The S&P 500 futures are up 2 points and are trading roughly in line with fair value. The Nasdaq 100 futures are up 36 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures are down 47 points and are trading 0.1% below fair value.
The equity futures market is mixed as investors await Fed Chair Powell's "Conversation with David Rubinstein" before the Economic Club of Washington D.C. at 12:40 p.m. ET. On a related note, Minneapolis Federal Reserve President Neel Kashkari (FOMC voter) said on CNBC "Central banks have not made enough progress" and reaffirmed his Fed funds rate target of 5.4% following the surprising January jobs report.
Investors continue to deal with a nagging sense that the Fed will raise rates more than expected and keep them there for longer than expected.
Overseas, the Reserve Bank of Australia increased its cash rate by 25 bps to 3.35%, as expected, and noted that additional increases will be needed in the coming months.
President Biden will deliver the State of the Union Address tonight at 9:00 p.m. ET.
The 2-yr Treasury note yield is down four basis points to 4.42% and the 10-yr note yield is flat at 3.63%.
Market participants will receive the December Trade Balance Report at 8:30 a.m. ET (Briefing.com consensus -$68.5B; prior -$61.5B) and the December Consumer Credit Report at 3:00 p.m. ET (Briefing.com consensus $24.5B; prior $27.9 bln).
In corporate news:
BP ▾ 0.88% (BP 36.35, +1.51, +4.3%): misses by $0.01, beats on revs; raises dividend
Oak Street Health (OSH 35.43, +9.47, +36.5%): CVS (CVS) nearing deal to acquire the company for $10.5 bln, according to WSJ
Chegg (CHGG 16.10, -4.93, -23.4%): beats by $0.02, beats on revs; guides Q1 revs below consensus; guides FY23 revs below consensus
DuPont (DD 70.96, -1.40, -1.9%): beats by $0.11, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line; increases Q1 dividend by 9% to $0.36/share
Pinterest (PINS 27.53, -0.36, -1.3%): beats by $0.01, misses on revs; expects Q1 revs to grow low single digits percentage yr/yr vs consensus of +7.5%; authorizes repurchases up to $500 mln over next 12 months; CFO stepping down, effective July 1
Skyworks (SWKS 112.75, +3.47, +3.2%): misses by $0.01, reports revs in-line; guides MarQ EPS below consensus, revs below consensus; approves $2.0 bln for share repurchases; authorizes $2.0 bln for share repurchases through February 1, 2025
Baidu (BIDU 161.77, +18.95, +13.3%): aiming to introduce service similar to ChatGPT in March, according to Bloomberg
Bed Bath & Beyond (BBBY 4.06, -1.80, -30.7%): proposes underwritten public offering of Series A convertible preferred stock and warrants to raise approximately $1.0 billion
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: +0.3%, India's Sensex: -0.4%, South Korea's Kospi: +0.6%, Australia's ASX All Ordinaries: -0.4%.
In economic data:
Japan's December Household Spending -2.1% m/m (expected 0.3%; last -0.9%); -1.3% yr/yr (expected -0.2%; last -1.2%). December Average Cash Earnings 4.8% yr/yr (expected 2.5%; last 1.9%). December Leading Index -0.5% m/m (last -1.2%) and Coincident Indicator -0.4% m/m (last -0.3%)
Australia's December trade surplus AUD12.24 bln (expected surplus of AUD12.50 bln; last surplus of AUD13.48 bln). December Imports 1.0% m/m (last -3.1%) and Exports -1.0% m/m (last -1.0%)
In news:
Nominations for the next Bank of Japan governor will be submitted to the Japanese parliament next week.
Japan saw its first year-over-year increase in real cash earnings since March.
Bank of Korea policymaker Suh said that the Korean economy can withstand interest rate differentials with the U.S.
The Reserve Bank of Australia increased its cash rate by 25 bps to 3.35%, as expected, and noted that additional increases will be needed in the coming months.
Major European indices trade on a mostly higher note. STOXX Europe 600: +0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.4%.
In economic data:
Germany's December Industrial Production -3.1% m/m (expected -0.7%; last 0.4%)
U.K.'s January Halifax House Price Index 0.0% m/m (expected -0.8%; last -1.3%); 1.9% yr/yr (expected -0.3%; last 2.1%)
France's December trade deficit EUR14.90 bln (expected deficit of EUR12.20 bln; last deficit of EUR13.60 bln). December Current Account deficit EUR8.50 bln (last deficit of EUR6.70 bln)
Spain's December Industrial Production 0.6% yr/yr (expected -0.6%; last -0.7%)
Swiss January Unemployment Rate 1.9%, as expected (last 1.9%)
In news:
British Prime Minister Sunak will reportedly announce a small reshuffle of his cabinet soon.
