Dow Jones, Nasdaq, S&P 500 weekly preview: January CPI report takes the central stage
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The Dow Jones Industrial Average (DJI) ended the week flat, while the Nasdaq Composite Index (IXIC) surged 2.3% to close in on a new record high above the 16000 mark. The S&P 500 rose 1.4% last week to deliver its first ever weekly close above the 5000 handle. The likelihood of a rate cut in March has diminished, with the market consensus now shifting towards a possible cut no sooner than May. The Consumer Price Index (CPI) inflation data for January is due and is highly anticipated as it could significantly influence the Federal Reserve's monetary policy decisions. Key economic data releases this week include updates on consumer sentiment, retail sales, and the housing market. Earnings season continues, with 67% of S&P 500 companies reporting their Q4 2023 results. The blended earnings growth rate for the S&P 500 stands at 2.9% for Q4 2023. The forward 12-month P/E ratio for the S&P 500 is currently at 20.3, which is elevated compared to historical standards. Analysts have varying views on the market, with some highlighting the favorable backdrop and others cautioning about potential risks.
#DowJones #Nasdaq #S&p500 #CpiReport #Inflation #FederalReserve #MonetaryPolicy #EconomicData #ConsumerSentiment #RetailSales #HousingMarket #EarningsSeason
Dollar steady, US inflation data tops this week's bill
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The dollar was steady on Monday as a holiday in most major Asian markets subdued the start of what could turn into a busy week, with all eyes on U.S. inflation data for clues on when the Federal Reserve may start to cut rates. Strong jobs data earlier this month has largely taken a March Federal Reserve rate cut off the table, with markets currently seeing a move in May as more likely than not. Analysts expect U.S. core CPI to come in at 0.3% month on month in January, but a still elevated 3.8% year on year. On Wednesday, a reading of British CPI inflation will similarly influence opinion on when the Bank of England will start to cut interest rates - it is currently seen lagging the Fed and European Central Bank.
#Dollar #UsInflation #FederalReserve #InterestRates
https://www.investing.com/news/economy/dollar-steady-us-inflation-data-tops-this-weeks-bill-3300320
Dollar steady, US inflation data tops this week's bill
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The dollar was steady on Monday as a holiday in most major Asian markets subdued the start of what could turn into a busy week, with all eyes on U.S. inflation data for clues on when the Federal Reserve may start to cut rates. Strong jobs data earlier this month has largely taken a March Federal Reserve rate cut off the table, with markets currently seeing a move in May as more likely than not. Analysts expect U.S. core CPI to come in at 0.3% month on month in January, but a still elevated 3.8% year on year. On Wednesday, a reading of British CPI inflation will similarly influence opinion on when the Bank of England will start to cut interest rates - it is currently seen lagging the Fed and European Central Bank.
#Dollar #UsInflation #FederalReserve #InterestRates
https://www.investing.com/news/economy/dollar-steady-us-inflation-data-tops-this-weeks-bill-3300320
BAT shores up US heated tobacco prospects as competition grows
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British American Tobacco (BAT) has submitted an application to market its Glo Hyper Pro device as a reduced-risk product in the United States. This is BAT's first movement in years on heated tobacco in the world's biggest market for smoking alternatives. BAT had previously applied to market Glo in the U.S. in 2021 but has yet to receive approval. Chief Executive Tadeu Marroco said that while BAT's perspective on heated tobacco in the U.S. had not changed, the company had submitted a modified risk tobacco product application for Glo Hyper Pro to the U.S. Food and Drug Administration in December. BAT's competitors, including Philip Morris International and Altria International, have plans to launch their own heated tobacco devices in the U.S. market. If BAT's application is granted, it would allow the company to make certain health claims about Glo in its U.S. marketing, such as that it is lower risk or reduces exposure to harmful chemicals compared with smoking.
#BritishAmericanTobacco #GloHyperPro #HeatedTobacco #SmokingAlternatives #UnitedStates #Reduced-riskProduct #Competition
Nasdaq Eyes 16K, S&P 500 Whisker Away From 5k, Dow Jones Lags Behind: What's Next?
