Core Viewpoint - U.S. stock futures are trading lower, with several companies expected to report quarterly earnings, drawing investor attention [1] Company Earnings Expectations - Bank of America Corp (NYSE:BAC) is anticipated to report quarterly earnings of 96 cents per share on revenue of $27.87 billion, with shares slipping 0.1% to $54.51 in after-hours trading [1] - Citigroup Inc (NYSE:C) is expected to post quarterly earnings of $1.68 per share on revenue of $20.53 billion, with shares falling 0.1% to $116.15 in after-hours trading [1] - Wells Fargo & Co (NYSE:WFC) is projected to report quarterly earnings of $1.67 per share on revenue of $21.65 billion, with shares decreasing 0.2% to $93.38 in after-hours trading [1] Company Updates - TG Therapeutics, Inc. (NASDAQ:TGTX) provided preliminary fourth quarter revenue estimates, expecting U.S. net product revenue of approximately $182 million for Q4 and $594 million for the full year of 2025, with total global revenue for 2025 expected to be around $616 million [1] - Gelteq Ltd. (NASDAQ:GELS) reported positive preclinical results for its cannabinoid oral gel delivery platform, leading to a significant share price increase of 69.3% to $1.41 in after-hours trading [1]

Core Viewpoint - Wells Fargo & Co. is set to report its fourth-quarter earnings, marking a significant test of its strategy following the removal of the asset-cap provision by the Federal Reserve, which had been in place since 2018 due to scandals related to customer practices [1][2]. Group 1: Growth Strategy - The removal of the asset cap allows Wells Fargo to resume growth by increasing deposits and expanding its loan books, which had been stagnant for the past few years [2]. - The bank's management has set aggressive growth targets for its return on tangible common equity (ROTCE), aiming for 17% to 18%, up from 15.2% in the previous quarter [3]. - A new common equity tier 1 (CET1) target has been introduced at 10.0% to 10.5%, down from 11%, indicating a more assertive capital deployment strategy while maintaining cost discipline and credit quality [4]. Group 2: Financial Performance and Projections - As of the end of the third quarter, Wells Fargo's total assets reached $2 trillion for the first time in its history, reflecting the bank's increased capacity to grow its balance sheet [5]. - Analyst Ebrahim Poonawala has reiterated a "Buy" rating on Wells Fargo, raising the price target to $107 from $100, suggesting a potential upside of 14.36% from current levels [5]. - Forecasts indicate earnings per share of $7.07 for fiscal 2026 and $8.21 for fiscal 2027, representing a year-over-year earnings growth of 15% [6]. Group 3: Valuation Metrics - Wells Fargo is currently trading at 13.59 times forward earnings, significantly lower than the S&P 500's 28.09 and the financial services sector's average of 18.66 [7]. - The stock has shown a favorable price trend across short, medium, and long-term metrics, scoring high on momentum in stock rankings [8].

格隆汇1月14日｜富国银行投资研究院预期，2026年金价仍有进一步上涨空间，部分原因包括地缘政治 紧张情势升温，以及全球央行积极购买黄金。该机构指出，美联储降息的预期，加上美元维持相对稳 定，将有助于推动黄金在2026年持续跑赢其他资产，尽管涨势要比2025年缓和一些。 ...

