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Writer's pictureSimon Charles Hooper

02/02/23 Briefing

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


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