Personal Income & Outlays for December; University of
Michigan Final Consumer Survey for January; earnings from American
Express, Chevron, Colgate-Palmolive
Today's Headlines/Must Reads
- Tesla Has Become One of the Hottest Stock-Option Trades on
- Fed to Deliver Quarter-Point Hike Along with 'One Last Hawkish
Sting in the Tail'
- Consumer Spending, Inflation Data Due in Commerce Department
- Debt Ceiling Clash Revives Dispute Over Paying Bondholders
- Infrastructure Companies Say Suppliers Pose a Growing Cyber
Follow WSJ markets coverage here .
Stock futures slipped on Friday ahead of key economic data, as
traders weigh whether to extend a rally fueled by hopes the Federal
Reserve is nearing an end to its aggressive rate-hike campaign.
Analysts said the details of economic data released Thursday
were softer than they appeared at the headline, and seem to show an
economy deteriorating if not outright headed for a recession.
ABN Amro said the GDP report showed an acceleration of the
deterioration in investment, while more volatile components such as
inventories and governnment spending drove the strength in the
"Given the weakness evident late in the fourth quarter, as well
as the incoming data for January so far, we continue to expect Q1
GDP to show a decline in output, with our current estimate for
around a 1% annualized contraction," ABN Amro said.
"We expect declining output to persist into Q2, which would meet
the technical recession definition of two consecutive quarters of
Friday's data releases include the PCE price index, the Fed's
preferred measure of inflation. The core PCE price index is seen
decelerating to a 4.4% year-over-year rate in December from 4.7% in
Lloyds Bank also is forecasting core PCE at a 4.4% rate, and the
headline number at 4.9%, down from 5.5%, in addition to personal
spending dropping 0.2%.
"Such outturns would reaffirm that inflation is on the way down
and economic growth is slowing, adding to expectations that U.S.
interest rates are close to peaking," Lloyds Bank said.
Intel was in the spotlight after the microchip maker missed
expectations on adjusted earnings and revenue.
Stocks to Watch
BuzzFeed stock advanced off-hours, after more than doubling
Thursday. The rally began after BuzzFeed said it would use ChatGPT
creator OpenAI to enhance its quizzes and personalize some
Hasbro said it would cut 15% of staff, and that revenue had
tumbled by a steeper-than-expected 17% to $1.7 billion. Shares
dropped more than 6% off-hours.
Intel posted a larger-than-expected fourth-quarter loss of $664
million, hurt by a souring market for its chips and growing
competition, and gave a gloomy outlook. Intel stock dropped more
than 9% off-hours.
Read Intel's Data Warning Hits AMD, Nvidia. Chip Sector Upheaval
KLA delivered third-quarter revenue guidance that came in below
analysts expectations, with its shares falling 6% in after-hours
trading as a result.
Visa said profit on the basis of generally accepted accounting
principles rose 6% to $4.2 billion, on revenue up 12% to $7.9
billion. Visa stock added about 1% in out-of-hours trading.
Dollar selling has started to fade as investors gear up for key
central bank decisions next week.
"After the optimism fuelled by China reopening and falling
natural gas prices that weakened the dollar, some reversal of that
sentiment should result in some renewed strengthening," MUFG Bank
A dollar recovery is possible though moves will be limited ahead
of the rate decisions, it said.
Read Fed, ECB See Policy Tightening as 'Long-Distance Run'
Read Investors Eye Yen With Tokyo Inflation at Multidecade
Oil prices made modest gains in Europe but were set to end the
week flat as the market awaited clues on Chinese demand and as the
focus turns to OPEC.
An OPEC+ advisory committee is set to meet next week and is
likely to recommend the cartel keeps its production levels
unchanged, ANZ said.
The cartel is likely to await clarity on Chinese demand for oil
this year after its reopening and the impact of fresh sanctions on
Russia set to come into force early next month, ANZ added.
Base metals were mixed, with gold lower, ahead of China and
other Asian markets returning to trading next week following the
Lunar New Year break.
China's return is expected to boost metal demand, particularly
after strict Covid-19 lockdown restrictions tapered buying.
"Bullish sentiment is swaying prices, with metals markets
enjoying strong upward momentum ever since Beijing shifted its
strategy on Covid-19," Fitch said.
It expects a further uplift in both physical demand and prices
from the second quarter amid a weaker dollar.
TODAY'S TOP HEADLINES
Tesla Has Become One of the Hottest Stock-Option Trades on Wall
Speculators' love of wagering on Tesla Inc. has propelled Elon
Musk's electric-vehicle maker into one of the hottest stock-option
trades on Wall Street.
