Dow component Johnson & Johnson (JNJ) earnings and existing home sales for December will be the focal points for investors Wednesday.
J&J will report fourth-quarter financial results ahead of the market open, and analysts surveyed by Bloomberg expect the company to report adjusted earnings of $1.87 per share on $20.87 billion in revenue. While fourth-quarter results will be important, investors and analysts will be paying close attention to the company’s guidance for 2020. Wall Street expects 2020 adjusted earnings of $9.09 per share on $85.39 billion.
Investors will also eye J&J’s pharmaceuticals business, as some investors have said that they expect the company to focus less on its consumer business. Johnson & Johnson’s device business recovery should remain intact, according to analysts. Shares of J&J rose 17% over the past 12 months and have underperformed the broader market, which advanced 27% in the same time period.
Existing home sales
On the economic data front, the U.S. National Association of Realtors will release December existing home sales data shorting after the market open. Economists polled by Bloomberg expect existing home sales in December edged up 1.5% from the prior month. The housing market has been getting a boost from low interest rates but that could start to decline in the near term, according to economists.
“Strong consumer fundamentals and the positive impact from recent declines in long-term interest rates likely supported a rise in existing home sales in December,” Nomura wrote in a note to clients Jan. 17. “We expect the boost from declines in interest rates to wane relatively quickly in the near term. Moreover, consumers continued to indicate concerns over home affordability. The ongoing affordability concerns despite the recent fall in mortgage rates partly reflect lean inventories compared with historical data, in our view.”
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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