Wake Up Wall Street (SPY) (QQQ): Quiet session after Friday surge and Federal Reserve blackout

Here is what you need to know on Monday, January 23

Equity markets are set for a flat opening in the United States after a fairly quiet European session. Large parts of Asia are off for Chinese New Year and Friday’s strong close on Wall Street has led to a cautious session. With earnings season really kicking in later this week investors are cautious. Also, we are now in the Federal Reserve blackout period before the next FOMC meeting and later this week we get the Gross Domestic Product and inflation data releases, further helping the risk-neutral sentiment. 

The US Dollar remains under pressure down to 102 now for the Dollar Index. Gold price meanwhile also lower to $1,924 and Oil is steady at $82.20. 

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European indexes, CAC and Eurostoxx are lower by -0.3% while FTSE and DAX are flat.

US futures are lower, Nasdaq and S&P -0.2% and Dow -0.1%.

Wall Street top news

ECB Kazimir speaks of two more 50bps rate hikes.

Disney (DIS) Avatar grosses over $2 billion.

Reuters top news

Baker Hughes Co: (BKR) The oilfield services company missed fourth-quarter profit estimates.

Abbott Laboratories: (ABT) The drugmaker’s Michigan plant, which was at the center of the U.S. baby formula shortage last year, faces a criminal investigation by the Justice Department, the Wall Street Journal reported on Friday.

Apple Inc: (AAPL) The company wants India to account for up to 25% of its production from about 5%-7% now, the trade minister told a conference, as the iPhone maker continues to move its manufacturing away from China.

Goldman Sachs Group Inc: (GS) The bank’s asset management arm will significantly reduce the $59 billion of alternative investments that weighed on the bank’s earnings, an executive told Reuters.

Nokia Oyj: (NOK) The company said it has signed a new cross-license patent agreement with Samsung.

PayPal Holdings Inc: (PYPY) Germany’s cartel office regulator said it had initiated proceedings against the payment company in Europe over the possibility that it hindered competition.

Salesforce Inc: (CRM) Activist investor Elliott Management has made a multi-billion dollar investment in the cloud-based software firm, according to people familiar with the matter.

Spotify Technology SA: (SPOT) The company is planning layoffs as soon as this week to cut costs, Bloomberg News reported on Sunday.

Western Digital Corp: (WDC) The memory chip maker and Japan’s Kioxia Holdings are in advanced talks for a possible merger which will involve a dual-listing, Bloomberg News reported on Friday.

Upgrades and downgrades

Upgrades

Monday, January 23, 2023

COMPANY

TICKER

BROKERAGE FIRM

RATINGS CHANGE

PRICE TARGET

Advanced Micro

AMD

Barclays

Equal Weight>>Overweight

$70>>$85

Qualcomm

QCOM

Barclays

Equal Weight>>Overweight

$120>>$150

Seagate Tech

STX

Barclays

Equal Weight>>Overweight

$50>>$70

Skyworks

SWKS

Barclays

Equal Weight>>Overweight

$95>>$125

Sotera Health

SHC

JP Morgan

Underweight>>Neutral

$6>>$18

Shopify

SHOP

Deutsche Bank

Hold>>Buy

$40>>$50

AssetMark

AMK

JP Morgan

Neutral>>Overweight

$24>>$32

Downgrades

Monday, January 23, 2023

COMPANY

TICKER

BROKERAGE FIRM

RATINGS CHANGE

PRICE TARGET

Applied Materials

AMAT

Barclays

Equal Weight>>Underweight

$80>>$90

Ingredion

INGR

Barclays

Overweight>>Equal Weight

$105>>$110

KLA Corporation

KLAC

Barclays

Equal Weight>>Underweight

$260>>$325

Tapestry

TPR

Barclays

Overweight>>Equal Weight

$43

Warner Music Group

WMG

Barclays

Overweight>>Equal Weight

$35

Range Resources

RRC

The Benchmark Company

Buy>>Hold

 

SentinelOne

S

Deutsche Bank

Buy>>Hold

$20>>$15

Workday

WDAY

Deutsche Bank

Buy>>Hold

$215>>$195

Veeco Instruments

VECO

Barclays

Overweight>>Equal Weight

$19>>$20

Source: WSJ.com

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