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☆ Morgan Stanley downgrades IBM, says stock's outperformance will be harder to sustain
▼ + stars: | 2023-01-18 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

IBM may suffer from decelerating revenue growth and changing economic cycle dynamics that could make matching its recent outperformance harder, Morgan Stanley warned Wednesday. He also cut his price target by $4 to $148, which implies upside of just 1.9% from where the stock closed Tuesday. He said the stock typically underperforms early in cycles and outperforms later in them due to its defensive model. That could mean trouble ahead given Woodring believes the current late-cycle period is about 75% over and a new early cycle is due in early or mid 2023. Woodring said management will likely focus on 2023 revenue growth guidance and the company's three-year goal for free cash flow when reporting Jan. 25.

☆ Stocks making the biggest moves premarket: United Airlines, Moderna, IBM and more
▼ + stars: | 2023-01-18 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

United Airlines – Shares of United Airlines rose 3.5% after the company reported quarterly earnings that topped Wall Street's estimates for the fourth quarter, signaling strong demand amid higher prices. United posted adjusted earnings per share of $2.46 on $12.4 billion in revenue. Analysts expected adjusted earnings per share of $2.10 and $12.2 billion in revenue, per Refinitiv. Analysts surveyed by StreetAccount had anticipated adjusted earnings of $2.44 per share on revenues of $3.81 billion. PNC reported $3.49 in adjusted earnings per share on $3.68 billion of revenue.

☆ Inflation may be retreating more than December's consumer price data actually shows
▼ + stars: | 2023-01-12 | by ( Zev Fima | ) www.cnbc.com time to read: +6 min

Wall Street rose Thursday after December's tamer consumer price index matched expectations and fueled hopes for a less aggressive Federal Reserve in 2023. What made the move in stocks even more encouraging was that it came despite a strong run-up into the inflation data that saw the market enter overbought territory, as indicated by the S & P Oscillator. On the December release, we can see that the shelter index was up 0.8% month over month and up 7.5% year over year. Just as important, investors aren't taking action based so much on current inflation as they are on expectations of future inflation. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ Barclays cuts Apple price target on concerns over demand weakness, slowing services growth
▼ + stars: | 2023-01-11 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

Barclays recently cut its Apple price target from $144 per share to $133 per share, noting it's concerned that Apple Services estimates are "at risk." The firm lowered its revenue estimate by 7% for the quarter to account for slowing services growth, production problems and weakening demand. "What started out as production driven cuts has moved to demand weakness across product categories," they wrote in a Tuesday note. Apple struggled with iPhone 14 Pro shipments during the holiday season because of Covid restrictions on its primary factory in China. Foxconn has attempted to entice workers back with bonuses, and Reuters reported that Foxconn's Zhengzhou factory is almost back to full production.

Global stocks rallied and the dollar dropped. The upbeat market momentum continued on Monday, with Asian stocks up after China reopened its borders, bolstering the outlook for the global economy. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose to its highest in more than six months. Redha said that there was "over-excitement" in the market reaction to the U.S. jobs data, and that more wage data would be needed. Emerging market stocks (.MSCIEF) were up 2.4% on the day, and have risen by more than 20% since their October lows.

The upbeat market momentum continued on Monday, with Asian stocks up after China reopened its borders, bolstering the outlook for the global economy. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose to its highest in more than six months. At 0811 GMT the MSCI World Equity index, was up 0.5%, near its highest since mid-December (.MIWD00000PUS). “The market is reading that wage pressures are easing quite rapidly and seeing that as positive and potentially people whispering the words “soft landing” more loudly now,” said Hani Redha, global multi-asset portfolio manager at PineBridge. Redha said that there was "over-excitement" in the market reaction to the U.S. jobs data, and that more wage data would be needed.

☆ Technical analysts agree January's strong start is a good omen, but here's what they expect to happen next
▼ + stars: | 2023-01-09 | by ( Patti Domm | In | ) www.cnbc.com time to read: +6 min

Redler expects the S & P 500 could reach 3,980 to 4,000 before reversing lower. The S & P 500 was trading at about 3,940 on Monday. He expects the S & P 500 to put in a near-term top this week. He is watching the 200-day moving average on the S & P 500, which is literally the average of the last 200 closes. "The SPX [S & P 500] has spent the majority of the last three weeks between 3,800 and 3,900," Krinsky wrote in a note.

