Here is what you need to know on Wednesday, January 26:
Has Microsoft called the bottom of this current sell-off, and is it time to jump back in and buy the dump? We cautiously think there is growing reason to believe that it may be time to reestablish some long positions, but stock selection is key. Risk aversion has been dominant this past week, but the Fed should at least put the unknown dimension to bed this afternoon and Thursday. As we keep saying, markets hate uncertainty, so the Fed will at least remove that.
The Fed has preempted this latest sell-off with its hawkish tone and may now tread a more cautious path by merely guiding market expectations. Added to this, the market is entering the tech and oil sector earnings season. Traditionally, oil is one of the strongest earnings sectors, and we see no reason for that to change given where global energy prices have been and are going. Bank season was disappointing, but tech has the chance to save us with Apple up tomorrow to add to Microsoft's (MSFT) bullishness.
Geopolitical risks are still the big unknown with Russia-Ukraine unresolved in investors' minds. The dollar has resolved to strengthen, however, and is at 1.1270 versus the euro. Oil is again higher at $87, and Bitcoin has risen to $38,200. Gold is flat at $1,845.
European markets are higher: Eurostoxx +3%, FTSE +2% and Dax +2.5%.
US futures are also higher: S&P +1.5%, Dow +1% and Nasdaq +2%.
Wall Street (SPY) (QQ) News
Boeing (BA) up 2% despite revenue miss.
AT&T (T): strong HBO performance sees EPS beat, shares rise 1% premarket.
Mattel (MAT) up 8% as WSJ reports that Mattel won back rights to make Frozen (Disney) toys from Hasbro (HAS)-CNBC.
DraftKings (DKNG): Morgan Stanley upgrades.
Intel (INTC): earnings after the close today.
Microsoft (MSFT) beat on top and bottom lines and issued strong guidance.
Tesla (TSLA) earnings after the close.
Apple (AAPL) earnings Thursday after the close.
F5 Inc (FFIV) low guidance sees shares slump 14% premarket.
BioNTech (BNTX): Bloomberg report says BioNTech boosting staff by 50% at German factory.
Plug Power (PLUG): Susquehanna initiates with a positive rating.
Moderna (MRNA): Deutsche upgrades.
Kimberley Clark (KMB) gives worse guidance than estimates.
Texas Instruments (TXN) strong outlook and EPS beat sees shares up 4% premarket.
American Express (AXP): Deutsche raises price target.
Upgrades and downgrades
Source: Benzinga Pro
Economic releases
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