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Wake Up Wall Street (SPY) (QQQ): Intel disappoints as PCE meets consensus

Ivan Brian FXStreet

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%.

See forex today

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

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.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.