The S&P 500 futures are up 15 points and are trading 0.4% above fair value. The Nasdaq 100 futures are up 170 points and are trading 1.4% above fair value. The Dow Jones Industrial Average futures are down 147 points and are trading 0.4% below fair value.
Equity futures are mixed largely due to mixed reactions to the latest slate of earnings news. A big gain in Meta Platforms (META), along with other mega cap stocks trading up in solidarity, helps to boost the Nasdaq 100 futures and S&P 500 futures while losses in Honeywell (HON) and Merck (MRK) weigh on the Dow Jones Industrial Average futures.
Treasury yields are still moving lower after yesterday's rally on the heels of Fed Chair Powell's comments. The 2-yr note yield is down three basis points to 4.08% and the 10-yr note yield is down two basis points to 3.38%.
The Bank of England raised its bank rate by 50 bps to 4.00%, as expected. The central bank believes that inflation in the U.K. and other economies has already peaked. The ECB will announce its policy decision at 8:15 a.m. ET.
House Speaker Kevin McCarthy was optimistic, following meeting with President Biden, that both sides can find common ground on the debt limit. However, Mr. Mccarthy said that Republicans will not accept a clean debt ceiling increase without conditions, according to CNN.
Market participants will receive the following economic data today:
8:30 ET: Weekly Initial Claims (Briefing.comconsensus 201,000; prior 186,000), Continuing Claims (prior 1.675 mln), preliminary Q4 Productivity (Briefing.comconsensus 2.5%; prior 0.8%), and preliminary Q4 Unit Labor Costs (Briefing.comconsensus 1.5%; prior 2.4%)
10:00 ET: December Factory Orders (Briefing.comconsensus 2.2%; prior 1.0%)
10:30 ET: Weekly natural gas inventories (prior -91 bcf)
In corporate news:
Meta Platforms (META 182.20, +29.03, +19.0%): beats by $0.77, beats on revs; guides Q1 revs in-line, lowers FY23 total expense guidance, also lowers capex guidance; also announces a $40 bln increase to share repurchase authorization; Will be more proactive about cutting underperforming or noncritical projects in FY23
Qorvo (QRVO 111.88, -1.65, -1.5%): beats by $0.12, beats on revs; guides Q4 EPS below consensus, revs below consensus
e.l.f. Beauty (ELF 68.44, +9.93, +17.0%): beats by $0.25, beats on revs; guides FY23 EPS above consensus, revs above consensus
C.H. Robinson (CHRW 98.20, -3.92, -3.8%): misses by $0.31, misses on revs
Corteva (CTVA 62.82, -1.66, -2.6%): beats by $0.10, beats on revs; guides FY23 EPS below consensus, revs below consensus
Stanley Black & Decker (SWK 88.00, -3.16, -3.5%): beats by $0.24, beats on revs; guides FY23 EPS below consensus
Honeywell (HON 197.51, -9.21, -4.5%): beats by $0.01, reports revs in-line; sees Q1 EPS and revenue below consensus; guides FY23 EPS in-line, revs in-line
Merck (MRK 104.72, -2.26, -2.1%): beats by $0.08, beats on revs; guides FY23 EPS below consensus, revs in-line
Canada Goose (GOOS 23.30, -1.35, -5.5%): misses by CAD0.33, misses on revs; guides Q4 EPS below consensus, revs in-line; lowers FY23 EPS below consensus, revs below consensus
Eli Lilly (LLY 337.00, -5.57, -1.6%): beats by $0.24, misses on revs; raises FY23 EPS guidance above consensus, reaffirms FY23 revs guidance
Harley-Davidson (HOG 49.70, +2.98, +6.4%): beats by $0.21, reports revs in-line
Estee Lauder (EL 270.00, -10.80, -3.9%): beats by $0.25, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs in-line
Hanesbrands (HBI 7.20, -1.51, -17.3%): misses by $0.01, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: -0.5%, China's Shanghai Composite: UNCH, India's Sensex: +0.4%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: +0.2%.
In economic data:
South Korea's January CPI 0.8% m/m (expected 0.5%; last 0.2%); 5.2% yr/yr (expected 5.0%; last 5.0%)
Australia's December Building Approvals 18.5% m/m (expected 1.0%; last -8.8%) and Private House Approvals -2.3% m/m (last -2.5%)
New Zealand's December Building Consents -7.2% m/m (last 6.7%)
In news:
The Reserve Bank of India has asked banks to disclose their exposure to Adani Group after the company lost more than $100 bln in value in response to a short seller's report.