☆ Instant View: US payrolls show labor market remains strong but wages rises cool
▼ + stars: | 2023-01-06 | by ( ) www.reuters.com time to read: +5 min

Nonfarm payrolls increased 223,000 last month, the Labor Department said in its closely watched employment report on Friday. Monthly job growth is well above the pace needed to keep up with growth in the working age population. "Through the rest of the report, the average hourly earnings month over month came in at 0.3%. But everything else about this shows a very, very resilient labor market which doesn’t bode well for a smaller rate hike. "Fed will look at these numbers and say that the labor market is still pretty robust and to the extent that they would like to see a bit of slack in the labor market."

The slowdown in manufacturing and freight has already dampened consumption of diesel and other distillate fuel oils, and consumption is likely to fall if the manufacturing downturn deepens. The Institute for Supply Management’s manufacturing activity index fell to 48.4 in December (19th percentile for all months since 1980) compared with 49.0 in November (22nd percentile). As a result, consumption is closely correlated with the acceleration and deceleration of the manufacturing and freight cycle. In line with manufacturing activity, the growth in distillate supplied has been decelerating progressively since the second quarter of 2021 and has now stalled. If the manufacturing slowdown deepens over the next six months, as seems likely, distillate consumption is likely to fall.

☆ Fed’s Kashkari Sees Rates Rising to 5.4%
▼ + stars: | 2023-01-04 | by ( Nick Timiraos | ) www.wsj.com time to read: 1 min

Minneapolis Fed President Neel Kashkari said he expects the central bank will need to keep raising interest rates over the next few months despite signs that inflation is decelerating. “While I believe it is too soon to definitively declare that inflation has peaked, we are seeing increasing evidence that it may have,” said Mr. Kashkari in an essay published online Wednesday morning. “In my view, however, it will be appropriate to continue to raise rates at least at the next few meetings until we are confident inflation has peaked.”

☆ Here are Tuesday's biggest analyst calls: Tesla, Apple, Wynn, Amazon, Wendy's, Delta & more
▼ + stars: | 2023-01-03 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

We are lowering our relative ratings on ALLY, COF and MTB from Overweight to Equal Weight and ZION from Equal Weight to Underweight." Wells Fargo upgrades Wynn to overweight from equal weight Wells said in its upgrade of the casino company that it sees a significant reopening opportunity for the stock. " Wells Fargo initiates Mondelez as overweight Wells said the food products company has "superior" fundamentals. Wells Fargo downgrades Molson Coors to equal weight from overweight Wells said in its downgrade of the stock that it sees downside to estimates. Baird names Wells Fargo a top 2023 pick Baird said it likes the risk/reward for the banking giant in 2023.

☆ Bank of America downgrades logistics stock XPO, cites worsening outlook for smaller freight loads
▼ + stars: | 2023-01-03 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

Analyst Ken Hoexter downgraded shares of XPO to neutral from buy, and lowered his price target, saying the logistics company will have to contend with a tougher outlook for less-than-truckload shipping. "We target XPO shipments/day to fall 3% year-year in 4Q22e and 2023e," Hoexter wrote. "LTL volumes are increasingly challenged, evident in ODFL and SAIA mid-quarter updates where daily tonnage for Oct/Nov was -9%/-7% and -8%/-9% year-year, respectively. FedEx also saw accelerating declines in LTL volumes (see F2Q23 Note) with shipments down 11% in Nov from -3% in June." The analyst roughly halved his price target, down to $35 from $60, implying shares have just 5% upside from Friday's closing price.

☆ Wolfe Research downgrades Palantir, says investors should sell before it becomes a sub-$5 stock
▼ + stars: | 2022-12-21 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

Sell Palantir Technologies before it falls more than 20% from here, according to Wolfe Research. Analyst Alex Zukin downgraded shares to underperform from peer perform, saying he is losing confidence in a business that has dwindled over the last several years. Shares of Palantir have cratered 65% in 2022, while the S & P 500 has dropped off 19.8%. Meanwhile, growth in the commercial business has dropped to the low double digits, down from mid-20% growth previously. We model total revenue decelerating further, along with continued margin degradation in FY23 as the company continues to invest," Zukin wrote.

