Wake Up Wall Street: NFP the last hurdle, but Apple takes a bite out of bulls


Here is what you need to know on Friday, February 3:

Nonfarm Payrolls (NFP) data day is here and the end of a full week. Wednesday and Thursday saw the Federal Reserve, European Central Bank and Bank of England report, and now the NFP becomes the cherry on top of an eventful week. It is a lot to pack in, but when you add Apple (AAPL), Amazon (AMZN), Meta Platforms (META) and Alphabet (GOOGL) earnings, then it was an overload for the mind.

So far we have not found a strong direction. We got close. A dovish Fed, ECB and BoE sent global yields lower and stocks higher, but then Thursday night we had poor earnings from Apple, Amazon and Google parent Alphabet, so now we are set for more chop.

NFPs may not provide any catalysts needed. If it is weak, then recession looms. Yes, lower rates would arrive quicker, but a recession will put the focus back on strong earnings. If the NFP data is strong, then the focus will return to higher yields. We needed the all-clear from Apple at least for this rally to gain legs, but now it likely stumbles. 

The US Dollar, meanwhile, looks to be on a sounder footing with all major central banks now dovish. The Dollar Index is back to 101.60, oil is lower to $75.80, and gold is also lower to $1,915.

See forex today

European markets are mixed: Eurostoxx flat, FTSE +0.5%, CAC -0.2% and DAX -0.5%.

US futures are lower: NASDAQ -1.1%, S&P -0.7% and Dow -0.2%.

Wall Street top news

Apple (AAPL): weak earnings, down 3-4% premarket.

Amazon (AMZN): weak earnings, down 5% premarket.

Alphabet (GOOGL): again weak earnings, down 5% premarket.

Ford (F): weak sales, down 7% premarket.

Starbucks (SBUX): weakness in China, misses EPS and sales, down 2-3% premarket. (Hmmmm, noticing a trend here!)

Tesla (TSLA) sells 66,051 China-made vehicles in January, up 10% yearly, according to China Passenger Car Association. Stock up 1% premarket.

Nordstrom (JWN) up on WSJ report of Ryan Cohen stake.

Regeneron Pharma (REGN) beats on earnings.

Aon (AON) beats on EPS but misses revenue.

Cigna Healthcare (CI) beats on EPS, revenue in line but outlook lower than expected.

 

Upgrades and downgrades

Upgrades

Friday, February 03, 2023

COMPANY

TICKER

BROKERAGE FIRM

RATINGS CHANGE

PRICE TARGET

Cardinal Health

CAH

Robert W. Baird

Neutral>>Outperform

$87>>$94

H.B. Fuller

FUL

Citigroup

Neutral>>Buy

$72>>$85

Int'l Paper

IP

UBS

Sell>>Neutral

$31>>$43

Nordstrom

JWN

Gordon Haskett

Reduce>>Hold

$22

Erasca

ERAS

Morgan Stanley

Equal-Weight>>Overweight

$15

Esperion Therapeutics

ESPR

Morgan Stanley

Underweight>>Equal-Weight

$9

Downgrades

Friday, February 03, 2023

COMPANY

TICKER

BROKERAGE FIRM

RATINGS CHANGE

PRICE TARGET

Aptiv

APTV

Wolfe Research

Outperform>>Peer Perform

 

Boeing

BA

RBC Capital Mkts

Outperform>>Sector Perform

$225

C.H. Robinson

CHRW

Stifel

Buy>>Hold

$107>>$99

Camden Property

CPT

Piper Sandler

Overweight>>Neutral

$136

Cognizant Tech

CTSH

Robert W. Baird

Outperform>>Neutral

$66>>$68

Ford Motor

F

Deutsche Bank

Hold>>Sell

$13>>$11

First Foundation

FFWM

Piper Sandler

Overweight>>Neutral

$17.5>>$16

Focus Financial

FOCS

BMO Capital Markets

Outperform>>Market Perform

$55>>$53

Source: WSJ.com

Economic releases

 

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