Intel, Broadcom, Jamie Dimon, AmEx and Coronavirus - 5 Things You Must Know Friday

Stock futures rise but gains are capped by lingering concerns over the spread of the  coronavirus in China; Intel smashes earnings estimates and sees robust sales in 2020; Broadcom sees $15 billion in revenue from deals with Apple; Jamie Dimon's pay in 2019 rises to $31.5 million.
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Here are five things you must know for Friday, Jan. 24:

1. -- Stock Futures Rise as WHO Says Coronavirus Not Yet a Global Crisis

Stock futures were rising Friday but gains were capped by lingering concerns over the spread of the deadly coronavirus in China, which has killed 26 people and forced authorities to restrict travel for about 35 million more heading into the start of the Lunar New Year celebrations.

The World Health Organization said the outbreak, which was first recorded in the central industrial city of Wuhan, has infected about 830 people but has not yet risen to the level of a global health emergency.

China has locked down travel in two major cities and restricted movements from 10 more in an effort to contain the virus during the busy New Year holidays, which have closed markets in China on Friday and for the balance of next week.

U.S. equities on Friday were finding support from stronger-than-expected earnings from chip giant Intel  (INTC) - Get Report.

Contracts linked to the Dow Jones Industrial Average rose 83 points, futures for the S&P 500 were up 8.50 points and Nasdaq futures gained 32.75 points.

Stocks finished mixed Thursday, with the Dow coming off lows and the Nasdaq closing at a record high after the WHO said it wouldn't declare a global public health emergency over the coronavirus outbreak.

American Express  (AXP) - Get Report earned $2.03 a share on an adjusted basis in the fourth quarter, 2 cents above analysts' estimates. The stock rose 2% to $134 in premarket trading.

The economic calendar in the U.S. Friday includes the PMI Composite Flash for January at 9:45 a.m. ET.

2. -- Intel Smashes Profit Forecasts, Revenue Tops $20 Billion for First Time

Intel was rising sharply in premarket trading Friday after the semiconductor company posted fourth-quarter earnings above analysts' forecasts and said it anticipates robust 2020 sales amid an emerging rebound in global chip markets.

Intel said adjusted earnings in the quarter were $1.52 a share, well ahead of forecasts of $1.25, while revenue rose 8% to $20.2 billion and topped estimates of a $19.2 billion.

It was the first time Intel posted quarterly revenue above $20 billion. The gains were driven by revenue from Intel's data center group, which saw revenue rise 19% to $7.2 billion and easily top analysts' forecasts, and client-computing revenue, which rose 2% to $10 billion.

The company also forecast sales in 2020 of about $73.5 billion, citing increases in chip purchases from "hyperscale" cloud providers adding chips to the growing data centers.

Intel shares rose 5.89% to $67.05, the highest since September 2000.

3. -- Broadcom Says Component Deals With Apple Could Be Worth $15 Billion

Broadcom  (AVGO) - Get Report was rising Friday after saying revenue from multi-year supply agreements it has signed with Apple  (AAPL) - Get Report could reach $15 billion.

The company said it had entered two multi-year agreements to supply wireless components to Apple, the iPhone maker.

The two “statement of work” agreements, plus an agreement to supply RF chips signed last year, could lead to $15 billion in future revenue for Broadcom, according to a regulatory filing.

Apple and Broadcom resolved a long-running patent suit last year, leading to the earlier statement of work agreement, signed in 2019.

Broadcom shares rose 2.61% to $328. 

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.

4. -- Jamie Dimon's Pay Rises to $31.5 Million in 2019

Jamie Dimon, CEO of JPMorgan Chase  (JPM) - Get Report, received $31.5 million in total compensation in 2019, an increase of 1.6% from the year earlier after the banking giant he runs posted a 12% jump in profit to a record $36.43 billion.

Dimon's pay includes an annual base salary of $1.5 million and a $5 million cash bonus, plus $25 million in stock grants tied to performance.

Dimon was the highest paid CEO of the big U.S. banks in 2018, and according to reports likely will retain the crown again in 2019.

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

5. -- Bayer Reportedly Discussing $10 Billion Roundup Settlement

Bayer  (BAYRY) , which markets the weedkiller Roundup, is in talks to create what might become a $10 billion settlement of tens of thousands of lawsuits claiming that the product causes cancer, a report said.

People with knowledge of the negotiations told Bloomberg that in some of the talks the company said it would set aside $8 billion to resolve current cases and $2 billion for future claims. Bloomberg also said the figure wasn't fixed and could change.

The talks are taking place between Bayer’s lawyers and individual groups of plaintiffs’ attorneys, Bloomberg reported.

Kenneth Feinberg, who is leading the mediation for the cases involving Roundup, told Bloomberg that any reported details of a possible agreement right now are simply speculation.