The Hong Kong Monetary Authority followed the FOMC rate hike with its own 25 bps rate increase to 5.00%, as expected.
CommBank expects that the Reserve Bank of Australia will announce one more 25 bps rate hike before pausing.
Major European indices trade in positive territory. STOXX Europe 600: +0.5%, Germany's DAX: +1.2%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.8%, Spain's IBEX 35: +1.5%.
In economic data:
Germany's December trade surplus EUR10.00 bln (expected surplus of EUR9.20 bln; last surplus of EUR10.90 bln). December Imports -6.1% m/m (expected -0.8%; last -3.2%) and Exports -6.3% m/m (expected -3.3%; last 0.1%)
Spain's January Unemployment Change 70,700 (expected -15,200; last -43,700)
Swiss Q1 SECO Consumer Climate -9 (expected -38; last -47)
In news:
Swedish home appliance manufacturer Electrolux guided for a contraction in 2023 sales.
Shell reported a $40 bln profit for 2022 and announced a $4 bln buyback.
Deutsche Bank beat profit expectations for Q4.
The Bank of England raised its bank rate by 50 bps to 4.00%, as expected. The central bank believes that inflation in the U.K. and other economies has already peaked.
U.S. equity futures:
S&P 500 Futures: +19 @ 4,138
DJIA Futures: -127 @ 33,966
Nasdaq 100 Futures: +176 @ 12,539
Overseas:
Europe: DAX +1.2%, FTSE +0.6%, CAC +0.1%
Asia: Nikkei +0.2%, Hang Seng -0.5%, Shanghai Composite UNCH
Commodities:
Crude Oil -0.50 @ 75.91
Nat Gas +0.032 @ 2.50
Gold +26.20 @ 1969
Silver +0.916 @ 24.525
Copper +0.0350 @ 4.146
Earnings/Guidance:
1-800-FLOWERS(FLWS) beats by $0.30, reports revs in-line; guides FY23 revs in-line
8x8 (EGHT) beats by $0.04, reports revs in-line; guides Q4 revs below consensus
ABB Ltd (ABB) beats by $0.19, beats on revs
Advanced Drainage Systems (WMS) misses by $0.22, misses on revs; guides FY23 revs below consensus
Aflac (AFL) beats by $0.19, misses on revs
Air Products (APD) misses by $0.06, misses on revs; guides Q2 EPS in-line; reaffirms FY23 EPS guidance
Align Tech (ALGN) beats by $0.20, beats on revs; guides Q1 revs above consensus
Allegheny Tech (ATI) beats by $0.01, reports revs in-line
Allegiant Travel (ALGT) beats by $2.14, beats on revs
Allstate (ALL) misses by $0.20, reports revs in-line
American Fincl (AFG) beats by $0.13, beats on revs; guides FY23 EPS below consensus; announces special dividend of $4.00 per share
Ametek (AME) beats by $0.05, beats on revs; guides Q1 EPS below consensus; guides FY23 EPS in-line
Anglo American (NGLOY) reports Q4 production results
Aptiv (APTV) beats by $0.09, beats on revs; guides FY23 EPS below consensus, revs in-line
Asbury Automotive (ABG) beats by $0.91, misses on revs
Avery Dennison (AVY) misses by $0.37, misses on revs; guides FY23 EPS below consensus
Avnet (AVT) beats by $0.14, beats on revs; guides MarQ EPS above consensus, revs above consensus
Ball Corp (BALL) misses by $0.11, misses on revs
BCE Inc (BCE) misses by $0.01, reports revs in-line; guides FY23 EPS below consensus, revs in-line
Becton Dickinson (BDX) beats by $0.30, reports revs in-line; guides FY23 EPS above consensus
Benchmark Electronics (BHE) reports EPS in-line, misses on revs; guides Q1 EPS below consensus, revs below consensus
Berry Global (BERY) beats by $0.01, misses on revs; guides FY23 EPS in-line
Bio-Techne (TECH) misses by $0.02, misses on revs
Brandywine Realty (BDN) reports FFO in-line, beats on revs
Bristol-Myers (BMY) beats by $0.09, beats on revs; guides FY23 EPS in-line, revs slightly below consensus
Broadridge Financial (BR) reports EPS in-line, misses on revs; reaffirms FY23 EPS guidance, revs guidance
Brookfield Infrastructure (BIP) reports FFO in-line, beats on revs; declares quarterly distribution
Brunswick (BC) beats by $0.01, misses on revs; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line