Tesla options trading has surged recently: Nearly three million
contracts now change hands on an average day, according to Cboe
Global Markets data. That is up from 1.5 million a year ago and
more than any other stock. Only wagers on the SPDR S&P 500 ETF
outpace those on Tesla.
Infrastructure Companies Say Suppliers Pose a Growing Cyber
Companies in critical infrastructure sectors say weak cyber
defenses at suppliers are becoming a significant threat to their
business, and that rules to boost security down the supply chain
might be needed.
While federal and industry rules for specific areas such as
aviation, pipeline companies and other critical infrastructure
operators are well-established, said Curley Henry, vice president
and deputy chief information security officer at power utility
Southern Co., cyber regulations for businesses supplying those
operators are less so.
Intel's Data Warning Hits AMD, Nvidia. Chip Sector Upheaval
Intel's disappointing results and warning of a contracting
data-center market knocked the stock in some of its key rivals on
Intel (ticker: INTC) shares were down 10% in premarket trading
after the chip maker missed expectations for the fourth quarter and
provided a revenue forecast for its March quarter far below
Adani Pushes On With Offering as Group Stocks Extend Selloff
India's Adani Enterprises Ltd. on Friday started taking orders
for its $2.45 billion secondary share offering, even as stocks of
many of the group's companies extended a selloff in the wake of a
critical report by U.S. short seller Hindenburg Research.
Adani Total Gas Ltd. and Adani Green Energy Ltd. both slid about
20%, the lower limit on the Bombay Stock Exchange. Adani
Transmission Ltd. was 19% lower in afternoon trading, Adani Ports
& Special Economic Zone Ltd. lost 18% and Adani Enterprises
Fed set to deliver quarter-point rate hike along with 'one last
hawkish sting in the tail'
The Federal Reserve will downshift to a 25 basis point rise in
its policy interest rate at their upcoming interest-rate meeting
and will work overtime to make sure that the market doesn't get the
idea that rate increases are finished, economists said.
"Despite the good news on inflation and being one step closer to
done, it's likely too soon for the Fed to stop raising rates and
likely too soon to signal a stop is imminent," said Jonathan
Pingle, economist at UBS.
Consumer Spending, Inflation Data Due in Commerce Department
A report Friday will give details on the economic health of U.S.
consumers at the end of a year, when they faced elevated inflation
and rising interest rates.
The Commerce Department will release December spending, income
and inflation figures at 8:30 a.m. ET. The report will offer a
picture of the closing month of 2022 as the holiday season wrapped
up, including spending on travel, medical care and other
Debt Ceiling Clash Revives Dispute Over Paying Bondholders
The latest fight over raising the federal debt limit has renewed
a debate over whether the government should pay some bills and
delay others if the White House and Congress fail to raise the cap
before it is breached.
Some Republicans say the Treasury Department can and should give
priority to paying holders of U.S. government securities to prevent
a default on the debt and to minimize any harm to the financial
system. That would mean delaying payment of other government
obligations, such as bills for transportation, agriculture and
China's Portrayal of Smooth Covid Exit Leaves Scientists Wanting
HONG KONG-China published a raft of data this week in an effort
to show the peak of its Covid-19 wave has passed, though
public-health experts continue to question whether Beijing has been
transparent enough to enable them to accurately assess the
Chinese health authorities said that the daily number of
Covid-19 deaths in hospitals topped out at around 4,300 in early
January, and by the middle of the weeklong Lunar New Year holiday
that ended Friday was down nearly 80% from that level.
French Union Cuts Power to Pressure Macron on Pensions
PARIS-To fight President Emmanuel Macron's pension overhaul,
France's most militant labor union is pursuing a radical strategy:
cutting electricity to his political supporters and the wealthy
while handing out discounted power and gas to the public.
During a nationwide strike last week, members of the far-left
CGT union who work in the energy sector cut power to the office of
a lawmaker from Mr. Macron's party for more than three hours. On
Monday, CGT energy workers in Marseille manipulated electricity and
gas meters to cut bills for bakers who were protesting in the
French port city against high energy prices. CGT's leadership
called such moves a "Robin Hood" operation and said they would
continue as the country prepares for another national protest on
Republicans to Pick Party Leader as Some Call for Ousting Ronna
DANA POINT, Calif.-The Republican National Committee on Friday
is set to resolve a leadership fight that has revealed party
divisions and opposition to incumbent Ronna McDaniel from both the
grass-roots and some of the GOP's rising stars.
Interviews at the luxury Southern California resort where
members are meeting this week suggest Ms. McDaniel is favored to
win re-election as party chair following a contentious campaign
within the traditionally clubby RNC.
