Marketmind: Record S&P500 eyes 5,000, China deflated
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The S&P500 is on track to reach a record high of 5,000 points for the first time, buoyed by strong earnings and calmer bond markets. The index has risen 21% since late October, with US economic growth above 3%, unemployment below 4%, and annual profit growth above 8%. However, China's economy is facing deflationary risks, with consumer prices falling at their steepest pace in over 14 years in January. The MSCI World index of developed economy stocks hit a record high, excluding China's market. Hong Kong's Hang Seng Index fell 1.3% after Alibaba missed revenue estimates. The Federal Reserve is in a 'wait and see' mode, with futures pricing in an 80% chance of a rate cut by May. Weekly jobless claims and speeches by central bank officials will be closely watched.

#S&p500 #China #Economy #Deflation #Earnings #BondMarkets #MsciWorldIndex #HangSengIndex #Alibaba #FederalReserve #RateCut #JoblessClaims

https://www.investing.com/news/commodities-news/marketmind-record-sp500-eyes-5000-china-deflated-3297008 

 Earnings call: Equinor posts strong 2023 results, plans for growth by 2035
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Equinor (EQNR) has reported robust financial performance for 2023 and outlined its strategy for growth and transition towards a broader energy offering with lower emissions by 2035. The company has announced an increase in its ordinary cash dividend and a two-year buyback program, while also emphasizing its commitment to energy security and transition. Equinor's strategic developments include launching its first commercial battery storage project in the UK and expanding its renewable capacity to 12-16 gigawatts by 2030. The company also plans to maintain production on the Norwegian continental shelf and invest in technology development to ensure sustainability and efficiency.

#Equinor #FinancialPerformance #GrowthStrategy #EnergyTransition #RenewableEnergy #BatteryStorage #Dividend #BuybackProgram #TechnologyDevelopment

https://www.investing.com/news/stock-market-news/earnings-call-equinor-posts-strong-2023-results-plans-for-growth-by-2035-93CH-3296957 

 Global hedge funds remain short, ready for further US banking turmoil -JPMorgan
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Global hedge funds were poised to profit from the plunge that occurred in U.S. regional banking stocks last week, according to a JPMorgan prime brokerage note to clients on Saturday that cited data as of Jan. 31. U.S. regional bank stocks tumbled about 8% on Jan. 31 after New York Community Bancorp reported a surprise earnings miss that saw its stock dive over 40%, signaling broader turmoil in the sector. Short sellers that targeted shares of a group of U.S. regional banks, including New York Community Bancorp, were up about $1.04 billion in paper profits in the week ending February 2, according to data and analytics company Ortex. Hedge funds had given up on this trade in December, but the group changed its mind and piled into short positions at the start of the year, JPMorgan said in the note. More short positions in large-cap banks were added in January, but the majority of hedge funds still held bets that these stocks would rise, said JPMorgan. Hedge fund trading in the stocks of larger banks was relatively lighter than historically, the note said. Insurance stocks, also considered part of the financials stock sector, saw short positions added, the note added. Hedge funds sold financial stocks for the second straight week, and were net sellers for seven out of the last nine weeks, Goldman Sachs said in a separate note on Friday. The amount of short positions is hovering near a five-year high compared to the number of bets expecting these stock prices to rise, the bank said.

#HedgeFunds #UsBanking #StockMarket #ShortSelling

https://www.investing.com/news/economy/global-hedge-funds-remain-short-ready-for-further-us-banking-turmoil-jpmorgan-3292287 

 Asian stocks skittish as early rate cut hopes wane, China rout deepens
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Most Asian stocks retreated on Monday as strong labor market data and relatively hawkish comments from Federal Reserve Chair Jerome Powell saw traders further price out expectations of early interest rate cuts this year. Losses were driven chiefly by weakness in technology and property stocks, with both indexes trading at five and four-year lows. Chinese markets were now nursing an extended rout after vastly underperforming their global peers through 2023, amid persistent concerns over slowing economic growth in the country. Rate cut bets dim after nonfarm payrolls shock, Powell comments. Powell said in an interview with CBS 60 minutes that the central bank would take a “prudent” approach to cutting interest rates, with recent resilience in the economy giving the central bank more headroom to keep rates on hold. Powell’s comments come in the wake of a substantially stronger-than-expected nonfarm payrolls report for January, which showed that the labor market remained robust. Higher-for-longer U.S. rates bode poorly for Asian markets, given that they diminish the appeal of high-yield, risk-heavy assets. Nikkei 225 was among the few gainers in Asia, aided by purchasing managers index data which showed the country’s services sector grew more than expected in January.