Buckle (BKE) reports better than expected prelim Q4 sales
Canada Goose (GOOS) misses by CAD0.33, misses on revs; guides Q4 EPS below consensus, revs in-line; lowers FY23 EPS below consensus, revs below consensus
Cardinal Health (CAH) beats by $0.18, beats on revs; guides FY23 EPS in-line
Century Communities (CCS) beats by $0.28, beats on revs; guides FY23 revs below consensus
ChampionX (CHX) beats by $0.04, misses on revs; guides Q1 revs below consensus
C.H. Robinson (CHRW) misses by $0.31, misses on revs
Chunghwa Telecom (CHT) misses by NT$0.05; revs in-line; sees FY23 EPS below consensus, revs above
CMS Energy (CMS) beats by $0.03, beats on revs; slightly raises FY23 EPS guidance
CNH Industrial (CNHI) beats by $0.01, beats on revs
ConocoPhillips (COP) misses by $0.19, beats on revs
Core Labs (CLB) beats by $0.01, misses on revs; guides Q1 EPS in-line, revs in-line
Corteva (CTVA) beats by $0.10, beats on revs; guides FY23 EPS below consensus, revs below consensus
Costco (COST) reports January net sales +6.9% yr/yr to $16.84 bln; total monthly comparable sales +5.6%, adj comps (ex gas fx) +7.4%
CSG Systems (CSGS) misses by $0.08, beats on revs; guides FY23 EPS below consensus, revs above consensus
Deluxe (DLX) beats by $0.01, beats on revs; guides FY23 EPS below two analyst estimate, revs in-line; announces dividend
Deutsche Bank (DB) reports FY22 results; beats on revs
DXC Technology (DXC) beats by $0.11, reports revs in-line; guides Q4 EPS below consensus, revs above consensus; guides FY23 EPS in-line, revs in-line
e.l.f. Beauty (ELF) beats by $0.25, beats on revs; guides FY23 EPS above consensus, revs above consensus
Eli Lilly (LLY) beats by $0.24, misses on revs; raises FY23 EPS guidance above consensus, reaffirms FY23 revs guidance
Enova International (ENVA) beats by $0.05, reports revs in-line
Estee Lauder (EL) beats by $0.25, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs in-line
Ferrari (RACE) beats by EUR0.05, beats on revs; guides FY23 EPS above consensus, revs above consensus
FirstCash (FCFS) beats by $0.14, reports revs in-line
Globe Life (GL) beats by $0.07, reports revs in-line; guides FY23 EPS above consensus
Hanesbrands (HBI) misses by $0.01, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus
Hanover Insurance (HIG) reports EPS in-line
Harley-Davidson (HOG) beats by $0.21, reports revs in-line
Hershey Foods (HSY) beats by $0.25, beats on revs; guides FY23 EPS above consensus, revs in-line
Hologic (HOLX) beats by $0.14, beats on revs; guides Q2 EPS in-line, revs above consensus; raises FY23 EPS and revenue guidance
Honeywell (HON) beats by $0.01, reports revs in-line; guides FY23 EPS in-line, revs in-line; sees Q1 revenue of $8.3-8.6 bln vs. $8.62 bln Capital IQ consensus; sees Q1 EPS of $1.86-1.96 vs. $2.03 Capital IQ consensus
ING Groep (ING) reports Q4 results
Intercontinental Exchange (ICE) misses by $0.01, reports revs in-line
Janus Henderson Group (JHG) beats by $0.20, beats on revs
Kilroy Realty (KRC) beats by $0.02, beats on revs
Kulicke & Soffa (KLIC) beats by $0.13, reports revs in-line; guides Q2 EPS midpoint above consensus, revs in-line
Landstar System (LSTR) reports EPS in-line, misses on revs
Lazard (LAZ) misses by $0.12, beats on revs
Lear (LEA) beats by $0.23, beats on revs; guides FY23 revs below consensus
Lightspeed (LSPD) beats by $0.05, reports revs in-line; sees FY23 revs coming in at low end of previously established outlook, slightly increases adj. EBITDA guidance
Littelfuse (LFUS) beats by $0.08, reports revs in-line; guides Q1 EPS below consensus, revs below consensus
MACOM Tech (MTSI) beats by $0.01, reports revs in-line; guides Q2 EPS in-line, revs below consensus
MaxLinear (MXL) beats by $0.01, reports revs in-line; guides Q1 revs below consensus
