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01/02/23 Briefing

Updated: Feb 2, 2023

The S&P 500 futures are down 9 points and are trading 0.2% below fair value. The Nasdaq 100 futures are down 2 points and are trading roughly in line with fair value. The Dow Jones Industrial Average futures are down 116 points and are trading 0.3% below fair value. 

Equity futures indicate a lower open as investors await the FOMC policy decision at 2:00 p.m. ET. Market participants are largely expecting a 25 basis point increase to bring the fed funds rate to 4.50- 4.75%. The hesitation in play this morning is connected to Fed Chair Powell's press conference and what tone he might take about the Fed's path forward. 

Investors are also digesting some mixed earnings news, which is receiving mixed reactions. However, selling has been more pronounced than buying, adding to the sense that the market got ahead of itself with the January rally.

Eurozone CPI and core CPI trended better than expected and Manufacturing PMI readings from Italy and France returned into expansionary territory (i.e. above-50 readings).

Market participants will receive some closely watched employment data this morning in the form of the January ADP Employment Change at 8:15 a.m. ETand the December JOLTS - Job Openings at 10:00 a.m. ET. Also, the  January ISM Manufacturing Index will be released at 10:00 a.m. ET.

The weekly MBA Mortgage Application Index fell 9.0% with purchase applications declining 10.0% and refinancing applications falling 7.0%.

In corporate news:

  • Snap (SNAP 9.83, -1.73, -15.0%): beats by $0.02, reports revs in-line; internal forecast for Q1 revenue below consensus; not providing Q1 EBTIDA guidance

  • Peloton (PTON 13.69, +0.76, +5.9%): misses by $0.34, beats on revs; guides Q3 revs in-line

  • Adv. Micro Devices (AMD 77.79, +2.64, +3.5%): beats by $0.02, beats on revs; guides Q1 revs in-line

  • Western Digital (WDC 42.22, -1.73, -3.9%): misses by $0.29, beats on revs; guides MarQ EPS below consensus, revs below consensus; announces $900 million convertible preferred equity investment led by Apollo-Managed Funds

  • Match Group (MTCH 49.54, -4.58, -8.5%): misses by $0.33, reports revs in-line; guides Q1 revs below consensus; guides FY23 revs in-line

  • Juniper Networks (JNPR 31.53, -0.77, -2.4%): reports EPS in-line, misses on revs; guides Q1 EPS in-line, revs in-line

  • Electronic Arts (EA 116.00, -12.68, -9.9%): beats by $0.23, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Baidu (BIDU 144.83, +10.15, +7.5%): Blackrock increased passive stake to 6.6% (prior 3.5%)

  • Mondelez Int'l (MDLZ 66.92, +1.48, +2.3%): beats by $0.03, beats on revs; to sell developed markets gum business in the U.S., Canada and Europe to Perfetti Van Melle

  • Waste Mgmt (WM 150.88, -3.85, -2.5%): misses by $0.12, reports revs in-line; guides FY23 revs below consensus; intends to raise dividend

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: +1.1%, China's Shanghai Composite: +0.9%, India's Sensex: +0.3%, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: +0.3%.

    • In economic data:

      • China's January Caixin Manufacturing PMI 49.2 (expected 49.5; last 49.2)

      • Japan's January Manufacturing PMI 48.9, as expected (last 48.9)

      • South Korea's January trade deficit $12.69 bln (expected deficit of $9.27 bln; last deficit of $4.69 bln). January Imports -2.6% yr/yr (expected -3.6%; last -2.5%) and Exports -16.6% yr/yr (expected -11.3%; last -9.6%). January Nikkei Manufacturing PMI 48.5 (last 48.5)

      • India's January Manufacturing PMI 55.4 (expected 57.4; last 57.8)

      • Hong Kong's Q4 GDP 0.0% qtr/qtr (last -2.6%); -4.2% yr/yr (last -4.5%)

      • Australia's January Manufacturing PMI 50.0 (expected 49.8; last 50.2)

      • New Zealand's Q4 Employment Change 0.2% qtr/qtr (expected 0.3%; last 1.3%). Q4 Unemployment Rate 3.4% (expected 3.3%; last 3.3%) and Q4 Labor Cost Index 1.1% qtr/qtr (expected 1.2%; last 1.1%); 4.3% yr/yr, as expected (last 3.8%)

    • In news:

      • China's Caixin Manufacturing PMI remained in contraction for the sixth consecutive month while Japan's Manufacturing PMI contracted for the third month in a row.

