wise up to the risks of climate change.

The company, which has been criticised for not using its market power to focus company boards more on sustainability issues, said in its annual letter to CEOs that it will double its offering of sustainability-focused ETFs to 150. It will also cut companies that derive a quarter or more of their revenues from thermal coal from its actively managed portfolios, aiming to raise its sustainable assets to $1 trillion over the next 10 years from $90 billion today.

“Companies, investors, and governments must prepare for a significant reallocation of capital,” CEO Larry Fink said in the letter.

3. China’s trade rebounds

China’s foreign trade rebounded well above expectations in December as companies rushed to beat the deadline for higher U.S. import tariffs. Exports came in 7.6% up on the year, while imports rose by an even more impressive 16.3%.

The rush to beat the tariff deadline suggests that exports could fall back sharply in January and February, when further distortions can be expected from the Chinese New Year celebrations. Even so, the figures point to further evidence of Chinese industrial activity bottoming out after successive U.S. tariff hikes.

The news comes a day ahead of the scheduled signing of the U.S.-China trade truce, which cancelled the December tariff increase and rolled back some others, while still leaving most existing import tariffs in place.

4. Stocks set to open slightly lower

U.S. stock markets are set to open a touch lower after hitting new record highs again on Monday in anticipation of the U.S.-China trade deal.

By 6:15 AM ET (1115 GMT), Dow futures were down 61 points or 0.2%, while S&P 500 futures and the Nasdaq 100 contract were both down 0.3%.

Stocks in Europe had earlier opened lower before largely erasing losses.

Various high-profile houses have warned that the markets may be getting ahead of themselves, given the late stage of the economic cycle and the narrowing scope for support from central banks. UBS Wealth Management, the world’s biggest wealth manager, added its voice to a growing chorus of caution on Tuesday, chief investment officer Mark Haefele telling a conference that “As central banks flood the markets with liquidity, that pulls forward a lot of your returns. That’s simply the way it is.”

On a day set to be dominated by corporate earnings, there’s only one data release of note – the U.S. CPI for December at 8:30 AM ET.

5. Visa (NYSE:V) pushes expansion beyond cards

Visa (NYSE:V) said it would buy fintech startup Plaid Inc. for $5.3 billion, as part of its strategy of diversifying beyond its core card business and gain more exposure to consumers’ use of fintech apps.

Plaid offers software that gives financial technology apps access to customers’ bank accounts. Venmo the money-transfer service owned by PayPal, is one of Plaid’s biggest customers, according to the Wall Street Journal.

The acquisition reflects the need for Visa (NYSE:V) and Mastercard (NYSE:MA), two of the best-performing financial stocks of the last decade, to stay relevant as technology threatens to leapfrog the now-dominant card payment business.


