5 issues you must know earlier than the inventory market opens on January 15, 2021

Here are the top news, trends, and analysis investors need to get their trading day started:

1. Dow will slide as investors examine bank earnings, Biden stimulus plan

Traders on the floor of the New York Stock Exchange.

Source: New York Stock Exchange

Dow futures indicated a loss of over 100 points when it opened on Friday, with Dow stock JPMorgan Chase barely changing after posting better-than-expected quarterly results and sales. Investors also examined the $ 1.9 trillion coronavirus stimulus plan announced after the market closed on Thursday for President-elect Joe Biden.

The Dow Jones Industrial Average fell 68 points on Thursday, reflecting the continuation of subdued market moves this week, mostly down as Wall Street continued to grow with President Donald Trump’s second impeachment and the aftermath of the unrest in the argued at the US Capitol last week. However, the Dow, S&P 500 and Nasdaq all stayed less than 1% off record highs. The stock exchange is closed on Mondays on the occasion of Martin Luther King Day.

2. JPMorgan unleashes a deluge of bank receipts

The headquarters of JP Morgan Chase & Co., the JP Morgan Chase Tower on Park Avenue, Midtown, Manhattan, New York.

Tim Clayton – Corbis | Corbis Sport | Getty Images

JPMorgan on Friday reported fourth quarter earnings and sales that exceeded Wall Street estimates. The bank posted earnings per share of $ 3.79, boosted by the release of funds previously earmarked for loan losses. Revenue for the quarter was $ 30.16 billion. JPMorgan’s shares fell less than 1%.

Citigroup’s shares fell more than 1% after the bank failed to meet fourth-quarter revenue estimates of $ 16.5 billion. Earnings per share of $ 2.08 exceeded expectations – and like JPMorgan, this was aided by the release of some loan loss provisions.

Wells Fargo stock fell over 3% after the bank posted unexpectedly low sales of $ 17.93 billion. The fourth quarter earnings of 64 cents per share, like both Citi and JPMorgan, is the best estimate. At Wells Fargo, stabilizing borrowing costs helped offset the effects of low interest rates.

December 3 retail sales, producer prices expected

People wear face masks as they walk through Herald Square in New York City on January 8, 2021.

Angela Weiss | AFP | Getty Images

It’s a busy morning for economic metrics starting at 8:30 a.m. ET with December retail sales and December producer prices posting.

Retail sales are likely to decline 0.1% after declining 1.1% in November as U.S. coronavirus cases rose sharply. The onset of cold weather in November in many parts of the country made alfresco dining difficult and pushed indoor restaurants with much lower capacity. That reduced consumer spending.

Producer prices have increased by a total of 0.4% in the last month and by 0.1% when food and energy are excluded. Both measures rose 0.1% in November.

4. Biden proposes $ 1.9 trillion in Covid relief

President-elect Joe Biden speaks as he unveils his plan to fight the coronavirus and stimulate the economy on January 14, 2021 at the Queen Theater in Wilmington, Delaware.

Alex Wong | Getty Images

Biden’s proposed $ 1.9 trillion coronavirus stimulus package includes helping U.S. households and businesses in the wake of the pandemic. Here are some of the key provisions of the President-elect’s plan:

  • Direct payments of $ 1,400 to most Americans, bringing the total relief to $ 2,000, including the $ 600 payments made in December
  • Federal unemployment benefit increased to $ 400 per week and extended through September
  • Federal minimum wage increased to $ 15 an hour
  • $ 350 billion in state and local government aid that Republicans excluded from the $ 900 billion compromise bill in December.
  • $ 50 billion for Covid-19 testing
  • $ 20 billion for a national immunization program in partnership with states, places and tribes

5. The national Covid vaccination program is taking shape

Elementary workers and people over the age of 75 were vaccinated on January 10, 2021 in New York City, United States.

Tayfun Coskun | Anadolu Agency | Getty Images

Biden is expected to provide more details on Friday about his national Covid vaccination program, funded from his relief plan.

The president-elect unveiled a comprehensive plan to fight the pandemic on Thursday, which included the vaccination program as well as massive tests to support school opening and create 100,000 new healthcare jobs.

Biden’s Covid plan includes investments in new treatments beyond existing monoclonal antibody infusions and Gilead Sciences’ antiviral drug Remdesivir. Trump received remdesivir as part of his treatment for Covid in the fall.

– Reuters contributed to this report. Follow all developments on Wall Street in real time with CNBC Pro’s live market blog. Find out about the latest pandemics on our coronavirus blog.

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