      • Foxconn's chairman said that the first half of the year will be challenging, but a rebound in the second half is possible.

      • Reserve Bank of Australia chief economist Kohler said that inflation peaked in Q4.

      • Expectations for a 75 bps February rate hike from the Reserve Bank of New Zealand are decreasing after weaker than expected employment figures for Q4.

  • Major European indices trade in positive territory. STOXX Europe 600: +0.3%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +1.0%.

    • In economic data:

      • Eurozone's January CPI -0.4% m/m (expected -0.3%; last -0.4%); 8.5% yr/yr (expected 9.0%; last 9.2%). January Core CPI -0.8% m/m (expected -0.2%; last 0.6%); 5.2% yr/yr (expected 5.4%; last 5.2%). December Unemployment Rate 6.6% (expected 6.5%; last 6.6%). January Manufacturing PMI 48.8, as expected (last 47.8)

      • Germany's January Manufacturing PMI 47.3 (expected 47.0; last 47.1)

      • U.K.'s January Nationwide HPI -0.6% m/m (expected -0.3%; last -0.3%); 1.1% yr/yr (expected 1.9%; last 2.8%)

      • France's January Manufacturing PMI 50.5 (expected 50.8; last 49.2)

      • Italy's January CPI 0.2% m/m (expected 0.1%; last 0.3%); 10.1% yr/yr, as expected (last 11.6%). January Manufacturing PMI 50.4 (expected 49.6; last 48.5)

      • Spain's January Manufacturing PMI 48.4 (expected 48.0; last 46.4)

      • Swiss January procure.chPMI 49.3 (expected 54.8; last 54.1)

    • In news:

      • Manufacturing PMI readings from Italy and France returned into expansionary territory while the reading for the eurozone remained below 50.0.

      • There is renewed hope that a solution will be found to the dispute surrounding the Northern Ireland protocol.

      • Unions in France are planning to protest the recently announced pension reform on February 7and 11.

 

U.S. equity futures:

  • S&P 500 Futures: -10 @ 4,066

  • DJIA Futures: -132 @ 33,954

  • Nasdaq 100 Futures: -10 @ 12,092

Overseas:

  • Europe: DAX +0.3% FTSE +0.2%, CAC +0.2%

  • Asia: Nikkei +0.1%, Hang Seng +1.1%, Shanghai Composite +0.9%

Commodities:

  • Crude Oil +0.36 @ 79.23

  • Nat Gas -0.015 @ 2.669

  • Gold 0.00 @ 1945.30

  • Silver -0.194 @ 23.642

  • Copper -0.0373 @ 4.1887

 

Earnings/Guidance:

  • Advanced Micro (AMD) beats by $0.02, beats on revs; guides Q1 revs in-line

  • Altria (MO) beats by $0.02, misses on revs; guides FY23 EPS in-line

  • Amdocs (DOX) beats by $0.11, reports revs in-line; guides MarQ EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line

  • AmerisourceBergen (ABC) beats by $0.08, reports revs in-line; raises FY23 EPS guidance in-line

  • Amgen (AMGN) reports EPS in-line, beats on revs; guides FY23 EPS in-line, revs in-line

  • Artisan Partners Asset Mgmt (APAM) beats by $0.03, beats on revs; declares special dividend

  • Ashland (ASH) beats by $0.03, beats on revs; reaffirms FY23 revs guidance; to repurchase up to $100 mln of its $500 mln share repurchase authorization beginning in February

