Morning Brief

What to watch today: Stocks set to drop as Dow stock JPMorgan falls after quarterly results


U.S. stock futures turned lower Friday after Dow stock JPMorgan (JPM) fell nearly 3% in the premarket as investors parsed quarterly results from the nation's largest bank by assets. The company's fourth-quarter per-share earnings of $3.33 and revenue of $30.35 billion, both beat estimates. However, JPMorgan said it took a $1.8 billion net benefit from releasing reserves for loan losses that never materialized; without that benefit earnings would have been $2.86 per share, missing expectations. (CNBC)

This week's bounce in tech stocks was wiped out Thursday, sending the Nasdaq down 2.5% and the S&P 500 down 1.4%. The Dow Jones Industrial Average, which doesn't have as much tech exposure, dropped 0.5%. All three benchmarks broke multiday winning streaks. The Nasdaq ended Thursday nearly 8.7% lower than its November all-time high, nearing correction territory. The S&P 500 and the Dow finished 3.3% and nearly 2.3%, respectively, away from their all-time highs last week. (CNBC)

The government said December retail sales fell overall 1.9% and excluding autos dropped 2.3%, both were much lower than estimates for a 0.1% decline and 0.3% increase, respectively. The big drops came against a backdrop of shoppers spacing out holiday buying earlier this year due to supply chain concerns as inflation soared. (CNBC)

Wells Fargo (WFC) on Friday posted better-than-expected fourth-quarter revenue of nearly $20.86 billion. Shares fell nearly 2% in the premarket. Results were helped by an $875 million reserve release that the bank had set aside during the Covid pandemic to safeguard against possible widespread loan losses. Wells Fargo also experienced 5% growth in loans from its consumer and commercial portfolios in the second half of 2021. (CNBC)

Citigroup (C) shares fell more than 3.5% on Friday after the banking giant reported a steep profit drop for the fourth quarter. The company's net income dropped 26% to $3.2 billion. Citigroup cited an increase in expenses for the sharp decline. (CNBC)


President Joe Biden will nominate Sarah Bloom Raskin to be the Federal Reserve's next vice chair for supervision, according to people familiar with the matter. She'll face a confirmation hearing before the Senate Banking Committee, which this week heard from Fed Chair Jerome Powell, nominated for a second term, and Fed Governor Lael Brainard, nominated for vice chair. (CNBC)

The Supreme Court has blocked the Biden administration from enforcing its sweeping Covid vaccine-or-test requirements for large private companies. However, the high court did allow a vaccine mandate to stand for medical facilities that take Medicare or Medicaid payments. (CNBC)

The Transportation Department is launching a $27 billion program to repair and upgrade roughly 15,000 highway bridges across the nation as part of the infrastructure law approved in November. The effort is being announced Friday as Biden tries to showcase how his policies are delivering for the public. (AP)

* Biden all but concedes defeat on voting bills as key Democrat opposes filibuster change (AP)

Sens. Bernie Sanders, Elizabeth Warren and Tammy Baldwin pressed BlackRock (BLK) CEO Larry Fink to use his firm's sizable financial stake in Warrior Met Coal (HCC) to compel the company's management to broker a deal with its striking coal miners. (CNBC)

Facebook-parent Meta Platforms (FB) faces an over $3.2 billion class action in Britain over allegations of abusing its market dominance. The case comes days after Facebook lost an attempt to strike out an antitrust lawsuit by the Federal Trade Commission in the U.S. (Reuters)

* Alphabet's Google expands London property empire with $1 billion office purchase (CNBC)

Dogecoin jumped more than 15% on Friday after Tesla began accepting the crypto as payment for some merchandise. CEO Elon Musk, a dogecoin, tweeted: "Tesla merch buyable with Dogecoin." There are a number of conditions that come with paying with dogecoin, including no refunds or cancellations. (CNBC)


BlackRock (BLK) earned an adjusted $10.42 per share for the fourth quarter, beating the consensus estimate of $10.16, although revenue for the asset manager was slightly below forecasts. Assets under management rose above the $10 trillion mark for the first time. Share fell nearly 2%.

Sherwin-Williams (SHW) fell 3.3% in premarket action after it cut its full year forecast amid supply chain issues that it expects to persist through the current quarter. Sherwin-Williams did say demand remains strong in most of its end markets.

Las Vegas Sands (LVS), Wynn Resorts (WYNN), Melco Entertainment (MLCO) and MGM Resorts (MGM) rallied in premarket trading after Macau's government said it would limit the number of casino licenses to six. These companies are among the six operating in Macau, with their current licenses due to expire this year.

Walt Disney (DIS) lost 1.6% in premarket trading after Guggenheim downgraded the stock to "neutral" from "buy," reflecting lowered predictions for Disney's direct-to-consumer and parks businesses.

Boston Beer (SAM) tumbled 8% in the premarket after the brewer cut its annual earnings outlook. The company is being hit by supply chain issues as well as waning growth for its Truly hard seltzer brand.

Virgin Orbit (VORB) successfully launched seven small satellites Thursday, the first launch since the company went public last month. Shares gained 1.1% in premarket trading.

BJ's Wholesale (BJ) lost 3% in premarket action after J.P. Morgan Securities downgraded the warehouse retailer's stock to "underweight" from "neutral," reflecting concerns about inflation and a pullback in stimulus measures for consumers.

Bausch Health (BHC) rallied 3.2% in the premarket following news that its Bausch + Lomb eyecare unit filed to go public and that the unit reported a jump in sales for the nine months ended in September. Bausch Health will remain a majority owner of Bausch + Lomb.