The S&P 500 futures trade 37 points, or 0.8%, below fair value as the rebound momentum loses steam with Meta Platforms (FB 251.25, -71.75, -22.2%) reeling on disappointing earnings news. The Nasdaq 100 futures underperform and trade 2.0% below fair value.
Shares of Facebook's parent company are down 22% in pre-market action after missing EPS estimates and guiding Q1 revenue below consensus due to ad-impression and pricing-related factors. The visceral reaction has pressured other growth stocks, which are also contending with an uptick in interest rates in front of key economic data.
Specifically, investors will receive weekly Initial Claims (Briefing.comconsensus 245,000) and preliminary Q4 readings for Productivity (Briefing.comconsensus 2.7%) and Unit Labor Costs at 8:30 a.m. ET. Afterwards, the January ISM Non-Manufacturing Index (Briefing.comconsensus 60.0%) and December Factory Orders (Briefing.comconsensus -0.2%) will be released at 10:00 a.m. ET.
The 10-yr yield is up three basis points to 1.80% while the 2-yr yield is up two basis points to 1.17%. The U.S. Dollar Index is up 0.2% to 96.09. WTI crude futures are down 1.5%, or $1.33, to $86.93/bbl.
T-Mobile US (TMUS 117.95, +8.37, +7.6%), meanwhile, is bucking the negative trend with a 7.6% gain after beating EPS estimates. Dow components Honeywell (HON 201.00, -6.55, -3.2%) and Merck (MRK 81.75, -0.26, -0.3%) have underwhelmed investors with their results.
Elsewhere, the Bank of England hiked rates for the second meeting in a row, voting today to raise its bank rate by 25 basis points to 0.50%. The European Central Bank (ECB) left rates unchanged, as expected, but investors are wondering if ECB President Lagarde will pay heed to inflation risks in her press conference.
In U.S. Corporate news:
Meta Platforms (FB 251.25, -71.75): -22.2% after missing EPS estimates and guiding Q1 revenue below consensus due to ad impression and pricing related factors.
T-Mobile US (TMUS 117.95, +8.37): +7.6% after beating EPS estimates on below-consensus revenue.
Honeywell (HON 201.00, -6.55): -3.2% after guiding FY22 EPS and revenue below consensus, overshadowing its EPS beat.
Merck (MRK 81.75, -0.26): -0.3% after guiding FY22 EPS below consensus while beating EPS estimates.
Qualcomm (QCOM 185.10, -3.10): -1.7% despite beating top and bottom-line estimates and guiding fiscal Q2 EPS and revenue above consensus.
Spotify (SPOT 171.60, -20.32): -10.6% despite beating top and bottom-line estimates. On a related note, a few more artists want to remove their music from the platform, according to The Wall Street Journal.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note while markets in China remained closed for Lunar New Year. Japan's Nikkei: -0.6% Hong Kong's Hang Seng: CLOSED China's Shanghai Composite: CLOSED India's Sensex: -1.3% South Korea's Kospi: +1.7% Australia's ASX All Ordinaries: -0.3%.
In economic data:
Japan's January Services PMI 47.6 (last 52.1)
South Korea's January Nikkei Manufacturing PMI 52.8 (last 51.9)
India's January Nikkei Services PMI 51.5 (expected 53.0; last 55.5)
Australia's December AIG Construction Index 45.9 (last 57.0), December Building Approvals 8.2% m/m (expected -1.0%; last 2.6%), and December trade surplus AUD8.356 bln (expected surplus of AUD10.600 bln; last surplus of AUD9.42 bln). December Imports 5% m/m (last 6%) and Exports 1% m/m (last 2%). January Services PMI 46.6 (last 55.1)
In news:
South Korea's finance minister cautioned that the decline in housing prices is expected to accelerate due to planned rate hikes and tighter lending rules.
Bank of Japan Deputy Governor Wakatabe said that a rate cut is possible if downside risks intensify.
Japan's Services PMI contracted for the first time in four months in the January reading.
Major European indices trade on a mostly lower note while Spain's IBEX (+0.1%) outperforms slightly. STOXX Europe 600: -0.6% Germany's DAX: -0.6% U.K.'s FTSE 100: -0.2% France's CAC 40: -0.2% Italy's FTSE MIB: -0.3% Spain's IBEX 35: +0.1%.