  • Atkore International (ATKR) beats by $0.63, beats on revs; raises FY23 EPS above consensus

  • Boston Properties (BXP) beats by $0.02, beats on revs; guides Q1 FFO below consensus; guides FY23 FFO below consensus

  • Boston Scientific (BSX) misses by $0.02, reports revs in-line; guides Q1 EPS midpoint below consensus; guides FY23 EPS midpoint below consensus, revs in-line

  • Brinker (EAT) beats by $0.24, beats on revs; raises FY23 EPS midpoint above consensus, raises revs above consensus

  • Canadian Pacific (CP) beats by $0.06, reports revs in-line

  • Casey's General (CASY) issues Q3 update, says quarter-to-date performance remains consistent with expectations for full year; Same-store inside sales for Q3 are in lower half of company's annual range of a 5-7% increase

  • CGI Group (GIB) beats by CAD0.06, beats on revs

  • Chubb (CB) misses by $0.20

  • Columbus McKinnon (CMCO) beats by $0.11, reports revs in-line; guides Q4 revs in-line

  • Credit Acceptance Corp. (CACC) beats by $1.68, beats on revs

  • Dorian LPG (LPG) beats by $0.26, beats on revs, announces irregular cash dividend of $1.00/share on its common stock

  • Dynatrace (DT) beats by $0.04, beats on revs; guides Q4 EPS above consensus, revs above consensus; raises FY23 EPS above consensus, revs above consensus

  • Edwards Lifesciences (EW) beats by $0.03, beats on revs; guides Q1 EPS in-line, revs in-line; reaffirms FY23 EPS guidance, revs guidance

  • Electronic Arts (EA) beats by $0.23, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Enterprise Products (EPD) beats by $0.02, misses on revs

  • Evercore (EVR) beats by $0.96, beats on revs

  • Fortive (FTV) beats by $0.04, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY23 EPS in-line, revs in-line

  • GlaxoSmithKline (GSK) beats by GBP0.04, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Hawaiian Holdings (HA) beats by $0.21, reports revs in-line; sees Q1 ASMs up 14-17%

  • Houlihan Lokey (HLI) beats by $0.02, misses on revs

  • Humana (HUM) beats by $0.16, reports revs in-line; guides FY23 EPS in-line

  • IDEX Corp (IEX) beats by $0.04, beats on revs; guides Q1 EPS below consensus; guides FY23 EPS in-line

  • Johnson Controls (JCI) reports EPS in-line, misses on revs; guides Q2 EPS below consensus; guides FY23 EPS in-line

  • Juniper Networks (JNPR) reports EPS in-line, misses on revs; guides Q1 EPS in-line, revs in-line

  • Li Auto (LI) reports January deliveries rose 23.4% yr/yr

  • Match Group (MTCH) misses by $0.33, reports revs in-line; guides Q1 revs below consensus; guides FY23 revs in-line

  • Mercury (MRCY) misses by $0.06, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS midpoint above consensus, revs in-line; initiates review of strategic alternatives

  • Mondelez Int'l (MDLZ) beats by $0.03, beats on revs; to sell developed markets gum business in the U.S., Canada and Europe to Perfetti Van Melle

  • Natl Instruments (NATI) misses by $0.01, misses on revs; guides Q1 EPS above consensus, revs in-line

  • NIO (NIO) reports January deliveries of 8,506 vehicles

  • Novartis AG (NVS) beats by $0.11, misses on revs; guides FY23 revs in-line

  • Novo Nordisk A/S (NVO) beats on top and bottom lines; provides outlook for FY23; approves new share repurchase

  • O-I Glass (OI) beats by $0.06, beats on revs; guides Q1 EPS above consensus; guides FY23 EPS above consensus

  • Old Dominion (ODFL) beats by $0.25, reports revs in-line, also increases dividend by 33%

  • Otis Worldwide (OTIS) reports EPS in-line, beats on revs; guides FY23 EPS in-line, revs in-line

