On January 21, American stock exchanges traded in a narrow range. The S&P 500 index rose by a symbolic 0.03%, to 3853 points, the NASDAQ added 0.55%, the Dow Jones lost 0.04%. The news background remained calm. Macro statistics were mostly better than expected. Growth stocks outperformed value stocks, reflecting the outperforming tech sector, climbing 1.32%.
Company news
According to media reports, Apple (AAPL: + 3.7%) is developing a gadget for interacting with virtual reality. The release is scheduled for 2022.
United Airlines (UAL: -5.7%) quarterly results were in line with expectations, but the outlook for the next quarter disappointed investors.
Oil and gas infrastructure company Kinder Morgan (KMI: -2%) performed well, but analysts are awaiting additional information, including forecasts, to be disclosed at an investor day scheduled for January 27.
President Joseph Biden signed executive orders that set the framework for a new strategy to combat the epidemic. In particular, it is planned to deploy numerous vaccination sites and attract more health workers to it. One of the main barriers to revitalizing the vaccination campaign is insufficient government funding. To address this problem, the $ 1.9 trillion stimulus package presented by Biden included at least $ 160 billion in spending. Republicans criticized certain points of the proposed program. which also accounts for the peak reporting season. In this regard, volatility in the short term will be increased.
Economic news
Markit’s preliminary PMIs for January are worth checking out this Friday. In the manufacturing sector, according to the forecast, the indicator will drop from 57.1 to 56.5. In the service sector, a more significant decline is expected – from 54.8 to 53.6. The projected slowdown in business growth coincides with a short-term deterioration in the labor market. Overall, the pace of business recovery after the crisis remains satisfactory.
Sentiment Index
The Freedom Finance Sentiment Index climbed to 63 out of 100. The indicator reflects market participants’ hope for a global economic recovery in 2021. Concerns about the negative impact of the coronavirus pandemic are starting to wane thanks to the prospect of mass vaccinations.
Technical picture
Technically, the S&P 500 is showing an upward bias in the medium term. The relative strength of buyers prevails, but the upper border of the equidistant channel at 3860 points is a serious resistance. In this regard, short-term consolidation is quite possible.
Today Top Movers
Adamis Pharma (ADMP) gained over 76.38% at $2.24 in pre-market trading on Friday following an announcement from the firm that its SYMJEPI® (epinephrine) Injection products are now available to members of the Walgreens Prescription Savings Club program, for a discounted price of $99.99 for a two-pack.
Sierra Wireless Inc. (SWIR) grew over 7.61% at $19.80 in pre-market trading today after the company received a bullish initiation from Wall Street. B. Riley Securities kicked off coverage of Sierra Wireless with a buy rating alongside a price target of $23.50”.
Zynga Inc (ZNGA) stock moved up 1.45 percent to $10.50 in the pre-market trading. The electronic gaming & multimedia company is making headlines on Thursday as multiple news sources and traders circulate a TMT Finance report that Tencent (TCEHY) is considering finance for a large acquisition.
GameStop Corp (GME) is up more than 4.95% at $45.16 in pre-market hours Friday after news of the joining of Chewy founder and activist investor Ryan Cohen and two of his associates to GameStop’s board of directors.
Top Upgrades & Downgrades
Keefe Bruyette turned bullish on Northern Trust Corporation (NTRS), upgrading the stock to “Outperform” and assigning a $120 price target, representing a potential upside of 27.36% from Thursday’s close.
Quidel Corporation (QDEL) has won the favor of Raymond James’s equity research team. The firm upgraded the shares from Market Perform to Outperform and moved their price target to $250.0, suggesting 14.42% additional upside for the stock.
PacWest Bancorp (PACW) received an upgrade from analysts at Keefe Bruyette, who also set their one-year price target on the stock to $40. They changed their rating on PACW to Outperform from Market Perform in a recently issued research note.
Earlier Friday Stifel reduced its rating on CSX Corporation (CSX) stock to Hold from Buy and assigned the price target to $92. With shares trading at around $91.61, the Wall Street firm thinks CSX Corporation’s stock could add than 0.42%.
Jefferies analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for Regis Corporation (RGS) has been changed to Hold from Buy and the new price target is set at $10.
Analysts at BMO Capital downgraded Sage Therapeutics Inc. (SAGE)’s stock to Market Perform from Outperform Friday.
Latest Insider Activity
BlackBerry Limited (BB) EVP, Ent. Products & VAS HO BILLY announced the sale of shares taking place on Jan 20 at $12.95 for some 20,000 shares. The total came to more than $0.26 million.
General Motors Company (GM) Executive Vice President & CIO MOTT RANDALL D sold on Jan 19 a total of 89,427 shares at $53.69 on average. The insider’s sale generated proceeds of almost $1.34 million.
Petco Health and Wellness Company Inc. (WOOF) Chief Inf. & Admin. Officer Zavada John declared the purchase of shares taking place on Jan 19 at $18.00 for some 1,500 shares. The transaction amount was around $27000.
Barnwell Industries Inc. (BRN) 10% Owner SHERWOOD NED L bought on Jan 20 a total 1,236,818 shares at $1.85 on average. The purchase cost the insider an estimated $34,969.
Important Earnings
Top US earnings releases scheduled for today include Schlumberger Limited (NYSE: SLB). It will announce its Dec 2020 financial results. The company is expected to report earnings of $0.17 per share from revenues of $5.25B in the three-month period.
Analysts expect Huntington Bancshares Incorporated (NASDAQ: HBAN) to report a net income (adjusted) of $0.29 per share when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Dec 2020 is predicted to come in at $1.25B.
Regions Financial Corporation (RF), due to announce earnings after the market closes today, is expected to report earnings of $0.42 per share from revenues of $1.56B recently concluded three-month period.
