Biden Stimulus, JPMorgan Chase, Tesla, Apple - 5 Things You Must Know Friday

Stock futures fall after President-elect Joe Biden unveils a $1.9 trillion Covid-19 relief package; JPMorgan, Wells Fargo and Citigroup report earnings; Tesla gets a bull case price target of $1,250 from Wedbush.
Author:
Updated:
Original:

Here are five things you must know for Friday, Jan. 15:

1. -- Stock Futures Fall After Biden Unveils $1.9 Trillion Relief Package

Stock futures fell Friday as President-elect Joe Biden unveiled a $1.9 trillion Covid-19 relief package and after JPMorgan Chase  (JPM) - Get Report and other big U.S. banks kicked off the fourth-quarter earnings season.

Contracts linked to the Dow Jones Industrial Average declined 184 points, S&P 500 futures fell 17 points and Nasdaq futures were down 3 points.

Biden’s "American Rescue Plan" includes $1,400 checks for individuals, on top of $600 provided in the last relief bill. Other elements of the plan include extending supplemental unemployment payments and a moratorium on evictions and foreclosures through September. 

The president-elect's plan also provides funds for vaccine deployment to help fight the coronavirus pandemic that as of Thursday has killed nearly 389,000 Americans.

The size of the aid package, as well as the potential for tax increases, has many on Wall Street concerned Biden may not win support in Congress for his proposals.

“To some extent, most of this optimism had been priced in, but the huge figures had also invited some contemplation as to whether the necessary bipartisan support will materialize for this huge sum,” said Jingyi Pan, a Singapore-based market strategist for IG.

Stocks tumbled in the last hour of trading Thursday, giving up gains and finishing lower as tech stocks slid and investors awaited the details of Biden's Covid-19 relief package. The Dow and Nasdaq had set intraday record highs during Thursday's session.

2. -- Friday's Economic Calendar: JPMorgan Chase Earnings, Retail Sales

JPMorgan Chase reported fourth-quarter earnings of $3.79 a share vs. Wall Street expectations of $2.62.

Wells Fargo  (WFC) - Get Report reports earnings of 64 cents a share in the fourth quarter vs. 60 cents a year earlier.

Citigroup  (C) - Get Report reported fourth-quarter earnings Friday of $2.08 a share, beating estimates of $1.34.

JPMorgan Chase and Wells Fargo are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now. 

The U.S. economic calendar for Friday includes Retail Sales for December at 8:30 a.m. ET, the Producer Price Index for December at 8:30 a.m., the Empire State Manufacturing Index for January at 8:30 a.m., Industrial Production for December at 9:15 a.m. and Consumer Sentiment for January at 10 a.m.

3. -- Tesla Gets $1,250 Bull Case Price Target From Wedbush

Tesla's  (TSLA) - Get Report price target was raised to $950 from $751 by Wedbush's Dan Ives and the analyst said the stock's bull-case target was boosted to $1,250 to reflect growing demand for electric vehicles, especially in China.

“The hearts and lungs of the Tesla bull thesis is centered around China as we have seen consumer demand skyrocket into 2021 not just for Model 3s, but for impressive domestic competitors such as NIO  (NIO) - Get Report, XPeng  (XPEV) - Get Report, Li Auto  (LI) - Get Report and others,” Ives said. “As such, we have significantly raised our forecasts with our expectations that Tesla now exceeds the 1 million delivery threshold in 2022 and could start to approach 5 million deliveries annually by the end of the decade if global EV demand continues at this pace."

Tesla delivered a record of nearly 500,000 vehicles in 2020.

"While there are 150+ automakers aggressively going after the EV opportunity globally, right now in the EV market we believe it's Tesla's world and everyone else is paying rent," Ives added.

Ives also said a Biden presidency and a "Blue Senate" was very bullish and a potential game changer for Tesla and the overall electric vehicle sector in the United States.

Tesla was trading at $849, up slightly in premarket trading Friday. The stock has gained almost 20% so far in 2021 after soaring more than 700% last year.

4. -- Apple's Next MacBook Pro Could Bring Back the Magnetic Charger

Apple  (AAPL) - Get Report is planning upgraded MacBook Pro laptops this year with much faster processors, updated displays and the return of its magnetic charger, Bloomberg reported, citing a person with knowledge of the plans.

The new laptops are planned to come in two screen sizes, a 14-inch model and a 16-inch version. Both will use next-generation versions of Apple’s in-house Mac processors, upgraded with more cores and enhanced graphics, the person told Bloomberg.

The new MacBook Pro devices will mark Apple’s first high-end laptops to move away from Intel  (INTC) - Get Report components. The company updated its base 13-inch MacBook Pro with its own M1 chip in November.

Apple's M1-Powered Macs Blow Away Intel-Powered Models in First Reviews

Apple aims to launch the new MacBook Pros around the middle of 2021, according to Bloomberg.

Apple also is bringing back MagSafe, a magnetic power adapter that was a favorite feature of the company’s portable PC lineup first introduced in 2006.

Apple dipped in premarket trading to $128.84.

Apple is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now.

5. -- China's Xiaomi and Cnooc Added to U.S. Blacklist 

The Trump administration has added Xiaomi, the Chinese smartphone manufacturer, as well state-owned oil giant Cnooc and China’s largest chipmaker SMIC to a blacklist for allegedly supporting China’s military, intelligence and security services.

U.S. investors have until November to divest their holdings of any company on the list.

The three companies were among nine added to the Defense Department’s list.

The Wall Street Journal reported earlier this week that American investors would remain allowed to buy buy shares of Chinese technology giants Alibaba Group  (BABA) - Get Report, Tencent Holdings  (TCEHY)  and Baidu  (BIDU) - Get Report.