  • Peloton (PTON) misses by $0.34, beats on revs; guides Q3 revs in-line

  • RenaissanceRe (RNR) beats by $1.00, beats on revs

  • Scotts Miracle-Gro (SMG) beats by $0.32, beats on revs

  • Silicon Labs (SLAB) beats by $0.33, beats on revs; guides Q1 EPS above consensus, revs above consensus

  • Snap (SNAP) beats by $0.02, reports revs in-line; internal forecast for Q1 revenue below consensus; not providing Q1 EBTIDA guidance

  • Spire (SR) beats by $0.48, beats on revs; guides FY23 EPS above consensus

  • Stryker (SYK) beats by $0.16, beats on revs; guides FY23 EPS above consensus

  • Super Micro Computer (SMCI) beats by $0.23, beats on revs; guides Q3 EPS in-line, revs below consensus; reaffirms FY23 EPS guidance, revs guidance

  • Thermo Fisher (TMO) beats by $0.20, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • T-Mobile US (TMUS) beats by $0.12, misses on revs; provides FY23 guidance

  • Triumph Group (TGI) beats by $0.01, beats on revs; guides FY23 EPS in-line, revs in-line

  • Unum Group (UNM) misses by $0.04, reports revs in-line

  • Vale S.A. (VALE) provides Q4 operations update

  • Varex Imaging (VREX) beats by $0.02, reports revs in-line; guides MarQ EPS below two analyst estimate, revs in-line

  • Vodafone PLC (VOD) provides Q3 trading update; slight miss on revs

  • Waste Mgmt (WM) misses by $0.12, reports revs in-line; guides FY23 revs below consensus; intends to raise dividend

  • Western Digital (WDC) misses by $0.29, beats on revs; guides MarQ EPS below consensus, revs below consensus

  • WestRock (WRK) misses by $0.05, misses on revs

  • XPeng (XPEV) reports January deliveries of 5,218 Smart EVs

News:

  • Jeffrey Gundlach thinks Fed will push back against narrative that it will soon stop hiking rates, according to Bloomberg

  • President Biden will ask House Speaker Kevin McCarthy for specific spending cut recommendations at today's meeting, according to the New York Times

  • Nikki Haley will announce that she will seek the Republican nomination for President. She will host an event in Charleston, SC on February 15, according to Fox News

  • US will provide Ukraine with longer range ammunition, according to Bloomberg

  • Gartner says worldwide PC shipments to slip 7% in 2023 following a 16% drop in 2022

  • The Biden administration will allow scaled down oil drilling in the North Slope of Alaska, according to the New York Times

  • US offices reach 50% occupancy for first time since pandemic began, according to Bloomberg

  • Macau Gaming Inspection and Coordination Bureau reported January 2022 gross revs +83% yr/yr to HKD 11.580 bln versus -56% in December of 2022

  • Steaks and hamburgers are likely to be more expensive for years due to cattle shortages, according to Bloomberg

  • Amazon (AMZN) layoffs are impacting workers in several divisions, according to CNBC

  • Apple (AAPL) developing new micro LED technology, according to Digitimes

  • Apyx Medical (APYX) has submitted a 510(k) premarket notification for the Renuvion APR Handpiece to the U.S. FDA, supported by a clinical study and real-world evidence

  • BAE Systems (BAESY) awarded $652 mln U.S. Air Force contract modification

  • Baidu (BIDU): Blackrock increased passive stake to 6.6% (prior 3.5%)

  • Bausch + Lomb (BLCO) and Modulight Corporation announce that the U.S. FDA has approved the ML6710i photodynamic laser for equivalent use with Bausch + Lomb's VISUDYNE

  • CGI (GIB) renews its Normal Course Issuer Bid

  • Civeo (CVEO) announces contract award in Australia with expected revenues of approx A$337 mln

  • Comcast's (CMCSA) Peacock ends its free tier open for new customers, according to Tech Crunch

