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Top 5 Things to Know in The Market on Tuesday

Published 01/15/2019, 05:22 AM
Updated 01/15/2019, 05:22 AM
© Reuters.

Investing.com - Here are the top five things you need to know in financial markets on Tuesday, January 15:

1. Bank Earnings Get into Full Swing

Market participants will focus on financial results from two of the U.S.'s largest banks, with JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) reporting earnings ahead of the opening bell.

JP Morgan is slated to release fourth-quarter earnings at 6:55AM ET (11:55 GMT). Analysts are forecasting earnings per share (EPS) of $2.20 on revenue of $26.90 billion. The same period in 2017 had $1.76 in EPS and $25.45 billion in revenue.

Wells Fargo is set to follow with its 4Q report at 8:00AM ET (13:00 GMT). Wall Street analysts expect the San Francisco-based lender to post EPS of $1.19 and revenue of $21.75 billion.

Also on the earnings docket for today are UnitedHealth (NYSE:UNH) and Delta Airlines (NYSE:DAL), both set to post results in the morning, while United Continental (NASDAQ:UAL) is due after the close.

2. U.S. Futures Point to Rebound

U.S. stock futures pointed to a slightly higher open, indicating that Wall Street's most important averages were set to rebound from Monday's decline.

At 5:20AM ET (10:20 GMT), the blue-chip Dow futures were up 77 points, or about 0.3%, the S&P 500 futures tacked on 5 points, or around 0.2%, while the tech-heavy Nasdaq 100 futures indicated a gain of 27 points, or roughly 0.4%.

The moves in premarket come after U.S. stocks declined on Monday, as worries about an economic slowdown in China weighed on sentiment.

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Elsewhere, European stocks were higher, with most major bourses across the region in positive territory.

Earlier, markets in Asia closed higher, led by a bounce in Chinese shares following news that Beijing is set to provide fiscal and monetary support to stabilize its cooling economy.

3. Upcoming Data

On the data front, today's calendar will bring investors the December report on producer prices at 8:30AM ET (13:30 GMT), which should give clearer signs on the pace of inflation.

Producer prices are expected to have fallen 0.1% last month, according to estimates. If confirmed, it would be the first decline in four months.

Excluding the cost of food and fuel, core producer price inflation is projected to have risen 0.2% from a month earlier and 2.9% year-on-year, a tad faster than the 2.7% increase registered in November.

The latest Empire State manufacturing survey is also due at 8:30AM ET (13:30GMT).

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was a shade higher at 95.44.

In the bond market, U.S. Treasury yields inched lower, with the benchmark 10-year note standing at 2.69%, while the yield on U.S. government bonds with 2-year maturities was at 2.52%.

4. Fed Speakers Eyed for Rate Hike Hints

Markets will pay close attention to comments from Federal Reserve speakers today, watching for clues on the pace of future rate hikes through 2019 and beyond.

Minneapolis Fed President Neel Kashkari is due to speak on the regional economy before the Rochester Economic Summit at 9:30AM ET (16:30 GMT).

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Kansas City Fed President Esther George will then speak about the economic outlook and monetary policy at 1:00PM ET (18:00 GMT).

Finally, Dallas Fed President Robert Kaplan will participate in a moderated question-and-answer session before the Plano Chamber of Commerce Annual Meeting at 1:15PM ET (18:15 GMT).

After the Fed hiked rates four times in 2018, investors now expect the U.S. central bank to halt its monetary tightening policy this year as risks to the U.S. economy mount.

5. British Parliament Votes on May's Brexit Deal

With less than 75 days to go until Britain leaves the European Union, market participants braced for a showdown in Westminster over Prime Minister Theresa May's Brexit deal.

May urged lawmakers on Monday to take a second look at her deal but parliament appeared set to reject it in a voting session due to start at 2:00PM ET (19:00 GMT).

That leaves the prospect of a collapse of the current government, a disorderly exit from the bloc or even the entire Brexit process being scrapped altogether over the coming weeks.

The pound edged lower at the start of what is expected to be a highly volatile day, with GBP/USD dipping to 1.2845.

Read more: GBP: How To Trade The Brexit Vote: Kathy Lien

-- Reuters contributed to this report

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