McKesson (MCK) beats by $0.54, reports revs in-line; raises FY23 EPS above consensus
Meritage (MTH) beats by $0.09, reports revs in-line
Merck (MRK) beats by $0.08, beats on revs; guides FY23 EPS below consensus, revs in-line
Meta Platforms (META) beats by $0.77, beats on revs; guides Q1 revs in-line, lowers FY23 total expense guidance, also lowers capex guidance; also announces a $40 bln increase to share repurchase authorization
MetLife (MET) misses by $0.09, misses on revs
MGIC Investment (MTG) beats by $0.10, reports revs slightly below consensus
Mid-America Aptmt (MAA) beats by $0.05, reports revs in-line; guides Q1 FFO in-line; guides FY23 FFO in-line
Murphy USA (MUSA) misses by $1.08, reports revs in-line
NETGEAR (NTGR) beats by $0.05, beats on revs; guides Q1 revs below consensus
NJ Resources (NJR) beats by $0.43, beats on revs; raises FY23 EPS above consensus
Ouster (OUST) and Velodyne (VLDR) achieve guidance and announce combined company Board of Directors in anticipation of closing of merger of equals
Parker-Hannifin (PH) beats by $0.30, beats on revs; raises FY23 EPS above consensus
PENN Entertainment (PENN) misses by $0.23, reports revs in-line; guides FY23 revs in-line
Prestige Consumer (PBH) beats by $0.03, reports revs in-line; guides FY23 EPS in-line, revs in-line
PTC (PTC) misses by $0.04, reports revs in-line; raises FY23 revs guidance
Qorvo (QRVO) beats by $0.12, beats on revs; guides Q4 EPS below consensus, revs below consensus
Quest Diagnostics (DGX) beats by $0.08, beats on revs; guides FY23 EPS in-line, revs below consensus
Rayonier (RYN) misses by $0.01, beats on revs; guides FY23 EPS below consensus
Regal Rexnord (RRX) beats by $0.25, misses on revs; guides FY23 EPS in-line
Roche Hldg (RHHBY) reports FY22 results; revs rise 2% yr/yr; provides outlook; proposes dividend raise
Rogers Comms (RCI) beats by CC$0.10, reports revs in-line; targets +4-7% total service revenue growth yr/yr in FY23
Sallie Mae (SLM) reports Q4 (Dec) results; guides FY23 EPS in-line
Sally Beauty (SBH) beats by $0.03, beats on revs; maintains FY23 outlook
Shell plc (SHEL) beats on top and bottom lines
Sirius XM (SIRI) beats by $0.01, misses on revs; guides FY23 revs below consensus
SiTime (SITM) beats by $0.09, beats on revs
Snap-On (SNA) beats by $0.21, reports revs in-line
Sony (SONY) beats by JPY29.14, reports revs in-line; guides FY23 revs above consensus; raises FY23 net income guidance
Stanley Black & Decker (SWK) beats by $0.24, beats on revs; guides FY23 EPS below consensus
Takeda Pharma (TAK) reports 9-month revs; on track to meet guidance
Tetra Tech (TTEK) beats by $0.15, beats on revs; guides MarQ EPS in-line, revs in-line; guides FY23 EPS above consensus, revs in-line
Tradeweb Markets (TW) beats by $0.03, reports revs in-line; declares dividend
Trane (TT) beats by $0.18, beats on revs; guides FY23 EPS above consensus, revs above consensus
TrueBlue (TBI) beats by $0.02, reports revs in-line; guides Q1 revs below consensus
UGI Corp (UGI) beats by $0.19, misses on revs
Vista Outdoor (VSTO) beats by $0.18, reports revs in-line; guides FY23 EPS in-line, revs below consensus
Wabash Natl (WNC) beats by $0.12, misses on revs; guides FY23 EPS above consensus, revs above consensus
WEC Energy Group (WEC) beats by $0.05, beats on revs; reaffirms FY23 EPS guidance
News:
House Speaker Kevin McCarthy was optimistic following meeting with President Biden that both sides can find common ground on the debt limit. However, Mr. Mccarthy said that Republicans will not accept a clean debt ceiling increaes without conditions, according to CNN
Bank of England voted by a majority of 7-2 to increase bank rate by 0.5 percentage points, to 4%