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Major U.S. indexes are breaking new historic records, with the S&P 500 just a hair away from 5,000 points. The bull market continues, supported by a soft landing in the U.S. economy and a positive Q4 earnings season. However, potential headwinds include the potential spark of the next banking crisis and scrutiny of the commercial real estate sector. From a technical perspective, the S&P 500 is approaching the 5,000-point level, while the Nasdaq is approaching the 16,000 mark. The Dow Jones Industrial Average has not reached new highs but remains in a strong upward trend. The article also mentions the AI-powered ProPicks stock selection tool and encourages readers to subscribe.
#StockMarket #S&p500 #Nasdaq #DowJones #TechnicalAnalysis #BullMarket #BankingCrisis #CommercialRealEstate #Ai #Propicks
Marketmind: Record S&P500 eyes 5,000, China deflated
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The S&P500 is on track to reach a record high of 5,000 points for the first time, buoyed by strong earnings and calmer bond markets. The index has risen 21% since late October, with US economic growth above 3%, unemployment below 4%, and annual profit growth above 8%. However, China's economy is facing deflationary risks, with consumer prices falling at their steepest pace in over 14 years in January. The MSCI World index of developed economy stocks hit a record high, excluding China's market. Hong Kong's Hang Seng Index fell 1.3% after Alibaba missed revenue estimates. The Federal Reserve is in a 'wait and see' mode, with futures pricing in an 80% chance of a rate cut by May. Weekly jobless claims and speeches by central bank officials will be closely watched.
#S&p500 #China #Economy #Deflation #Earnings #BondMarkets #MsciWorldIndex #HangSengIndex #Alibaba #FederalReserve #RateCut #JoblessClaims
Earnings call: Equinor posts strong 2023 results, plans for growth by 2035
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Equinor (EQNR) has reported robust financial performance for 2023 and outlined its strategy for growth and transition towards a broader energy offering with lower emissions by 2035. The company has announced an increase in its ordinary cash dividend and a two-year buyback program, while also emphasizing its commitment to energy security and transition. Equinor's strategic developments include launching its first commercial battery storage project in the UK and expanding its renewable capacity to 12-16 gigawatts by 2030. The company also plans to maintain production on the Norwegian continental shelf and invest in technology development to ensure sustainability and efficiency.
#Equinor #FinancialPerformance #GrowthStrategy #EnergyTransition #RenewableEnergy #BatteryStorage #Dividend #BuybackProgram #TechnologyDevelopment
Global hedge funds remain short, ready for further US banking turmoil -JPMorgan
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Global hedge funds were poised to profit from the plunge that occurred in U.S. regional banking stocks last week, according to a JPMorgan prime brokerage note to clients on Saturday that cited data as of Jan. 31. U.S. regional bank stocks tumbled about 8% on Jan. 31 after New York Community Bancorp reported a surprise earnings miss that saw its stock dive over 40%, signaling broader turmoil in the sector. Short sellers that targeted shares of a group of U.S. regional banks, including New York Community Bancorp, were up about $1.04 billion in paper profits in the week ending February 2, according to data and analytics company Ortex. Hedge funds had given up on this trade in December, but the group changed its mind and piled into short positions at the start of the year, JPMorgan said in the note. More short positions in large-cap banks were added in January, but the majority of hedge funds still held bets that these stocks would rise, said JPMorgan. Hedge fund trading in the stocks of larger banks was relatively lighter than historically, the note said. Insurance stocks, also considered part of the financials stock sector, saw short positions added, the note added. Hedge funds sold financial stocks for the second straight week, and were net sellers for seven out of the last nine weeks, Goldman Sachs said in a separate note on Friday. The amount of short positions is hovering near a five-year high compared to the number of bets expecting these stock prices to rise, the bank said.
