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Shutdown looms; IBM drops; Schlumberger earnings

1. Shutdown looms: There is a very real possibility that the United States government will be forced...

Posted: Jan 19, 2018 11:58 AM
Updated: Jan 19, 2018 11:58 AM

1. Shutdown looms: There is a very real possibility that the United States government will be forced to shut down at midnight.

But investors don't appear to be too worried.

House Republicans approved a bill late Thursday that would keep the U.S. government running until mid-February. But Democrats in the Senate, some of whose support is needed to pass the measure, appear poised to take a stand.

Democrats, who have been frustrated by a lack of progress on immigration, are hoping to extract concessions in return for their votes.

Market reaction has so far been muted. U.S. stock futures were steady on Friday, and most global markets posted gains.

A brief government shutdown is not expected to have a large economic impact. But it could hurt investor, consumer and business confidence because it signals a major breakdown in the political process.

"The economic damage of a shutdown should be limited, if the shutdown is relatively short lived ... A longer slowdown would start to do more serious damage," warned Paul Donovan, global chief economist at UBS Wealth Management.

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2. Stocks to watch -- IBM, American Express: Shares in IBM and American Express could stumble on Friday.

IBM reported its first sales increase in 22 quarters after the market closed on Thursday.

Sales grew 1% last quarter, but that might not be enough to convince investors that IBM has turned its fortunes around. Shares were down by as much as 4% after the market closed on Thursday.

American Express shares were also lower in extended trading after the firm posted its first net loss since 1992.

The company said the recent tax code overhaul was the culprit. American Express estimates that it will face a $2.6 billion "charge" because of the new law, most of which will go toward a tax on profits earned overseas.

3. Hotels halted: Trading in Wanda Hotel Development was halted in Hong Kong, and investors are waiting for news about the potential sale of a business unit.

Wang Jianlin, who heads up the Wanda real estate and entertainment empire, is among China's richest men.

Wanda has been scaling back parts of its sprawling operations after coming under heightened scrutiny by Chinese authorities last year.

4. Earnings: SunTrust Banks and Schlumberger will release earnings before the open.

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5. Coming this week:

Friday -- January consumer sentiment report released by the University of Michigan; Potential government shutdown at midnight

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 559746

Reported Deaths: 10377
CountyConfirmedDeaths
Los Angeles2085634977
Riverside40452799
Orange39641726
San Bernardino35712546
San Diego32330593
Kern23583171
Fresno17290171
Alameda13213208
San Joaquin12303211
Santa Clara11687204
Sacramento10795161
Tulare10475196
Imperial9693244
Stanislaus9665162
Contra Costa9182139
Ventura814689
San Francisco754867
Santa Barbara670469
San Mateo6110120
Marin532779
Monterey529335
Merced501264
Kings445356
Solano402940
Sonoma355647
Madera230239
Placer218620
San Luis Obispo209315
Yolo172143
Santa Cruz12386
Butte10958
Napa104610
Sutter9427
El Dorado7291
San Benito7154
Lassen6380
Yuba6004
Mendocino43110
Shasta41810
Colusa3624
Glenn3603
Nevada3221
Humboldt2824
Tehama2761
Lake2202
Amador1642
Mono1541
Tuolumne1522
Calaveras1471
Del Norte990
Siskiyou930
Inyo893
Mariposa612
Plumas340
Modoc50
Trinity50
Sierra30
Alpine20
Unassigned00
Chico
Clear
93° wxIcon
Hi: 101° Lo: 67°
Feels Like: 93°
Oroville
Clear
91° wxIcon
Hi: 101° Lo: 67°
Feels Like: 91°
Paradise
Clear
93° wxIcon
Hi: 94° Lo: 67°
Feels Like: 93°
Chester
Clear
74° wxIcon
Hi: 88° Lo: 59°
Feels Like: 74°
Red Bluff
Clear
90° wxIcon
Hi: 107° Lo: 70°
Feels Like: 90°
Willows
Clear
93° wxIcon
Hi: 106° Lo: 64°
Feels Like: 93°
Monday was almost as hot as Sunday for most of northern California as a ridge of high pressure controlled our weather. A cooling trend is coming, but it will only cool to seasonable levels in the short term.
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