MARKET WRAPS
Forex:
The dollar has already dropped during Asian trade and has scope
to fall back further as its jump higher late on Tuesday was "quite
surprising" and lacked a clear catalyst, ING said.
"The rise in U.S. rates did not look large enough to justify the
rotation from European FX (EUR and GBP) back into the dollar," it
said.
"We...therefore see room for the dollar correction initiated
overnight to extend today."
J.P. Morgan said Wednesday's flash estimate purchasing managers
data are likely to be important for the euro ahead of the European
Central Bank's meeting on Thursday.
The ECB is expected to reiterate vigilance on inflation and push
back against interest-rate cuts priced in by markets, but the
stance will need to be backed up by solid data to lift the euro,
JPM added.
"This is unlikely to move the needle on the outlook for the euro
without an accompanying shift in the data corroborating the ECB
stance."
JPM said EUR/USD was undershooting fair-value of 1.10 based on
elevated real-rate differentials, improving terms of trade and
tighter peripheral spreads.
Sterling rose to its strongest against the euro since September
2023 after U.K. provisional purchasing managers' surveys for
January beat forecasts, diminishing prospects of early Bank of
England interest-rate cuts.
The data will add to the BOE's concerns about persistent
inflation, Capital Economics said.
Energy:
Oil prices edged higher as traders navigated between risks to
supply due to geopolitical tensions and rebounding crude output in
the U.S. along with the restart of production at a major Libyan oil
field.
Growing geopolitical tensions across the Middle East continue to
support the market, but the upward trend looks limited as oil
production and supply haven't been directly affected, according to
analysts.
Metals:
Copper prices rose almost 1.5% on supply concerns and hopes for
a new stimulus package in top consumer, China.
"The copper market this year is set to be in its tightest state
since 2021," Goldman Sachs said.
"The market has suffered a supply shock over the past quarter
from a series of mine supply downgrades, reducing expected growth
this year by 60% from expectations in mid-2023."
Meanwhile, aluminum was around 1.1% higher, supported by a
Politico report saying the EU is considering an embargo on Russian
aluminum.
TODAY'S TOP HEADLINES
United Puts Boeing on Notice. It's Looking at Other Jets.
Boeing stock took a hit after negative comments about another
737 MAX version from United Airlines-a key MAX customer-on
Tuesday.
Boeing's customer sounds frustrated. That's fair. Boeing has
created a lot of problems for its customers recently. But customers
don't have a lot of alternatives for Boeing jets.
Alibaba Shares Rise as Co-Founders Jack Ma, Joe Tsai Buy
Stock
Alibaba Group shares rose on news that co-founders Jack Ma and
Joe Tsai bought about $200 million of the company's stock in the
latest quarter, giving the Chinese tech giant some welcome news
amid a monthslong slide.
Alibaba closed 7.3% higher on Wednesday, outpacing the 4.2% gain
in Hong Kong's benchmark tech index and giving the company its
biggest one-day rise in 10 months. U.S. ADRs rose 7.85%
overnight.
Credit Card Debt Is Up-and It's Taking Longer to Pay Down
From fuel and groceries to hotels and airline tickets, consumers
are putting more purchases on credit cards-and taking longer to pay
them off.
The four biggest U.S. banks reported higher credit card spending
in 2023 compared with the previous year. In fact, since 2020,
credit card spending has steadily increased at three of the four.
The exception is Citigroup, where credit card spending hit a recent
peak in 2021.
Donald Trump Scores Decisive Win in New Hampshire Republican
Primary
CONCORD, N.H.-Donald Trump won New Hampshire's GOP presidential
primary, propelling him closer to the nomination and a rematch with
President Biden, even though Nikki Haley pledged to stay in the
race.
With 77% of the estimated vote counted, Trump led Haley 55% to
44%, according to the Associated Press.
Trump Won New Hampshire, but There Are Warning Signs for
November
For Donald Trump, New Hampshire served up a set of danger signs
along with a resounding victory.
With his convincing win over Nikki Haley in the GOP primary, the
former president showed that a dominating share of the Republican
Party's core voters are still with him and that his momentum toward
the party nomination grows. But the New Hampshire results also
signaled that Trump risks losing enough Republicans-as well as a
substantial share of independent voters-to create a problem for him
as a general-election candidate in November.
U.S. Carries Out Airstrikes Against Iranian-Backed Group and Its
Facilities in Iraq
WASHINGTON-The U.S. conducted strikes against Iran-supported
militants, this time in Iraq after the group attacked American
troops for a second time Tuesday, which amounted to one of the
strongest responses thus far to hundreds of recent attacks against
American forces in Iraq and Syria.
The airstrikes in Iraq come a day after the U.S. struck what it
said were targets in Yemen controlled by the Tehran-backed Houthi
rebels.