Energy giant BP reported that its profit doubled in 2022, boosted its quarterly dividend, and announced a new buyback.
The European Central Bank's latest survey on inflation expectations among consumers continued pointing to expectations for 5.0% inflation over the next year. The inflation outlook for a three-year period increased to 3.0% from 2.9%.
U.S. equity futures:
S&P 500 Futures: +3 @ 4,114
DJIA Futures: -53 @ 33,837
Nasdaq 100 Futures: +39 @ 12,504
Overseas:
Europe: DAX -0.1%, FTSE +0.6%, CAC +0.1%
Asia: Nikkei UNCH, Hang Seng +0.4%, Shanghai Composite +0.3%
Commodities:
Crude Oil +1.23 @ 75.34
Nat Gas +0.014 @ 2.471
Gold +3.70 @ 1883.20
Silver +0.048 @ 22.285
Copper -0.0060 @ 4.029
Earnings/Guidance:
Activision Blizzard ( ATVI ▾ 4.86% ) reports Q4 results, beats on net bookings; Note: co previously agreed to be acquired by MSFT
Adient ( ADNT ▾ 1.10% ) misses by $0.02, beats on revs; guides FY23 revs above consensus
Aecom Tech ( ACM ▴ 0.68% ) beats by $0.04, reports revs in-line; reaffirms FY23 EPS guidance
AGCO Corp ( AGCO ▴ 2.12% ) beats by $0.40, beats on revs; reaffirms FY23 EPS guidance, revs guidance
Alpha and Omega Semi ( AOSL ▾ 3.04% ) misses by $0.21, misses on revs; guides MarQ revs below consensus
Aramark ( ARMK ▾ 0.23% ) beats by $0.01, beats on revs
Ares Capital ( ARCC ▾ 0.46% ) beats by $0.07, beats on revs
Arrowhead ( ARWR ▾ 8.79% ) reports Q1 (Dec) results, misses on revs
BellRing Brands ( BRBR ▾ 0.17% ) beats by $0.05, beats on revs; reaffirms FY23 revs guidance, raises adj. EBITDA guidance
Blink Charging ( BLNK ▾ 1.39% ) issues upside Q4 revenue guidance, sees adjusted EBITDA of ($18)-($15) mln
BP ( BP ▾ 0.88% ) misses by $0.01, beats on revs; raises dividend
BrightView ( BV ▾ 0.71% ) beats by $0.08, beats on revs
Canada Goose ( GOOS ▾ 1.87% ) provides long term guidance
Carlyle Group ( CG ▾ 2.91% ) beats by $0.05, beats on revs; raises dividend
Carrier Global ( CARR ▾ 1.58% ) reports EPS in-line, revs in-line; guides FY23 EPS in-line, revs above consensus
Catalent ( CTLT ▴ 19.54% ) misses by $0.02, beats on revs; reiterates FY23 revs in-line
Centene ( CNC 0.00% ) beats by $0.02, reports revs in-line; reaffirms FY23 EPS guidance
Chegg ( CHGG ▾ 1.45% ) beats by $0.02, beats on revs; guides Q1 revs below consensus; guides FY23 revs below consensus
Cincinnati Fincl ( CINF ▴ 0.15% ) misses by $0.01, reports revs in-line, provides forward-looking commentary
Deciphera Pharmaceuticals ( DCPH ▾ 1.88% ) misses by $0.04, beats on revs
Diodes ( DIOD ▾ 2.69% ) beats by $0.09, reports revs in-line; guides Q1 revs in-line
DuPont ( DD ▾ 0.85% ) beats by $0.11, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line
Fabrinet ( FN ▾ 0.77% ) beats by $0.03, beats on revs; guides Q3 EPS above consensus, revs in-line
Fiserv ( FISV ▾ 0.19% ) reports EPS in-line, beats on revs; guides FY23 EPS in-line, but mid-point above consensus
Gartner ( IT ▾ 0.30% ) beats by $1.12, beats on revs
Graphic Packaging ( GPK 0.00% ) beats by $0.01, beats on revs
Haemonetics ( HAE ▴ 0.72% ) beats by $0.03, beats on revs; guides FY23 EPS in-line, revs above consensus
Hain Celestial ( HAIN ▾ 2.04% ) beats by $0.07, misses on revs; reaffirms FY23 guidance for adjusted net sales and adjusted EBITDA on a constant currency basis of -1% to +4%
Hamilton Lane ( HLNE ▾ 1.58% ) misses by $0.38, beats on revs
Hertz Global ( HTZ ▾ 2.64% ) beats by $0.02, misses on revs
