More earnings reports for the 4th quarter from American companies this week with several leading banks due to release their figures, but the most important will be the data from streaming video giant, Netflix on Wednesday morning, Sydney time.
Last Friday’s results from the three big banks – JPMorgan, Wells Fargo and Citi – were solid, but depended heavily on the write-back of part of bad debt provisions earlier in the year.
The trio wrote back more than $US5 billion – JPMorgan’s write-back totalled $US2.9 billion and Citi’s totalled $US1.5 billion while Wells Fargo released $US763 million.
Citi shares fell 6.9% to $65.32 as the bank reported a 7% decline in profit even as its peers JPMorgan (shares down 1.8%) and Wells Fargo posted growth in the fourth quarter (Wells Fargo shares dropped nearly 8%).
Those results have analysts watching closely the results this week from Bank of America, Goldman Sachs and Morgan Stanley. All three are now expected to release previous provisions back into their quarterly results.
Earnings for S&P 500 companies are expected to have fallen 9.5% in the final quarter of 2020 from a year ago, but are expected to rebound in 2021, with a gain of 16.4% projected for the current first quarter, according to data firm, Refinitiv.
But Netflix will be the release closely analysed for the size of its new subscriber number. After a strong first two quarters when millions more subscribers than forecast were added, growth slowed in the third quarter to just 2.52 million, well short of its own estimate.
Netflix has forecast a six million addition to subscriptions which would take the global total to 201.5 million from 195.10 million at the end of the September quarter.
Other US companies due to report this week include oil services groups, Halliburton, Baker Hughes and Schlumberger. As well American Airlines, United, Jet Blue are also due to report.
Intel and rail groups, Union Pacific and CSX and also down to release their latest figures as is stockbroker, Charles Schwab and consumer products giant, Procter & Gamble and IBM.
