Morning Markets
The S&P 500 Index ($SPX) (SPY) today is down -0.41%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.26%.
U.S. stock index futures this morning are lower after U.S. Jan consumer prices rose more than expected, which will keep the pressure on the Fed to keep raising interest rates. U.S. Jan CPI eased to 6.4% y/y from 6.5% y/y in Dec, stronger than expectations of 6.2% y/y. Also, Jan core CPI fell to 5.6% y/y from 5.7% y/y in Dec, stronger than expectations of 5.5% y/y.
The 10-year T-note is up +5.9 bp at 3.765%, which is weighing on stocks.Â
Security software stocks are climbing after Goldman Sachs initiated coverage of the security software sector with buy ratings on Crowdstrike Holdings, Check Point Software Technologies, Fortinet, and Palo Alto Networks. Also, Avis Budget Group is up more than +3% in pre-market trading after reporting better-than-expected Q4 adjusted Ebitda. In addition, Cadence Design Systems (CDNS) is up more than +5% after reporting stronger-than-expected Q4 revenue and forecasting full-year revenue higher than the consensus.
On the negative side, Amkor Technology is down more than -3% after reporting weaker-than-expected Q4 EPS. Also, Norfolk Southern is down more than -1% after Cowen said the train derailment in Ohio would likely lead the company to call out a special charge in Q1. In addition, Cleveland-Cliffs is down more than -3% in pre-market trading after reporting a wider-than-expected Q4 loss per share from continuing operations.
Overseas markets are higher. The Euro Stoxx 50 index is up +0.11%.  China’s Shanghai Composite stock index closed up +0.28%, and Japan’s Nikkei Stock index closed up +0.64%.Â
The Euro Stoxx 50 index today is moderately higher and climbed to a 1-year high earlier. Vodaphone Group Plc is up more than +4% to lead telecommunications stocks higher after Liberty Global Plc said it had acquired a stake in the company. Also, a jump of more than +2% in TUI Group AG is leading leisure stocks higher after the world’s biggest tour operator said summer bookings are running ahead of pre-pandemic levels. An easing of wholesale price pressure in Germany was another supportive factor for stocks after the German Jan wholesale price index rose at the slowest pace in 20 months.Â
Eurozone Q4 GDP rose +0.1% q/q and +1.9% y/y, right on expectations.
The German Jan wholesale price index eased to +10.6% y/y from +12.8% y/y in Dec, the smallest increase in 20 months.
China’s Shanghai Composite today rose to a 1-1/2 week high and posted modest gains. Strength in Chinese technology stocks led the overall market higher, although gains were muted as artificial intelligence-related stocks retreated as the recent hype over ChatGBT appears to be waning. Gaming stocks also rose today after a Chinese government official said China will support technologies like virtual reality and motion capture in the online gaming sector.
Japan’s Nikkei Stock Index today posted moderate gains. Japanese stocks opened higher on carry-over support from Monday’s gains in U.S. equity markets. Japanese stocks maintained their gains after Japanese Prime Minister Kishida formally nominated Kazuo Ueda to be the next BOJ Governor when current BOJ Governor Kuroda leaves in April. The markets are speculating that Ueda may normalize monetary policy and exit the BOJ’s yield curve control soon after he takes office.
Japanese economic news today was mixed for stocks. On the positive side, Dec industrial production was revised upward to +0.3% m/m from the initially reported -0.1% m/m. Conversely, Japan Q4 GDP rose +0.6% (q/q annualized), weaker than expectations of +2.0%.
Pre-Market U.S. Stock Movers
Avis Budget Group (CAR) climbed more than +3% in pre-market trading after reporting Q4 adjusted Ebitda of $658 million, well above the consensus of $461.3 million.Â
SkyWater Technology (SKYT) jumped more than +8% in pre-market trading after reporting a Q4 adjusted loss per share of -3 cents, narrower than the consensus of -11 cents.
Cadence Design Systems (CDNS) rose more than +4% in pre-market trading after reporting Q4 revenue of $899.9 million, better than the consensus of $885.3 million, and forecast full-year revenue of $4.00 billion-$4.06 billion, stronger than the consensus of $3.88 billion.Â
Fidelity National (FIS) gained more than +1% in pre-market trading after Morgan Stanley upgraded the stock to overweight from equal weight.Â
Security software stocks rose in pre-market trading after Goldman Sachs initiated coverage of the security software sector with buy ratings on Crowdstrike Holdings (CRWD), Check Point Software Technologies (CHKP), Fortinet (FTNT), and Palo Alto Networks (PANW), which are all up +1% or more.Â
Coca-Cola Co (KO) gained more than +1% in pre-market trading after reporting Q4 adjusted organic revenue was up +15%, stronger than the consensus of +10.6%, and forecasting 2023 adjusted organic revenue yo +7% to +8%, the midpoint above the consensus of +7.15%.
Norfolk Southern (NSC) slid more than -1% in pre-market trading after Cowen said the train derailment in Ohio would likely lead the company to call out a special charge in Q1.Â
Amkor Technology (AMKR) dropped more than -3% in pre-market trading after reporting Q4 EPS of 67 cents, below the consensus of 70 cents, and forecasting Q1 EPS of 6 cents to 22 cents, well below the consensus of 53 cents.
Outset Medical (OM) tumbled more than -11% in pre-market trading after the company said it sees Q1 revenue growth flat or slightly down from Q4. Â Baird downgraded the stock to neutral from outperform.Â
Emerson Electric (EMR) slid more than -1% in pre-market trading after Argus Research downgraded the stock to hold from buy.
Cleveland-Cliffs (CLF)Â dropped more than -3% in pre-market trading after reporting a Q4 loss per share from continuing operations of -41 cents, wider than the consensus of -35 cents.
TransUnion (TRU) fell nearly -3% in pre-market trading after reporting Q4 revenue of $902.1 million, below the consensus of $904.9 million and forecast Q1 revenue of $908 million-$917 million, weaker than the consensus of $932.4 million.
Today’s U.S. Earnings Reports (2/14/2023)
Akamai Technologies Inc (AKAM), Coca-Cola Co/The (KO), Devon Energy Corp (DVN), Ecolab Inc (ECL), Exelon Corp (EXC), Howmet Aerospace Inc (HWM), Leidos Holdings Inc (LDOS), Marriott International Inc/MD (MAR), PerkinElmer Inc (PKI), Zoetis Inc (ZTS).
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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