FOMC meeting; 4Q Employment Cost Index; S&P CoreLogic
Case-Shiller Home Prices Index for November; Chicago Business
Barometer -- ISM-Chicago Business Survey -- Chicago PMI for
January; Conference Board Consumer Confidence for January; earnings
from McDonald's, Caterpillar, General Motors, Exxon Mobil, Pfizer,
UPS, Mondelez, AMD, Snap
Today's Headlines/Must Reads
- Labor Report to Give Fed Look at Wage Inflation
- Private Equity Taps Insurers' Cash to Speed Up Growth
- Biden Administration Considers Cutting Off Huawei From U.S.
- Eurozone Economy Outpaced China and U.S. in 2022
- IMF Upgrades Outlook for Global Economy
Follow WSJ markets coverage here .
Stock futures were lower on Tuesday, ahead of a spate of
corporate earnings and the start of the Federal Reserve's two-day
"We doubt that the Fed will deliver a dovish surprise at its
meeting, but the imminent end of interest rate hikes is
nevertheless positive for risk appetite," HSBC Global Private
Banking & Wealth said.
"That said, the main beneficiaries lie outside of the U.S., in
emerging markets, where borrowing costs are already declining as
Treasury yields have peaked and the dollar is falling."
Stocks in Europe and Asia-Pacific dropped after investors got
fresh readings on growth, inflation and manufacturing data.
Stocks to Watch
Harmonic released disappointing fourth-quarter results and
first-quarter guidance. Its shares dropped 9% in after-hours
Integer reported a preliminary fourth-quarter profit that came
in below expectations. Its stock declined 5% in after-hours
Symbotic posted a surge in revenue in the latest quarter and
said demand for its products continues to grow. Shares rose 7% in
The dollar index hit an 11-day high of 102.5190 in European
action, and the currency should perform well in a cautious
environment as traders await the Fed decision, ING said.
It said the greenback should be able to continue gains into the
meeting, with high-beta currencies remaining main underperformers
in the risk-off environment.
"Our view...is that the Fed still has an interest in hanging on
to a hawkish rhetoric and pushing back against speculation of an
early peak and--above all--rate hikes in 2023. The net result for
the dollar may be positive."
Income is finally back in fixed-income thanks to higher yields
and coupons, BlackRock Investment Institute said.
Short-term government bonds and investment-grade credit now
offer some of the highest yields in the last two decades, it
BlackRock's preference for earning income right now is from
high-quality fixed income assets as rates rise and stay high.
"Fixed income's appeal remains intact the longer central banks
keep rates near their peak."
The lack of duration--or the sensitivity of bond prices to
interest rates--in short-term paper also helps preserve income even
if yields rise anew, BlackRock said.
Oil prices were 1% lower in Europe as investors market awaited
clarity on Chinese demand and Russian supplies.
Russian oil exports continue to show resilience in the face of
an impending EU crude products ban set to come into force on
"Russian oil continues to flow eastbound, which of course, is
great news for central bankers, broader markets, and Brent crude
short sellers," SPI Asset Management said.
With China's Lunar New Year holiday having now passed, investors
are also looking for clues that the nation's demand for crude is
Base metals and gold were lower early in the London session, as
traders looked ahead to tomorrow's Fed decision on interest
"Financial conditions have loosened and markets have rallied on
softer inflation metrics over the past month," Peak Trading
"Traders expect that Powell will have a hawkish message tomorrow
to temper some of this enthusiasm," Peak added, noting that the
fall in metals prices today reflects profit taking given the
possibility of a pivot from the Fed.
Demand for gold reached its highest level in more than 10 years
in 2022 as rising central bank interest rates and worries over the
global economy pushed investors toward the precious metal,
according to the World Gold Council.
Annual gold demand last year hit 4,741 metric tons - up 18% on
year, and the highest annual total since 2011, the WGC l said on
Tuesday in a new report.
Read more here .
TODAY'S TOP HEADLINES
Spotify Adds Users, Reports Loss After Big Investments in
Spotify Technology SA reported strong user growth but another
quarterly loss after the company invested extensively to build its
The audio giant, which last week laid off employees and
reorganized its top brass, said it aims to become a more efficient
business this year following an intense period of spending.
Spotify's chief content and advertising business officer, Dawn
Ostroff, will leave the company. She spearheaded the company's
expansion into podcasting, helping acquire studios and ink deals
with high-profile figures such as Joe Rogan, Michelle Obama and Kim
Blockbuster Arthritis Drug Humira Faces Competition From First
Lower-Price Copycat in U.S.
