Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average was rising Tuesday but its gains were capped by a decline in shares of JPMorgan Chase & Co. (JPM) .
- JPMorgan Chase earned $1.98 a share in the fourth quarter, missing analysts’ estimates of $2.20 by a wide margin. The stock sank 1.8%.
- Delta Air Lines Inc. (DAL) posted fourth-quarter adjusted profit of $1.30 a share, 3 cents ahead of estimates, but its guidance disappointed Wall Street. Delta rose 0.6%.
Wall Street Overview
Stocks traded higher on Tuesday, Jan. 15, with the Dow Jones Industrial Average up modestly following a weaker-than-expected fourth-quarter earnings report from JPMorgan Chase & Co. (JPM) .
The Dow rose 12 points, or 0.05%, to 23,922, the S&P 500 gained 0.53%, and the Nasdaq was up 1.15%. Stocks in the U.S. fell Monday for a second consecutive day.
Equities had been much higher during the premarket session as investors reacted to signals from China that suggested the prospect of further stimulus for the world’s second-largest economy.
China’s National Development and Reform Commission, a key government division, said it aimed to create a “good start” for the economy over the first few months of the year, raising hopes that planned stimulus, including tax cuts and liquidity support equal to around $220 billion, could be deployed in order to halt the slowest pace of growth in nearly a decade.
The partial shutdown of the U.S. government entered its 25th day on Tuesday, and a CNBC report said the Trump administration now estimates that the cost of the government shutdown will be twice as steep as originally forecast.
The original estimate that the partial shutdown would subtract 0.1 percentage point from growth every two weeks now has been doubled to a 0.1 percentage point subtraction every week, CNBC reported, citing an an official who asked not to be named.
JPMorgan Chase & Co. (JPM) reported fourth-quarter earnings of $1.98 a share, missing estimates of $2.20 by a wide margin. It was the bank’s first profit miss in four years as trading revenue fell short of expectations and costs rose for loan-loss reserves.
Net income rose 67% to $7.07 billion, benefiting from the 2017 tax cuts and rebounding from a big write-down taken a year earlier.
Net revenue rose 7% from a year earlier to $26.1 billion, JPMorgan said, less than estimated, however, by analysts at the brokerage firm Keefe, Bruyette & Woods. Volatile markets in the fourth quarter took a toll on bond trading and commodities, partially offset by strength in emerging markets, the bank said.
Revenue in the bond-trading division fell 16% to $1.9 billion, a bigger drop than the 10% predicted by the KBW analysts. Stock-trading revenue rose 15% to $1.3 billion.
Shares of the bank fell 1.8% on Tuesday.
The stock was down 2.1%.
UnitedHealth Group Inc. (UNH) posted stronger-than-expected fourth-quarter earnings and held its 2019 outlook in place, as Optum revenue topped $100 billion for the first time on record last year. UnitedHealth shares rose 1.4%.
Delta Air Lines Inc. (DAL) posted stronger-than-expected fourth-quarter profit but its guidance came in lower than Wall Street estimates. The stock, however, rose 0.6%. The company expects earnings in its first quarter of 70 cents to 90 cents a share, below forecasts of 92 cents.
JPMorgan and UnitedHealth are holdings in Jim Cramer’s Action Alerts portfolio. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.
Netflix Inc. (NFLX) jumped 5.8% after the streaming giant said it would be raising monthly prices in the U.S. by 13% to 18%, its biggest increase since it began streaming movies and videos 12 years ago. The last hike was in 2017.
Microsoft Corp. (MSFT) has teamed with Walgreens Boots Alliance Inc. (WBA) to ‘”develop new health care delivery models, technology and retail innovations to advance and improve the future of health care,” the companies said in a statement.
Under the agreement, Microsoft will serve as Walgreens strategic cloud provider and the drugstore company will migrate most of its IT infrastructure onto Microsoft Azure.
Microsoft is a holding in Jim Cramer’s Action Alerts portfolio. Want to be alerted before Jim Cramer buys or sells MSFT? Learn more now.