U.S. equities are back on the defensive
U.S. equities are back on the defensive after weak China trade data brought home the trade war, while the first rounds of corporate earnings reports began to trickle out with the release of Citigroup. Citi -0.5% saw EPS surge to $1.64 from $1.55, helped in part by tax cuts, though trading revenues fell 14% after volatility in December. Stocks were mixed in Asia after a 0.9% gain on Japan's Nikkei and 0.8% drop on China's CSI 300, while in Europe stocks are mostly lower by 0.6-1.0%. The Dow is 173-points lower, S&P sank 18-points and NASDAQ is off 55-points ahead of the opening bell. The trade miss in China reverberated on large cap Chinese listings in the U.S., along with the semiconductor and FAANG sectors. PG&E shares were halved again following its announced plans to file bankruptcy and departure of its CEO. Newmont confirmed plans to purchase Goldcorp of Canada for $10 B. The U.S. docket remains quiet with the ongoing government shutdown and no Fedspeak until Tuesday.