Other relevant articles 
[2020-01-13 23:35:24] Day Ahead: Top 3 Things to Watch for Jan. 14
[2020-01-13 18:30:25] Tesla Stock Tops $500 for First Time; China, Analyst Enthusiasm...
[2020-01-13 18:20:23] Tesla Stock Tops $500 for First Time; China, Analyst Enthusiasm...
[2020-01-13 12:25:44] Top 5 Things to Know in the Market on Monday
[2020-01-12 12:05:18] Economic Calendar - Top 5 Things to Watch This Week
[2020-01-11 11:00:20] 3 Things Under the Radar This Week
[2020-01-10 17:40:34] Bloomberg to tell states to restore felon voting rights, stop...
[2020-01-10 16:40:12] Stocks Edge Higher, Bonds Rise After Jobs Data; Dow Tops 29K
[2020-01-10 12:00:16] Top 5 Things to Watch on Friday Jan. 10
[2020-01-10 04:50:20] Top Quality Oil Sold Near $100 a Barrel on New Ship Rules
[2020-01-10 00:45:13] Looking for a winner, U.S. Democrats keep Biden and Sanders on...
[2020-01-09 22:45:09] Day Ahead: Top 3 Things to Watch for Jan. 10
[2020-01-09 12:15:08] Top 5 things to watch on Thursday Jan. 9
[2020-01-09 00:30:12] Uber stops upfront ride pricing in response to California worker...
[2020-01-08 23:10:09] Day Ahead: Top 3 Things to Watch for Jan. 9
[2020-01-08 23:05:09] Day Ahead: Top 3 Things to Watch for Jan. 9
[2020-01-08 14:40:08] Gold Pares Gains as Iran Jitters Ease; Palladium Tops $2,100
[2020-01-08 12:40:07] Top 5 Things to Watch on Wednesday, Jan 8
[2020-01-07 23:30:07] Day Ahead: Top 3 Things to Watch for Jan. 8
[2020-01-07 20:20:05] Top Senate Republican says has votes for impeachment trial rules:...
[2020-01-07 11:55:03] Top 5 Things to Watch on Tuesday, Jan. 7
[2020-01-07 06:15:05] Lenovo Set to Launch Foldable Laptop Mid-Year
[2020-01-07 00:45:29] Top U.S. diplomat Pompeo not planning 2020 Senate run: media...
[2020-01-06 22:20:23] Day Ahead: Top 3 Things to Watch for Jan. 7
[2020-01-06 22:15:24] Day Ahead: Top 3 Things to Watch for Jan. 7
[2020-01-06 21:15:24] Byron Wien Predicts S&P 500 Will Top 3,500 as Fed Cuts Rates
[2020-01-06 11:50:22] Top 5 Things to Watch on Monday, Jan. 6
[2020-01-05 11:50:18] Economic Calendar - Top 5 Things to Watch This Week
[2020-01-04 08:10:14] Ghosn fled Japan after security firm hired by Nissan stopped...
[2020-01-03 19:15:12] Top Senate Democrat Schumer says chamber must conduct fair...
[2020-01-03 16:00:17] Wall Street tumbles as U.S. air strike heightens Middle East tensions
[2020-01-03 12:40:14] Top 5 Things to Know in the Market on Friday
[2020-01-03 10:25:10] HSBC to stop weekend, overnight services at some Hong Kong ATMs...
[2020-01-02 23:00:17] Day Ahead: Top 3 Things to Watch for Jan. 3
[2020-01-02 19:10:27] Top Bond Fund Manager Braces for EM Sovereign Defaults in 2020
[2020-01-02 12:35:07] Top 5 Things to Know in the Market on Thursday
[2020-01-01 02:20:07] South Korea Dec. exports top forecasts as China demand, chip...
[2019-12-31 00:20:28] Day Ahead: Top 3 Things to Watch for Dec. 31
[2019-12-30 04:50:28] Japan’s Topix Slips on Last Trading Day of 2019
[2019-12-30 03:15:22] Asian shares down from 18-month top; oil steady after U.S....
[2019-12-29 11:10:18] Economic Calendar - Top 5 Things to Watch This Week
[2019-12-27 19:10:12] CEO of Top U.S. Power Market Is Under Fire Even Before He Starts
[2019-12-27 03:25:10] Asian shares hit 18-month top in festive cheer; oil, gold hold...
[2019-12-26 13:10:07] Top 10 Investing Stories of the Decade
[2019-12-24 12:25:03] 5 Things to Watch for in Global Markets in 2020
[2019-12-24 12:15:04] Nissan top executive Seki to resign in blow to turnaround plan
[2019-12-23 15:40:23] Disruptive decade: Ten things the teen years brought world...
[2019-12-23 12:40:23] Top 5 Things to Watch on Monday, Dec. 23
[2019-12-23 10:45:23] Foreigners Top Saudi Stock Buyers in Week of Aramco Inclusion
[2019-12-23 04:40:35] Misery Looms Over Top Coal Shippers as China to Buy Less in 2020