Jeffrey Gundlach on CNBC says odds of a rate cut this year "are a coin flip"; says its clear the Fed is near the end of rate hiking cycle; says that he thinks odds of recession this year are down, but still above 50%
President Biden is issuing a Presidential Memorandum to support Federal employees' access to leave
US will propose new energy efficiency standards for gas stoves, according to the Wall Street Journal
Alamos (AGI) reports new results from ongoing surface exploration drilling at Puerto Del Aire, further extending high-grade gold mineralization outside of Mineral Reserves and Resources
Alexander & Baldwin (ALEX) announces that Lance Parker, currently President and COO has been appointed CEO; effective July 1, 2023
Avista (AVA) has filed a multiyear rate plan with the Idaho Public Utilities Commission that would allow the Company to recover costs for fixed expenses and ongoing investments to infrastructure, technology and more
B&G Foods (BGS) announces it is voluntarily recalling three cases of a single date code of 6.4 oz. Back to Nature Fudge Mint Cookies, with a 'best by' date of October 02 2023
Bed Bath & Beyond (BBBY) misses interest payments on bonds, according to the Wall Street Journal
Berry Global (BERY) announces that Thomas E. Salmon will retire as Chief Executive Officer and Chairman of the Board effective December 31, 2023
BioNTech (BNTX) announces construction completion of the Company's first proprietary plasmid DNA manufacturing facility in Marburg, Germany
Boeing (BA) awarded $1.615 bln U.S. Air Force contract for guidance subsystem support
Braemar Hotels & Resorts (BHR) disclosed 10-Q "contained a material misstatement and should not be relied upon"
Citigroup (C) wealth unit will stop making margin loans based on Adani, according to Bloomberg
CME Group (CME) increases quarterly dividend to $1.10 from $1.00/share; Reports January 2023 Monthly Market Statistics
Comstock (CRK) announces that its proved natural gas and oil reserves as of December 31, 2022 were estimated at 6.7 trillion cubic feet equivalent
Curtiss-Wright (CW) has been awarded a contract to support the new Enduring Shield platform from Dynetics, a Leidos (LDOS) company, to meet the U.S. Army's cruise missile defense needs
EchoStar (SATS) announces an agreement with Astro Digital for the construction of a global S-band mobile satellite service network
Eversource Energy (ES) increases quarterly dividend to $0.675/share from $0.635/share
Genius Group (GNS) Announces $10 Per Share Blockchain-based Digital Discount Coupon (NFT) Per Share
Gilat Satellite (GILT) awarded a multimillion-dollar contract for the expansion of satellite communications capabilities on trains in Asia-Pacific
GlaxoSmithKline (GSK) receives FDA approval for Jesduvroq
Guardant Health (GH): Magistrate Judge issues favorable recommendation regarding Guardant Health's motion to dismiss lawsuit brought by Illumina
Honda Motor (HMC) expanding hydrogen business with external sales of the next-generation fuel cell system
Intercontinental Exchange (ICE) increases quarterly dividend 11% to $0.42/share from $0.38/share
Karuna Therapeutics (KRTX) announces their entry into an exclusive license agreement under which Karuna will obtain global development, manufacturing, and commercialization rights to Goldfinch Bio's investigational transient receptor potential canonical 4 and 5 channel candidates, including lead clinical-stage candidate GFB-887
Merck's (MRK) COVID-19 pill is linked to new virus mutations, but a Merck spokesperson disputes this, according to Bloomberg
Microsoft (MSFT) announces that Microsoft Teams Premium is generally available
Palantir Technologies (PLTR) announces $50 mln five-year expansion of its work with SOMPO Holdings and its group companies including SOMPO Japan, the company's insurance business