In economic data:
Eurozone's December PPI 2.9% m/m (expected 2.8%; last 1.8%); 26.2% yr/yr (expected 26.1%; last 23.7%). January Services PMI 51.1 (expected 51.2; last 53.1)
Germany's January Services PMI 52.2, as expected (last 48.7)
U.K.'s January Services PMI 54.1 (expected 53.3; last 53.6)
France's January Services PMI 53.1, as expected (last 57.0)
Italy's January Services PMI 48.5 (expected 50.0; last 53.0)
Spain's January Services PMI 46.6 (expected 51.5; last 55.8)
In news:
There is growing speculation that British Prime Minister Johnson will be replaced, even though MPs don't currently have enough signatures to trigger a confidence vote.
British energy regulator increased the cap on bills to consumers by 54%. The price hikes will be partially offset by subsidies from the government.
The Bank of England voted 9-0 to raise its bank rate by 25 bps to 0.50%.
The European Central Bank is expected to leave its interest rate corridor intact and President Lagarde is expected to repeat during her press conference that a rate hike in 2022 is unlikely.
U.S. equity futures:
S&P 500 Futures: -42 @ 4,548
DJIA Futures: -37 @ 35,592
Nasdaq 100 Futures: -307 @ 14,832
Overseas:
Europe: DAX -0.6%, FTSE -0.2%, CAC -0.2%
Asia: Nikkei -0.6%, Hang Seng CLOSED, Shanghai Composite CLOSED
Commodities:
Crude Oil -1.06 @ 87.20
Nat Gas -0.444 @ 5.057
Gold -9.25 @ 1801.08
Silver -0.370 @ 22.337
Copper -0.0550 @ 4.4400
U.S. Summary:
Earnings/Guidance (Full Earnings Calendar):
8x8 (EGHT) reports EPS in-line, beats on revs; guides Q4 revs above consensus
ABB Ltd (ABB) reports Q4 (Dec) results, beats on revs
Abiomed (ABMD) beats by $0.16, beats on revs; raises FY22 revs above consensus
ADTRAN (ADTN) beats by $0.12, beats on revs
Advanced Drainage Systems (WMS) misses by $0.15, beats on revs; raises FY22 revs outlook
Aflac (AFL) beats by $0.02, beats on revs
Align Tech (ALGN) beats by $0.10, reports revs in-line; guides FY22 revs in-line
Allegiant Travel (ALGT) beats by $0.01, beats on revs
Allstate (ALL) misses by $0.02, misses on revs
Ametek (AME) beats by $0.07, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY22 EPS in-line, revs in-line
Aptiv (APTV) reports EPS in-line, beats on revs; guides FY22 EPS in-line, revs in-line
AvalonBay (AVB) beats by $0.02; guides Q1 FFO below consensus at the midpoint; guides FY22 FFO above consensus at the midpoint
Aviat Networks (AVNW) beats by $0.10, beats on revs
AZEK (AZEK) beats by $0.02, beats on revs; guides MarQ revs above consensus; guides FY22 revs above consensus
BCE Inc (BCE) beats by CAD 0.03, reports revs in-line
Becton Dickinson (BDX) beats by $0.79, beats on revs; raises FY22 EPS above consensus, revs above consensus
Berry Global (BERY) misses by $0.09, beats on revs; reaffirms FY22 EPS guidance; authorizes new share repurchase plan of $1 bln
Biogen (BIIB) beats by $0.02, beats on revs; guides FY22 EPS below consensus, revs below consensus
Brandywine Realty (BDN) reports FFO in-line, revs in-line; guides FY22 FFO above consensus at midpoint
BrightView (BV) misses by $0.03, reports revs in-line
Buckle (BKE) reports January comparable store net sales +4.2% and Q4 prelim net sales +19.5% yr/yr to $380.9 mln vs $345 mln consensus
Cardinal Health (CAH) beats by $0.04, reports revs in-line; guides FY22 EPS in-line
Cardiovascular Systems (CSII) misses by $0.10, misses on revs; guides FY22 revs below consensus
Carlyle Group (CG) reports Q4 (Dec) results, beats on revs; announces dividend increase
Central Garden (CENT) beats by $0.16, beats on revs; reaffirms FY21 EPS guidance
Century Communities (CCS) beats by $0.82, reports revs in-line; guides FY22 revs in-line