Holley Inc. ( HLLY ▾ 1.72% ) guides Q4 revs below consensus; CEO Tom Tomlinson to retire and resign from Board; appoints interim CEO
Jacobs Engineering ( J ▾ 0.50% ) beats by $0.06, beats on revs; reiterates FY23 EPS in-line
Incyte ( INCY ▴ 0.90% ) beats by $0.05, beats on revs
Kennametal ( KMT ▾ 2.15% ) beats by $0.05, beats on revs; guides Q3 revs above consensus; guides FY23 EPS in-line, revs above consensus
Kforce ( KFRC ▾ 1.42% ) beats by $0.01, reports revs in-line; guides Q1 EPS in-line, revs below consensus; also increases quarterly dividend by 20%; increases share buyback auth to $100 mln
KKR ( KKR ▾ 1.98% ) beats by $0.07, AUM up 7%, to increase regular annualized dividend per share to $0.66 from $0.62
Leggett & Platt ( LEG ▾ 3.38% ) misses by $0.09, misses on revs; guides FY23 EPS below consensus, revs in-line
Linde plc ( LIN ▾ 0.23% ) beats by $0.27, misses on revs; guides Q1 EPS above consensus; guides FY23 EPS above consensus
Macerich ( MAC ▾ 1.36% ) beats by $0.01, reports revs in-line; guides FY23 FFO in-line
Malibu Boats ( MBUU ▾ 2.01% ) beats by $0.17, beats on revs; reaffirms FY23 revenue outlook
MSG Sports ( MSGS ▾ 0.20% ) reports Q2 (Dec) results, beats on revs
Nintendo ( NTDOY ) reports nine-month results; revs decline 2% yr/yr
NOV Inc. ( NOV ▴ 0.43% ) beats by $0.02, beats on revs
nVent Electric ( NVT ▴ 0.47% ) beats by $0.08, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs below consensus
Oaktree Specialty Lending Corp ( OCSL ▾ 0.39% ) reports EPS in-line
OneMain Holdings ( OMF ▾ 3.25% ) beats by $0.05, reports revs in-line; raises dividend
Pinterest ( PINS ▴ 1.49% ) beats by $0.01, misses on revs; expects Q1 revs to grow low single digits percentage yr/yr vs consensus of +7.5%; authorizes repurchases up to $500 mln over next 12 months; CFO stepping down, effective July 1
Power Integrations ( POWI ▾ 1.74% ) beats by $0.02, reports revs in-line; guides Q1 revs below consensus
Premier ( PINC ▾ 2.43% ) beats by $0.06, reports revs in-line; lowers FY23 EPS in-line, reaffirms FY23 revs guidance
Rambus ( RMBS ▾ 1.15% ) reports Q4 (Dec) results, misses on revs
Sasol ( SSL ▾ 0.23% ) provides H1 guidance update
Simon Properties ( SPG ▾ 0.90% ) beats by $0.02, beats on revs; guides FY23 comparable FFO below consensus
Simpson Manufacturing ( SSD ▾ 4.66% ) beats by $0.33, reports revs in-line
Skyline Champion ( SKY ▾ 3.18% ) beats by $0.52, beats on revs
Skyworks ( SWKS ▾ 2.84% ) misses by $0.01, reports revs in-line; guides MarQ EPS below consensus, revs below consensus; approves $2.0 bln for share repurchases
Spirit Aerosystems ( SPR ▾ 0.35% ) misses by $1.22, misses on revs
Spirit Airlines ( SAVE ▾ 0.71% ) beats by $0.09, reports revs in-line; provides guidance
Take-Two ( TTWO ▾ 3.40% ) misses by $0.07, misses on top line; guides FY23 EPS and net bookings below consensus
TFI International ( TFII ▾ 2.20% ) misses by $0.01, misses on revs
Transdigm Group ( TDG ▴ 0.96% ) beats by $0.28, beats on revs; guides FY23 EPS in-line, revs in-line
UDR ( UDR ▾ 1.59% ) reports FFO in-line, revs in-line; guides Q1 FFO in-line; guides FY23 FFO in-line
Valvoline ( VVV ▴ 0.22% ) misses by $0.06, reports revs in-line; reaffirms FY23 revs guidance
Varonis Systems ( VRNS ▾ 0.72% ) beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs in-line; guides FY23 EPS above consensus, revs in-line
Velo3D ( VLD ▴ 2.71% ) guides Q4 revs above consensus
