Here is what you need to know.
JPMorgan beat on earnings. The firm announced earnings of $1.32 per share, topping the $1.28 that was expected by the Bloomberg consensus. Revenue edged up 0.6% to $23.7 billion, which was slightly better than the $23.24 billion that was anticipated. “The businesses generated strong loan growth and credit quality, except for some stress in energy,” CEO Jamie Dimon said in the earnings release. “The consumer business continues to gather deposits, outpacing the industry. Markets were somewhat quieter, and we saw the impact reflected in the results of our trading and Asset Management businesses.”
GoPro warned on sales and cut jobs. The digital-camera maker announced sales are expected to miss forecasts. The company sees Q4 revenue of about $435 million ($511 million expected, according to Bloomberg) and $1.6 billion for 2015. “Fourth quarter revenue reflects lower than anticipated sales of its capture devices due to slower than expected sell through at retailers, particularly in the first half of the quarter,” GoPro said in a statement. In addition to the downbeat forecast, the company said it would cut about 7% of its labour force. Shares of GoPro are down 26% in premarket trade.
The Bank of England kept policy on hold. The BoE held its key rate at a record low 0.50% for an 82nd consecutive month. In addition, the central bank’s asset purchase program remained unchanged at £375 billion. The vote to keep policy on hold was 8 to 1, which was expected. The British pound is is down 0.1% at 1.4391.
Indonesia’s central bank unexpectedly cut rates. Bank Indonesia lowered its benchmark interest rate 25 basis points to 7.25%. The unexpected cut came just hours after at least seven people were killed as gunfire and explosions erupted around Indonesia’s capital, Jakarta. The rate cut was the first in 11 months. The Indonesian rupiah weakened 0.5% for the session to 13,907 per dollar.
The Bank of Korea warned on inflation. South Korea’s central bank kept its benchmark interest rate at 1.50%, as expected. The central bank made note of the weakness in Korean exports, and suggested inflation will fall “considerably short” of the 2% target. The South Korean won ended down 0.8% at 1213.30 per dollar, its weakest since Q3 2010.
Oil hit a 12-year low. West Texas Intermediate crude oil fell to $29.73 in overnight trade, the lowest since February 2004. The energy component has been under pressure as mounting supplies and fears of a slowdown of the global economy weigh. However, WTI has climbed into positive territory, and now trades up 0.9% at $30.74 per barrel.
Goldman Sachs is reportedly downsizing its fixed income team. The investment banking giant is preparing to cut about 10% of its fixed income division, the Wall Street Journal reports. The layoffs could impact 250 employees. The bank is famous for trimming about 5% of its staff around this time of year as bonuses will be awarded next week.
Renault’s emissions testing is being investigated. The French automaker is being investigated for cheating emissions tests. According to AFP, the fraud office of France’s Economy Ministry seized computers from the company on January 7. Shares of the automaker were down as much as 20% before seeing some relief.
Intel reports after the close. The chipmaker is expected to earn $0.63 per share on revenue of $14.8 billion, according to the Bloomberg consensus.
Stock markets around the world are mostly lower. Overnight Japan’s Nikkei (-2.7%) led the way down while China’s Shanghai Composite (+2%) outperformed. In Europe, France’s CAC (+3.1%) is being hit the hardest. S&P 500 futures are down 1.25 points at 1880.25.
US economic data remains light. Initial and continuing claims and import/export prices are due out at 8:30 a.m. ET. Natural gas inventories will cross the wires at 10:30 a.m. ET. The US 10-year yield is lower by 3 basis points at 2.06%.