AbbVie Inc.'s arthritis therapy Humira is set to face its first
competition in the U.S. from a near-identical copycat, the end of
the exclusive run of what was for years the country's
After two decades of patent protection and more than $135
billion in U.S. sales, Humira will contend with the near-identical
version from Amgen Inc. starting Tuesday, Amgen said. Other Humira
copycats are due to become available later this year.
Airbnb and Expedia Turn Customer Cash Into Profit, Aided by
Rising Interest Rates
Airbnb Inc. and Expedia Group Inc. invest billions of dollars of
their customers' money for their own profit. Thanks to rising
interest rates, returns on these investments are higher than
The travel sites typically collect money from guests the moment
they book. But they only pass it on to hosts or hotels after the
guest stay starts, which can be several months later.
UBS Attracts Wealthy Clients to Help Lift Profit
UBS Group AG said wealth clients added new assets at the bank in
the fourth quarter, helping it post a better-than-expected net
The Swiss bank made a $1.65 billion quarterly net profit, more
than the $1.28 billion analysts expected and up from $1.35 billion
a year earlier. Inflows from its wealth customers picked up in the
quarter across most regions, lifting the annualized growth above
the bank's 5% target, to 7.9%.
Biden Administration Considers Cutting Off Huawei From U.S.
WASHINGTON-The Biden administration is considering entirely
cutting off Chinese telecommunications giant Huawei Technologies
Co. from U.S. suppliers over national-security concerns by
tightening export controls targeting the firm, according to people
familiar with the matter.
The move-should the administration move forward-would mark the
latest salvo in the high-stakes clash between the world's two
largest economies as U.S. policy makers seek to counter China's
industrial policy they say threatens Western interests.
Samsung Expects Sluggish Demand to Drag On as Profit Slides
SEOUL-Samsung Electronics Co. expects demand for semiconductors
and smartphones to remain sluggish as macroeconomic challenges and
fears of a recession continue to hurt sales, but it said a recovery
could be possible in the second half.
Economic uncertainties are weakening momentum for any short-term
rebound in demand for memory chips, Samsung's main cash cow, said
Kim Jae-june, executive vice president for global sales and
marketing at the company's memory business, in an earnings call on
UniCredit to Hand $5.70 Bln to Shareholders After Record Profit
Italy's UniCredit SpA plans to distribute 5.25 billion euros
($5.70 billion) to shareholders in the coming months, EUR1.5
billion more than in the previous year, after the bank swung to a
profit in the fourth quarter and posted revenue well ahead of
The Italian bank said Tuesday that the distribution, subject to
supervisory board and shareholder approvals, would consist of a
EUR1.91 billion cash dividend and a share buyback of EUR3.34
billion. A first tranche of the buyback worth some EUR2.34 billion
will launch once approved by the company's annual general meeting
at the end of March, followed by another tranche of around EUR1
billion in the second half of the year.
Alameda Research Sues Bankrupt Crypto Lender Voyager for $446
The managers steering failed crypto hedge fund Alameda Research
through chapter 11 have sued Voyager Digital Ltd. for nearly $446
million, alleging it received preferential payments while Sam
Bankman-Fried's crypto empire collapsed.
In a lawsuit filed on Monday, Alameda accused Voyager of feeding
its customers' money to risky crypto companies without due
diligence, which helped fuel the alleged misuse of customer funds
that brought down Alameda and its affiliated crypto exchange,
Shein to Name Ex-SoftBank Executive Claure to Head Latin America
SINGAPORE-Shein, one of the world's largest online fashion
retailers, is set to appoint Marcelo Claure, a former executive at
SoftBank Group Corp., as its Latin America chairman, according to
people familiar with the matter.
Mr. Claure also made a personal investment of about $100 million
dollars in Shein, the people said.
Labor Report to Give Fed Look at Wage Inflation
Worker-pay and benefits data set for release Tuesday will shed
light on whether the Federal Reserve is successfully cooling fast
wage growth as officials meet to consider further increases in
Other recent data has shown that rapid wage growth has begun to
slow, putting less pressure on prices. The Fed has aggressively
raised interest rates in the past year with the aim of tamping down
on the economy to tame inflation. Central-bank officials are
starting a two-day meeting Tuesday.
Private Equity Taps Insurers' Cash to Speed Up Growth
Investment firms that play on the cutting edge of finance are
turning to one of the oldest businesses on Wall Street to
turbocharge their growth: insurance.
