Here are five things you must know for Monday, Jan. 14:
1. -- Stocks Slide on Weak Trade Data From China
U.S. stock futures fell on Monday, Jan. 14, and global stocks retreated as surprisingly weak trade data from China added yet another level of concern over the health of the world's second-largest economy and added more pressure on the slow-moving trade talks between Washington and Beijing.
China's export engine, the world's biggest, suffered its largest monthly drop in two years in December, with exports falling 4.4% and imports contracting a much larger-than-expected 7.6%.
However, China's trade surplus with the United States jumped 17% to a record $323.32 billion last year, a figure that is certain to add an extra dimension of tension into the ongoing trade talks, given that Donald Trump had vowed to reduce that figure during his election campaign, only to see it print consecutive all time highs when he has been in office.
Some of the world's biggest companies, including Apple Inc. (AAPL) and Samsung Electronics Co. (SSNLF) , have directly or indirectly cited slowing growth in China as the main catalyst for reduced earnings forecasts or weaker-than-expected current quarter earnings.
Contracts tied to the Dow Jones Industrial Average fell 176 points, futures for the S&P 500 were down 19.10 points, and Nasdaq futures slumped 65.75 points.
The Detroit Auto Show has kicked off and media previews are scheduled this week for Monday and Tuesday. Public viewings begin Jan. 19.
According to the Detroit Free Press, Ford Motor Co. (F) will unveil the 2020 Explorer Wednesday. The automaker also will showcase at the event what is expected to be the fastest production Mustang to date - the Shelby GT 500.
2. -- Citigroup Earnings Top Wall Street Forecasts
Citigroup Inc (C) reported fourth-quarter earnings of $1.61 a share, beating analysts' estimates of $1.55. Revenue of $17.12 billion came in below forecasts.
Citigroup earned $1.28 a share a year earlier on revenue of $17.3 billion.
The stock was down 1.9% in premarket trading.
- Citigroup to Kick Off Heavy Week of Bank Earnings
- Citigroup Readies Q4 Earnings; Investors Eye 2019 Forecasts Amid Global Slowdown
Analysts at Credit Suisse expect big-cap U.S. bank earnings to rise by around 22% over the three months ended in December from last year, but see a quarter-on-quarter decline of about 3%.
Citigroup and JPMorgan are holdings in Jim Cramer's Action Alerts portfolio. Want to be alerted before Jim Cramer buys or sells C or JPM? Learn more now.
3. -- Newmont Mining to Buy Goldcorp for $10 Billion in Stock
Newmont will acquire each Goldcorp share for 0.328 of a Newmont share, which represents a 17% premium based on the companies' 20-day volume weighted average share prices. With the inclusion of debt, the enterprise value of the deal is about $12.5 billion, with Newmont holding around 65% of the combined entity.
"This combination will create the world's leading gold business with the best assets, people, prospects and value-creation opportunities," said Newmont CEO Gary Goldberg. "We have a proven strategy and disciplined implementation plan to realize the full value of the combination, including an exceptional pool of talented mining professionals, stable and profitable gold production of six to seven million ounces over a decades-long time horizon, the sector's largest gold Reserve and Resource base, and a leading project and exploration pipeline."
Goldcorp shares were rising 9.4% to $10.60 in premarket trading Monday. Newmont fell 6.1% in premarket trading to $32.75.
Newmont Mining CEO Goldberg will stay on with the company until the deal with Goldcorp is closed, which the companies hope will happen in the first quarter of this year, but will then retire.
4. -- PG&E Announces Plan to File for Bankruptcy
PG&E Corp. (PCG) said Monday it plans to begin voluntary bankruptcy proceedings under Chapter 11 in the face of billions of dollars in potential liability for recent California wildfires.
In a statement, the California utility company said it intends to file petitions to reorganize under Chapter 11 on or about Jan. 29.
"PG&E expects that the Chapter 11 process will, among other things, support the orderly, fair and expeditious resolution of its potential liabilities resulting from the 2017 and 2018 Northern California wildfires, and will assure the company has access to the capital and resources it needs to continue to provide safe service to customers, the company said.
Under state law, passed only recently, the utility had to inform employees of a bankruptcy filing or any change in control of the company at least 15 days in advance.
The stock fell 41.8% in premarket trading to $10.24.
5. -- Digital First Media Offers to Buy Gannett for $12 a Share
MNG Enterprises Inc., better known as Digital First Media, offered to buy Gannett Co. Inc. (GCI) for $12 a share in cash, a bid that would value the USA Today publisher at around $1.4 billion.
MNG, which publishes the Denver Post and the Boston Herald, said it owns a 7.5% stake in Gannett through its managed investment account, making it the company's biggest shareholder. The company argued in a letter to shareholders Monday that "a series of value-destroying decisions made by an unfocused leadership team," including an "ill-fated hostile for Tribune Publishing" have hit the company's bottom line.
"With Gannett's CEO departing by May and its key digital executive leaving later this month, there's now an even greater leadership void," the letter stated. "Frankly, the team leading Gannett has not demonstrated that it's capable of effectively running this enterprise as a public company."
"Gannett shareholders cannot sit by and watch further value erode while the Board casts about for a strategy and a leader, especially when there is an opportunity to maximize value right now," the letter continued. "We believe Gannett shareholders deserve better."
Gannett shares, which have fallen around 3.65% over the past six months, rose 19.5% in premarket trading Monday to $11.65.