Change Healthcare (CHNG) beats by $0.01, beats on revs
Check Point Software (CHKP) beats by $0.10, beats on revs
Cigna (CI) beats by $0.06, beats on revs; guides FY22 EPS below consensus
Clarivate (CLVT) completes restatement of prior financial statements, expects to come in below or at the low-end of FY21 guidance as a result; also lowers FY22 guidance slightly
CMC Materials (CCMP) beats by $0.29, reports revs in-line; guides Q2 revs above consensus
Cognizant Tech (CTSH) beats by $0.06, reports revs in-line; guides Q1 revs in-line; guides FY22 EPS in-line, revs in-line
ConocoPhillips (COP) beats by $0.08
Core Labs (CLB) reports EPS in-line, beats on revs; guides Q1 EPS mid-point below consensus; guides Q1 revs below consensus
Costco (COST) reports January adjusted comparable sales growth of 10.8%; net sales up 15.5% yr/yr
Cummins (CMI) misses by $0.41, reports revs in-line; guides FY22 revs below consensus
Deluxe (DLX) beats by $0.04, beats on revs; guides FY22 revs above consensus; announces dividend
Digi Intl (DGII) beats by $0.07, beats on revs; guides Q2 EPS above consensus, revs in-line
DXC Technology (DXC) beats by $0.01, reports revs in-line
e.l.f. Beauty (ELF) beats by $0.09, beats on revs; guides FY22 EPS above consensus, revs above consensus
Eli Lilly (LLY) misses by $0.02, beats on revs; reaffirms FY22 EPS guidance, revs guidance
Essex Property (ESS) beats by $0.03; guides FY22 FFO below consensus
Estee Lauder (EL) beats by $0.37, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY22 EPS in-line, revs in-line
FormFactor (FORM) beats by $0.03, beats on revs; guides Q1 EPS, revs in-line
Fortive (FTV) beats by $0.01, misses on revs; guides Q1 EPS below consensus, revs below consensus; guides FY22 EPS in-line, revs in-line
Fortune Brands Home & Security (FBHS) beats by $0.03, beats on revs; guides FY22 EPS above consensus
Globe Life (GL) misses by $0.06, beats on revs
Hain Celestial (HAIN) beats by $0.03, reports revs in-line; reiterates FY22 net sales guide
Hanesbrands (HBI) reports EPS in-line, revs in-line; guides Q1 EPS below consensus, revs in-line; guides FY22 EPS below consensus, revs above consensus
Hanover Insurance (THG) beats by $0.83, beats on revs
Hershey Foods (HSY) beats by $0.07, beats on revs; guides FY22 EPS above consensus, revs above consensus
Hillenbrand (HI) beats by $0.05, beats on revs; guides Q2 EPS above consensus; raises low end of FY22 EPS guidance, revs above consensus
Hologic (HOLX) beats by $0.96, beats on revs; guides MarQ EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus
Honeywell (HON) beats by $0.01, reports revs in-line; guides FY22 EPS below consensus, revs below consensus
Hubbell (HUBB) misses by $0.01, misses on revs; guides FY22 EPS in-line
ING Groep (ING) reports Q4 results
Ingredion (INGR) misses by $0.20, beats on revs; guides FY22 EPS in-line
IntercontinentalExchange (ICE) beats by $0.02, reports revs in-line; increases quarterly dividend by 15%
Janus Henderson Group (JHG) beats by $0.01, reports revs in-line
Kodiak Sciences (KOD) completes enrollment in GLEAM and GLIMMER Phase 3 Clinical trials of KSI-301
Kulicke & Soffa (KLIC) beats by $0.29, reports revs in-line; guides Q2 EPS in-line, revs in-line
Lancaster Colony (LANC) misses by $0.49, beats on revs
Lazard (LAZ) beats by $0.49, beats on revs
Lightspeed (LSPD) reports EPS in-line, beats on revs; guides Q4 revs in-line; guides FY22 revs above consensus
Lumentum (LITE) beats by $0.02, reports revs in-line; guides Q3 EPS below consensus, revs below consensus
MAXIMUS (MMS) beats by $0.05, beats on revs; guides FY22 EPS in-line, revs above consensus