Private-credit fund managers such as Blackstone Inc., Carlyle
Group Inc. and Centerbridge Partners are increasingly forming
partnerships with insurers, or buying them outright. Call it the
merger of slow money and fast money.
IMF Upgrades Outlook for Global Economy as Inflation Eases and
WASHINGTON-Resilient demand, easing inflation and China's
reopening should allow the global economy to grow a bit faster than
previously expected, the International Monetary Fund said.
In its latest World Economic Outlook, released Monday Washington
time, the IMF sees the global economy growing 2.9% this year, up
from its October projection of 2.7%. The IMF expects growth to
accelerate to 3.1.% in 2024, still less than last year's 3.4%.
Further Hefty ECB Interest-Rate Rises Could Follow This Week's
Increase - Talking Markets
Further significant interest-rate rises are likely to be on
their way after the European Central Bank delivers what is widely
expected to be a 50 basis-point increase on Thursday as
policymakers focus on reducing high levels of inflation.
The ECB's deposit rate currently stands at 2.0%. A
half-percentage-point increase this week would take it to 2.5%.
China's Services, Manufacturing Activity Rebounded Sharply in
China's official gauges measuring services, manufacturing and
construction activity all rebounded sharply in January as the
nation recovered quickly from a surge in Covid infections in the
wake of a sudden reopening at the end of last year.
China's nonmanufacturing PMI, which covers service and
construction activity, rose to 54.4 in January, up sharply from
41.6 in December, the National Bureau of Statistics said
Stocks' and Bond Yields' 'Virtuous' Link May Be About to
When bond yields have risen recently, stocks have fallen. And
vice-versa. That's bound to change as markets worry about economic
Over the past year, the 10-year Treasury yield has climbed to
just over 3.5% from just under 1.8%. In that time, the S&P 500
is down almost 9%, a loss that was worse a few months ago. The
reason for these moves is that the Federal Reserve has been lifting
interest rates to cool inflation by reducing demand for goods and
Gold in 2022 saw its strongest annual demand in more than a
decade, report finds
Annual global gold demand last year reached its highest since
2011, buoyed in part by record demand for the precious metal in the
fourth quarter and the strongest gold demand among central banks
since 1967, according to a World Gold Council report released
Total global demand climbed 18% to 4,740.7 metric tons in 2022,
excluding over-the-counter trading, according to the the Full Year
2022 Gold Demand Trends Report, which marked its 30th anniversary.
OTC trading is done between dealers directly, without the oversight
of an exchange.
Ukraine Fends Off Russian Assault in the East
KYIV, Ukraine-Ukraine on Tuesday said it had repelled multiple
Russian attacks around Bakhmut, as Russian troops pushed to
encircle the besieged city and Kyiv stepped up calls for advanced
Ukraine's armed forces, which produce a daily tally of Russian
equipment and personnel taken out of action, said Tuesday morning
they had killed 850 Russian soldiers in the previous 24 hours.
EU Prepares to Offer Clean Tech Tax Breaks to Compete With U.S.
Green Subsidy Push
BRUSSELS-The European Union wants to make it easier for
governments to dole out tax breaks and other aid to clean-tech
companies, part of a push to counter generous U.S. subsidies that
officials worry will draw investment away from Europe.
The European Commission, the bloc's executive body, is set to
release a proposal on Wednesday outlining how the EU might relax
bloc-wide rules that limit how member countries can subsidize
businesses. The plan will also look to set aside money to help
European governments with limited fiscal firepower compete for
Blinken Set to Meet Palestinian Leader Abbas as Tensions
RAMALLAH, West Bank-U.S. Secretary of State Antony Blinken will
meet Palestinian Authority President Mahmoud Abbas on Tuesday to
press for calm after a surge in violence in the West Bank and
"We have a lot on our hands in this moment," Mr. Blinken said
Tuesday morning before a meeting with Israeli Defense Minister Yoav
U.S. Pushes for Military Sites in Philippines to Counter
WASHINGTON-The U.S. is hoping to reach an agreement this week to
open as many as four U.S. military sites at Philippine bases in
Washington's latest push to expand its strategic footprint across
the region to counter threats from China, U.S. officials said.
Defense Secretary Lloyd Austin is meeting later this week with
recently elected Philippine President Ferdinand Marcos Jr. in
Manila and hopes to secure the deal, which would rotate groups of
U.S. forces to sites in the country, U.S. officials said.
Joe Biden to End Covid-19 Emergency Declarations on May 11,
White House Says
President Biden will end a national emergency and public-health
emergency declaration for Covid-19 on May 11, the White House said
Monday, signaling a shift in the nation's approach to a pandemic
that has claimed more than 1.1 million lives in the U.S.