  • Darling Ingredients (DAR) and Valero Energy Corporation (VLO) announce that the companies have made the final investment decision on a Sustainable Aviation Fuel project at the Diamond Green Diesel Port Arthur plant

  • Electronic Arts (EA) stopping development on Apex Mobile Legends and Battlefield Mobile

  • Evelo Biosciences (EVLO) provides clinical and business updates; EDP1815-207 trial failed to meet the primary endpoint

  • Fortuna Silver Mines (FSM): Sgula Project on-track for commissioning in the second quarter

  • Fox Corporation (FOXA): Tubi has signed a content deal with Warner Bros. Discovery (WBD) that will add 14 WB branded FAST channels and over 225 AVOD titles totaling over 2,000 hours to the platform

  • General Dynamics (GD) awarded $482 mln U.S. Army hybrid contract

  • GlaxoSmithKline (GSK) granted Orphan Drug Designation for Benlysta

  • Google (GOOG) aiming to test ChatGPT competitor, according to CNBC

  • GreenLight Biosciences (GRNA) recieves regulatory approval from the Rwanda FDA to start a Phase I/II clinical trial of its vaccine candidate against Covid-19, as a booster to previously vaccinated individuals

  • Healthcare Realty (HR) announces the completion of $112.5 mln of asset sales in January for net proceeds of $102.8 mln after accounting for HR's joint venture interest

  • Horizon Pharma (HZNP) and Amgen (AMGN) confirm receipt of second request by FTC

  • Icahn Enterprises L.P. (IEP) Issues Statement Regarding Auto Plus

  • Mercury (MRCY) announces that Michael Ruppert, Executive Vice President, Chief Financial Officer, and Treasurer, will step down from the Company, effective February 17, 2023, to accept an opportunity at a private company

  • Mesoblast (MESO) resubmits BLA to FDA for Remestemcel-L

  • Noble Corporation plc (NE) announces changes to its share capital

  • Old Dominion (ODFL) announces Chief Executive Officer transition

  • Prothena (PRTA) Reports Topline Phase 1 Single Ascending Dose Study Results of PRX005, a Novel Anti-MTBR-Tau Antibody for the Potential Treatment of Alzheimer's Disease

  • Rallybio (RLYB) announces that Jonathan I. Lieber will join as the Company's Chief Financial Officer, effective February 1, 2023

  • Stoneridge (SRI) CEO resigns; names Jim Zizelman as President and CEO

  • Taysha Gene Therapies (TSHA) provides an update on the TSHA-120 program in giant axonal neuropathy and a corporate outlook for 2023

  • TC Energy (TRP) provides project update for Coastal GasLink

  • TechnipFMC (FTI) has been awarded a large integrated Engineering, Procurement, Construction, and Installation contract by Aker BP for its Utsira High development

  • Tesla (TSLA) likely to invest in Indonesia, according to Reuters

  • Tesla (TSLA) aiming to increase output at Shanghai factory, according to Reuters

  • Transocean (RIG) announces $392 mln contract award for Ultra-Deepwater Drillship; expected to commence in the third quarter of 2023

  • Valero Energy (VLO) increases quarterly cash dividend to $1.02/share from $0.98/share

  • Visa (V): Deals with PayPal (PYPL) cause further DOJ scrutiny, according to Bloomberg Law

M&A:

  • Atlas Technical Consultants (ATCX) to be acquired for $12.25 per share

  • Qualtrics (XM) indicated higher after Silver Lake amends 13D; intends to submit proposal that could result in acquisition of outstanding stock

  • Veeco Instruments (VECO) announces that on January 31, 2023, it acquired Epiluvac AB for $30 mln paid at the time of closing with a potential additional $35 mln in performance based earn-outs

Syndicate:

  • ABB Ltd (ABB) reports E-mobility raises additional CHF325 million from four investors in second and final round of pre-IPO private placement

  • Diamondback Energy (FANG) files for 4,329,798 share common stock offering by selling shareholders

  • ShiftPixy (PIXY) files for $100 mln mixed securities shelf offering

  • Skeena Resources (SKE) files for $200 mln mixed securities shelf offering

  • Western Digital (WDC) announces $900 million convertible preferred equity investment led by Apollo-Managed Funds

IPOs:

  • Expected to Price:

    • No IPOs expected.

