Before an hour
Morgan Stanley downgrades logistics stock XPO
Morgan Stanley downgraded XPO shares to equal weight from overweight, citing a disappointing fourth-quarter report.
“The 4Q print has been tougher than expected and we think the stock could be in a ‘penalty box’ for a while as the market looks for more evidence of execution and traction towards LT targets,” Morgan Stanley said in a message on Monday.
– Sarah Min
Before an hour
According to JPMorgan, the first quarter will mark a peak for equities
Stocks have been on the upswing since October, with the S&P 500 up 14.4% after hitting a closing low of 3,577 on Oct. 12. However, JPMorgan doesn’t think the good times will last.
“Big picture, we think the equity rally that started last October, which we hoped would be driven by bond yield/CPI highs, China reopening and European gas price declines, is unlikely to provide fundamental confirmation for the Leg will get higher next year,” equity strategist Mislav Matejka wrote in a note on Monday. “Q1 should mark the peak of the market in our view.”
Matejka also noted that he prefers international stocks to their US counterparts as the technology sector is likely to continue to struggle going forward.
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shares since October
“We don’t think the US will be a good place to hide this time around as technology moves from secular to cyclical,” he said. “Despite our view that bond yields will peak from October, when we advised closing short positions in tech, the sector is unlikely to be a sustained leader; it’s still valued not far from all-time highs.”
“This is not a good starting point. Also, we don’t think tech will be immune to potential earnings disappointments in a downturn, unlike it has been over the past decade.”
– Fred Imbert, Michael Bloom
13 hours ago
Investors will be keeping an eye out for the latest CPI data this week
Investors are looking to Tuesday’s CPI data, as well as retail sales for the latest gauge of inflation.
Economists polled by Dow Jones are forecasting a 0.4% monthly increase in headline CPI and a 6.2% year-on-year increase.
Traders will watch the CPI reading to better understand how the Federal Reserve will proceed with monetary policy in the fight against inflation.
— Hakyung Kim
13 hours ago
Where the big averages stand
The big averages all come from losing weeks.
The S&P and Nasdaq posted their biggest weekly losses since December, down 1.11% and 2.41%, respectively. Although the Dow was on an uptrend on Friday, it also ended down 0.17%.
The Dow recorded the smallest gain since the beginning of the year with a plus of 2.18%. Meanwhile, the S&P is 6.54% off its record and the Nasdaq is 12.82% off its record.
— Hakyung Kim
13 hours ago
Dow and S&P 500 futures open unchanged on Sunday
S&P 500 futures opened at 4,097.50 after the benchmark index closed at 4,136.48 on Friday. Futures linked to the Dow Jones Industrial Average opened Sunday night at 33,897 after the index ended Friday’s session at 33,869.27.
Nasdaq 100 futures traded at 12,334. The Nasdaq Composite ended Friday’s session at 11,718.12.
— Hakyung Kim