|

Wake Up Wall Street (SPY) (QQQ): Market nervous before huge week of earnings and Fed announcement

Here is what you need to know on Monday, January 30:

Markets are pretty quiet this morning as we have a lot to get through this week. Overnight, equities in Asia were weak as risk-off was the main theme. The Hang Seng closed down nearly 3%, while the Nikkei was flat. No surprise here given we have Fed, ECB and BOE rate decisions as well as earnings from Apple (AAPL), Amazon (AMZN), Ford (F), McDonald's (MCD) and Caterpillar (CAT) to name just a few. A huge week then lies ahead. 

The US Dollar benefited from risk-off sentiment, but then strong Spanish inflation data boosted the Euro. The Dollar Index is flat at 101.90. Oil is lower at $79.54, and Gold is flat at $1,925.

See forex today

European markets lower: FTSE +0.12%, but DAX, CAC and Eurostoxx all down -0.6%.

US futures all lower: S&P 500 -1%, NASDAQ -1.3% and Dow -0.7%.

Wall Street top news

Spanish inflation higher than forecast.

German GDP lower than forecast.

Reuters top headlines

Koninklijke Philips NV PHG: The Dutch health technology company scrap another 6,000 jobs worldwide.

Xpeng Inc XPEV: The Chinese company said it had appointed Wang Fengying, the former vice chairman of Great Wall Motor, as the electric vehicle (EV) startup's president.

Baidu Inc BIDU: The Chinese internet search major is planning to launch an artificial intelligence (AI) chatbot service similar to OpenAI's ChatGPT in March, a person familiar with the matter told Reuters.

Chevron Corp CVX: The White House on Friday launched a fresh attack against US oil companies, accusing them of using profits to pay shareholders instead of boosting supply, after Chevron said its annual profit doubled for 2022.

Rio Tinto Plc RIO: The company apologised for the loss of a tiny radioactive capsule that has sparked a radiation alert across parts of the vast state of Western Australia.

Shell Plc SHEL: The oil company will combine its oil and gas production and liquefied natural gas (LNG) divisions as part of broader changes under new CEO Wael Sawan, which the company said could result in some job cuts.

Toyota Motor Corp TM: The Japanese automaker sold 10.5 million vehicles in 2022, it said, defending its title as the world's top-selling automaker for a third straight year.

Upgrades and downgrades

Upgrades

Monday, January 30, 2023

COMPANY

TICKER

BROKERAGE FIRM

RATINGS CHANGE

PRICE TARGET

Colgate-Palmolive

CL

Morgan Stanley

Equal-Weight>>Overweight

$82

Flowserve

FLS

BofA Securities

Neutral>>Buy

$33>>$40

Federal Realty

FRT

Compass Point

Neutral>>Buy

$125

Kemper

KMPR

Credit Suisse

Underperform>>Neutral

$44>>$56

Lockheed Martin

LMT

DZ Bank

Hold>>Buy

$523

Downgrades

Monday, January 30, 2023

COMPANY

TICKER

BROKERAGE FIRM

RATINGS CHANGE

PRICE TARGET

AZEK

AZEK

BofA Securities

Buy>>Neutral

$20>>$25

Celularity

CELU

Morgan Stanley

Equal-Weight>>Underweight

$5>>$1

Eastern Bankshares

EBC

Janney

Buy>>Neutral

$17

Eastman Chemical

EMN

Scotiabank

Sector Outperform>>Sector Perform

$100>>$90

Edwards Lifesciences

EW

Piper Sandler

Overweight>>Neutral

$95>>$80

Fortune Brands Innovations

FBIN

BofA Securities

Neutral>>Underperform

$61>>$60

First Interstate Bancsystem

FIBK

Keefe Bruyette

Outperform>>Mkt Perform

$49>>$38

Source: WSJ.com

Economic releases

Author

Ivan Brian

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.

More from Ivan Brian
Share:

Editor's Picks

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.