What's moving markets today
The rocky financial markets took their toll on Citigroup in the quarter. Will other banking giants get hit too?
Citi reported fourth-quarter earnings that topped forecasts Monday morning, but the bank's revenues were lower than what Wall Street was expecting due to a drop in its fixed-income trading division. Citi (C) stock fell in early trading on the news before turning slightly positive.
Bond trading revenue plunged more than 20% from a year ago as the markets grappled with the effects of another rate hike by the Federal Reserve. In a massive understatement, CEO Michael Corbat said in the earnings release that "a volatile fourth quarter impacted some of our market sensitive businesses."
Citi is the first major bank to report its fourth quarter earnings. So it will be interesting to see if its rivals were similarly hurt by the market madness late last year, especially with bonds. JPMorgan Chase (JPM) and scandal-ridden Wells Fargo (WFC) report results on Tuesday. Up later this week: investment banking kings Goldman Sachs (GS) and Morgan Stanley (MS), Bank of America (BAC) and ETF giant BlackRock (BLK).
Party like it's 1849? Gold has been outperforming the broader market for the past few months. And gold miners are looking to take advantage of the spike in the yellow metal's price by getting even bigger.
Newmont (NEM), a gold mining stock in the S&P 500, announced Monday it was buying rival Goldcorp (GG) for $10 billion. Shares of Newmont fell more than 5%, while Goldcorp surged 10%. The deal will create the world's largest miner and comes just a few months after Barrick Gold (GOLD) agreed to merge with Randgold in a deal worth $6 billion.
Gold prices have rallied lately due to global political turmoil, concerns about an economic slowdown in China and other international markets and a drop in US long-term bond yields. Investors often buy gold as a hedge when people are worried about the broader market and economy.
I recently spoke about that with CNN's Richard Quest on the CNN Business Markets Now digital show.
California's largest utility is facing billions of dollars in claims over the deadly 2018 Camp Fire. It cited at least $7 billion in claims from the fire, which caused 86 deaths and destroyed 14,000 homes.
Shareholders are generally wiped out in the bankruptcy process. Shares of PG&E were already down 63% since the start of the Camp Fire in November.
More from Brian Stelter's "Reliable Sources" newsletter about the buyer:
The would-be buyer is Digital First Media, which in turn is controlled by Alden Global Capital. The operation already owns dozens of local papers. It is notorious for slash-and-burn tactics. Last year, employees at the Denver Post garnered national support when they rose up against the "vultures" at Alden.
Digital First Media announced Monday that it's offering to buy Gannett for $12 a share — a 23% premium over Friday's closing price. The Wall Street Journal reported the news earlier.
The would-be buyer blasted Gannett in a release saying the management team "has not demonstrated that it is capable of effectively running it as a public company."
European Apple supplier Dialog Semiconductor (DLGNF) warned that its fourth quarter sales will be at the bottom of the range it forecast last year.
It's the latest sign that weak iPhone sales in China are having an effect on Apple (AAPL) suppliers that rely on the tech giant for orders.
Apple warned earlier this month that it would miss its sales target for the final quarter of 2018 by at least $5 billion, due to slower than expected sales in the world's second largest economy.
Despite the warning, Dialog Semiconductor shares in Frankfurt rose 2.8%.
US stock futures are pointing about 1% lower. China government data showed that the country's huge export industry suffered its worst month in two years in December, another sign of a slowdown. Stocks fell 0.7% in China and 1.4% in Hong Kong.
Adding to the poor showing in markets was a 1.7% month-over-month drop in eurozone industrial production in November. From Capital Economics:
The broad-based slump in industrial production in November underlines how serious the malaise is in Europe’s industrial sector.
The report only heightens concern about German economic data due out tomorrow: The European powerhouse might have slipped into recession at the end of 2018.
Also ahead: Citigroup (C) is the first big American bank to report this earnings season. It's set to release earnings before the open.