MaxLinear (MXL) beats by $0.02, beats on revs; guides Q1 revs above consensus
McKesson (MCK) beats by $0.73, beats on revs; raises FY22 EPS above consensus
Merck (MRK) beats by $0.28, reports revs in-line; guides FY22 EPS below consensus, revs in-line
Meritor (MTOR) beats by $0.18, reports revs in-line; guides FY22 EPS in-line, revs in-line
Meta Platforms (FB) misses by $0.16, reports revs in-line; guides Q1 revs below consensus due to ad impression and pricing related factors
MetLife (MET) beats by $0.55, beats on revs
MGIC Investment (MTG) beats by $0.17, beats on revs; announces buyback
Mid-America Aptmt (MAA) beats by $0.15, reports revs in-line; guides Q1 FFO in-line; guides FY22 FFO in-line
MSG Sports (MSGS) misses by $0.27, misses on revs
Murphy USA (MUSA) beats by $0.98, beats on revs
NETGEAR (NTGR) beats by $0.14, misses on revs; guides Q1 revs below consensus
Nintendo (NTDOY) reports nine-month results; raises guidance
NJ Resources (NJR) beats by $0.01, beats on revs; reaffirms FY22 EPS in-line
Nokia (NOK) beats by 0.01, reports revs in-line; guides FY21 revs in-line
NuStar Energy (NS) reports Q4 (Dec) results, beats on revs
Omega Health (OHI) misses by $0.04, misses on revs
OneMain Holdings (OMF) beats by $0.03; raises dividend by 36% and announces new $1.0 bln share repurchase program
Parker-Hannifin (PH) beats by $0.53, beats on revs; guides FY22 EPS above consensus
Penn Natl Gaming (PENN) misses on EPS, beats on revs; guides FY22 revs in-line
PNM Resources (PNM) sees FY11 EPS above consensus; sees FY22 EPS in line; raises dividend 6.1%
Prestige Consumer (PBH) beats by $0.11, beats on revs; guides FY22 EPS above consensus, revs above consensus
Qorvo (QRVO) beats by $0.22, reports revs in-line; guides Q4 EPS above consensus, revs in-line
Qualcomm (QCOM) beats by $0.23, beats on revs; guides Q2 EPS above consensus, revs above consensus
Quest Diagnostics (DGX) beats by $0.14, beats on revs; guides FY22 EPS midpoint above consensus, revs midpoint above consensus; increases dividend
Rayonier (RYN) misses by $0.01, beats on revs
Regal Rexnord (RRX) misses by $0.05, beats on revs; guides FY22 EPS in-line, revs above consensus
Red Rock Resorts (RRR) reports Q4 (Dec) results, beats on revs
Roche Hldg (RHHBY) reports FY21 results; revs rise 9% yr/yr; provides FY22 outlook
SiTime (SITM) beats by $0.23, beats on revs
Shell plc (RDS.A) beats on top and bottom lines; provides Q1 guidance; commences share buyback
Skyline Champion (SKY) beats by $0.45, beats on revs
Snap-On (SNA) beats by $0.41, beats on revs
Spotify (SPOT) beats by 0.15, beats on revs; guides Q1 revs in-line
Suncor Energy (SU) misses by CAD 0.07
Takeda Pharma (TAK) reports nine-month results; raises FY21/22 EPS and revs guidance
Tetra Tech (TTEK) beats by $0.16, beats on revs; guides MarQ EPS in-line, revs in-line; guides FY22 EPS above consensus, revs in-line
Timken (TKR) misses by $0.13, beats on revs; guides FY22 EPS below consensus, revs above consensus
T-Mobile US (TMUS) beats by $0.20, misses on revs
Tradeweb Markets (TW) reports EPS in-line, revs in-line
TrueBlue (TBI) beats by $0.26, beats on revs
UGI Corp (UGI) misses by $0.31, beats on revs
Vista Outdoor (VSTO) beats by $0.18, beats on revs; guides FY23 EPS above consensus, revs below consensus
Walker & Dunlop (WD) beats by $0.13, beats on revs
WEC Energy Group (WEC) beats by $0.04, beats on revs; reaffirms FY22 EPS in-line
WestRock (WRK) beats by $0.01, reports revs in-line
Xylem (XYL) beats by $0.02, reports revs in-line; guides FY22 EPS, revs below consensus; increases quarterly dividend
Yellow Corporation (YELL) reports Q4 (Dec) results, revs in-line
General News:
Senate Minority Leader Mitch McConnell (R-KY) urges states to end COVID-19 emergency and remove restrictions and mask mandates, according to CBS News
Both sides are getting closer on deal to fund government through September 30, but disagreements over additional coronavirus relief funding exist. Deal must be reached by February 18to avoid government shutdown, according to the Washington Post
New satellite images show that Russia continues to build up military presence near Ukraine's border, according to the New York Times
Bank of England voted by a majority of 5-4 to increase Bank Rate by 0.25 percentage points, to 0.5%
ECB will leave rates unchanged; will discontinue net asset purchases under the PEPP at the end of March
Senate Banking Committee releases testimony from Fed Vice Chairman For Supervision nominee Sarah Bloom Raskin
New Zealand aiming to remove some border controls and quarantine rules, according to the New York Times
UK Energy regulator Ofgem increases energy price cap by 54%
Adicet Bio (ACET) disclosed that Regeneron Pharma (REGN) exercised its option to licence the exclusive rights to ADI-002
Advanced Drainage Systems (WMS) approves new $1 bln stock repurchase program
American Water Works (AWK) announces that its president and CEO Walter Lynch retired from the company, effective February 2, 2022
AstraZeneca (AZN) enters into license agreement with Regio Biosciences to develop REG-101
Berry Global (BERY) has authorized a new share repurchase program under which the Company may repurchase up to $1 bln of its outstanding shares of common stock
Broadmark Realty (BRMK) announces that Brian P. Ward will join the Company as its new Chief Executive Officer, effective March 1, 2022
CME Group (CME) declared a first-quarter dividend of $1.00 per share, an 11% increase from the prior level of $0.90 per share
Equitrans Midstream (ETRN) issued statement regarding the Mountain Valley Pipeline project
Fortuna (FSM) provides construction update at its Sgula gold Project in Cte dIvoire
GameStop (GME) announces partnership with Immutable X
Granite Constr (GVA) announced several actions designed to position the Company to focus on efficiently growing its core civil construction and materials business
Greenbrier (GBX) reports Q1 Orders of 2,900 new railcars valued at $345 million
Halozyme Therapeutics (HALO) announces that Nicole LaBrosse has been promoted to the position of senior vice president, chief financial officer, effective immediately
Harley-Davidson (HOG) enters into a cooperation agreement with one of its major shareholders, H Partners
Immunic (IMUX) receives notice of allowance for patent application for IMU-935
IntercontinentalExchange (ICE) increases quarterly dividend to $0.38 per share from $0.33 per share
Invitation Homes (INVH) has committed to providing $250 million of equity capital to launch Pathway Homes
Johnson & Johnson (JNJ) will record impairment charge related to an in-process research and development asset bermekimab
Lightning eMotors (ZEV) has reached an agreement with General Motors (GM) to be the first GM Specialty Vehicle Manufacturer to provide fully electric Class 3 through Class 6 commercial vehicles
Lightspeed (LSPD) appoints JP Chauvet as CEO, effective immediately
Marinus Pharmaceuticals (MRNS) announces preliminary results from an in vivo study on the M2 metabolite showing that no genotoxicity was found, as measured by formation of micronuclei in the bone marrow or comet morphology in the liver
Meritor (MTOR) extends electrification agreement with PACCAR (PCAR); extends long-term standard position agreement with Wabash (WNC)