PG&E (PCG) will have to stand trial over 2020 fire, according to SF Chronicle
Quest Diagnostics (DGX) increases quarterly dividend to $0.71 from $0.66/share; also increased share repurchase authorization by $1 bln
Sony (SONY) announces changes to Group's Management Structure; Hiroki Totoki newly appointed as President, COO effective April 1, 2023
Vista Outdoor (VSTO) appoints Gary McArthur as interim CEO, effective immediately
M&A:
Aramark (ARMK) to divest ownership stake in AIM Services for $535 mln
Finance of America (FOA): Essent (ESNT) to acquire subsidiary of Finance of America Companies - Agents National Title Holding Company for $100 mln
FleetCor (FLT) announces the acquisition of Mina; financial terms were not disclosed
MACOM Tech (MTSI) has entered into a definitive agreement through one of its French subsidiaries to acquire the assets and operations of OMMIC SAS
McGrath RentCorp (MGRC) has signed and closed a definitive agreement under which it acquired Vesta Modular for a cash purchase price of $400 mln and sold Adler Tank Rentals to Ironclad Environmental Solutions for a cash sale price of $265 mln
Timken (TKR) acquires the assets of American Roller Bearing Company, a North Carolina-based manufacturer of industrial bearings; financial terms were not disclosed
Syndicate:
Roivant Sciences (ROIV) has commenced an underwritten public offering of $150 million of common shares
StoneCo (STNE) has sold 16.8 mln shares of Banco Inter, representing the totality of StoneCo's stake in the company
Terns Pharmaceuticals (TERN) files for $400 mln mixed securities shelf offering
Vera Therapeutics (VERA) prices offering of 14,285,715 shares of its Class A common stock at $7.00 per share
Wells Fargo (WFC) files for $93 bln mixed securities shelf offering
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
META +19.1%, ELF +17.1%, ALGN +14.3%, ALGT+10.2%, PINS +5.2%, MGRC +5%, TTD +4.6%, SNDR+4%, GOOG +3.9%, AFG +3.8%, APPS +3.3%, PLTR+3.2%, CRK +2.9%, FLEX +2.8%, SHEL +2.8%, ROKU+2.5%, PUBM +2.5%, VLDR +2.5%, KRC +2.4%, STNE+2.2%, INTR +2%, CLB +2%, THG +2%, MCK +1.9%, JHG +1.5%, CW +1.4%, OUST +1.4%, TAK +1.4%, BDN +1.2%, COST +0.8%
Gapping down:
VERA -12.8%, NTGR -10%, MOD -6.3%, LFUS -5.9%, ING -4.7%, MXL -4.4%, PTC -4.4%, SWK -4.3%, ABB-4.1%, CHX -4%, BHE -4%, ROIV -3.7%, EGHT -3.4%, AVT -3%, CHRW -2.6%, DB -2.3%, QRVO -2.2%, CTVA -2.1%, TBI -2.1%, APD -2.1%, GL -2%, MTG-2%, CCS -2%, ANET -1.9%, BALL -1.8%, MET-1.7%, DXC -1.5%, TTEK -1.2%, ALL -0.9%, MUSA-0.9%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Align Tech (ALGN) upgraded to Neutral from Sell at Goldman; tgt raised to $307
FedEx (FDX) upgraded to Buy from Neutral at BofA Securities; tgt $233
FedEx (FDX) upgraded to Buy from Neutral at Citigroup; tgt raised to $240
Graco (GGG) upgraded to Buy from Neutral at Seaport Research Partners; tgt $82
Ingevity (NGVT) upgraded to Buy from Hold at Loop Capital; tgt raised to $100
Meta Platforms (META) upgraded to Buy from Neutral at BofA Securities; tgt raised to $220
Meta Platforms (META) upgraded to Buy from Neutral at Rosenblatt; tgt raised to $220
Meta Platforms (META) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $215
O-I Glass (OI) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $34
Okta (OKTA) upgraded to Buy from Hold at Needham; tgt $90
Silicon Labs (SLAB) upgraded to Buy from Hold at Summit Insights
Downgrades:
Ashland (ASH) downgraded to Underweight from Neutral at JP Morgan; tgt raised to $105
Astra Space (ASTR) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $1
First Solar (FSLR) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $195
Fortinet (FTNT) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $57
Fortune Brands Innovations (FBIN) downgraded to Hold from Buy at Loop Capital; tgt $65