Lawmakers Press for Access to Biden, Trump Classified
WASHINGTON-Senate Intelligence Committee lawmakers are weighing
how to force the intelligence community to turn over the classified
documents that ended up in the personal possession of two
Special counsels are probing the discovery of classified
documents in the home and former office of President Biden and the
Mar-a-Lago residence of former President Donald Trump, and
classified documents were also found recently at former Vice
President Mike Pence's home. The Senate panel has been unable to
obtain access to the underlying Biden and Trump material, thwarting
its ability to assess the threat to national security, the extent
of any damage, and the potential need for changes to procedures and
Biden Administration Blocks Mining Near Minnesota Wilderness
The Biden administration moved Thursday to block mining upstream
of the Boundary Waters Canoe Area of Northern Minnesota for 20
years, opting to protect a pristine wilderness over allowing
production of minerals that could help fuel a potentially cleaner
The administration last year canceled two federal mineral rights
leases held by Twin Metals Minnesota LLC, a unit of Chilean mining
firm Antofagasta Minerals SA. The latest move could kill the
company's planned underground copper-nickel mine, although Twin
Metals said it would continue to fight the cancellation.
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Champion Iron 3Q
Real Matters 1Q
Stocks to Watch
B2Gold Targets 30% Reduction in GHG Emissions by 2030 and
Announces Expansion of the Fekola Solar Plant; Plant Expansion
Expected to Increase Solar Power Capacity by 22 MWac, Reduce GHG
Emissions by About 24,000 Tonnes Per Yr
Expected Major Events for Friday
00:01/UK: 4Q BRC-LDC Vacancy Monitor
00:30/JPN: Dec Detailed Import & Export Statistics
07:45/FRA: Jan Consumer confidence survey
07:45/FRA: Dec Housing starts
09:00/ITA: Nov Industrial turnover
09:30/UK: Dec Capital issuance statistics
13:30/US: Dec Personal Income & Outlays
15:00/US: Dec Pending Home Sales Index
15:00/US: Jan University of Michigan Survey of Consumers -
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday
American Express Co (AXP) is expected to report $2.19 for
Badger Meter Inc (BMI) is expected to report for 4Q.
Blade Air Mobility Inc (BLDE) is expected to report for 4Q.
Booz Allen Hamilton Holding Corp (BAH) is expected to report
$1.02 for 3Q.
Central Valley Community Bancorp (CVCY) is expected to report
Charter Communications Inc (CHTR) is expected to report $8.69
Chevron Corp (CVX) is expected to report $4.60 for 4Q.
Colgate-Palmolive Co (CL) is expected to report $0.75 for
Community West Bancshares (CWBC) is expected to report for
Dime Community Bancshares Inc (DCOM) is expected to report for
First Hawaiian Inc (FHB) is expected to report $0.58 for 4Q.
Gentex Corp (GNTX) is expected to report $0.40 for 4Q.
HCA Healthcare Inc (HCA) is expected to report $4.76 for 4Q.
Hawthorn Bancshares (HWBK) is expected to report for 4Q.
HomeStreet Inc (HMST) is expected to report $0.76 for 4Q.
IF Bancorp Inc (IROQ) is expected to report for 2Q.
LCNB Corp (LCNB) is expected to report for 4Q.
Norwood Financial Corp (NWFL) is expected to report for 4Q.
Oppenheimer Holdings (OPY) is expected to report for 4Q.
Pacific Financial (PFLC) is expected to report for 4Q.
Peapack Gladstone (PGC) is expected to report $1.12 for 4Q.
Provident Financial Holdings Inc (PROV) is expected to report
$0.33 for 2Q.
Provident Financial Services Inc (PFS) is expected to report
$0.63 for 4Q.
Real Matters Inc (REAL.T) is expected to report $-0.06 for
Red River Bancshares Inc (RRBI) is expected to report for
Republic Bancorp Inc (RBCAA) is expected to report $0.95 for
Roper Technologies Inc (ROP) is expected to report $2.51 for
Schmitt Industries (SMIT) is expected to report for 2Q.
Silver Bull Resources Inc (SVB.T) is expected to report for
Sound Financial Bancorp (SFBC) is expected to report for 4Q.
Southside Bancshares (SBSI) is expected to report for 4Q.
Stellar Bancorp Inc (STEL) is expected to report for 4Q.
Tompkins Financial (TMP) is expected to report $1.42 for 4Q.
United Security Bancshares (UBFO) is expected to report for
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January 27, 2023 11:31 ET (16:31 GMT)
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