Gapping Up/Down

  • Gapping up:

    • MESO +14.8%, OI +7.1%, GRND +6.5%, LI +6%, ATKR+6%, SRI +5%, RLYB +4.9%, AMD +4.1%, XPEV+3.8%, RIG +2.7%, SYK +2.6%, MDLZ +2.4%, TMO+2.4%, NIO +1.8%, EW +1.7%, APAM +1.7%, NMR+1.5%, DAR +1.4%, CACC +1.4%, CVLG +1.2%, LPG+0.8%, OTIS +0.8%, SBCF +0.7%, ROKU +0.6%, ODFL+0.5%

  • Gapping down:

    • TSHA -22%, SNAP -15%, EA -11.2%, MTCH -9.3%, PSTX -8%, HA -7.8%, AUY -6.6%, VREX -5.5%, PIXY-5.2%, WDC -4.5%, NVS -3.1%, ITGR -3%, UNM -3%, BMBL -2.9%, VOD -2.8%, PINS -2.5%, HLI -2.4%, WM -2.2%, BXP -2.1%, TTWO -2%, MRCY -1.8%, JNPR -1.5%, TTD -1.4%, JWN -1.4%, META -1.3%, FTI -1.2%, ASH -1.2%, PUBM -1%, GSK -0.9%, STX-0.8%, MGNI -0.7%, PAAS -0.7%

 


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • First Interstate Bancsystem (FIBK) upgraded to Overweight from Equal-Weight at Stephens; tgt lowered to $43

    • Foot Locker (FL) upgraded to Outperform from Neutral at Credit Suisse; tgt raised to $62

    • Hubbell (HUBB) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $205

    • Magna (MGA) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $74

    • NeoGenomics (NEO) upgraded to Buy from Hold at Needham; tgt $15

    • Primis Financial (FRST) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $14

    • TransUnion (TRU) upgraded to Buy from Neutral at BofA Securities; tgt raised to $91

    • Wintrust Fin (WTFC) upgraded to Outperform from Market Perform at Hovde Group; tgt $108

  • Downgrades:

    • American Electric (AEP) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $99

    • Cognex (CGNX) downgraded to Neutral from Buy at Northcoast

    • Cushman & Wakefield (CWK) downgraded to Peer Perform from Outperform at Wolfe Research

    • Edison (EIX) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $73

    • Equitrans Midstream (ETRN) downgraded to Sell from Buy at Goldman; tgt lowered to $6

    • Funko (FNKO) downgraded to Sell from Neutral at Goldman; tgt lowered to $8.50

    • Getty Realty Corp. (GTY) downgraded to Neutral from Buy at BTIG Research

    • Hasbro (HAS) downgraded to Neutral from Buy at Goldman; tgt $64

    • Jones Lang LaSalle (JLL) downgraded to Peer Perform from Outperform at Wolfe Research

    • Moody's (MCO) downgraded to Mkt Perform from Outperform at Raymond James

    • Natl Instruments (NATI) downgraded to Neutral from Outperform at Robert W. Baird; tgt raised to $55

    • Snap (SNAP) downgraded to Hold from Buy at The Benchmark Company

    • Snap (SNAP) downgraded to Neutral from Buy at UBS; tgt $10

    • Taysha Gene Therapies (TSHA) downgraded to Hold from Buy at Jefferies; tgt lowered to $1.50

    • Veradigm (MDRX) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $18.50

    • VolitionRx (VNRX) downgraded to Hold from Buy at The Benchmark Company

    • Walker & Dunlop (WD) downgraded to Peer Perform from Outperform at Wolfe Research