Xylem ( XYL ▾ 1.14% ) beats by $0.13, beats on revs; guides FY23 EPS in-line, revs above consensus
ZoomInfo ( ZI ▾ 1.20% ) beats by $0.04, reports revs in-line; guides Q1 EPS in-line, revs below consensus; guides FY23 EPS in-line, revs below consensus
News:
Ukraine says Russia is planning major offensive, according to the Wall Street Journal
House Speaker Kevin McCarthy wants elimination of deficit in talks with President Biden over debt limit. White House wants clean debt ceiling increase, according to the Wall Street Journal
Minneapolis Fed President Neel Kashkari (voting FOMC member) CNBC interview: Central banks have not made enough progress; he reaffirms his Fed funds rate target of 5.4%
More than half of new U.S. electric-generating capacity in 2023 will be solar
Legal cannabis industry could get more regulation amid concerns about potential health impacts, according to Politico
Aldeyra Therapeutics ( ALDX ▴ 0.16% ) announces that the U.S. FDA has accepted the New Drug Application for topical ocular reproxalap for the treatment of the signs and symptoms of dry eye disease
AstraZeneca ( AZN ▴ 0.13% ) receives EU approval for Forxiga
Baidu ( BIDU ▾ 0.17% ) aiming to introduce service similar to ChatGPT in March, according to Bloomberg
Blackrock ( BLK ▾ 1.95% ): Largest pension fund in Texas divests from Blackrock, according to Bloomberg
Curtiss-Wright ( CW ▴ 0.37% ) has been awarded a ten-year, $287 mln firm-fixed-price indefinite delivery, indefinite quantity contract by Edwards Air Force Base - Air Force Test Center
Frontline ( FRO ▴ 4.80% ): Emergency Arbitration claims filed by Euronav have been fully dismissed by the Emergency Arbitrator
Genworth Financial ( GNW ▾ 1.04% ) to separate the roles of CFO and CIO in early March; Jerome Upton will be appointed EVP and CFO, and Kelly Saltzgaber will be appointed EVP and CIO
Globalstar ( GSAT ▾ 2.21% ) entered into a Second Forbearance Agreement with Macdonald Dettwiler and Rocket Lab (RKLB)
GOL Linhas Aereas Inteligentes S.A. ( GOL ▾ 2.31% ) reports January traffic metrics
InterDigital ( IDCC ▾ 2.03% ) increases price range for tender offer to repurchase up to $200 mln of its common stock
Lithium Americas ( LAC ▾ 3.54% ): Nevada District Court rules in favor of LAC in suit brought by the Bureau of Land Management
Meta Platforms ( META ▾ 0.25% ): FTC will not appeal court ruling rejecting its attempt to block Within acquisition, according to Gizmodo
Meta ( META ▾ 0.25% ) aiming to revamp Horizon Worlds metaverse application, according to the Wall Street Journal
New York Times ( NYT ▾ 0.82% ) expanding its multi-year commercial agreement with Google (GOOG), according to the New York Times
Northern Oil & Gas ( NOG ▾ 2.35% ) increases quarterly cash dividend 13% to $0.34/share from $0.30/share
PGT Inc. ( PGTI ▾ 0.09% ) announces $250 mln share repurchase program
Roche Hldg's ( RHHBY ) unit Genentech reports data from global Phase III program for Crovalimab in PNH
Rocket Pharmaceuticals ( RCKT ▾ 0.88% ): FDA grants Regenerative Medicine Advanced Therapy (RMAT) designation to RP-A501, the company's treatment of Danon Disease
Rogers Corp ( ROG ▴ 1.54% ): Starboard Value LP discloses 6.5% stake in company per 13D filing
Skyworks ( SWKS ▾ 2.84% ) authorizes $2.0 bln for share repurchases through February 1, 2025
Virgin Mobile USA ( VM ) increases quarterly cash dividend 7.7% to $0.70/share from $0.65/share
