TRENDING:

XAU/USD

EUR/USD

Wake Up Wall Street: All eyes on Powell after powerful jobs report

Ivan Brian FXStreet

Here is what you need to know on Tuesday, February 7:

Markets are adopting a calmer tone after the shock of last week's nonfarm payrolls jobs report is still being digested. With Fed Chair Powell speaking later on Tuesday, investors are bracing for a more hawkish message. Certainly, that is what Fed member Kaskari is currently delivering by expecting the terminal rate at 5.4%. So far the market is not reacting, but yields look set to rise if Powell confirms those thoughts. Kaskari and Powell do tend to rhyme when it comes to rates and decisions.

The US Dollar is flat at 103.70 in the Dollar Index, Gold is also flat at $1,869, and oil is higher at $75.17.

See forex today

European markets are mixed: Eurostoxx is flat, FTSE is +0.5%, and CAC and DAX are both -0.1%.

US futures are also mixed: Nasdaq +0.3%, Dow -0.1%, and S&P +0.1%.

Wall Street top news

Kaskari speaks hawkishly on rates.

Powell is due to speak this afternoon.

Bed Bath and Beyond (BBBY) down sharply premarket on a warning from the company on investing in its stock.

DuPont (DD) is down on weak guidance.

Baidu (BIDU) up on talk of the launch of chatbot.

Hertz (HTZ) is up on strong earnings.

Activision Blizzard (ATVI) beats on earnings.

BP: oil major reports record profits.

Linde (LIN) has strong guidance, revenue miss but EPS beats.

Pinterest (PINS) reports weak earnings.

Spirit Airlines (SAVE) has better than expected earnings.

Take Two Interactive (TTWO) lowered its bookings forecast.

Boeing (BA) to cut up to 2,000 jobs.

Upgrades and downgrades

Upgrades

Tuesday, February 07, 2023

COMPANY	TICKER	BROKERAGE FIRM	RATINGS CHANGE	PRICE TARGET
Cipher Mining	CIFR	H.C. Wainwright	Neutral>>Buy	$1.5>>$3
Lockheed Martin	LMT	Credit Suisse	Underperform>>Outperform	$427>>$510
Kemper	KMPR	Raymond James	Outperform>>Strong Buy	$60>>$80
Pfizer	PFE	Daiwa Securities	Neutral>>Outperform	$51
Wartsila	WRTBY	Citigroup	Neutral>>Buy
Terna Rete Elettrica	TERRF	RBC Capital Mkts	Underperform>>Sector Perform
Snam SPA	SNMRY	RBC Capital Mkts	Underperform>>Outperform

Downgrades

Tuesday, February 07, 2023

COMPANY	TICKER	BROKERAGE FIRM	RATINGS CHANGE	PRICE TARGET
Adecoagro S.A.	AGRO	Morgan Stanley	Equal-Weight>>Underweight	$10>>$9
BigCommerce	BIGC	Piper Sandler	Overweight>>Neutral	$16>>$12
ZoomInfo	ZI	UBS	Buy>>Neutral	$34>>$33
Spire	SR	Stifel	Buy>>Hold	$73>>$75
Tyson Foods	TSN	Goldman	Buy>>Neutral	$91>>$66
Holley Inc.	HLLY	Telsey Advisory Group	Outperform>>Market Perform	$3
The Children's Place	PLCE	Telsey Advisory Group	Outperform>>Market Perform	$46
Plains All American	PAA	Bernstein	Outperform>>Mkt Perform
PennyMac Mortgage	PMT	Piper Sandler	Overweight>>Neutral	$16>>$15

Source: WSJ.com

Economic releases

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD picks up extra pace north of 1.1400

EUR/USD extends its recovery past 1.1400 the figure as the NA session draws to a close on Monday. Indeed, the pair advances for the third straight day amid the persistent offered bias in the US Dollar. Meanwhile, market participants keep gearing up for the ECB Forum in Sintra and the release of critical US labour market data.

Gold struggles to attract investors

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Strategy unveils plan allowing Bitcoin sales to fund stock buybacks, dividends and reserves

Strategy (MSTR) has unveiled a Digital Credit Framework to strengthen the company’s financial standing. Under the new framework, the world’s largest corporate holder of Bitcoin (BTC) will pivot from its previous accumulation strategy, opting to sell BTC in order to boost liquidity, fund dividend payments, execute stock buybacks, and strengthen cash reserves.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.