Citigroup is up first as big banks kick off fourth-quarter earnings


Thanks to Bloomberg news banks reporter should Busek. And let's check the outlook for other earnings in the week ahead now and for that we're joined by Bloomberg stock markets reporter. Sara, sarah. What are you going to be watching? Yes, there is no dearth of earnings next week. Of course, banks are kicking it off. But we'll also be hearing from United health for example on Tuesday. So United health was actually up thirteen percent last year. Think about that in a year when we had such a down year for the S and P five hundred and it's actually been up every single year since two thousand nine while Bloomberg intelligence is saying that this strong performance should actually continue likely. We have seen in the healthcare space and the four q earnings season should really focus on competition. Mergers and acquisitions and opportunities as we get into twenty nineteen. They also point out that are United health has more than seven billion dollars earmarked for deals in two thousand nineteen. So investors are really going to want to get a sense of what this money is going to be used for and what is going to be used and look at the company going forward. So what's your good medicine here? What's the secret for them? That's really great question. I think if it was so far out there. Than others. Okay. But at the same time I will point out though. United health has already given an earnings outlook for twenty nine thousand nine for this year. It's supposed to grow thirteen to fifteen percent. So seeing that there is a chance that four q earnings season could be a little bit less important. Okay. So what else are we looking for well on the United front? We also have United continental so switching over to be airline space. So that will also be on Tuesday. Actually. So don't get confused but United actually in the past week did regain its number two airline standing in the world just behind American and in the last week JP Morgan also upgraded United continental to overweight from neutral. So it'll be interesting to see what happens with United continental especially considering over the past couple of weeks. We have seen some cuts to revenue forecast from the likes of delta who will also be reporting next Tuesday as well. So with delta, I don't know how many surprises we should expect considering the fact that we already got a revenue forecast cut from the. The airline. But we also did get a revenue cut from American Airlines last week as well. So clearly investors are going to want to be seeing what is going on with airlines. What is the clear driver of the weakness that we are seeing with the airlines because typically you would think oil prices are low that would be good for margins for the airlines because that means that a lot of their costs are obviously lower the people are travelling less. Right, right. That's the worry. The worry is that is the consumer actually weaking especially since the fourth quarter takes into account the holiday period, why were consumers and typical flyers. Maybe flying less are why couldn't they get as much bang for their buck each seat for any other sector indicators to watch for another one that of course is the big names net flicks. So Netflix will be reporting on Thursday. Netflix has been one of the fame names that has really separated itself while we've almost seen weakness across the board. I guess not so much from Amazon either Netflix has been a strong. Standout thirty nine percent in two thousand eighteen and piper Jaffray is actually saying that the fourth quarter could be stronger than expected. They have an interesting way that they take in the data. And they look they actually look at Google search trends and the way they see it as they see domestic subscriber growth of eleven point five percent in the fourth quarter, which is higher than analysts are estimating. But either way Netflix has been a strong story. I think it would be a big surprise to see any weakness. Of course, investors will also be interested in what's going on with their platform, what they're going to be

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