YETI Holdings ( YETI ▾ 2.84% ) identifies potneital safety concern regarding a few of its products
M&A:
Apollo ( APO ▾ 1.72% ) in discussions to take a stake in Credit Suisse (CS) investment bank unit, according to the Wall Street Journal
CVS ( CVS ▾ 0.61% ) nearing deal to acquire Oak Street Health (OSH) for $10.5 bln, according to the Wall Street Journal
Hut 8 Mining ( HUT ▴ 7.69% ) and U.S. Data Mining Group announce business combination via merger of equals
Lantheus Holdings ( LNTH ▾ 1.28% ) acquires Knoxville-based Cerveau Technologies; financial terms were not disclosed
MSG Entertainment ( MSGE ▾ 1.22% ) exploring potential sale of its majority interest in Tao Group Hospitality
Syndicate:
23andMe ( ME ▾ 3.35% ) files for $500 mln mixed securities shelf offering
Bed Bath & Beyond ( BBBY ▴ 92.13% ) proposes underwritten public offering of Series A convertible preferred stock and warrants
Blink Charging ( BLNK ▾ 1.39% ) prices upsized offering of 8,333,333 shares at $12/share
Collegium Pharmaceutical ( COLL ▾ 2.94% ) intends to offer $175 mln aggregate principal amount of convertible senior notes due 2029 in a private offering
CureVac ( CVAC ▾ 4.34% ) intends to offer $200 mln of its common shares in an underwritten public offering
Jacobs Engineering ( J ▾ 0.50% ) files mixed securities shelf offering
IPOs:
Expected to Price:
Enlight Renewable Energy (Nasdaq: ENLT): The developer of a renewable energy platform for solar energy, wind power and energy storage is expected to price its 14.0 mln share IPO at about $21.
Hesai Group (Nasdaq: HSAI): The global leader in three-dimensional light detection and ranging (LiDAR) solutions is expected to price its 9.0 M share IPO between $17-$19.
Mineralys Therapeutics (Nasdaq: MLYS): The clinical-stage biopharmaceutical company focused on developing medicines to target diseases driven by abnormally elevated aldosterone is expected to price its 10.0 M share IPO between $14-$16.
Nextracker (Nasdaq: NXT): The provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects is expected to price its 23.3 M share IPO between $20-$23.
Gapping Up/Down
Gapping up:
VLD +5.9%, SKY +5%, BP +4.6%, ME +3.1%, KMT +3.1%, VRNS +2.9%, ATVI +2.3%, SWKS +2.1%, MSGE +2%, IDCC +2%, GNW +1.9%, ROG +1.8%, NOV +1.8%, NOV +1.8%, SAVE +1.6%, IT +1.2%, TTWO +1%, CG +1%, SSD +0.9%, KFRC +0.9%, CW +0.7%, UDR +0.7%
Gapping down:
BBBY -31.1%, CHGG -23.3%, HLLY -19.6%, COLL -15.6%, AOSL -13.1%, ZI -11.6%, RMBS -8.1%, SSL -7%, BLNK -6.9%, BLNK -6.9%, CVAC -5.5%, DD -4.5%, J -3.9%, PINS -3%, FN -1.7%, YETI -1.6%, CNC -1.4%, BRBR -0.8%, BRBR -0.8%, CINF -0.7%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Cipher Mining (CIFR) upgraded to Buy from Neutral at H.C. Wainwright; tgt raised to $3
Kemper (KMPR) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $80
Lockheed Martin (LMT) upgraded to Outperform from Underperform at Credit Suisse; tgt raised to $510
Pfizer (PFE) upgraded to Outperform from Neutral at Daiwa Securities; tgt $51
Snam SPA (SNMRY) upgraded to Outperform from Underperform at RBC Capital Mkts
Terna Rete Elettrica (TERRF) upgraded to Sector Perform from Underperform at RBC Capital Mkts
Wartsila (WRTBY) upgraded to Buy from Neutral at Citigroup
Downgrades:
Adecoagro S.A. (AGRO) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $9
Airbus (EADSY) downgraded to Sell from Hold at Berenberg
