JPMorgan, Citigroup, Visa, Toyota Recall and LSU - 5 Things You Must Know Tuesday

Stock futures slip; JPMorgan Chase, Citigroup and Wells Fargo report earnings; Visa pays $5.3 billion to buy fintech startup Plaid; LSU wins the college football national championship.
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Here are five things you must know for Tuesday, Jan. 14:

1. -- Stock Futures Slip as Bank Earnings Begin

Stock futures were lower as major U.S. banks began reporting earnings Tuesday and investors looked forward to the signing of the phase one U.S.-China trade agreement on Wednesday.

Reuters reported that the trade accord, which seeks to roll back tariffs on China-made goods while allowing for a notable increase in U.S. exports into the world's second-largest economy, details increased purchases of manufactured goods, services, energy and agricultural products worth around $200 billion over the next two years, compared with a baseline set prior to the trade war in 2017.

U.S. officials on Monday offered a goodwill gesture ahead of Wednesday's signing ceremony by removing the "currency manipulator" label it had slapped on China earlier this year, but said it hoped Beijing would take "decisive" steps to strengthen its yuan in the coming years.

The South China Morning Post reported that a social media account linked to the Chinese government has issued a note of caution ahead of the signing by saying that the “trade war is not over yet” and that it is “just the first round of a game."

Contracts linked to the Dow Jones Industrial Average fell 22 points, futures for the S&P 500 were down 4.45 points and Nasdaq futures declined 17.50 points.

Stocks ended higher Monday with the Nasdaq and S&P 500 closing at record highs as Wall Street awaited the U.S.-China phase one trade agreement that is expected to be signed Wednesday.

2. -- JPMorgan Chase, Citigroup and Wells Fargo Report Earnings

JPMorgan Chase  (JPM) - Get Report earned $2.57 a share in the fourth quarter, beating analysts' estimates of $2.35.

Delta Air Lines  (DAL) - Get Report earned $1.70 a share on an adjusted basis in the fourth quarter. Analysts expected the airline to post a profit of $1.40.

Citigroup  (C) - Get Report and Wells Fargo WFC are also scheduled to report earnings Tuesday.

JPMorgan Chase and Citigroup 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 economic calendar in the U.S. Tuesday includes the Consumer Price Index for December at 8:30 a.m. ET. Economists surveyed by FactSet expect consumer prices in December to have risen 0.3%, with a 2.3% increase year over year. Core CPI for December, which excludes food and energy prices, is forecast to rise 0.2%. 

3. -- Visa to Buy Fintech Startup Plaid for $5.3 Billion

Visa  (V) - Get Report reached an agreement to acquire privately held Plaid for $5 billion in a move that will give it more access to tools that connect user applications with financial accounts.

The price is nearly double Plaid’s latest valuation.

Visa said it will fund the transaction “from cash on hand and debt issuance at the appropriate time.” The company added the deal “will have no impact on Visa’s previously announced stock buyback program or dividend policy. The transaction is expected to close in the next three to six months.”

Plaid is a data network used many financial apps and services including Acorns, Betterment, Expensify and Venmo. The San Francisco company was founded in 2013 by Zach Perret and William Hockey.

In December 2018, the company executed a $250 million funding round that valued it at about $2.65 billion. The round was led by venture capitalist Mary Meeker who joined Plaid's board. Goldman Sachs  (GS) - Get Report also is a backer of the company.

4. -- Toyota to Recall 700,000 Vehicles in U.S. to Fix Faulty Fuel Pumps

Toyota  (TM) - Get Report plans to recall nearly 700,000 vehicles in the U.S. because the fuel pumps can fail and cause engines to stall, increasing the risks of a crash.

The recall covers certain 2018 and 2019 Lexus LS 500, LC 500, RC 350, RC 300, GS 350, IS 300, ES 350, LX 570, GX 460, and RX 350 models. Also included are certain 2018 and 2019 Toyota 4Runner, Camry, Highlander, Land Cruiser, Sequoia, Sienna, Tacoma, and Tundra models. Some 2019 models also affected include the Avalon and Corolla.

Toyota is still working on repairs, according to the Associated Press. Car owners will be notified by mail in mid-March.

5. -- LSU Rolls Past Clemson to Win National Title

The Louisiana State Tigers on Monday beat Clemson 42-25 and capped what was a historic season, going 15-0 for the first time in program history and capturing the team's fourth college football national championship.

Heisman Trophy winner Joe Burrow passed for 463 yards, threw five touchdown passes and finished the game with no turnovers. He set new national title game records for passing yards and touchdowns. 

Burrow also threw 60 TD passes during the season, setting a new single-season record for touchdown passes.