Stock market investors ignored all the political drama unfolding in Washington over the past week, betting on bigger stimulus controls that would come after the Democrats took control of both chambers of the US Congress after Georgia's spout in a blue wave resulted. ]
President-elect Joe Biden, who will take office in just ten days, promised the Americans would get bigger tax cuts if the Democrats won the Senate round in Georgia. Biden confirmed that possibility in a televised address on Friday, saying a weaker-than-expected US showed the need for more economic stimulus is “now”.
With a more robust economic aid package that looks even more secure, the and both hit record highs during Friday's session during the day. In the midst of this optimism, the earnings season starts. Investors will get the latest quarterly results from some of the largest Wall Street companies starting this week.
Below we have shortlisted three stocks from different sectors that we follow as the fourth quarter earnings season. begins:
1. JPMorgan Chase
Wall Street's main commercial and investment bank, JPMorgan Chase (NYSE :), will open on Friday, January 15, before the market opens , report fourth quarter earnings. Analysts expect earnings per share of $ 2.42 on sales of $ 28.02 billion.
One of the most important numbers to look at in this income is the loan loss allowance, which will indicate whether the lender is after the pandemic blow to the income. Indeed, there is hardly any part of banking that has not suffered from the global pandemic. Interest rates have plummeted to near zero as the Fed unleashed unprecedented monetary stimulus to boost growth, while consumers drastically cut spending – the main driver of US economic expansion over the past decade.
In the midst of these shocks, some banks have been able to outperform others, especially those with diversified operations. JPM had a surprise in Q3, fueled by a 30% rise in market revenues as rising stock prices increased trading volumes. JPM shares closed at $ 136.02 on Friday, after fully recovering from the losses it suffered during the pandemic.
2. Delta Air Lines
Delta Air Lines (NYSE 🙂 will report fourth quarter earnings on Thursday, January 14 before the market opens. On average, analysts expect a loss of $ 2.42 per share on revenue of $ 3.81 billion.
The global aviation industry is trying to make a comeback after a brutal 2020 in which air traffic plummeted amid rising COVID-19 infections. . Delta Air's CEO told employees in a New Year's note that the airline continues to strive for positive cash flows by spring in a "year of recovery".
Still, Ed Bastian warned that demand for travel will initially remain "deeply suppressed," with the company's focus on passenger health and safety. A "significant" resumption of travel, especially for business, will come when vaccines become widely available, he said in a memo.
"While I am optimistic this will be a year of recovery, the continuing uncertainty of the pandemic means we must be agile, ready to change course and adapt to an ever-changing environment."
Shares of Delta Air closed at $ 40.02 Friday, after gaining 48% in the past six months
3. Tesla Motors
After up more than 20% during the first week of 2021, Tesla (NASDAQ 🙂 remains the most sought-after stock in the market. The powerful upward movement that began last spring has pushed Tesla stock about 800% higher over the past year, making the company's founder and CEO Elon Musk the richest man on the planet.
He took that title from Amazon.com & # 39; s (NASDAQ 🙂 Jeff Bezos last week. Musk & # 39; s net worth was about $ 195 billion Thursday, up from about $ 30 billion a year ago. According to the Bloomberg Billionaires Index, that amount now exceeds Bezos' net worth by about $ 10 billion.
Musk & # 39; s wealth accelerated as his electric vehicle business pushed past several important milestones, was added to the S&P 500 Index, and benefited from growing consumer and market viewers' understanding that electric cars became the future auto industry will dominate.
]
After last week's boom, Tesla's market capitalization is approximately $ 837 billion. Tesla was up 8% on Friday to exit at a record high of $ 880.02.
