Wake Up Wall Street (SPY) (QQQ): Intel disappoints as PCE meets consensus
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UNLOCK OFFERHere is what you need to know on Friday, January 27:
Intel (INTC) disappointed investors in a big way last night after the close and is slated to open down 10% this morning. That has knocked bulls who were getting excited after GDP data and Tesla (TSLA) earnings. Next up we got the Federal Reserve's favourite inflation gauge, the PCE. The data from the PCE emerged in line with expectations, but markets seemed a bit confused. Investors are still betting on a Fed pivot in H2, so any signs of stickiness will not be welcome news. Yields remain up on the day, while stocks and the US Dollar gyrate.
The US Dollar is virtually unchanged at 102 for the Dollar Index. Gold is flat at $1,930, and oil is $82 for a gain of 1%.
European markets are lower. Eurostoxx -0.5%, FTSE and Dax -0.2% and CAC -0.4%.
US futures are lower: Nasdaq -0.7%, S&P -0.4% and Dow -0.1%.
Wall Street top news
PCE in line with expectations.
Silvergate (SI) suspends payments on preferred stock dividends.
Chipmaker KLA issues weak guidance.
Reuters top headlines
American Express Co AMX: The company missed market estimates for fourth-quarter profit as the credit card giant stockpiled more rainy-day funds to prepare for a worsening economy, wrapping up a turbulent quarter for major U.S. card companies.
Chevron Corp CVX: The oil major posted a record $36.5 billion profit for 2022 that was more than double year-earlier earnings but fell shy of Wall Street estimates.
Intel Corp INTC: The chipmaker said on Thursday it expects to lose money in the current quarter, surprising investors with a bleaker-than-expected outlook.
Visa Inc V: The company's revenue growth continued to wind back to pre-pandemic levels in the first quarter as the post-lockdown travel craze ebbed and consumer spending slowed in a tough economy.
Hasbro Inc HAS: The company said on Thursday it would cut about 15% of its global workforce.
Tesla Inc TSLA The company's electric vehicles are expensive to repair - so much so that the automaker and insurers are addressing the issue in sharply different ways.
Wells Fargo & Co WFC: The bank's Chief Executive Officer Charles Scharf's total compensation for 2022 was unchanged at $24.5 million.
Upgrades and downgrades
Upgrades
Friday, January 27, 2023
|
COMPANY |
TICKER |
BROKERAGE FIRM |
RATINGS CHANGE |
PRICE TARGET |
|---|---|---|---|---|
|
Akero Therapeutics |
AKRO |
Morgan Stanley |
Equal-Weight>>Overweight |
$40>>$65 |
|
Cabaletta Bio |
CABA |
Morgan Stanley |
Equal-Weight>>Overweight |
$3>>$16 |
|
General Mills |
GIS |
UBS |
Neutral>>Buy |
$85>>$88 |
|
Iovance Biotherapeutics |
IOVA |
Piper Sandler |
Neutral>>Overweight |
$11>>$14 |
|
McCormick |
MKC |
Bernstein |
Mkt Perform>>Outperform |
$90 |
|
Viatris |
VTRS |
Jefferies |
Hold>>Buy |
$13>>$15 |
|
Vir Biotechnology |
VIR |
Morgan Stanley |
Underweight>>Equal-Weight |
$18>>$30 |
|
Take-Two |
TTWO |
MoffettNathanson |
Market Perform>>Outperform |
$140 |
|
Premier |
PINC |
Credit Suisse |
Underperform>>Neutral |
$38 |
|
Chewy |
CHWY |
Wedbush |
Neutral>>Outperform |
$55 |
Downgrades
Friday, January 27, 2023
|
COMPANY |
TICKER |
BROKERAGE FIRM |
RATINGS CHANGE |
PRICE TARGET |
|---|---|---|---|---|
|
Alaska Air |
ALK |
Wolfe Research |
Outperform>>Peer Perform |
|
|
Aveanna |
AVAH |
Credit Suisse |
Neutral>>Underperform |
$2>>$1 |
|
Fortinet |
FTNT |
Mizuho |
Buy>>Neutral |
$60 |
|
Hess |
HES |
Goldman |
Buy>>Neutral |
$161>>$170 |
|
Northrop Grumman |
NOC |
Cowen |
Outperform>>Market Perform |
$500>>$478 |
|
Origin Bancorp |
OBNK |
Piper Sandler |
Overweight>>Neutral |
$46>>$41 |
|
Taysha Gene Therapies |
TSHA |
Morgan Stanley |
Overweight>>Equal-Weight |
$23>>$3 |
|
Bridgewater Bancshares |
BWB |
Piper Sandler |
Overweight>>Neutral |
$20>>$17 |
|
CBRE Group |
CBRE |
Keefe Bruyette |
Outperform>>Mkt Perform |
$88 |
Source: WSJ.com
Economic releases
Here is what you need to know on Friday, January 27:
Intel (INTC) disappointed investors in a big way last night after the close and is slated to open down 10% this morning. That has knocked bulls who were getting excited after GDP data and Tesla (TSLA) earnings. Next up we got the Federal Reserve's favourite inflation gauge, the PCE. The data from the PCE emerged in line with expectations, but markets seemed a bit confused. Investors are still betting on a Fed pivot in H2, so any signs of stickiness will not be welcome news. Yields remain up on the day, while stocks and the US Dollar gyrate.
