Morning Brief: 5 possible outcomes if Brexit deal is rejected today
Tuesday, January 15, 2019
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WHAT TO WATCH
Earnings season is heating up as Delta Air Lines (DAL), JPMorgan Chase (JPM), UnitedHealth Group (UNH) and Wells Fargo (WFC) gear up to report before the market open, and United Continental (UAL) reports after the market close.
Analysts polled by Bloomberg are expecting Delta to earn $1.27 per share on $10.77 billion in revenue. A key metric for airlines is revenue per available seat mile, which measures sales to flight capacity. Delta lowered its guidance and now expects only about 3% growth in Q4, down from the 3.5% initially expected.
United Continental will report earnings after the bell on Tuesday. Analysts are forecasting that the airline will reporting earnings of $2.01 per share on $10.33 billion in revenue. The revenue per available seat mile in Q4 is expected to have grown at a 4% rate, according to analysts polled by Bloomberg.
TOP NEWS
5 main possible outcomes if the Brexit deal is rejected: Members of Parliament (MP) will vote today on prime minister Theresa May’s Brexit deal for leaving the European Union (EU). May is set to endure a devastating defeat with over a hundred lawmakers from her own party to join ranks with the opposition to vote it down. [Yahoo Finance UK]
China to cut taxes, keep policy flexible: China plans to slash taxes, step up spending and provide ample financing to private and small enterprises to help counter the country's worst slowdown since the global financial crisis and the impact of a bruising trade war with the U.S. [Associated Press]
Alibaba dips after its president warns about China: "China has slowed down," Alibaba President Michael Evans said during a presentation at the National Retail Federation's annual conference, according to the Wall Street Journal. "As a $13 trillion economy, it would be quite unusual if it could continue to grow at 7% or 8%."Alibaba (BABA) stock closed 1.35% down Monday after trading up for most of the day. [CNBC]
UK gambling stocks drop after U.S. DOJ reverses opinion: Shares of British betting companies, which have been pushing into the United States market because of tighter regulations at home, fell after the U.S. Department of Justice called for wider restrictions on all gambling on the internet. [Reuters]
Canopy Growth to build first U.S. hemp plant in NYS: Canopy Growth Corp. (CGC) will spend as much as $150 million to build its first production facility in the U.S. after the Canadian cannabis company was granted a hemp license by New York state. [Bloomberg]
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