Citigroup, IBM reports to ignite market |
|
|
| Economy | |
| Written by Gary Howes | |
| Monday, 18 January 2010 | |
|
Trading volumes will be thin today, but tomorrow promises to be interesting.
Trading volumes in London are expected to be thin on Monday the 18th of January due to a public holiday in the US. Citigroup Inc closed lower by 2.56% on Friday as investors bet that tomorrows market update will offer little cheer. The dip at Citigroup comes in the wake of JPMorgan Chase (NYSE:JPM) results. Wall Street closed down sharply in the wake of JP Morgan Chases's fourth quarter figures, which beat forecasts but contained cautious comments about the retail arm and higher provisions. The investment bank reported earnings of $3.3bn in the last three months of 2009, up from $702m last year, driven by strong results from its investment banking business. Earnings per share came in at 74c per share for the quarter. Revenue rose 32% to $25.2bn from $19.1bn. But comments from chief executive Jamie Dimon over 2010 spooked the market. "While we are seeing some stability in delinquencies, consumer credit costs remain high, and weak employment and home prices persist. Accordingly, we remain cautious,” he added. The bank also added $1.9bn to consumer loan loss reserves, resulting in credit reserves of $32.5bn. Analysts said JPM's portfolio is the best in class, suggesting problems elsewhere in other banks could be even bigger. The loss in the consumer loans department is what has riled the Citigroup share price as this bank is heavily weighted in this department. That said with the share price being heavily discounted in the run up to the update, any hint of good news could see the shares rally. International Business MachinesInternational Business Machines (NYSE:IBM), known commonly as IBM, is also set to report fourth-quarter results tomorrow. Wall Street analysts are forecasting earnings of $3.47 per share on revenues of $26.96 billion. In the year-ago period, the company posted earnings from continuing operations of $3.28 per share and revenues of $27.0 billion. In mid-October, the company raised its fiscal 2009 earnings estimate to at least $9.85 per share from its prior forecast of at least $9.70 per share. IBM also said "We are optimistic about 2009 as we again raise our full-year expectations and we remain well ahead of pace for our 2010 roadmap of $10 to $11 per share."
|
|
Digg it! 
del.icio.us 
Newsvine 
Reddit 
Stumble It! 
