Wake Up Wall Street: Equities remain supported despite higher yields as readings look strong
Here is what you need to know on Thursday, February 16:
Equity markets continue to be supported by strong economic data from the US. This time it was the turn of retail sales to add to a strong labor market. Yields have ticked higher as a result, but financial conditions remain notably loose leading risk assets to remain supported. On Thursday we have limited data with PPI downgraded due to the CPI release earlier this week. Earnings in Europe have been strong this morning in the banking and telecoms sector, but so far we are likely to have a relatively lackluster day. Markets are becoming more and more accustomed to higher rates for longer and do not seem concerned about a strong US economy.
The US Dollar has naturally been supported but is under some small position squaring pressure Thursday morning rather than any major shift in sentiment. The Dollar Index is at 103.76 now. Gold is flat at $1,839, and Oil is higher at $79.10.
European markets are up slightly: Dax +0.4%. Eurostoxx +0.1%, CAC +0.5% and FTSE +0.01%.
US futures are lower: Nasdaq and Dow both -0.4% and S&P -0.3%.
Wall Street top news
AIG is up on earnings beat.
Cisco (CSCO) raises guidance for the year ahead.
Hasbro (HAS) forecasts annual profit below estimates.
Marathon Oil (MRO) down on revenue miss.
ROKU forecasts first-quarter revenue above estimates.
Shopify (SHOP) beats on top and bottom lines.
Twilio (TWLO) beats on earnings.
Upgrades and downgrades
Upgrades
Thursday, February 16, 2023
|
COMPANY |
TICKER |
BROKERAGE FIRM |
RATINGS CHANGE |
PRICE TARGET |
|---|---|---|---|---|
|
Algonquin Power & Utilities |
AQN |
BofA Securities |
Underperform>>Buy |
$7>>$9 |
|
Iris Energy |
IREN |
H.C. Wainwright |
Neutral>>Buy |
$3>>$8 |
|
Generac |
GNRC |
Canaccord Genuity |
Hold>>Buy |
$104>>$175 |
|
Israel Discount Bank |
ISDAY |
Barclays |
Equal Weight>>Overweight |
|
|
Pagaya |
PGY |
Canaccord Genuity |
Hold>>Buy |
$1.5>>$3 |
|
Restaurant Brands Int’l |
QSR |
KeyBanc Capital Markets |
Sector Weight>>Overweight |
$76 |
|
Roblox |
RBLX |
The Benchmark Company |
Sell>>Hold |
|
|
Roku |
ROKU |
Atlantic Equities |
Underweight>>Neutral |
$76 |
|
Scotts Miracle-Gro |
SMG |
Wells Fargo |
Equal Weight>>Overweight |
$75>>$100 |
|
Seagen |
SGEN |
Raymond James |
Outperform>>Strong Buy |
$155>>$175 |
|
Activision Blizzard |
ATVI |
Deutsche Bank |
Hold>>Buy |
$83>>$90 |
|
Grifols, S.A. |
GRFS |
Barclays |
Underweight>>Equal Weight |
|
|
Marathon Oil |
MRO |
The Benchmark Company |
Hold>>Buy |
$32 |
|
Seagen |
SGEN |
Evercore ISI |
In-line>>Outperform |
$140>>$175 |
Downgrades
Thursday, February 16, 2023
|
COMPANY |
TICKER |
BROKERAGE FIRM |
RATINGS CHANGE |
PRICE TARGET |
|---|---|---|---|---|
|
ACV Auctions |
ACVA |
Piper Sandler |
Overweight>>Neutral |
$11 |
|
CarGurus |
CARG |
Piper Sandler |
Neutral>>Underweight |
$12 |
|
Check Point Software |
CHKP |
SMBC Nikko |
Neutral>>Underperform |
$125>>$120 |
|
Electronic Arts |
EA |
Deutsche Bank |
Buy>>Hold |
$125 |
|
Floor & Decor |
FND |
Telsey Advisory Group |
Outperform>>Market Perform |
$90 |
|
FLEX LNG |
FLNG |
Danske Bank |
Buy>>Hold |
|
|
Kornit Digital |
KRNT |
Barclays |
Overweight>>Equal Weight |
$34>>$28 |
|
Livent |
LTHM |
BofA Securities |
Buy>>Neutral |
$26>>$29 |
|
Invitation Homes |
INVH |
Evercore ISI |
Outperform>>In-line |
$33>>$32 |
|
Hello Group |
MOMO |
Morgan Stanley |
Overweight>>Equal-Weight |
$9>>$12 |
|
NVIDIA |
NVDA |
DZ Bank |
Buy>>Sell |
$195 |
|
RingCentral |
RNG |
Evercore ISI |
Outperform>>In-line |
$40 |
|
SiteOne Landscape Supply |
SITE |
Jefferies |
Buy>>Hold |
$170 |
Source: WSJ.com