[2019-12-22 11:05:19] Top 25 roundup: No. 18 Villanova knocks off No. 1 Kansas
[2019-12-20 22:20:14] Stocks - Nasdaq Tops 8,900 as Rally Rolls On
[2019-12-20 17:15:12] Day Ahead: Top 3 Things to Watch for Dec. 20
[2019-12-20 12:45:12] Top 5 Things to Watch for on Friday, 20th December
[2019-12-19 13:40:08] Top Trump ally in U.S. House to leave Congress, eyes work with...
[2019-12-19 12:40:07] Top 5 Things to Watch on Thursday, Dec. 19
[2019-12-19 08:30:08] RBS clears out top executives at investment bank NatWest Markets
[2019-12-19 02:45:11] Day Ahead: Top 3 Things to Watch for Dec. 19
[2019-12-18 13:10:07] Top 5 Things to Watch on Wednesday, Dec. 18
[2019-12-18 12:35:07] Top 5 Things to Watch on Wednesday, Dec. 17
[2019-12-18 12:30:40] Top 5 Things to Watch out for on Wednesday, Dec. 17
[2019-12-18 12:15:08] Live from Los Angeles: Three things to watch in the Democratic...
[2019-12-17 23:00:11] Day Ahead: Top 3 Things to Watch for Dec. 18
[2019-12-17 15:35:03] Top 5 Things to Watch in Markets on Dec. 17
[2019-12-17 14:20:04] Palladium Tops $2,000 as Record-Breaking Rally Boosts Miners
[2019-12-17 12:20:03] Top 5 Things to Watch Out For on Dec. 17
[2019-12-16 22:40:24] Day Ahead: Top 3 Things to Watch for Dec. 17
[2019-12-16 18:15:34] Top U.S. telecommunications, spectrum advisor stepping down: agency
[2019-12-16 12:35:22] Top 5 Things to Know in the Market on Monday, 16th December
[2019-12-16 12:35:22] Cineworld tops North American box office with Cineplex deal
[2019-12-16 12:20:23] Pentagon chief urges Iraq to stop attacks on bases housing U.S....
[2019-12-15 16:35:25] Top Democrats make case for Republicans to endorse Trump...
[2019-12-15 14:30:20] Economic Calendar - Top 5 Things to Watch This Week
[2019-12-15 09:50:18] Top 25 roundup: No. 10 Oregon tops No. 5 Michigan in OT
[2019-12-14 12:05:15] 3 Things Under the Radar This Week
[2019-12-13 22:00:17] U.S. agency probes 12th Tesla crash tied to possible Autopilot...
[2019-12-13 21:30:13] Blackwater founder Erik Prince held secret talks with top...
[2019-12-13 21:15:12] Exclusive: U.S. agency probes 12th Tesla crash tied to possible...
[2019-12-13 18:00:50] Gold Rises to Top of Range on U.S.-China Trade Deal...
[2019-12-13 13:05:11] Top 5 Things to Know in the Market on Friday, 13th December
[2019-12-13 12:45:12] Top 5 Things to Know in the Market on Friday
[2019-12-13 00:25:11] Day Ahead: Top 3 Things to Watch for Dec. 13
[2019-12-13 00:20:29] Day Ahead: Top 3 Things to Watch for Dec. 13
[2019-12-12 15:55:08] World stocks hit all-time high, tops Jan 2018 level
[2019-12-12 12:40:08] Cyprus tops list of EU states falling short on market abuse rules
[2019-12-12 12:35:07] Top 5 Things to Know in the Market on Thursday, 12th December
[2019-12-12 12:30:09] Top 5 Things to Know in the Market on Thursday, 12th December
[2019-12-11 22:40:06] Day Ahead - Top 3 Things on Dec. 12
[2019-12-11 18:00:13] Disney+ mobile app records 22 million downloads since launch:...
[2019-12-11 15:10:11] Stocks - Gamestop, American Eagle, Chevron Slump Premarket
[2019-12-11 12:30:05] Top 5 Things to Know in the Market on Wednesday
[2019-12-11 07:05:17] Facebook no longer among Glassdoors top 10 workplaces
[2019-12-11 05:26:56] Brazil Broker XP’s IPO Tops Target Range to Raise $1.96 Billion
[2019-12-11 05:26:56] Climate change hitting top U.S. fishery in the Arctic: NOAA
[2019-12-10 23:15:07] Day Ahead: Top 3 Things to Watch
[2019-12-10 22:30:06] Video-game retailer GameStop reports 25.7% fall in quarterly...
[2019-12-10 12:35:03] Top 5 Things to Know in the Market on Tuesday
[2019-12-09 23:35:24] Day Ahead - Top 3 Things to Watch
[2019-12-09 12:45:25] Top 5 Things to Know in the Market on Monday
[2019-12-08 10:55:18] Economic Calendar - Top 5 Things to Watch This Week