My top 10 things to watch on Thursday, February 2, 2023
1. That’s exactly what the Federal Reserve is saying, let all people dream what they want to dream. It pledged to continue fighting inflation on Wednesday and raised interest rates by 25 basis points. But market chair Jerome Powell’s statement appeared to backfire that inflation had “moderated somewhat.” It’s still about wages. We need wages lower, but there are only so many points you can really tackle without derailing the economy.
2. Bears pivot as we return to where we were at the Jackson Hole moment in August when Powell promised to continue using his tools to attack inflation. Those sitting in this gathering are now talking about how we need to take a breather.
3. Thursday is the biggest single day of earnings for the club this season, with nine of our holdings reporting — three hours before and six after the close. That list includes mega-caps apple (AAPL), the alphabet (GOOGL) and the amazon (AMZN), as well as household names Starbucks (SBUX) and Ford Motor (f). Check your inbox and the site throughout the day for updates and analysis.
4. As the quarterly results show, the fleeting technology’s ascension in the market was not as bad as feared. consideration The tiny device of the future (AMD): Shares bounced on Wednesday after AMD delivered a Q4 beat after the bell on Tuesday We’re also reassured by CEO Lisa Su’s confidence in the chipmaker’s data-center vision.
5. Meta platform ( META ) sounded like the mature company we’ve been waiting for when it reports earnings Wednesday after the bell. Beat the top and bottom lines. Just been very cheap and then some increases and some cost reductions. They’re being so fair and they haven’t emphasized Metaverse on the conference call with investors, even though they’re still spending. Social media company announces $40 billion buyback. It is in all tone, recognition that shareholders have. Huge multiple expansions. Bank of America lifts many PTs with $160 to $220.
6. Honeywell ( HON ) shares fell premarket Thursday after reporting a slight miss on revenue and a beat on adjusted earnings per share. The market immediately judged the weak, but we have seen this movie before. There is no room for mixed cyclicals and even the good ones are not up to date.
7. Brinker (EAT), which owns and operates Chile, reported a strong quarter with margins returning to double digits. The company presents a great example: less affluent customers are left out as prices go up, but the rich are spending like crazy so the quarter was better. Barclays and Citi raised their price targets.
8. Increase multiple price targets for the peloton (PTON). That’s because the subscription model is driven by a pro at CEO Barry McCarthy, and subscribers are rebounding nicely. Sharing and workouts have a place in the panoply because many people are comfortable working from home. Now just running another successful sub company like McCarthy Netflix (NFLX) and Spotify (spot).
9. Elevator Company Otis is worldwide (OTIS) says business in the eurozone is now strongest. Most building is happening there and not in the Middle East (Qatar, Dubai) and the US or China. Very big changes that must be noticed. CEO Judy Marks delivered another excellent quarter.
10. Mark (MRK) Not good enough? Shares are down more than 1% this morning despite expected beats on the top and bottom lines.
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