Grab (GRAB) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $2.80
GXO Logistics (GXO) downgraded to Underperform from Neutral at Exane BNP Paribas; tgt $40
Hugo Boss AG (BOSSY) downgraded to Hold from Buy at Jefferies
Match Group (MTCH) downgraded to Perform from Outperform at Oppenheimer
Peloton (PTON) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
Peloton (PTON) downgraded to Underperform from Neutral at Exane BNP Paribas; tgt $8
Qualtrics (XM) downgraded to Hold from Buy at Deutsche Bank; tgt raised to $19
R1 RCM (RCM) downgraded to Hold from Buy at Truist; tgt $15
Varonis Systems (VRNS) downgraded to Hold from Buy at Needham
Others:
Accolade (ACCD) initiated with an Outperform at Raymond James; tgt $15
Darden Restaurants (DRI) initiated with a Buy at Guggenheim; tgt $170
Everest Re (RE) initiated with an Outperform at Raymond James; tgt $385
Globant (GLOB) initiated with a Buy at HSBC Securities; tgt $240
MoonLake Immunotherapeutics (MLTX) initiated with a Buy at Bryan Garnier; tgt $22
Upcoming Events:
Econ Data:
08:30 ET: Initial Claims for Jan 28 (Briefing.comConsensus 201K; Prior 186K)
08:30 ET: Continuing Claims for Jan 21 (Briefing.comConsensus NA; Prior 1675K)
08:30 ET: Productivity - Prel for Q4 (Briefing.comConsensus 2.5%; Prior 0.8%)
08:30 ET: Unit Labor Costs-Prel for Q4 (Briefing.com Consensus 1.5%; Prior 2.4%)
10:00 ET: Factory Orders for Dec (Briefing.com Consensus 2.2%; Prior 1.0%)
10:30 ET: EIA Natural Gas Inventories for Jan 28 (Briefing.com Consensus NA; Prior -91 bcf)
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 +0.2%, Hang Seng -0.5%, Shanghai Composite UNCH
Equity indices in the Asia-Pacific region ended Thursday on a mixed note. The Reserve Bank of India has asked banks to disclose their exposure to Adani Group after the company lost more than $100 bln in value in response to a short seller's report. The Hong Kong Monetary Authority followed the FOMC rate hike with its own 25 bps rate increase to 5.00%, as expected. CommBank expects that the Reserve Bank of Australia will announce one more 25 bps rate hike before pausing.
In economic data:
South Korea's January CPI 0.8% m/m (expected 0.5%; last 0.2%); 5.2% yr/yr (expected 5.0%; last 5.0%)
Australia's December Building Approvals 18.5% m/m (expected 1.0%; last -8.8%) and Private House Approvals -2.3% m/m (last -2.5%)
New Zealand's December Building Consents -7.2% m/m (last 6.7%)
---Equity Markets---
Japan's Nikkei: +0.2%
Hong Kong's Hang Seng: -0.5%
China's Shanghai Composite: UNCH
India's Sensex: +0.4%
South Korea's Kospi: +0.7%
Australia's ASX All Ordinaries: +0.2%
---FX---
USD/JPY: -0.2% to 128.72
USD/CNH: +0.2% to 6.7285
USD/INR: +0.5% to 82.15
Europe: DAX +1.2%, FTSE +0.6%, CAC +0.1%
Major European indices trade in positive territory. Swedish home appliance manufacturer Electrolux guided for a contraction in 2023 sales. Shell reported a $40 bln profit for 2022 and announced a $4 bln buyback. Deutsche Bank beat profit expectations for Q4. The Bank of England raised its bank rate by 50 bps to 4.00%, as expected. The central bank believes that inflation in the U.K. and other economies has already peaked.
In economic data:
Germany's December trade surplus EUR10.00 bln (expected surplus of EUR9.20 bln; last surplus of EUR10.90 bln). December Imports -6.1% m/m (expected -0.8%; last -3.2%) and Exports -6.3% m/m (expected -3.3%; last 0.1%)
Spain's January Unemployment Change 70,700 (expected -15,200; last -43,700)
Swiss Q1 SECO Consumer Climate -9 (expected -38; last -47)
---Equity Markets---
STOXX Europe 600: +0.5%
Germany's DAX: +1.2%
U.K.'s FTSE 100: +0.6%
France's CAC 40: +0.1%
Italy's FTSE MIB: +0.8%
Spain's IBEX 35: +1.5%
---FX---
EUR/USD: +0.1% to 1.0994
GBP/USD: -0.7% to 1.2290
USD/CHF: UNCH at 0.9087