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The Market In 5 Minutes: Goldman Sachs, Chelsea Manning And Jerry Seinfeld

KSS, XOM, NFLX, DECK, LLY, AMZN, V.ZZE.H

Macro Focus

Futures for the Dow Jones Industrial Average gained 4 points to 19,748.00, while the Standard & Poor’s 500 index futures rose 0.50 points to 2,263.50. Futures for the Nasdaq 100 index climbed 5.50 points to 5,045.50.

Oil prices traded lower as Brent crude futures dropped 1.28 percent to trade at $54.76 per barrel, while US WTI crude futures also fell 1.35 percent to trade at $52.54 a barrel.

CPI (MoM) for Dec 0.30% vs 0.30% Est; CPI (YoY) for Dec 2.10% vs 2.10% Est

Redbook Reports US Retail Sales During First Two Weeks of Jan. Up 0.6% MoM, Down 3.4% YoY

  • Data on industrial production for December will be released at 9:15 a.m. ET.
  • The housing market index for January is schedule for release at 10:00 a.m. ET.
  • Minneapolis Federal Reserve Bank President Kashkari is set to speak at Minneapolis Urban League in Minn. at 10:00 a.m. ET.
  • The Federal Reserve will release its latest Beige Book report at 2:00 p.m. ET.
  • Federal Reserve Chair Janet Yellen is set to speak San Francisco at 3:00 p.m. ET.
  • The Treasury International Capital data for November will be released at 4:00 p.m. ET.

BZ News Desk Focus

  • Citi (NYSE: C) Reports Q4 EPS $1.14 vs $1.12 Est., Sales $17B vs $17.3B Est.
  • Goldman Sachs (NYSE: GS) Reports Q4 EPS $5.08 vs. Est. $4.82, Rev. $8.17B vs. Est. $7.72B
  • United Air (NYSE: UAL) Reports Q4 $1.78 vs $1.73 Est., Sales $9.1B vs $9.03B Est.
  • US Bancorp (NYSE: USB) Q4 EPS $0.82 vs $0.81 Est, Revenue $5.44B vs $5.36B Est
  • TD Ameritrade (NASDAQ: AMTD) Reports Q4 EPS $0.41 vs. Est. $0.41, Rev. $859M vs. Est. $856M

Netflix (NASDAQ: NFLX) has seen its stock catapult to uncharted territory on hopes the company's investment in subscriber growth and original content has placed it on a trajectory of superlative growth. Investors are likely to focus on subscriber additions statistics, a key metric for gauging success. Even as rumors swirl around that the company could be a takeover target, it's proving to be a force to reckon with, going by the stellar showing by its stock. Netflix is scheduled to release its Q4 results after today's market close. Analysts expect the company to report earnings of $0.13 per share, up from $0.10 per share last year.

Sell-Side Themes

Credit Suisse downgraded JC Penney (NYSE: JCP) and Kohl's (NYSE: KSS) to Underperofrm.

Sell-Side's Most Noteworthy Calls

  • Credit Suisse upgraded Nordstrom (NYSE: JWN) to Outperform.
  • Buckingham upgraded Deckers Outdoor (NYSE: DECK) to Buy.
  • BMO downgraded Disney (NYSE: DIS) to Underperform.
  • Atlantic Equities downgraded Tiffany's (NYSE: TIF) to Neutral.

Deal Talk

CoLUcid Pharma (NASDAQ: CLCD) to be acquired by Eli Lilly (NYSE: LLY) for $46.50 per share in cash.

Exxon Mobil (NYSE: XOM) announced it will more than double its Permian Basin by acquiring companies owned by the Bass family. Exxon Mobil will make an upfront payment of $5.6 billion in Exxon Mobil shares, plus a series of contingent cash payments totaling up to $1 billion, to be paid beginning in 2020 and ending with the development of the resource, no later than 2032.

Amazon (NASDAQ: AMZN) and India’s Flipkart Online Services Pvt have walked away from talks to acquire Dubai-based Souq.com after disagreeing over price, according to Bloomberg. The e-commerce business is now seeking other potential investors and is negotiating with mall-operator Majid Al Futtaim. Amazon entered talks with Souq.com last year in a deal that would have been worth about $1 billion. The Middle Eastern company’s existing investors include Tiger Global Management and South Africa’s Naspers Ltd. Souq.com appointed Goldman Sachs to find buyers for a stake last year, people familiar said.

In The News

President Barack Obama commuted the remaining years in a prison sentence for Chelsea Manning, the former Army intelligence analyst who is serving 35 years for leaking government information.

Lawmakers plan to grill U.S. Rep. Tom Price, president-elect Donald Trump’s pick to run Health and Human Services, on Republican plans to overhaul the Affordable Care Act as well as on possible ethical issues surrounding Price’s stock purchases. Wilbur Ross, the billionaire investor tapped by Trump to serve as his commerce secretary, is also set to take the incoming administration’s tough trade talk to Capitol Hill.

Blogosphere

"There is no model that will ever consistently predict "Mr. Market's" mood. Here’s why: Individuals have to worry about how much they’re spending and how much they’re saving. Whether they can pay their bills today and how they’ll pay their bills tomorrow. Whether their children have the right clothes and will be able to go to (the right) college. Being financially independent is something 99% of us will struggle with at some point in our lives."

Trending

NFLX GS C TGT USB UAL FAST CLCD JAZZ GIMO ADTN

"Comedians in Cars Getting Coffee" is on the move. Jerry Seinfeld has made Netflix the new home of his Emmy-nominated series. The massive exclusive Netflix comedy deal, which starts this year, also includes two new Seinfeld stand-up specials as well as the development of scripted and non-scripted comedy programming for the Internet network.



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