Mersana Therapeutics (MRSN) announces research collaboration with Johnson & Johnson's (JNJ) Janssen
NASDAQ (NDAQ) reports January 2022 metrics -- U.S. equity options volume was 270 mln contracts vs 258 mln prior month and 293 mln one year ago
Novavax (NVAX) COVID-19 vaccine Nuvaxovid approved by MHRA
Pardes Biosciences (PRDS) announces that its Investigational New Drug application for PBI-0451 has been cleared by the United States Food and Drug Administration
Quest Diagnostics (DGX) announces that its Board of Directors, as part of its ongoing leadership succession planning, has appointed James E. Davis, Executive Vice President, General Diagnostics, to be its next Chief Executive Officer, effective November 1, 2022
Riot Blockchain (RIOT) shuts down Bitcoin operations in Texas due to cold weather, according to Bloomberg
Sealed Air (SEE) announces two key senior leadership appointments
Spotify (SPOT): Musicians David Crosby and Stephen Stills to remove music from Spotify, according to the Wall Street Journal
Syros Pharmaceuticals (SYRS) announces that the U.S. Food and Drug Administration has granted orphan drug designation to tamibarotene for the treatment of myelodysplastic syndrome
Tesla (TSLA): NTHSA is reviewing complaints that Tesla cars brake at fast speeds, according to Bloomberg
Tradeweb Markets (TW) reports January total trading volume of $22.3 trillion and average daily volume of $1.12 trillion
Trane (TT) increases quarterly dividend to $0.67/share from $0.59/share and authorized a new share repurchase program of up to $3 bln
U.S. Silica (SLCA) to increase prices on certain industrial and specialty products
WAVE Life Sciences (WVE) announces two publications in the journal Nucleic Acids Research supporting the incorporation of PN backbone chemistry modifications in stereopure oligonucleotides as a significant advancement for the therapeutic oligonucleotide field
XL Fleet (XL) announces resignation of Cielo Hernandez as CFO, effective January 31
M&A:
Babcock & Wilcox Enterprises (BW) has acquired Fossil Power Systems; financial terms not disclosed
CHW Acquisition Corporation (CHWA) and Wag Labs enter SPAC merger agreement; combined company Wag! Group Co. to list on Nasdaq under ticker "PET"
Intellia Therapeutics (NTLA) announces the acquisition of Rewrite Therapeutics
Sealed Air (SEE) acquires Foxpak; financial terms not disclosed
Syndicate:
Dave, Inc. (DAVE) files for 331,404,740 share common stock offering by selling shareholders
Flex (FLEX) enters into agreement to sell $500 mln of convertible preferred equity in Nextracker to TPG Rise Climate
IPOs:
Expected to Price:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
NRXP +10.2%, SYRS +7.8%, FLEX +7.6%, CCS +7.4%, TMUS +7.4%, CHNG +6%, VSTO +6%, XL +5.9%, EGHT +3.6%, RRR +3.2%, MCK +3.1%, DXC +2.7%, SKY +2.7%, CHKP +2.4%, DAVE +2.2%, MTG +2.2%, LPG +2.2%, ZEV +2.1%, MXL +1.6%, INGR +0.8%, TAK +0.7%
Gapping down:
FB -20.8%, LSPD -18%, NTGR -9.2%, SPOT -8.9%, QRVO -6.7%, ING -6%, SU -4.9%, NOK -4.2%, SLCA-4.1%, LNC -4.1%, CSII -3.8%, QCOM -3.6%, YELL-3.5%, AMC -3%, ALGN -2.5%, CTSH -2%, ABB -2%, AFL -1.7%, SITM -1.7%, KLIC -1.5%, MET -1.5%, RDS.A -1%, HOLX -0.9%, ES -0.8%, PBH -0.8%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Agnico-Eagle Mines (AEM) upgraded to Overweight from Equal Weight at Barclays
Alnylam Pharma (ALNY) upgraded to Buy from Neutral at Guggenheim; tgt $170
C.H. Robinson (CHRW) upgraded to Buy from Hold at Stifel; tgt raised to $106
Franco-Nevada (FNV) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $110
Glaukos (GKOS) upgraded to Outperform from Mkt Perform at William Blair
