Bank earnings; Surging stocks; Iran deadline

1. Bank earnings bonanza: JPMorgan and Wells Fargo are set to report fourth quarter earnings on Frid...

Posted: Jan 12, 2018 9:23 AM
Updated: Jan 12, 2018 9:23 AM

1. Bank earnings bonanza: JPMorgan and Wells Fargo are set to report fourth quarter earnings on Friday morning.

Overall, big banks had a good 2017 with solid results. However, investors are bracing for banks to record big one-off charges in the final quarter related to the overhaul of U.S. tax rules.

Goldman Sachs was the first big bank to announce a hit to profits in 2017 from a new so-called "repatriation tax."

Congress expects the new one-off tax on overseas profits will bring in an estimated $339 billion over time.

Companies expect the tax reform as a whole to be beneficial in the long run but there could be short term pain.

BlackRock is also due to report earnings before the market opens.

2. Surging stocks: U.S. stock futures are pointing up again, indicating the major indexes will hit fresh record highs on Friday.

The Dow Jones industrial average, S&P 500 and Nasdaq have been on a big winning streak since President Trump's election in November and have been hitting new highs nearly every day of 2018.

The indexes rallied between 0.7% and 0.8% on Thursday.

The S&P 500 hasn't retreated 3%, either in a single day or over several days, since early November 2016. That is the longest period of calm in history, according to Bespoke Investment Group.

European markets are mixed in early trading. Most Asian markets ended the week with small gains.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

3. Iran sanctions deadline: President Trump will decide on Friday whether to continue waiving some sanctions on Iran.

The sanctions are not set to expire for several years. But the waivers, which must be renewed every 120 days under the terms of the Iran nuclear deal, suspend them temporarily.

Trump waived the sanctions at the last deadline, but it's not clear whether he will do so again. If he decides not to, Boeing's $8 billion deal to sell 80 jets to Iran Air could be at risk, as could Total's huge energy investment in Iran.

4. December retail sales: The U.S. Census Bureau is set to report retail sales figures for December at 8:30 a.m. ET.

December is a critical month for the industry because it's when Americans do much of their holiday shopping.

Struggling retailers got a bit of a break in November, when retail sales grew by 0.8% -- better than expected.

Download CNN MoneyStream for up-to-the-minute market data and news

5. Coming this week:

Friday -- Bank earnings; December retail sales report

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 122168

Reported Deaths: 4444
CountyConfirmedDeaths
Los Angeles596922532
Riverside8303345
San Diego7798283
Orange6783165
San Bernardino5650209
Alameda364197
Santa Clara2850144
San Francisco264443
Imperial249330
Kern246245
San Mateo224484
Tulare208392
Fresno194437
Santa Barbara171414
Contra Costa154738
Sacramento149058
Ventura119035
Kings11876
San Joaquin102436
Stanislaus79230
Monterey62110
Sonoma5934
Solano55922
Marin52517
Merced3107
San Luis Obispo2881
Placer2599
Santa Cruz2192
Yolo21624
Madera1293
Napa1263
Humboldt1044
El Dorado980
San Benito962
Butte601
Nevada491
Sutter482
Del Norte470
Shasta404
Mono371
Mendocino330
Yuba311
Lake300
Inyo201
Glenn170
Calaveras160
Mariposa161
Amador100
Siskiyou90
Colusa70
Tehama61
Tuolumne50
Lassen50
Plumas40
Alpine20
Sierra10
Trinity10
Unassigned00
Chico
Clear
77° wxIcon
Hi: 99° Lo: 65°
Feels Like: 78°
Oroville
Clear
79° wxIcon
Hi: 100° Lo: 66°
Feels Like: 79°
Paradise
Clear
77° wxIcon
Hi: 91° Lo: 65°
Feels Like: 78°
Chester
Clear
53° wxIcon
Hi: 81° Lo: 52°
Feels Like: 53°
Red Bluff
Clear
76° wxIcon
Hi: 99° Lo: 66°
Feels Like: 76°
Willows
Clear
81° wxIcon
Hi: 101° Lo: 63°
Feels Like: 81°
We're finally seeing some relief from the heat on the way for your Friday. We'll be around 10 degrees cooler than Thursday on Friday and clouds will be returning for your afternoon. Much cooler with the chance for active weather on the way for your weekend.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events