Stocks open higher as Wall Street tries to shake off China Covid fears

BP shares jump on upgrade from Citi

Shares of US-listed BP gained more than 4% in the primary market on Tuesday after Citi upgraded oil stock shares to a buy from a neutral rating.

“Growth is one aspect where we believe BP can begin to differentiate itself against its larger-cap European peers; we expect underlying growth to be nearly double that of its nearest peer SHEL,” analyst Alastair Syme wrote in a note to clients, highlighting the company’s positive valuation. its European peers.

CNBC Pro subscribers can see the full story here.

– Samantha Sobin

S&P could see a 7% gain from here, says Deutsche Bank’s Chadha

The S&P 500 recently rose more than 11% from its lows in mid-October as very low positions were pressured by positive catalysts. Deutsche Bank says the pressure could continue based on stock positioning, flows and buybacks.

“A mixture of positions returning to neutral and sustained buybacks argue for the S&P 500 to rise to 4,200 by the end of the year and to 4,500 by the end of the first quarter of 2023,” Deutsche’s Pinky Chadha said in a note to investors on Monday. “We see the total equity position moving to nearly neutral by the end of the first quarter of 2023, driving the S&P 500 up 6% to 7%, and to adding 3 to 4% to buybacks during the quarter.”

Shatha said flows into US stocks have been “resilient” and are in a strong seasonal period through March now, and buybacks remain supportive. Macro data surprises were positive but the key question is whether volatility will subside, especially with the market so focused around the past couple of CPI days.

“Looking ahead, the implied volume of CPI days and FOMC days in December is much lower than it was over the past two months, but it is rising,” Shadha said.

— Tanaya Machel

Stocks go up when the market opens on Tuesday

Stocks jumped in opening trading on Tuesday as Wall Street brushed off fears of an impending shutdown in China and looked forward to some solid earnings reports.

The Dow Jones Industrial Average jumped 190 points, or 0.56%. The S&P 500 and the Nasdaq Composite advanced 0.54% and 0.37%.

Shares of Best Buy rose nearly 9% after the company raised its financial forecast for 2023 and beat earnings forecasts.

– Carmen Renick

Buy Walgreens as it grows its healthcare business, Quinn says in the upgrade

Quinn upgraded his shares Walgreens Boots Alliancesaying the stock offers an attractive risk-return and could rise more than 30% from here.

“While execution remains a risk, particularly given the macro environment, WBA’s current valuation really understates that risk, with equities at 8.7x CY23 EPS and 6.9x CY23 EBITDA,” analyst Charles Rey wrote in a note to clients. “We view the risk/reward as very attractive, and we think investors should take the risk, given the near-term support of the dividend yield of 4.8%.”

The stock added nearly 2% ahead of Tuesday.

Read more about upgrading from Queen here.

– Samantha Sobin

JPMorgan is promoting Toll Brothers, and says the shares are cheap to trade compared to peers

JPMorgan upgraded shares of Toll Brothers to overweight from a neutral rating, saying in a note to clients Tuesday that the stock trades at a strong discount to its homebuilder peers.

Analyst Michael Rehaut said Toll Brothers is “inexpensive relative to our projections for roughly average gross margins and only moderately below average return on equity for its larger caps in 2023 and 2024,” noting that the company trades at a price-to-discount. WordPad. competitors.

Shares rose 3% in the primary market.

CNBC Pro subscribers can read more about the call here.

– Samantha Sobin

Best Buy, Dicks Sporting Goods and more – the biggest pre-market stock moves

A number of stocks are moving in pre-market trading due to earnings and more.

best buy – The company’s shares jumped after a beat on earnings and an enhanced financial outlook for 2023.

Dick’s Sporting Goods Shares initially rose on outperforming revenue and earnings, as well as better-than-expected third-quarter sales and higher guidance, but later fell.

Abercrombie & Fitch The retail stock jumped about 13% on its earnings beat.

Read more here.

– Carmen Renick

Wall Street cuts Zoom Video price targets after weak guidance

shares Video zoom It fell about 9% in pre-market trading after providing weak guidance for the fourth quarter.

The videoconferencing company reported better-than-expected adjusted earnings per share of $1.07 for the third quarter, but that didn’t win over Wall Street analysts. Several lowered their price targets for Zoom last night and this morning.

“We are struggling to find an upside catalyst in the near term, as the online business is likely to be pressured over the next several quarters, and our estimates point to further downside risks to earnings numbers,” wrote Deutsche Bank analyst Matthew Nicknam, who lowered his price target. streets from here. on the stock to $75 per share from $95.

Piper Sandler, MoffettNathanson, Mizuho, ​​UBS and Wells Fargo have also lowered their price target on Zoom Video.

In lowering his price target from $85 to $80, MoffettNathanson analyst Sterling Otey said that “Zoom’s role is still a long way off.”