L'Oreal (LRLCY) upgraded to Neutral from Underperform at Credit Suisse
NVR (NVR) upgraded to Neutral from Sell at UBS; tgt raised to $5500
PulteGroup (PHM) upgraded to Buy from Neutral at UBS; tgt raised to $70
SolarEdge Technologies (SEDG) upgraded to Buy from Hold at Needham; tgt $347
UNITIL Corporation (UTL) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $50
W.R. Berkley (WRB) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $106
Downgrades:
Dynatrace (DT) downgraded to Neutral from Buy at BTIG Research
Electric Last Mile Solutions (ELMS) downgraded to Hold from Buy at Jefferies; tgt lowered to $2.50
Exelon (EXC) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $45
Exelon (EXC) downgraded to Hold from Buy at Vertical Research; tgt $45
Exelon (EXC) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $46
First Solar (FSLR) downgraded to Neutral from Buy at BofA Securities; tgt $91
Gap (GPS) downgraded to Equal Weight from Overweight at Barclays; tgt $15
Meta Platforms (FB) downgraded to Hold from Buy at Loop Capital; tgt lowered to $230
Meta Platforms (FB) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $284
Meta Platforms (FB) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $290
Meta Platforms (FB) downgraded to Outperform from Strong Buy at Raymond James; tgt lowered to $340
PayPal (PYPL) downgraded to Hold from Buy at DZ Bank; tgt $140
Vertex Pharma (VRTX) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $269
Others:
BHP Group (BHP) initiated with a Hold at DZ Bank
Constellation Energy (CEG) initiated with an Outperform at BMO Capital Markets; tgt $65
Constellation Energy (CEG) initiated with a Buy at Vertical Research; tgt $60
Constellation Energy (CEG) initiated with a Neutral at Guggenheim; tgt $51
Constellation Energy (CEG) initiated with an Overweight at Wells Fargo; tgt $65
Constellation Energy (CEG) initiated with a Sell at Edward Jones
Henkel AG (HENKY) initiated with a Neutral at Credit Suisse
MEI Pharma (MEIP) initiated with a Buy at Jefferies; tgt $4
Mister Car Wash (MCW) initiated with a Hold at Stifel; tgt $20
Reckitt Benckiser (RBGLY) assumed with an Outperform at Credit Suisse
Sight Sciences (SGHT) initiated with an Outperform at William Blair
Stanley Black & Decker (SWK) resumed with a Buy at Citigroup; tgt $215
Unilever PLC (UL) assumed with an Outperform at Credit Suisse
Upcoming Events:
Econ Data:
08:30 ET: Initial Claims for Jan. 29 (Briefing.comConsensus 245K; Prior 260K)
08:30 ET: Continuing Claims for Jan. 22 (Briefing.comConsensus NA; Prior 1.675M)
08:30 ET: Productivity - Prel for Q4 (Briefing.comConsensus 2.7%; Prior -5.2%)
08:30 ET: Unit Labor Costs - Prelim for Q4 (Briefing.comConsensus NA; Prior 9.6%)
09:45 ET: IHS Markit Services PMI - Final for Jan. (Briefing.comConsensus NA; Prior 50.9)
10:00 ET: Factory Orders for Dec. (Briefing.comConsensus -0.2%; Prior 1.6%)
10:00 ET: ISM Non-Manufacturing Index for Jan. (Briefing.comConsensus 60.0%; Prior 62.0%)
10:30 ET: EIA Natural Gas Inventories for Jan. 29 (Briefing.comConsensus NA; Prior -219 bcf)
Earnings:
Monday (Jan 31)
Morning: AKTS ATKR OTIS TT
Afternoon: AGNC ARE AXTA CBT CRUS CACC FN GGG HLIT HTLF HP JJSF KMPR KRC NXPI PCH SANM WWD
Tuesday (Feb 1)
Morning: ALGM ARCB TECH BR CTLT ENTG EPD AQUA XOM BEN GFF HLNE IMO LII MAN MDC NVR PNR PBI PINC PHM SMG ST SIRI SWK UBS UPS WAT
Afternoon: AMD GOOG AMCR DOX APAM ASH CB EA EHC EQR GM GILD HMN IEX LFUS MANH MTCH MRCY MSTR OI PYPL PKI SBUX SMCI TENB UNM
Wednesday (Feb 2)
Morning: ABBV ATI ABC AVY BSX EAT BIP CHRW CPRI CRS GIB DHI DT EMR EVR RACE HWM HUM IDXX JCI MMP MPC MPLX NYT NVS ODFL ROP SAIA SBH SLAB SR SPR TMO VNE WNC WM