Write to ina.kreutz@wsj.com
TODAY IN CANADA
Earnings:
AGF Mgmt 4Q
Economic Indicators (ET):
0830 Dec New Housing Price Index
0945 Bank of Canada interest rate announcement
Stocks to Watch:
Crombie REIT: Financial Chief Clinton Keay to Resign Feb. 23;
Names Kara Cameron as Interim Financial Chief
---
Firan Technology Group Reaches Agreement With Represented
Employees for a New Four Yr Contract
Expected Major Events for Wednesday
00:30/JPN: Jan Japan Flash Manufacturing PMI
08:15/FRA: Jan France Flash PMI
08:30/GER: Jan Germany Flash PMI
09:30/UK: Jan Flash UK PMI
11:00/UK: Jan CBI Industrial Trends Survey
12:00/US: 01/19 MBA Weekly Mortgage Applications Survey
14:45/US: Jan US Flash Manufacturing PMI
14:45/US: Jan US Flash Services PMI
14:45/CAN: Bank of Canada interest rate announcement
15:30/US: 01/19 EIA Weekly Petroleum Status Report
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Wednesday
AGF Management Ltd - Class B (AGF.B.T) is expected to report
$0.29 for 4Q.
AT&T Inc (T) is expected to report $0.55 for 4Q.
Abbott Laboratories (ABT) is expected to report $0.86 for
4Q.
Amerant Bancorp Inc (AMTB) is expected to report for 4Q.
Amphenol Corp (APH) is expected to report $0.77 for 4Q.
BOK Financial Corp (BOKF) is expected to report $1.75 for
4Q.
Blue Foundry Bancorp (BLFY) is expected to report for 4Q.
Capitol Federal Financial (CFFN) is expected to report $0.02 for
1Q.
Carter Bankshares Inc (CARE) is expected to report for 4Q.
ESSA Bancorp Inc (ESSA) is expected to report $0.46 for 1Q.
Eagle Bancorp (Maryland) (EGBN) is expected to report $0.68 for
4Q.
Elevance Health Inc (ELV) is expected to report $5.07 for
4Q.
Esquire Financial Holdings Inc (ESQ) is expected to report $1.17
for 4Q.
Farmers National Banc Corp (FMNB) is expected to report $0.35
for 4Q.
Fidelity D&D Bancorp Inc (FDBC) is expected to report for
4Q.
Fortrea Holdings Inc (FTRE) is expected to report for 4Q.
Freeport-McMoRan Inc (FCX) is expected to report $0.24 for
4Q.
GameStop Corp (GME,GMEB) is expected to report.
General Dynamics Corp (GD) is expected to report $3.73 for
4Q.
HBT Financial Inc (HBT) is expected to report for 4Q.
HomeTrust Bancshares (HTBI) is expected to report $0.69 for
2Q.
John Marshall Bancorp Inc (JMSB) is expected to report for
4Q.
Kimberly-Clark Corp (KMB) is expected to report $1.53 for
4Q.
Mid Penn Bancorp (MPB) is expected to report $0.59 for 4Q.
Monro Inc (MNRO) is expected to report $0.40 for 3Q.
Parke Bancorp Inc (PKBK) is expected to report for 4Q.
Preferred Bank Los Angeles (PFBC) is expected to report $2.54
for 4Q.
Progressive Corp (PGR) is expected to report.
Prosperity Bancshares (PB) is expected to report $1.15 for
4Q.
SeaChange International Inc (SEAC) is expected to report for
3Q.
Simmons First National Corp - Class A (SFNC) is expected to
report $0.33 for 4Q.
Sterling Bancorp Inc (SBT) is expected to report $0.03 for
4Q.
Stifel Financial (SF) is expected to report $1.24 for 4Q.
Stock Yards Bancorp Inc (SYBT) is expected to report $0.86 for
4Q.
TE Connectivity Ltd (TEL) is expected to report $1.68 for
1Q.
Teledyne Technologies Inc (TDY) is expected to report $4.34 for
4Q.
Textron Inc (TXT) is expected to report $1.28 for 4Q.
United Bancorp Inc (UBCP) is expected to report for 4Q.
United Community Banks (UCBI) is expected to report $0.11 for
4Q.
Universal Stainless & Alloy Products Inc (USAP) is expected
to report $0.24 for 4Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
Alkami Technology Cut to Neutral From Buy by Goldman Sachs
Bill.com Holdings Cut to Equal-Weight From Overweight by Wells
Fargo
Bloomin' Brands Cut to Neutral From Overweight by JP Morgan
Callon Petroleum Cut to Hold From Buy by Stifel
CenterPoint Energy Cut to In-Line From Outperform by Evercore
ISI Group
Cheesecake Factory Cut to Underweight From Neutral by JP
Morgan
Chevron Cut to Market Perform From Outperform by TD Cowen
Coinbase Cut to Underweight From Neutral by JP Morgan
Duke Energy Raised to Outperform From In-Line by Evercore ISI
Group
Enphase Energy Raised to Buy From Hold by Truist Securities
Exxon Mobil Raised to Outperform From Market Perform by TD
Cowen
Inhibrx Cut to Market Perform From Market Outperform by JMP
Securities
NuSTAR Energy Raised to Equal-Weight From Underweight by Wells
Fargo
Philip Morris Cut to Sell From Buy by UBS
Regions Financial Cut to Hold From Buy by Argus Research
Sirius XM Cut to Underweight From Equal-Weight by Wells
Fargo
Sunnova Energy Intl Raised to Buy From Hold by Truist
Securities
SW Energy Cut to Hold From Buy by Stifel
Texas Roadhouse Raised to Neutral From Underweight by JP
Morgan
Tractor Supply Cut to Equal-Weight From Overweight by Stephens
& Co.
Zuora Raised to Buy From Neutral by Goldman Sachs
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
January 24, 2024 06:16 ET (11:16 GMT)
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