“Breadcrumbs are being laid out to get a sense of when the overall growth of the business might reverse and, if all goes well, that would still be three quarters into the future. However, it is not entirely clear whether a deteriorating macro environment (layoffs) would extend schedule to a turn-around, or just lead to a lower growth rate before the turn-off,” Auty said in a note to clients.

– Jesse Pound and Michael Bloom

Stock picking opportunities are bullish for the market, says Wilson

A senior Wall Street strategist says the next boom cycle for stocks will not look like the peak of the last decade but will be a rich environment for stock pickers.

Mike Wilson, senior US equity analyst at Morgan Stanley, said Tuesday that while he expects the S&P 500 to drop from here before bottoming out in 2023, stocks are beginning to separate from each other in a preview of the next sustained rally.

“Probably one of the most optimistic things we’re seeing in the future is that there won’t be a 10-share stock market anymore. There will be more opportunities. It will be more democratic throughout the stock market,” Wilson said. squawk box”.

He added, “It doesn’t mean it will be easy as a stock picker, but there will be more participants. The range is improving. That’s what we’re seeing.”

Wilson released his predictions for 2023 last week. Read more about his predictions on CNBC Pro.

– Jesse Pound

Best Buy jumps in after raising guidance for a full year

Shares of Best Buy rose more than 7% in the pre-market after the e-retailer raised its financial outlook for 2023.

“We’re updating our outlook for fiscal ’23 to stream through our better-than-expected third-quarter results while keeping our outlook for the fourth quarter unchanged,” said Chief Financial Officer Matt Belunas. “We now expect comparable sales to be down approximately 10% and our non-GAAP operating income rate2 to be just above 4.0%.”

The company also reported third-quarter earnings and revenue that exceeded analysts’ expectations.

– Fred Imbert

Karvana gets another cut

Analysts continued to save Mobile home, with Quinn being the latest company to downgrade the used car seller. Quinn downgraded its stock-to-market performance rating from outperform and cut its price target to $10 from $55.

“CVNA did not meet 22 profit targets while carrying a significant debt load,” the company wrote, adding that it now estimates that the company will not achieve EBITDA until 2024. “Overall, we are less confident in CVNA’s timeline for reaching to positive free cash flow results.”

Carvana shares are down 97% in 2022.

CNBC Pro subscribers can read more here.

Sam Sabine

European markets rose cautiously as investors assessed economic concerns

European markets rose slightly on Tuesday as investors in the region tracked concerns among their US and Asia-Pacific counterparts about China’s tightening of Covid restrictions, which continues to put pressure on production.

Pan-European Stokes 600 It rose 0.3% in early trade. Oil and gas stocks rose 3.2 percent after Saudi Arabia denied a report that OPEC + may boost oil production, while technology stocks fell 0.5 percent.

– Elliott Smith

CNBC Pro: Inflation poised to slide, Morgan Stanley’s Wilson says, but warns of ‘new era’ ahead

Mike Wilson, chief US equity strategist at Morgan Stanley, said he expects a “very sharp drop in inflation,” and predicts when this could happen.

But he said there are two areas of exception, where inflation could be “more persistent”.

CNBC Pro subscribers can read more here.

– Wizen tan

CNBC Pro: Amazon Is Down 40% This Year — Is It Time To Buy? Market professionals have their say

Once upon a time dear Wall Street, Amazon It lost some of its luster this year. The e-commerce giant’s stock is down more than 40%, far underperforming Standard & Poor’s 500which fell by about 15% in the same period.

Is it time for investors to pile up again? Two market professionals faced off on CNBC’s “Street Signs Asia” Thursday to make an argument for and against buying the stock.

CNBC Pro subscribers can read more here.

– Xavier Ong

Oil recorded its lowest level since January in Monday’s trading

Crude oil fell to prices not seen since January in Monday’s trading.

Midwest Texas It fell by 0.4% to $79.73 a barrel, after hitting $75.08 a barrel. This has not been achieved since January 3, when it traded as low as $74.27.

Brent It lost 0.2%, ending at $87.45 after dropping to $82.31. It is the lowest level since January 11.

Prices for both have fallen since they jumped earlier this year with Russia’s invasion of Ukraine.

Stocks make the biggest moves after hours

These are the stocks making the biggest moves after hours:

  • Zoom – The beloved pandemic fell 4.4% after giving a weak outlook for the fourth quarter despite beating expectations for earnings and revenue.
  • Dell — Shares of the technology company rose as much as 6% after it beat expected revenue and earnings per share in the third quarter.
  • Urban Outfitters Shares rose 2.6% after reporting better-than-expected revenue growth in the most recent quarter, though earnings per share were a penny short of estimates.

See the full list here.

– Alex Haring

Stock futures open near flat

Stock futures opened near flat Monday night.

Dow futures fell 0.01%.

S&P 500 futures lost 0.01%, while Nasdaq 100 futures added 0.01%.

– Alex Haring

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