BigCommerce (BIGC) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $12
Brookfield Business Partners (BBU) downgraded to Seel from Reduce at Veritas; tgt $18
Chegg (CHGG) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Ericsson (ERIC) downgraded to Mkt Perform from Outperform at Raymond James
Holley Inc. (HLLY) downgraded to Market Perform from Outperform at Telsey Advisory Group; tgt $3
PennyMac Mortgage (PMT) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $15
Plains All American (PAA) downgraded to Mkt Perform from Outperform at Bernstein
Silk Road Medical (SILK) downgraded to Peer Perform from Outperform at Wolfe Research
SJW (SJW) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $84
Spire (SR) downgraded to Hold from Buy at Stifel; tgt raised to $75
Sweetgreen (SG) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $12
The Children's Place (PLCE) downgraded to Market Perform from Outperform at Telsey Advisory Group; tgt $46
Tyson Foods (TSN) downgraded to Neutral from Buy at Goldman; tgt lowered to $66
ZoomInfo (ZI) downgraded to Neutral from Buy at UBS; tgt lowered to $33
Others:
908 Devices (MASS) initiated with an Overweight at Stephens; tgt $14
Akamai Tech (AKAM) initiated with a Hold at Loop Capital; tgt $91
Allbirds (BIRD) initiated with a Neutral at BTIG Research
Boot Barn Holdings (BOOT) initiated with a Buy at BTIG Research; tgt $110
Cloudflare (NET) initiated with a Hold at Loop Capital; tgt $52
Deckers Outdoor (DECK) assumed with a Buy at BTIG Research; tgt $515
Duluth Trading Co (DLTH) initiated with a Neutral at BTIG Research
Foot Locker (FL) initiated with a Buy at BTIG Research; tgt $55
Fortinet (FTNT) initiated with a Buy at Loop Capital; tgt $66
Lulu's Fashion Lounge (LVLU) initiated with a Buy at BTIG Research; tgt $5
Revolve Group (RVLV) assumed with a Buy at BTIG Research; tgt $35
Rocky Brands (RCKY) initiated with a Neutral at BTIG Research
Skyward Specialty Insurance Group (SKWD) initiated with a Buy at Truist; tgt $26
Skyward Specialty Insurance Group (SKWD) initiated with a Mkt Outperform at JMP Securities; tgt $25
Skyward Specialty Insurance Group (SKWD) initiated with an Outperform at Keefe Bruyette; tgt $24
Skyward Specialty Insurance Group (SKWD) initiated with an Overweight at Piper Sandler; tgt $23
V.F. Corp (VFC) assumed with a Neutral at BTIG Research
Warby Parker (WRBY) initiated with a Neutral at BTIG Research
Upcoming Events:
Econ Data:
08:30 ET: Trade Balance for Dec (Briefing.com Consensus -$68.5B; Prior -$61.5B)
15:00 ET: Consumer Credit for Dec (Briefing.com Consensus $24.5B; Prior $27.9B)
Earnings:
Monday (Feb 6)
Morning: AMG CNA CMI ENR IDXX NBIX ON TKR TSN
Afternoon: ATVI ACM AOSL BRBR CHGG CINF DIOD FN KMT KFRC LEG NOV PINS POWI RMBS SPG SSD SKY SWKS SAVE TTWO UDR VRNS ZI
Tuesday (Feb 7)
Morning: ADNT AGCO ARMK ARCC BP BV CG CARR CTLT CNC CTS DCPH DD FISV IT GPK HAE HAIN HLNE HTZ INCY J KKR LIN MAC MBUU MSGS NVT OMF PINC RCL SCSC SPR TDG VVV XYL
Afternoon: AMCR AIZ ATO BKH CSL CMG CNO CCK DEI EGP EHC ENPH ESS EEFT EXEL FMC FTNT FRSH HRB PEAK HIW HMN ICHR ILMN INSP JKHY RAMP LUMN MODN NCR NEWR OMC PAYC PRU QGEN RRR RXO SIMO SSNC TENB VFC VRTX VSAT VOYA WERN WU YUMC ZWS
Wednesday (Feb 8)
Morning: BDC BXMT BG CPRI CDW CRNC CME COHR COTY CRTO CVS D ETN EPC EMR FOXA GPRE INGR NYT PAG PFGC PERI RDWR REYN RITM SITC TRMB UBER VSH YUM