#AsianStocks #RateCut #ChinaRout #LaborMarket #FederalReserve #JeromePowell #TechnologyStocks #PropertyStocks #ChineseMarkets #EconomicGrowth #NonfarmPayrolls #InterestRates #Nikkei225 #PurchasingManagersIndex

https://www.investing.com/news/stock-market-news/asian-stocks-skittish-as-early-rate-cut-hopes-wane-china-rout-deepens-3292147 

 Earnings call: Takeda maintains guidance despite profit decline
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Takeda Pharmaceutical Company reported its third-quarter earnings for fiscal year 2023, maintaining its full-year management guidance despite a decline in core operating profit. The company's revenue increased slightly, driven by growth and launch products, which now account for 43% of total revenue. Takeda faced a significant challenge from the entry of generic competitors to its Vyvanse drug in the U.S. market. Takeda remains committed to its strategy for sustained growth, emphasizing the expansion of its product portfolio, investment in research and development, and the use of data and digital technologies.

#TakedaPharmaceuticalCompany #EarningsCall #ProfitDecline

https://www.investing.com/news/stock-market-news/earnings-call-takeda-maintains-guidance-despite-profit-decline-93CH-3291832 

 Columbia Sportswear stock downgraded amid brand slowdown
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CFRA downgraded Columbia Sportswear stock from Buy to Hold and adjusted the price target to $80 from $88 due to a slowdown in the company's brand performance. The outdoor apparel and footwear company experienced a gross margin increase in Q4, rising slightly by 20 basis points to 50.6%. However, CFRA cited a broader deceleration in sales across all the company's brands, with particular emphasis on the challenges faced by its largest brand, Columbia. Columbia Sportswear has been managing its brand portfolio amidst varying market conditions and has been recognized for its financial health and control of inventory levels. Investors will closely monitor the company's future performance in the competitive apparel market.

#ColumbiaSportswear #StockDowngrade #BrandPerformance #ApparelMarket

https://www.investing.com/news/stock-market-news/columbia-sportswear-stock-downgraded-amid-brand-slowdown-93CH-3291519 

 Earnings call: Johnson Controls eyes growth amid market challenges
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Johnson Controls discussed its Q1 2024 financial performance and strategic outlook during its earnings call. The company reported results in line with expectations, including sales, margins, and adjusted earnings per share. It is focusing on digital building solutions and streamlining its portfolio. However, it has adjusted its full-year guidance due to market headwinds in China and is considering strategic alternatives for its non-commercial product lines. The company faces challenges in the Asia-Pacific region, particularly in China. Johnson Controls is navigating a complex market environment with strategic maneuvers aimed at enhancing its digital building solutions platform and simplifying its portfolio.

#JohnsonControls #EarningsCall #Q12024 #DigitalBuildingSolutions #PortfolioStreamlining #ChinaMarket #Asia-pacific

https://www.investing.com/news/stock-market-news/earnings-call-johnson-controls-eyes-growth-amid-market-challenges-93CH-3288692 

 Earnings call: GM outlines robust 2023 performance, ambitious 2024 EV goals
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General Motors (GM) showcased a strong financial performance for 2023 and laid out ambitious plans for its electric vehicle (EV) and autonomous vehicle (AV) sectors during its Fourth Quarter and Calendar Year 2023 Earnings Conference Call. GM led U.S. vehicle sales, with a focus on maximizing its internal combustion engine (ICE) portfolio and growing its EV business. The company aims to produce up to 300,000 EVs in North America in 2024, subject to customer demand, and plans to return a substantial portion of its cash flow to shareholders. GM's adjusted earnings before interest and taxes (EBIT) for 2023 amounted to $12.4 billion, with an adjusted auto-free cash flow of $11.7 billion. The company also highlighted a commitment to reducing emissions and a confident outlook for 2024 with expected EBIT-adjusted between $12 billion and $14 billion.

#GeneralMotors #ElectricVehicles #FinancialPerformance #EarningsCall #2023 #2024

https://www.investing.com/news/stock-market-news/earnings-call-gm-outlines-robust-2023-performance-ambitious-2024-ev-goals-93CH-3288695