Market Performance - Several banks and Big Tech stocks contributed to a decline in indexes, with the S&P 500 falling 0.5% for its second consecutive loss after reaching an all-time high [1] - The Dow Jones Industrial Average decreased by 42 points, or 0.1%, while the Nasdaq composite dropped by 1% [1] Company-Specific Developments - Wells Fargo's stock fell 4.6% due to weaker-than-expected profit and revenue, attributed to lower trading fees and miscellaneous items [2] - Bank of America experienced a 3.8% decline despite reporting stronger-than-expected profits, with concerns regarding upcoming expenses [2] - Citigroup's stock decreased by 3.3% following its profit report amid a turnaround effort under CEO Jane Fraser [2] - Biogen's stock sank 5% as the company anticipates a profit hit in Q4 2025 due to increased research and development expenses [4] Industry Trends - Companies are under pressure to demonstrate strong profit growth to justify high stock prices, with analysts expecting S&P 500 earnings per share to rise approximately 8% year-over-year for the final three months of 2025 [3] - Technology stocks faced selling pressure, with Nvidia falling 1.4% and Broadcom declining 4.2%, as concerns arose over their high valuations following significant gains from AI technology [4][5] Oil Market Insights - Exxon Mobil and Chevron provided some support to the S&P 500, with Exxon Mobil rising 2.9% and Chevron climbing 2.1% as U.S. oil prices increased by 1.4% to settle at $62.02 per barrel [5][6] - Oil prices have recently rallied due to protests in Iran, which may disrupt production and affect crude supply [6] - Brent crude rose 1.6%, bringing its year-to-date gain to nearly 10% before prices fell back later in the day [7]

Market Performance - Hong Kong's HSI traded at 27,037, up 188 points or 0.7% [2][4] - Nikkei increased by 864 points or 1.6% to 54,413 [2][4] - Shanghai and Shenzhen indices rose by 1.11% and 1.83% respectively [2][4] - South Korea's Kospi was down 4 points around 9 am IST [2][4] US Market Influence - US stocks retreated on Tuesday, with the S&P 500 pulling back from a record high [2][4] - Losses were primarily driven by banking shares after JPMorgan Chase & Co. reported investment-banking fees below guidance [2][4] - December inflation data did not significantly alter expectations for the Federal Reserve's interest-rate cuts [2][4] Bank Earnings Outlook - A heavy slate of bank earnings is being tracked, with results from major banks like Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley expected soon [3][4] - The banking group is projected to achieve its second-highest annual profit on record, aided by policy changes under the Trump administration [3][4] Tariff Ruling Risks - The potential US Supreme Court ruling on President Trump's global tariffs is a key risk factor [3][4] - An unfavorable ruling could lead to a negative market response, although the administration has alternative legal routes to enforce tariffs [3][4] Commodity Market Trends - Brent crude prices extended gains, marking the largest four-day rise since June due to heightened rhetoric around Iran [3][4] - Silver prices continued to rise, achieving the strongest three-day rally on record [3][4]

Core Viewpoint - Goldman Sachs warns that investors seeking refuge in gold may be making a significant mistake, despite the metal's price surge over the past year [2][13] Group 1: Gold Investment Outlook - Goldman Sachs' investment strategy team does not favor gold as a diversification tool in investment portfolios for 2026 [2][13] - The team highlights that gold has historically experienced deep and prolonged drawdowns, with a maximum drawdown of 70% [2][13] - Gold's volatility is noted to be higher than that of U.S. stocks, and it has only effectively hedged inflation in about half of the rolling 20-year periods [5][16] Group 2: Market Trends and Fund Flows - Investors have recently injected $950 million into the SPDR Gold Shares ETF, reversing a trend of outflows in 2026, with a net subscription of $118 million year-to-date [8][19] - The ETF saw a nearly 64% increase in 2025 and continues to rise, achieving its strongest annual performance since its launch in late 2004 [8][19] - As of the latest trading session, the gold ETF has risen over 6% this year, outperforming the broader U.S. stock market in 2026 [8][19] Group 3: Economic Factors Influencing Gold - Wells Fargo Investment Institute anticipates further increases in gold prices in 2026, driven by geopolitical tensions and active purchases by global central banks [11][22] - The expected interest rate cuts by the Federal Reserve and a stable dollar are projected to support gold's performance, although at a slower pace than in 2025 [11][22] Group 4: U.S. Stocks vs. Gold - Goldman Sachs' investment strategy team recommends an overweight position in U.S. stocks, suggesting that unless there is high certainty of an impending recession, it is difficult to underweight U.S. equities [23] - The team emphasizes that economic conditions will ultimately support earnings, with the S&P 500 index expected to follow the path of earnings [23]