Afternoon: ME AEIS AFRM AB NLY APP ASGN AVB ACLS AZEK CDAY CXW DHT APPS ENS NVST EFX EQH EQC ESE RE FRT FR FLT FLNC FORM FWRD ULCC GT HI HPP PI IFF FROG LNC MAT MMS MGM MC MOH MPWR ORLY PTEN PYCR PDM PPC PAA QNST RDN RPD REXR HOOD SON SONO STE STC SLF THC TTMI TWO DIS WTS XPO
Thursday (Feb 9)
Morning: ABBV APO MT ARES AZN BAX BWA BRKR CCJ CGC CSII CIGI CYBR DBD DUK ESMT FAF GTES HLT HIMX HII NSIT NSP IPG ITT K KIM LITE MAS MDU MSGE NNN PATK PEP PM PDS RL SPGI SEE SSTK SWI TPR TTGT TU TPX TRI WMG WEX WTW
Afternoon: AYX BE BHF CBT CC NET ROAD OFC CRSR COUR CUZ DXCM DOCS EQR EXPE FLO G KN LGF.A LYFT MTD MHK MSI NWSA ONTO PYPL PECO PRO QLYS RBC REG SPSC STEP TEX MODG VTR VRSN YELL YELP
Friday (Feb 10)
Morning: ENB ESNT FTS GPN IQV MGA COOP NWL PRLB SXT SPB SLVM WPC
Asia & Europe detail:
Asia: Nikkei UNCH, Hang Seng +0.4%, Shanghai Composite +0.3%
Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Nominations for the next Bank of Japan governor will be submitted to the Japanese parliament next week. Japan saw its first year-over-year increase in real cash earnings since March. Bank of Korea policymaker Suh said that the Korean economy can withstand interest rate differentials with the U.S. The Reserve Bank of Australia increased its cash rate by 25 bps to 3.35%, as expected, and noted that additional increases will be needed in the coming months.
In economic data:
Japan's December Household Spending -2.1% m/m (expected 0.3%; last -0.9%); -1.3% yr/yr (expected -0.2%; last -1.2%). December Average Cash Earnings 4.8% yr/yr (expected 2.5%; last 1.9%). December Leading Index -0.5% m/m (last -1.2%) and Coincident Indicator -0.4% m/m (last -0.3%)
Australia's December trade surplus AUD12.24 bln (expected surplus of AUD12.50 bln; last surplus of AUD13.48 bln). December Imports 1.0% m/m (last -3.1%) and Exports -1.0% m/m (last -1.0%)
---Equity Markets---
Japan's Nikkei: UNCH
Hong Kong's Hang Seng: +0.4%
China's Shanghai Composite: +0.3%
India's Sensex: -0.4%
South Korea's Kospi: +0.6%
Australia's ASX All Ordinaries: -0.4%
---FX---
USD/JPY: -0.4% to 132.13
USD/CNH: -0.1% to 6.7958
USD/INR: UNCH at 82.70
Europe: DAX -0.1%, FTSE +0.6%, CAC +0.1%
Major European indices trade on a mostly higher note. British Prime Minister Sunak will reportedly announce a small reshuffle of his cabinet soon. Energy giant BP reported that its profit doubled in 2022, boosted its quarterly dividend, and announced a new buyback. The European Central Bank's latest survey on inflation expectations among consumers continued pointing to expectations for 5.0% inflation over the next year. The inflation outlook for a three-year period increased to 3.0% from 2.9%.
In economic data:
Germany's December Industrial Production -3.1% m/m (expected -0.7%; last 0.4%)
U.K.'s January Halifax House Price Index 0.0% m/m (expected -0.8%; last -1.3%); 1.9% yr/yr (expected -0.3%; last 2.1%)
France's December trade deficit EUR14.90 bln (expected deficit of EUR12.20 bln; last deficit of EUR13.60 bln). December Current Account deficit EUR8.50 bln (last deficit of EUR6.70 bln)
Spain's December Industrial Production 0.6% yr/yr (expected -0.6%; last -0.7%)
Swiss January Unemployment Rate 1.9%, as expected (last 1.9%)
---Equity Markets---
STOXX Europe 600: +0.1%
Germany's DAX: -0.1%
U.K.'s FTSE 100: +0.6%
France's CAC 40: +0.1%
Italy's FTSE MIB: +0.6%
Spain's IBEX 35: +0.4%
---FX---
EUR/USD: -0.2% to 1.0705
GBP/USD: -0.3% to 1.1978
USD/CHF: -0.2% to 0.9263