    • WSFS Financial (WSFS) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $52

  • Others:

    • Beam Therapeutics (BEAM) initiated with an Overweight at Cantor Fitzgerald; tgt $62

    • Editas Medicine (EDIT) initiated with an Overweight at Cantor Fitzgerald; tgt $15

    • General Mills (GIS) initiated with a Neutral at Mizuho; tgt $75

    • Intellia Therapeutics (NTLA) initiated with an Overweight at Cantor Fitzgerald; tgt $67

    • James Hardie (JHX) initiated with a Buy at Goldman

    • Mattel (MAT) assumed with a Buy at Goldman; tgt $26

    • New Fortress Energy (NFE) initiated with a Buy at BofA Securities; tgt $67

    • Rocket Pharmaceuticals (RCKT) initiated with an Overweight at Morgan Stanley; tgt $45

    • Shopify (SHOP) initiated with a Sector Perform at Scotiabank; tgt $43

    • Verve Therapeutics (VERV) initiated with a Neutral at Cantor Fitzgerald; tgt $21

Upcoming Events:

  • Econ Data:

    • 07:00 ET: MBA Mortgage Applications Index for Jan 28 (Briefing.comConsensus NA; Prior 7.0%)

    • 08:15 ET: ADP Employment Change for Jan (Briefing.comConsensus 170K; Prior 235K)

    • 09:45 ET: IHS Markit Manufacturing PMI - Final for Jan (Briefing.comConsensus NA; Prior 46.8)

    • 10:00 ET: Construction Spending for Dec (Briefing.comConsensus 0.0%; Prior 0.2%)

    • 10:00 ET: ISM Manufacturing Index for Jan (Briefing.comConsensus 48.0%; Prior 48.4%)

    • 10:00 ET: JOLTS  - Job Openings for Dec (Briefing.comConsensus NA; Prior 10.458M)

    • 10:30 ET: EIA Crude Oil Inventories for Jan 28 (Briefing.comConsensus NA; Prior 0.533M)

    • 14:00 ET: FOMC Rate Decision (Briefing.comConsensus 4.50-4.75%; Prior 4.25-4.50%)

  • Earnings:

    • Monday (Jan 30)

      • Morning:  BEN GEHC PHG SOFI

      • Afternoon: AGNC ARE CADE ELS GGG HLIT HTLF HP JJSF NXPI PCH PFG SANM WHR WWD

    • Tuesday (Jan 31)

      • Morning: AOS ALGM CAT CVLT GLW DOV AQUA XOM GM HUBB IMO IP KEX LII MAN MPC MCD MDC MCO MPLX MSCI NYCB NVR PNR PFE PSX PBI PII PHM ST SPOT SYY UBS UPS

      • Afternoon:  AMD DOX AMGN APAM ASH BXP CP CB CACC EW EA HA IEX JNPR MTCH MRCY MDLZ NATI OI RNR SNAP SYK SMCI UNM VREX WDC

    • Wednesday (Feb 1)

      • Morning:  MO ABC ATKR BSX EAT GIB CMCO DT EPD EVR FTV HUM JCI NVS ODFL OTIS PTON SMG SLAB SR TMUS TMO TGI WM WRK

      • Afternoon:  EGHT AFL ALGN ALGT ALL AFG AVT BHE BDN CHRW CCS CHX CLB CTVA DXC ELF ENVA GL THG HOLX KRC KLIC LSTR LFUS MXL MCK MTH META MET MTG MAA MUSA NTGR PTC QRVO RYN RRX SLM SITM TTEK TBI UGI VSTO

Asia & Europe detail:

Asia: Nikkei +0.1%, Hang Seng +1.1%, Shanghai Composite +0.9%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. China's Caixin Manufacturing PMI remained in contraction for the sixth consecutive month while Japan's Manufacturing PMI contracted for the third month in a row. Foxconn's chairman said that the first half of the year will be challenging, but a rebound in the second half is possible. Reserve Bank of Australia chief economist Kohler said that inflation peaked in Q4. Expectations for a 75 bps February rate hike from the Reserve Bank of New Zealand are decreasing after weaker than expected employment figures for Q4.