#HedgeFunds #UsBanking #StockMarket #ShortSelling
Asian stocks skittish as early rate cut hopes wane, China rout deepens
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Most Asian stocks retreated on Monday as strong labor market data and relatively hawkish comments from Federal Reserve Chair Jerome Powell saw traders further price out expectations of early interest rate cuts this year. Losses were driven chiefly by weakness in technology and property stocks, with both indexes trading at five and four-year lows. Chinese markets were now nursing an extended rout after vastly underperforming their global peers through 2023, amid persistent concerns over slowing economic growth in the country. Rate cut bets dim after nonfarm payrolls shock, Powell comments. Powell said in an interview with CBS 60 minutes that the central bank would take a “prudent” approach to cutting interest rates, with recent resilience in the economy giving the central bank more headroom to keep rates on hold. Powell’s comments come in the wake of a substantially stronger-than-expected nonfarm payrolls report for January, which showed that the labor market remained robust. Higher-for-longer U.S. rates bode poorly for Asian markets, given that they diminish the appeal of high-yield, risk-heavy assets. Nikkei 225 was among the few gainers in Asia, aided by purchasing managers index data which showed the country’s services sector grew more than expected in January.
#AsianStocks #RateCut #ChinaRout #LaborMarket #FederalReserve #JeromePowell #TechnologyStocks #PropertyStocks #ChineseMarkets #EconomicGrowth #NonfarmPayrolls #InterestRates #Nikkei225 #PurchasingManagersIndex
Earnings call: Takeda maintains guidance despite profit decline
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Takeda Pharmaceutical Company reported its third-quarter earnings for fiscal year 2023, maintaining its full-year management guidance despite a decline in core operating profit. The company's revenue increased slightly, driven by growth and launch products, which now account for 43% of total revenue. Takeda faced a significant challenge from the entry of generic competitors to its Vyvanse drug in the U.S. market. Takeda remains committed to its strategy for sustained growth, emphasizing the expansion of its product portfolio, investment in research and development, and the use of data and digital technologies.
#TakedaPharmaceuticalCompany #EarningsCall #ProfitDecline
Columbia Sportswear stock downgraded amid brand slowdown
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CFRA downgraded Columbia Sportswear stock from Buy to Hold and adjusted the price target to $80 from $88 due to a slowdown in the company's brand performance. The outdoor apparel and footwear company experienced a gross margin increase in Q4, rising slightly by 20 basis points to 50.6%. However, CFRA cited a broader deceleration in sales across all the company's brands, with particular emphasis on the challenges faced by its largest brand, Columbia. Columbia Sportswear has been managing its brand portfolio amidst varying market conditions and has been recognized for its financial health and control of inventory levels. Investors will closely monitor the company's future performance in the competitive apparel market.
#ColumbiaSportswear #StockDowngrade #BrandPerformance #ApparelMarket
Earnings call: Johnson Controls eyes growth amid market challenges
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Johnson Controls discussed its Q1 2024 financial performance and strategic outlook during its earnings call. The company reported results in line with expectations, including sales, margins, and adjusted earnings per share. It is focusing on digital building solutions and streamlining its portfolio. However, it has adjusted its full-year guidance due to market headwinds in China and is considering strategic alternatives for its non-commercial product lines. The company faces challenges in the Asia-Pacific region, particularly in China. Johnson Controls is navigating a complex market environment with strategic maneuvers aimed at enhancing its digital building solutions platform and simplifying its portfolio.
#JohnsonControls #EarningsCall #Q12024 #DigitalBuildingSolutions #PortfolioStreamlining #ChinaMarket #Asia-pacific
Earnings call: GM outlines robust 2023 performance, ambitious 2024 EV goals
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General Motors (GM) showcased a strong financial performance for 2023 and laid out ambitious plans for its electric vehicle (EV) and autonomous vehicle (AV) sectors during its Fourth Quarter and Calendar Year 2023 Earnings Conference Call. GM led U.S. vehicle sales, with a focus on maximizing its internal combustion engine (ICE) portfolio and growing its EV business. The company aims to produce up to 300,000 EVs in North America in 2024, subject to customer demand, and plans to return a substantial portion of its cash flow to shareholders. GM's adjusted earnings before interest and taxes (EBIT) for 2023 amounted to $12.4 billion, with an adjusted auto-free cash flow of $11.7 billion. The company also highlighted a commitment to reducing emissions and a confident outlook for 2024 with expected EBIT-adjusted between $12 billion and $14 billion.
#GeneralMotors #ElectricVehicles #FinancialPerformance #EarningsCall #2023 #2024