Afternoon: EGHT ADTN AFL ALGN ALGT ALL AVB BDN CCS CHNG CCMP CTSH CLB CTVA DXC ELF ESS FORM FBHS GL THG HI HOLX KLIC LNC MXL MCK FB MET MTG MAA MUSA NTGR OHI OMF QRVO QCOM RYN RRR RRX SITM SKY SPOT TMUS TTEK TBI UGI YELL
Thursday (Feb 3)
Morning: ABB ABMD WMS AME APTV ARW AZEK BCE BDX BERY BIIB BV CAH CSII CG CHKP CI CMS COP CMI DLX LLY EL FTV GWW HAIN HBI HSY HON HUBB ITW INGR ICE JHG LANC LAZ LITE MMS MPW MRK MTOR MSGS NJR NOK NS PH PENN PBH DGX RL SNDR RDS.A SNA TKR TW VSAT VSTO WD WEC WRK XYL
Afternoon: ATVI AMZN AINV AVTR BECN BHE BILL BYD CPT CDK CLX COLM CUZ DECK DLB ENVA EXPO F FTNT GPRO HIG LCI LESL LGF.A LPLA MCHP MIME MTX MWA NFG NWSA NLOK NOV OTEX PYCR PCTY PFSI PINS POST POWI PRU RGA SIGI SKX SKYW SWKS SNAP SYNA U VIAV WERN WWE
Friday (Feb 4)
Morning: ADNT APD AON BMY BEP CBOE ROAD ETN REGN SNY SPB TWST
Asia & Europe detail:
Asia: Nikkei -0.6%, Hang Seng CLOSED, Shanghai Composite CLOSED
Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note while markets in China remained closed for Lunar New Year. South Korea's finance minister cautioned that the decline in housing prices is expected to accelerate due to planned rate hikes and tighter lending rules. Bank of Japan Deputy Governor Wakatabe said that a rate cut is possible if downside risks intensify. Japan's Services PMI contracted for the first time in four months in the January reading.
In economic data:
Japan's January Services PMI 47.6 (last 52.1)
South Korea's January Nikkei Manufacturing PMI 52.8 (last 51.9)
India's January Nikkei Services PMI 51.5 (expected 53.0; last 55.5)
Australia's December AIG Construction Index 45.9 (last 57.0), December Building Approvals 8.2% m/m (expected -1.0%; last 2.6%), and December trade surplus AUD8.356 bln (expected surplus of AUD10.600 bln; last surplus of AUD9.42 bln). December Imports 5% m/m (last 6%) and Exports 1% m/m (last 2%). January Services PMI 46.6 (last 55.1)
---Equity Markets---
Japan's Nikkei: -0.6%
Hong Kong's Hang Seng: CLOSED
China's Shanghai Composite: CLOSED
India's Sensex: -1.3%
South Korea's Kospi: +1.7%
Australia's ASX All Ordinaries: -0.3%
---FX---
USD/JPY: +0.4% to 114.82
USD/CNH: +0.1% to 6.3626
USD/INR: +0.1% to 74.88
Europe: DAX -0.6%, FTSE -0.2%, CAC -0.2%
Major European indices trade on a mostly lower note while Spain's IBEX (+0.1%) outperforms slightly. There is growing speculation that British Prime Minister Johnson will be replaced, even though MPs don't currently have enough signatures to trigger a confidence vote. British energy regulator increased the cap on bills to consumers by 54%. The price hikes will be partially offset by subsidies from the government. The Bank of England voted 9-0 to raise its bank rate by 25 bps to 0.50%. The European Central Bank is expected to leave its interest rate corridor intact and President Lagarde is expected to repeat during her press conference that a rate hike in 2022 is unlikely.
In economic data:
Eurozone's December PPI 2.9% m/m (expected 2.8%; last 1.8%); 26.2% yr/yr (expected 26.1%; last 23.7%). January Services PMI 51.1 (expected 51.2; last 53.1)
Germany's January Services PMI 52.2, as expected (last 48.7)
U.K.'s January Services PMI 54.1 (expected 53.3; last 53.6)
France's January Services PMI 53.1, as expected (last 57.0)
Italy's January Services PMI 48.5 (expected 50.0; last 53.0)
Spain's January Services PMI 46.6 (expected 51.5; last 55.8)
---Equity Markets---
STOXX Europe 600: -0.6%
Germany's DAX: -0.6%
U.K.'s FTSE 100: -0.2%
France's CAC 40: -0.2%
Italy's FTSE MIB: -0.3%
Spain's IBEX 35: +0.1%
---FX---
EUR/USD: -0.1% to 1.1289
GBP/USD: +0.2% to 1.3601
USD/CHF: +0.5% to 0.9223
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