Wake Up Wall Street (SPDR S&P 500): SPY rally set to stall until earnings fall


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Here is what you need to know on Tuesday, January 24:

Another roaring US session for risk assets saw the NASDAQ again surge over 2% and the other leading indices all close strongly higher. Credit is being given to a Wall Street Journal article that points to a 25-basis-point hike by the Federal Reserve at its next meeting, but in reality markets have already priced in 25 basis points as a near certainty for some time now. No, this was enthusiasm and money on the sidelines wanting in on the action. Hopes are high for earnings season, and Microsoft (MSFT) will get the tech sector up and running this afternoon. CTA money remains on the sidelines though, and a break of 4,100 for the S&P 500 could really get this rally moving. 

The US Dollar remains under pressure but is recovering this morning to 102 for the Dollar Index. Oil is higher at $82, and Gold is also higher at $1,941. The impressive thing about yesterday's rally was it happened with a concurrent rise in bond yields, a rare feat. 

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European markets are all lower: CAC, DAX, FTSE and Eurostoxx all down by -0.3%.

US futures also lower: Dow and S&P 500 -0.2% and NASDAQ -0.4%.

Wall Street top news

German manufacturing PMI is worse than expected.

UK PMI weaker than expected.

General Electric (GE) beats on EPS, revenue misses.

Microsoft (MSFT) out after the close.

Verizon (VZ) down on 2023 forecasts.

Tesla (TSLA) planning Nevada plant for semi-trucks.

Johnson & Johnson (JNJ) up on 2023 forecasts.

3M (MMM) to cut 2,500 jobs.

Lockheed Martin (LMT) beats on revenue and EPS.

Eli Lilly (LLY) to invest $450m to expand diabetes meds production.


Upgrades and downgrades

Upgrades

Tuesday, January 24, 2023

COMPANY

TICKER

BROKERAGE FIRM

RATINGS CHANGE

PRICE TARGET

Allogene

ALLO

JP Morgan

Neutral>>Overweight

$20>>$11

Blackstone

BX

JP Morgan

Neutral>>Overweight

$104>>$105

Marathon Oil

MRO

Morgan Stanley

Equal-Weight>>Overweight

$27>>$28

Lyft

LYFT

KeyBanc Capital Markets

Sector Weight>>Overweight

$24

Downgrades

Tuesday, January 24, 2023

COMPANY

TICKER

BROKERAGE FIRM

RATINGS CHANGE

PRICE TARGET

American Electric

AEP

Evercore ISI

Outperform>>In-line

$100>>$102

Advanced Micro

AMD

Bernstein

Outperform>>Mkt Perform

$95>>$80

APA Corp.

APA

Morgan Stanley

Overweight>>Equal-Weight

$52>>$44

Cheesecake Factory

CAKE

Raymond James

Outperform>>Mkt Perform

 

lululemon athletica

LULU

Bernstein

Mkt Perform>>Underperform

$340>>$290

Source: WSJ.com

 

Economic releases

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