  • In economic data:

    • China's January Caixin Manufacturing PMI 49.2 (expected 49.5; last 49.2)

    • Japan's January Manufacturing PMI 48.9, as expected (last 48.9)

    • South Korea's January trade deficit $12.69 bln (expected deficit of $9.27 bln; last deficit of $4.69 bln). January Imports -2.6% yr/yr (expected -3.6%; last -2.5%) and Exports -16.6% yr/yr (expected -11.3%; last -9.6%). January Nikkei Manufacturing PMI 48.5 (last 48.5)

    • India's January Manufacturing PMI 55.4 (expected 57.4; last 57.8)

    • Hong Kong's Q4 GDP 0.0% qtr/qtr (last -2.6%); -4.2% yr/yr (last -4.5%)

    • Australia's January Manufacturing PMI 50.0 (expected 49.8; last 50.2)

    • New Zealand's Q4 Employment Change 0.2% qtr/qtr (expected 0.3%; last 1.3%). Q4 Unemployment Rate 3.4% (expected 3.3%; last 3.3%) and Q4 Labor Cost Index 1.1% qtr/qtr (expected 1.2%; last 1.1%); 4.3% yr/yr, as expected (last 3.8%)

---Equity Markets---

  • Japan's Nikkei: +0.1%

  • Hong Kong's Hang Seng: +1.1%

  • China's Shanghai Composite: +0.9%

  • India's Sensex: +0.3%

  • South Korea's Kospi: +1.0%

  • Australia's ASX All Ordinaries: +0.3%

---FX---

  • USD/JPY: -0.2% to 129.79

  • USD/CNH: -0.2% to 6.7451

  • USD/INR: +0.2% to 81.90

 

Europe: DAX +0.3% FTSE +0.2%, CAC +0.2%

Major European indices trade in positive territory. Manufacturing PMI readings from Italy and France returned into expansionary territory while the reading for the eurozone remained below 50.0. There is renewed hope that a solution will be found to the dispute surrounding the Northern Ireland protocol. Unions in France are planning to protest the recently announced pension reform on February 7and 11.

  • In economic data:

    • Eurozone's January CPI -0.4% m/m (expected -0.3%; last -0.4%); 8.5% yr/yr (expected 9.0%; last 9.2%). January Core CPI -0.8% m/m (expected -0.2%; last 0.6%); 5.2% yr/yr (expected 5.4%; last 5.2%). December Unemployment Rate 6.6% (expected 6.5%; last 6.6%). January Manufacturing PMI 48.8, as expected (last 47.8)

    • Germany's January Manufacturing PMI 47.3 (expected 47.0; last 47.1)

    • U.K.'s January Nationwide HPI -0.6% m/m (expected -0.3%; last -0.3%); 1.1% yr/yr (expected 1.9%; last 2.8%)

    • France's January Manufacturing PMI 50.5 (expected 50.8; last 49.2)

    • Italy's January CPI 0.2% m/m (expected 0.1%; last 0.3%); 10.1% yr/yr, as expected (last 11.6%). January Manufacturing PMI 50.4 (expected 49.6; last 48.5)

    • Spain's January Manufacturing PMI 48.4 (expected 48.0; last 46.4)

    • Swiss January procure.chPMI 49.3 (expected 54.8; last 54.1)

---Equity Markets---

  • STOXX Europe 600: +0.3%

  • Germany's DAX: +0.3%

  • U.K.'s FTSE 100: +0.2%

  • France's CAC 40: +0.2%

  • Italy's FTSE MIB: +0.6%

  • Spain's IBEX 35: +1.0%

---FX---

  • EUR/USD: +0.3% to 1.0893

  • GBP/USD: UNCH at 1.2324

  • USD/CHF: UNCH at 0.9158


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