The US Dollar is virtually unchanged at 102 for the Dollar Index. Gold is flat at $1,930, and oil is $82 for a gain of 1%.
European markets are lower. Eurostoxx -0.5%, FTSE and Dax -0.2% and CAC -0.4%.
US futures are lower: Nasdaq -0.7%, S&P -0.4% and Dow -0.1%.
Wall Street top news
PCE in line with expectations.
Silvergate (SI) suspends payments on preferred stock dividends.
Chipmaker KLA issues weak guidance.
Reuters top headlines
American Express Co AMX: The company missed market estimates for fourth-quarter profit as the credit card giant stockpiled more rainy-day funds to prepare for a worsening economy, wrapping up a turbulent quarter for major U.S. card companies.
Chevron Corp CVX: The oil major posted a record $36.5 billion profit for 2022 that was more than double year-earlier earnings but fell shy of Wall Street estimates.
Intel Corp INTC: The chipmaker said on Thursday it expects to lose money in the current quarter, surprising investors with a bleaker-than-expected outlook.
Visa Inc V: The company's revenue growth continued to wind back to pre-pandemic levels in the first quarter as the post-lockdown travel craze ebbed and consumer spending slowed in a tough economy.
Hasbro Inc HAS: The company said on Thursday it would cut about 15% of its global workforce.
Tesla Inc TSLA The company's electric vehicles are expensive to repair - so much so that the automaker and insurers are addressing the issue in sharply different ways.
Wells Fargo & Co WFC: The bank's Chief Executive Officer Charles Scharf's total compensation for 2022 was unchanged at $24.5 million.
Upgrades and downgrades
Upgrades
Friday, January 27, 2023
|
COMPANY |
TICKER |
BROKERAGE FIRM |
RATINGS CHANGE |
PRICE TARGET |
|---|---|---|---|---|
|
Akero Therapeutics |
AKRO |
Morgan Stanley |
Equal-Weight>>Overweight |
$40>>$65 |
|
Cabaletta Bio |
CABA |
Morgan Stanley |
Equal-Weight>>Overweight |
$3>>$16 |
|
General Mills |
GIS |
UBS |
Neutral>>Buy |
$85>>$88 |
|
Iovance Biotherapeutics |
IOVA |
Piper Sandler |
Neutral>>Overweight |
$11>>$14 |
|
McCormick |
MKC |
Bernstein |
Mkt Perform>>Outperform |
$90 |
|
Viatris |
VTRS |
Jefferies |
Hold>>Buy |
$13>>$15 |
|
Vir Biotechnology |
VIR |
Morgan Stanley |
Underweight>>Equal-Weight |
$18>>$30 |
|
Take-Two |
TTWO |
MoffettNathanson |
Market Perform>>Outperform |
$140 |
|
Premier |
PINC |
Credit Suisse |
Underperform>>Neutral |
$38 |
|
Chewy |
CHWY |
Wedbush |
Neutral>>Outperform |
$55 |
Downgrades
Friday, January 27, 2023
|
COMPANY |
TICKER |
BROKERAGE FIRM |
RATINGS CHANGE |
PRICE TARGET |
|---|---|---|---|---|
|
Alaska Air |
ALK |
Wolfe Research |
Outperform>>Peer Perform |
|
|
Aveanna |
AVAH |
Credit Suisse |
Neutral>>Underperform |
$2>>$1 |
|
Fortinet |
FTNT |
Mizuho |
Buy>>Neutral |
$60 |
|
Hess |
HES |
Goldman |
Buy>>Neutral |
$161>>$170 |
|
Northrop Grumman |
NOC |
Cowen |
Outperform>>Market Perform |
$500>>$478 |
|
Origin Bancorp |
OBNK |
Piper Sandler |
Overweight>>Neutral |
$46>>$41 |
|
Taysha Gene Therapies |
TSHA |
Morgan Stanley |
Overweight>>Equal-Weight |
$23>>$3 |
|
Bridgewater Bancshares |
BWB |
Piper Sandler |
Overweight>>Neutral |
$20>>$17 |
|
CBRE Group |
CBRE |
Keefe Bruyette |
Outperform>>Mkt Perform |
$88 |
Source: WSJ.com
Economic releases
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