The public-health emergency was first declared in January 2020,
under the Trump administration, and has been renewed by 90 days
every time it was due to expire. The national health emergency and
the public-health emergency are now set to expire on March 1 and
April 11, respectively, but the White House said the administration
planned to extend the declarations to May 11 and then "end both
emergencies on that date."
Australia's Nuclear Safety Agency Joins the Hunt for Missing
ADELAIDE, Australia-Authorities intensified their search for a
missing capsule containing radioactive material in Australia's far
west, deploying car-mounted detection equipment for the first time
as they began to retrace a truck's nearly 900-mile journey across
The capsule, which is less than a third of an inch long and
contains Cesium-137, is believed to have fallen from a truck
somewhere between Rio Tinto PLC's Gudai-Darri mine and Perth, the
capital of Western Australia. An initial search using hand-held
radiation monitors failed to find the capsule, which was discovered
to be missing on Jan. 25, prompting a public health alert.
Write to email@example.com TODAY IN CANADA
Canadian Pacific Railway 4Q
Imperial Oil 4Q
Economic Calendar (ET):
0830 Nov GDP
Stocks to Watch:
High Tide 4Q Rev C$108.2M Vs. C$53.9M; FY Rev C$356.8M Vs.
C$181.1M; 4Q Loss/Shr C$0.85 Vs. EPS C$0.09; FY Loss/Shr C$1.14 Vs.
Teck 2022 Annual Production of Zinc Concentrate Met Company
Guidance; 2022 Copper, Refined Zinc, Steelmaking Coal Production
Came in Slightly Below Low End of Guidance Ranges; Production
Affected by Maintenance Activity, Weather, Plant Outage, Other
Teck Guides for 2023 Copper Production of 390,000-445,000
Tonnes; Guides for 2023 Zinc Production of 645,000-685,000 Tonnes;
Guides for 2023 Refined Zinc Production of 270,000-290,000 Tonnes;
Guides for 2023 Steelmaking Coal Production of 24.0M-26.0M Tonnes;
Continues to Face Inflationary Pressures, Which Have Increased
Operating Costs; Inflationary Pressures Expected to Persist Through
2023; Expects Unit Costs for Principal Products to Rise in 2023 Vs
Expected Major Events for Tuesday
04:30/JPN: Dec Preliminary Report on Petroleum Statistics
05:00/JPN: Jan Consumer Confidence Survey
05:00/JPN: Dec Housing Starts
05:00/JPN: Dec Construction Orders
06:30/FRA: Dec Household consumption expenditure in manufactured
06:30/FRA: 4Q GDP - first estimate
07:00/GER: Dec Foreign trade price indices
07:00/GER: Dec Retail Trade
07:45/FRA: Dec PPI
07:45/FRA: Jan Provisional CPI
08:55/GER: Jan Labour market statistics (incl unemployment)
09:00/ITA: Dec Unemployment
09:30/UK: 4Q Insolvency statistics
09:30/UK: Dec Bank of England effective interest rates
09:30/UK: Dec Money and Credit - Lending to Individuals, Lending
to Businesses, Broad Money and Credit
09:30/UK: Dec Monetary & Financial Statistics
10:00/ITA: 4Q GDP preliminary estimate
13:00/GER: Jan Provisional CPI
13:30/US: 4Q Employment Cost Index
13:30/CAN: Nov GDP
13:55/US: 01/28 Johnson Redbook Retail Sales Index
14:00/US: Nov U.S. Monthly House Price Index
14:00/US: Nov S&P CoreLogic Case-Shiller Indices
14:45/US: Jan Chicago Business Barometer - ISM-Chicago Business
Survey - Chicago PMI
15:00/US: Jan Consumer Confidence Index
15:00/US: 4Q U.S. Housing Vacancies
20:00/US: Dec Agricultural Prices
21:30/US: 01/27 API Weekly Statistical Bulletin
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
A. O. Smith Corporation (AOS,X-SMCA) is expected to report $0.80
Allegro MicroSystems Inc (ALGM) is expected to report for
Camden National (CAC) is expected to report $1.08 for 4Q.
Caterpillar Inc (CAT) is expected to report $3.72 for 4Q.
CommVault (CVLT) is expected to report $0.26 for 3Q.
Corning Inc (GLW) is expected to report for 4Q.
Corvel (CRVL) is expected to report for 3Q.
Dover Corp (DOV) is expected to report for 4Q.