☆ New Cleveland Fed data points to easing shelter inflation outlook
▼ + stars: | 2022-12-20 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

According to the bank, the year-over-year change in the index for new renters stood at a 6.03% rise in the third quarter, decelerating from the 11.88% year-over-year change seen the prior quarter. The first-quarter year-over-year change in the index was also strong at 11.53%. The Cleveland Fed data gives fresh hope that moderating inflation trends seen in recent data will continue. The Fed is raising rates aggressively to help lower the highest levels of inflation seen in decades, delivering a half percentage point increase last week, while projecting more increases into next year. At the press conference following the Fed meeting, central bank leader Jerome Powell said he sees the rental price surge process resolving itself slowly.

☆ Meta's stock, down 64% this year, could be set for a rebound in 2023
▼ + stars: | 2022-12-16 | by ( Paulina Likos | ) www.cnbc.com time to read: +4 min

JPMorgan Friday upgraded Club holding Meta Platforms (META) on the back of increased cost discipline and receding headwinds in 2023. And we agree that Meta's stock, one of the worst performers in the S & P 500 this year, could be poised to make a comeback — but only if management takes greater steps to rein in spending. Analysts at JPMorgan lifted the bank's designation on Meta's stock to overweight, or buy, from neutral, while raising their price target to $150 a share from $115. The revisions come with Meta's stock down more than 64% year-to-date. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ Macro trends decelerating, so find companies that have taken out costs, says Evercore's Mahaney
▼ + stars: | 2022-12-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMacro trends decelerating, so find companies that have taken out costs, says Evercore's MahaneyMark Mahaney, Evercore ISI, joins 'Power Lunch' to discuss what's setting Netflix up for a strong start in 2023, how crucial content is to Netflix's ad-tier plans and Mahaney's thoughts on Uber and Wix.

☆ Premarket stocks: Investors are hoping for the economic tide to turn. The wait may soon be over
▼ + stars: | 2022-12-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

What’s happening: Price increases in the United States cooled more than economists expected last month, recording the lowest level of growth since last December. This is the second consecutive month of moderating price pressures and could mean the underlying trend of inflation is finally decelerating. That’s a welcome and hopeful sign for consumers, policymakers and investors, said Jim Baird, chief investment officer at Plante Moran Financial Advisors. The bill specifically names TikTok and its parent, ByteDance, as social media companies for the purposes of the legislation. In the past two weeks, at least seven states have introduced such measures, including Maryland, South Dakota and Utah.

☆ Goldman Sachs' inflation picks — 10 stocks to buy if prices are peaking
▼ + stars: | 2022-12-13 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Here are 10 of those names: Two pharma biotech companies made the cut, including Viatris , which has the highest earnings yield on the list. In the banking space, KeyCorp is among the names that should fare well, according to Goldman Sachs. Also on the list is Microchip Technology , which has an 8% earnings yield and 4% estimated earnings growth in 2023. Lastly, Molson Coors Beverage should also outperform amid decelerating inflation, according to Goldman. Molson Coors has an 8% yield and it's estimated earning growth for 2023 is 6%, per Goldman.

☆ Wholesale prices rose 0.3% in November, more than expected, despite hopes that inflation is cooling
▼ + stars: | 2022-12-09 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

Wholesale prices rose more than expected in November as food prices surged, dampening hopes that inflation could be headed lower, the Labor Department reported Friday. Markets now will turn their attention to the more closely watched consumer price index, which is due out Tuesday morning. On the goods side, the index rose just 0.1%, steep decline from its 0.6% October gain. Roach said the soaring food price index is "likely an anomaly and not necessarily reflecting a change in trend." The trade index rose 0.7%, while transportation and warehousing fell 0.9%.

