Macro Focus
Futures for the Dow Jones Industrial Average gained 6 points to 19,794.00, while the Standard & Poor’s 500 index futures fell 1
point to 2,262.75. Futures for the Nasdaq 100 index rose 2.75 points to 5,033.75.
Oil prices traded higher as Brent crude futures gained 0.35 percent to trade at $53.83 per barrel, while US WTI crude futures
also rose 0.35 percent to trade at $51.00 a barrel.
MBA Mortgage Applications (WoW) for Jan 6 5.80% vs 0.10% prior reading.
- The Atlanta Fed's Business Inflation Expectations survey report for January will be released at 10:00 a.m. ET.
- The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.
- The Treasury will auction 10-year notes at 1:00 p.m. ET.
- New York Federal Reserve Bank President William Dudley is set to speak in New York at 1:20 p.m. ET.
BZ News Desk Focus
The fourth-quarter earnings reporting season kicks into high gear later this week when the first of the big banks begin sharing
their results. But expectations are somewhat mixed, based on the analysts' consensus forecasts for the period when the Federal
Reserve raised interest rates and a new president was elected.
Solid results are expected from Bank of America (NYSE: BAC) for the period that included the so-called Trump rally. Solid bottom-line growth
is also anticipated from JPMorgan (NYSE: JPM)
but with minimal top-line growth. Its CEO during the period saw Trump's election as good news for business and the economy.
Wells Fargo (NYSE: WFC), on the other hand, is
expected to say that its earnings slipped from a year ago, in the period when it latest analyst ratings and price targets on these
three banks.
Sell-Side Themes
Wells Fargo upgraded Williams Partners (NYSE: WPZ) to Outperform and changed its
rating on several other energy names.
Sell-Side's Most Noteworthy Calls
- Deutsche Bank downgraded AT&T (NYSE: T) to Hold.
- UBS downgraded Citigroup (NYSE: C) to
Sell.
- Raymond James upgraded Visteon (NYSE: VC)
to Outperform.
Deal Talk
Brookdale Senior Living (NYSE: BKD) is said
to be in talks with Blackstone (NYSE: BX) and
other potential buyers, according to sources as reported by the Wall Street Journal. The sources said the talks could involve a
potential sale of all or part of Brookdale. Activist investor Land and Buildings has urged the company to sell its owned real
estate and distribute proceeds to shareholders. Brookdale Senior Living closed Tuesday at $14.80, up 15.18 percent.
Liberty Media (NASDAQ: LMCA) Chairman
John Malone said that the Trump presidency could open a new era of consolidation in the cable industry, according to Bloomberg.
Malone said the three major cable companies could jointly acquire T-Mobile (NASDAQ: TMUS) and said also we could see a Comcast (NASDAQ: CMCSA)-Charter (NASDAQ: CHTR) merger. Malone spoke at a Lions Gate investor event.
In The News
General Motors (NYSE: GM) said it expects
2017 diluted EPS guidance to increase to
$6.00-$6.50, higher than the $5.83 average analysts had expected. GM management shared the updated guidance with investors and
analysts at the Deutsche Bank 2017 Global Auto Industry Conference in Detroit. The GM board has also authorized an additional $5
billion in buybacks to the current share repurchase program. The new addition brings the total authorized budget for buybacks to
$14 billion. Auto stocks spiked higher after news hit wires.
Russia denied it has compromising material on Donald Trump, calling a dossier of unverified allegations an “absolute
fabrication” and an attempt to damage U.S.-Russian relations. Kremlin spokesman Dmitry Peskov said that the Kremlin wasn’t involved
in collecting compromising information on anyone, including Democratic presidential candidate Hillary Clinton.
CNN reported that U.S. intelligence agencies and the FBI have spent months trying to substantiate explosive claims, compiled by
a former Western intelligence official, that Russian government operatives engaged in an extensive conspiracy with advisers to
Trump’s presidential campaign and employees of his company.
Blogosphere
Recent IPO Acushnet (NYSE: GOLF) is seeing
an
unlikely competitor in its most dominant segment, the golf ball. The high turnover soft good is one of the most profitable
segments in the golf industry and makes up 1/3 of Acushnet’s revenue with a dominant market share north of 50 percent.
Trending
JPM SGNL HIMX CLF CUDA URA F TERP WMB CMG MSM TRIL WFC BA WPZ MYL
#GoldenShowerGate is
one of the top trending hashtags in the world, thanks to a secret document that Buzzfeed leaked last night related to Trump and
Russia (as described In The News).
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