Entegris Inc (ENTG) is expected to report $0.16 for 4Q.
Evoqua Water Technologies Corp (AQUA) is expected to report
$0.09 for 1Q.
Exxon Mobil Corp (XOM) is expected to report for 4Q.
FTI Consulting (FCN) is expected to report $1.32 for 4Q.
General Motors (GM,GMM.U-T) is expected to report for 4Q.
Griffon Corp (GFF) is expected to report $0.86 for 1Q.
Hubbell Inc (HUBB) is expected to report $2.15 for 4Q.
Imperial Oil Ltd (IMO,IMO.T) is expected to report $2.45 for
International Paper (IP) is expected to report $0.96 for 4Q.
Kirby Corp (KEX) is expected to report for 4Q.
Lennox International Inc (LII) is expected to report $2.63 for
MDC Holdings Inc (MDC) is expected to report $1.52 for 4Q.
MSCI Inc (MSCI) is expected to report for 4Q.
ManpowerGroup (MAN) is expected to report for 4Q.
Marathon Petroleum (MPC) is expected to report for 4Q.
McDonald's Corp (MCD) is expected to report $2.44 for 4Q.
Moody's Corp (MCO) is expected to report for 4Q.
Mplx Lp (MPLX) is expected to report $0.84 for 4Q.
Mueller Industries (MLI) is expected to report for 4Q.
NVR Inc (NVR) is expected to report $98.88 for 4Q.
New York Community Bancorp (NYCB) is expected to report $0.25
Oshkosh Corp (OSK) is expected to report $1.82 for 4Q.
Pfizer Inc (PFE) is expected to report $0.83 for 4Q.
Phillips 66 (PSX) is expected to report $4.74 for 4Q.
Pitney-Bowes Inc (PBI) is expected to report $0.08 for 4Q.
Polaris Inc (PII) is expected to report $3.19 for 4Q.
PulteGroup Inc (PHM) is expected to report $2.96 for 4Q.
Qualstar Corp (QBAK) is expected to report for 3Q.
Sysco Corp (SYY) is expected to report $0.83 for 2Q.
United Parcel Service (UPS) is expected to report $3.60 for
Utah Medical Products (UTMD) is expected to report for 4Q.
loanDepot Inc (LDI) is expected to report $-0.25 for 4Q.
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ANALYST RATINGS ACTIONS
*EBR Systems Cut to Hold From Buy by Bell Potter
Axalta Coating Systems Raised to Buy From Hold by Deutsche
Axalta Coating Systems Raised to Buy From Neutral by
Azek Cut to Neutral From Buy by B of A Securities
Boot Barn Holdings Cut to Neutral From Outperform by Baird
Celularity Cut to Underweight From Equal-Weight by Morgan
Colgate-Palmolive Raised to Overweight From Equal-Weight by
Cyteir Therapeutics Cut to Neutral From Buy by B of A
Eastern Bankshares Cut to Neutral From Buy by Janney Montgomery
Eastman Chemical Cut to Hold From Buy by Vertical Research
Eastman Chemical Cut to Sector Perform From Sector Outperform by
Edwards Lifesciences Cut to Neutral From Overweight by Piper
Federal Realty Raised to Buy From Neutral by Compass Point
First Interstate Cut to Market Perform From Outperform by Keefe,
Bruyette & Woods
Flowserve Raised to Buy From Neutral by B of A Securities
Fortune Brands Cut to Underperform From Neutral by B of A
G1 Therapeutics Raised to Neutral From Underweight by JP
G1 Therapeutics Shares Rise After JP Morgan Upgrade
General Motors Cut to Hold From Buy by Berenberg
Goodyear Tire Cut to Underperform From Neutral by Exane BNP
Investors who piled into bitcoin in retirement accounts pay the
price -- Financial News
Kemper Corp Raised to Neutral From Underperform by Credit
Lockheed Martin Raised to Buy From Hold by DZ Bank
Lulu's Fashion Lounge Cut to Sector Weight From Overweight by
Okta Raised to Buy From Hold by Stifel
Old Dominion Freight Cut to Underperform From Neutral by Credit
Regeneron Pharma Raised to Outperform From Market Perform by
Cowen & Co.
Saia Cut to Neutral From Outperform by Credit Suisse
Stellar Bancorp Raised to Overweight From Neutral by Piper
Tanger Factory Outlet Cut to Neutral From Buy by Compass
Tesla Raised to Buy From Hold by Berenberg
Varonis Systems Cut to Neutral From Outperform by Baird
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
January 31, 2023 06:36 ET (11:36 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.