Core Viewpoint - Wells Fargo is experiencing a positive trend in analyst price targets, indicating growing optimism about its stock performance and future prospects [2][6]. Group 1: Analyst Sentiment - The average price target for Wells Fargo has risen from $94.48 to $100.88 over the past year, reflecting increased confidence among analysts [2][6]. - Factors contributing to this optimism may include improvements in financial performance, strategic initiatives, and favorable market conditions [2]. Group 2: Upcoming Earnings Report - Wells Fargo is set to release its fourth-quarter earnings report soon, which is anticipated to provide insights into the company's financial health [3][4]. - The earnings report is crucial for assessing the company's potential for generating consistent returns, especially in the context of the overall banking sector's outlook for 2026 [4]. Group 3: Financial Performance Expectations - Expectations for Wells Fargo's Q4 earnings include an increase in net interest income and strong loan demand [5][6]. - However, the company may face challenges such as lower non-interest income and pressure on asset quality [5].

Group 1 - Proposed credit card interest rate cap policy could severely impact the $70 billion credit card debt securitization market, but investors believe the likelihood of implementation is low, resulting in a muted market reaction [1] - Analysts from JPMorgan indicated that a 10% interest rate cap would significantly reduce the excess spread, a key profitability metric, to levels comparable to those during the 2008 financial crisis [1] - The credit card asset-backed securities market is highly sensitive to the interest rate cap policy, which could block high-interest borrowers from accessing credit cards, leading to a significant contraction in the market [2][3] Group 2 - If the interest rate cap is enforced, banks are expected to tighten credit issuance, leading to a decline in overall loan volumes and a reduction in the issuance of credit card asset-backed securities [3] - Current data shows that credit card ABS has dropped from a peak of 36% of total ABS issuance in 2009 to just 9% [2] - The stock market reacted negatively, with significant declines in shares of banks and credit card issuers, particularly those with a higher proportion of low-quality borrowers [4] Group 3 - Analysts predict that if the interest rate cap is made permanent, it could lead to systemic adjustments in credit card companies' strategies, including reduced credit issuance to non-prime consumers and increased fees [4][5] - Major banks like Citigroup, JPMorgan, and Bank of America could see a decline in earnings per share ranging from 1% to 10% due to the proposed policy [5] - The potential impact on credit card companies' book values could be severe, with estimates suggesting declines of 20% to 40% for certain firms under the temporary cap [5][6]

US stocks retreated on Wednesday as more big bank earnings rolled in, with investors on watch for fresh inflation data, a potential Supreme Court ruling on US tariffs, and signs of potential US military action on Iran. The tech-heavy Nasdaq Composite (^IXIC) slid 0.8%, while the S&P 500 (^GSPC) fell nearly 0.6%. Meanwhile, the Dow Jones Industrial Average (^DJI) moved down around 0.2%, coming off a pullback in financial stocks that dragged Wall Street indexes off record highs. Worries rose about US acti ...

Group 1: Market Overview - US stock futures retreated with Nasdaq 100 down 0.6%, S&P 500 down 0.4%, and Dow Jones Industrial Average down 0.3% as financial stocks pulled back from record highs [1] - Investors are closely monitoring inflation data, potential Supreme Court rulings on tariffs, and US military actions regarding Iran [1][2] Group 2: Company Earnings - Bank of America and Wells Fargo reported a surge in profits driven by increased trading activity [3] - Citigroup's stock rose significantly due to an 84% increase in financial advisory fees [3] - JPMorgan Chase's earlier earnings report was considered underwhelming, setting a cautious tone for the earnings season [3] Group 3: Economic Indicators - Wholesale inflation data was muted, supporting expectations that the Federal Reserve will maintain interest rates in January [4] - Retail sales exceeded expectations in November, indicating stronger consumer spending [4] Group 4: Precious Metals Market - Gold and silver prices reached record highs, with silver briefly surpassing $90, driven by expectations of further Fed rate cuts and rising geopolitical tensions [5] Group 5: Legal and Regulatory Environment - The Supreme Court is expected to release opinions on a challenge to Trump's tariff-setting authority, which has been framed as a national security issue [6]