UNMASKINGGlobal oil and energy consumption have been falling since the third quarter under the impact of exceptionally high prices and a slowing economy. But the impact was initially masked by concerns about the planned introduction of the price cap on Russia's crude and refined products exports. Traders anticipated the price cap and Russia's response would cut production by more than the economic slowdown cut consumption. LESSONS FROM 2014The recent slump in oil prices shares some, though not all, characteristics with the slump occurring in the third quarter of 2014 ("A brief history of the oil crash", Reuters, January 2015). It is also probable recent hedge fund liquidation has exaggerated the recent fall in oil prices creating some headroom for a short-term rebound; positions are now unusually low.

☆ European startups are on course to raise $85 billion this year – over $18 billion short of 2021's record, new report shows
▼ + stars: | 2022-12-07 | by ( Hasan Chowdhury | Tasmin Lockwood | ) www.businessinsider.com time to read: +6 min

European startups are on track to raise $85 billion this year, a new report has stated. We've analysed the key highlights from the industry-wide report on Europe's tech sector. European startups are on course to raise $85 billion by the end of 2022, which would leave it 17% – or $18.6 billion – short of last year's record dealmaking, according to Atomico's State of European Tech 22 report. Investment in European startups was up 52% in the first quarter of 2022 to $29.2 billion. In theory, this comes down to a cooling off of what Wehmeier described as "capital markets becoming overheated through cheap available capital."

☆ Morgan Stanley downgrades Airbnb on travel demand concerns, see shares falling the next 12 months
▼ + stars: | 2022-12-07 | by ( Fred Imbert | ) www.cnbc.com time to read: +2 min

After a tough year, Morgan Stanley sees even more downside for Airbnb . Nowak pointed to potentially slowing active listings growth over the next few years as a key risk for the stock. Slowing listings also makes Morgan Stanley's bear case on the stock more likely, the analyst said. He noted that the stock could fall as low as $60 per share, which would be 35.6% below Tuesday's close. Earlier this year, sources told CNBC that Airbnb was closing its domestic business in China.

☆ Here are Friday's biggest analyst calls: Apple, Amazon, Tesla, DoorDash, Disney, Zillow & more
▼ + stars: | 2022-12-02 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Piper Sandler reiterates Amazon as outperform Piper said it's "more positive on the out-year opportunity" after attending the most recent Amazon Web Services conference in Las Vegas. Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's standing by shares of Apple and that it sees no evidence of demand destruction. Morgan Stanley reiterates Hostess as overweight Morgan Stanley said after a meeting with Hostess management that it sees multiple growth drivers for the maker of Twinkies. Morgan Stanley reiterates Rocket Lab as overweight Morgan Stanley said investors should buy the dip in shares of the space satellite company. Morgan Stanley reiterates FedEx as equal weight Morgan Stanley said it's staying cautious and has low visibility heading into FedEx earnings later this month.

☆ CIOs Can Play Key Role in Guiding Companies Through Slowdown
▼ + stars: | 2022-11-27 | by ( Steven Rosenbush | ) www.wsj.com time to read: +7 min

The market for cloud computing, business software, artificial intelligence and other so-called enterprise technologies has been a relative bright spot. “During times of economic uncertainty, companies look for ways where technology can drive growth and create more economic value faster,” said Juan Perez, chief information officer at Salesforce Inc. When budgets are under scrutiny, companies tend to focus on short-term solutions that can drive efficiency and productivity, Salesforce’s Mr. Perez said. Companies should take this opportunity to reconsider the pace of hiring and employ freelance workers where it makes sense. Additionally, CIOs say they are looking at the opportunity to hire valuable workers who lost their jobs at other companies or renew technology contracts on more favorable terms.

☆ If the world avoids a recession, it’ll have India and China to thank
▼ + stars: | 2022-11-22 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

London CNN Business —Global growth will slow further in the coming year but the world will likely avoid a recession thanks to Asia’s biggest economies. “Persistent inflation, high energy prices, weak real household income growth, falling confidence and tighter financial conditions are all expected to curtail growth,” it added. If energy prices rise further or energy supply is disrupted, growth could be even weaker than expected. India is projected to have the world’s second highest growth rates, after Saudi Arabia, at 6.6% in 2022, followed by 5.7% in 2023. “Higher interest rates, while necessary to moderate inflation, will increase financial challenges for both households and corporate borrowers,” the OECD said.

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