Here is what you need to know on Friday, February 3:
Nonfarm Payrolls (NFP) data day is here and the end of a full week. Wednesday and Thursday saw the Federal Reserve, European Central Bank and Bank of England report, and now the NFP becomes the cherry on top of an eventful week. It is a lot to pack in, but when you add Apple (AAPL), Amazon (AMZN), Meta Platforms (META) and Alphabet (GOOGL) earnings, then it was an overload for the mind.
So far we have not found a strong direction. We got close. A dovish Fed, ECB and BoE sent global yields lower and stocks higher, but then Thursday night we had poor earnings from Apple, Amazon and Google parent Alphabet, so now we are set for more chop.
NFPs may not provide any catalysts needed. If it is weak, then recession looms. Yes, lower rates would arrive quicker, but a recession will put the focus back on strong earnings. If the NFP data is strong, then the focus will return to higher yields. We needed the all-clear from Apple at least for this rally to gain legs, but now it likely stumbles.
The US Dollar, meanwhile, looks to be on a sounder footing with all major central banks now dovish. The Dollar Index is back to 101.60, oil is lower to $75.80, and gold is also lower to $1,915.
European markets are mixed: Eurostoxx flat, FTSE +0.5%, CAC -0.2% and DAX -0.5%.
US futures are lower: NASDAQ -1.1%, S&P -0.7% and Dow -0.2%.
Wall Street top news
Apple (AAPL): weak earnings, down 3-4% premarket.
Amazon (AMZN): weak earnings, down 5% premarket.
Alphabet (GOOGL): again weak earnings, down 5% premarket.
Ford (F): weak sales, down 7% premarket.
Starbucks (SBUX): weakness in China, misses EPS and sales, down 2-3% premarket. (Hmmmm, noticing a trend here!)
Tesla (TSLA) sells 66,051 China-made vehicles in January, up 10% yearly, according to China Passenger Car Association. Stock up 1% premarket.
Nordstrom (JWN) up on WSJ report of Ryan Cohen stake.
Regeneron Pharma (REGN) beats on earnings.
Aon (AON) beats on EPS but misses revenue.
Cigna Healthcare (CI) beats on EPS, revenue in line but outlook lower than expected.
Upgrades and downgrades
Upgrades
Friday, February 03, 2023
COMPANY |
TICKER |
BROKERAGE FIRM |
RATINGS CHANGE |
PRICE TARGET |
---|---|---|---|---|
Cardinal Health |
CAH |
Robert W. Baird |
Neutral>>Outperform |
$87>>$94 |
H.B. Fuller |
FUL |
Citigroup |
Neutral>>Buy |
$72>>$85 |
Int'l Paper |
IP |
UBS |
Sell>>Neutral |
$31>>$43 |
Nordstrom |
JWN |
Gordon Haskett |
Reduce>>Hold |
$22 |
Erasca |
ERAS |
Morgan Stanley |
Equal-Weight>>Overweight |
$15 |
Esperion Therapeutics |
ESPR |
Morgan Stanley |
Underweight>>Equal-Weight |
$9 |
Downgrades
Friday, February 03, 2023
COMPANY |
TICKER |
BROKERAGE FIRM |
RATINGS CHANGE |
PRICE TARGET |
---|---|---|---|---|
Aptiv |
APTV |
Wolfe Research |
Outperform>>Peer Perform |
|
Boeing |
BA |
RBC Capital Mkts |
Outperform>>Sector Perform |
$225 |
C.H. Robinson |
CHRW |
Stifel |
Buy>>Hold |
$107>>$99 |
Camden Property |
CPT |
Piper Sandler |
Overweight>>Neutral |
$136 |
Cognizant Tech |
CTSH |
Robert W. Baird |
Outperform>>Neutral |
$66>>$68 |
Ford Motor |
F |
Deutsche Bank |
Hold>>Sell |
$13>>$11 |
First Foundation |
FFWM |
Piper Sandler |
Overweight>>Neutral |
$17.5>>$16 |
Focus Financial |
FOCS |
BMO Capital Markets |
Outperform>>Market Perform |
$55>>$53 |
Source: WSJ.com
Economic releases
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.