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Wake Up Wall Street (SPY) (QQQ): Mixed earnings, but all eyes on the Fed

Ivan Brian FXStreet

Here is what you need to know on Tuesday, January 31:

Equity markets are set for another lackluster session after some mixed earnings as all eyes turn to the Federal Reserve decision tomorrow. Caterpillar (CAT) falls as does Pfizer (PFE). Exxon (XOM) introduced a large buyback package, and later this week we get Apple (AAPL) and Amazon (AMZN). So far yesterday was marked with a tick higher in yields after some surprises on the European side pushed US yields along. The NASDAQ took fright and closed 2% lower and stocks in general struggled. Tuesday is likely no different but with even less liquidity.

The US Dollar has staged a brief recovery as risk-off sentiment dominates. Investors fear the Fed may not pivot so soon after all. The Dollar Index is back to 102.22 now, oil is lower to $77.41, and Gold too struggles down to $1,915.

See forex today

European markets are flat for CAC and Eurostoxx, while FTSE and Dax are both -0.4%.

US futures are all +0.1%.

Wall Street top news

Mcdonald's (MCD) beats on top and bottom lines.

General Motors (GM) beats on top and bottom lines.

Ford (F) to lower price of Mach-E.

UPS earnings beat on EPS.

Exxon Mobil (XOM) is down despite strong earnings.

Caterpillar (CAT) falls on profit miss.

Pfizer (PFE) is down on poor guidance.

International Paper (IP) beats on EPS.

Reuters top headlines

Marathon Petroleum Corp (MPC): The company beat Wall Street expectations for quarterly profit as refining margins soared amid tight supplies and higher demand for refined products.

Spotify Technology SA (SPOT): The company reported fourth-quarter results that beat expectations for both active users and subscribers, forecasting the number of listeners would reach 500 million next quarter.

UBS Group AG: The Swiss predicted an "uncertain" year ahead plagued by accelerating inflation and higher interest rates after UBS beat estimates in its latest quarter.

Upgrades and downgrades

Upgrades

Tuesday, January 31, 2023

COMPANY	TICKER	BROKERAGE FIRM	RATINGS CHANGE	PRICE TARGET
FibroGen	FGEN	William Blair	Mkt Perform>>Outperform
LyondellBasell	LYB	Atlantic Equities	Neutral>>Overweight	$110
New Fortress Energy	NFE	BTIG Research	Neutral>>Buy	$50
Inter & Co	INTR	Goldman	Neutral>>Buy	$4.6>>$4.2
WPP plc	WPP	Barclays	Equal Weight>>Overweight
Societe Television Francaise 1	TVFCF	Barclays	Underweight>>Equal Weight
BAE Systems	BAESY	UBS	Neutral>>Buy
Banco de Sabadell	BNDSF	UBS	Neutral>>Buy
FleetCor	FLT	BofA Securities	Neutral>>Buy	$208>>$240

Downgrades

Tuesday, January 31, 2023

COMPANY	TICKER	BROKERAGE FIRM	RATINGS CHANGE	PRICE TARGET
Bank of America	BAC	Atlantic Equities	Overweight>>Neutral	$40
Eastern Bankshares	EBC	JP Morgan	Neutral>>Underweight	$19.5>>$15
Invitae	NVTA	Goldman	Neutral>>Sell	$2
Q2 Holdings	QTWO	Robert W. Baird	Outperform>>Neutral	$32

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.

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