CFRA Chief investment strategist Sam Stovall weighs in on fourth-quarter earnings reports and the Federal Reserve’s expected rate hikes this year to combat inflation.
U.S. stocks rallied midday Monday as investors wind down a volatile month and ahead of another busy week for earnings.
The Nasdaq Composite took the lead rising 3.4% as Tesla and Netflix led the gains.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:COMP | NASDAQ COMPOSITE INDEX | 14239.883238 | +469.31 | +3.41% |
| TSLA | TESLA INC. | 936.72 | +90.37 | +10.68% |
| NFLX | NETFLIX INC. | 427.14 | +42.78 | +11.13% |
The Dow Jones Industrial Average rose over 405 points or 1.1%, reversing morning losses and the S&P 500 was higher by 1.9%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35131.86 | +406.39 | +1.17% |
| SP500 | S&P 500 | 4515.55 | +83.70 | +1.89% |
Despite the rally, the S&P 500 clocked its worst month since March of 2020 down 5.3%, the Nasdaq lost 9% and the Dow 3%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 200.23 | +9.64 | +5.06% |
Boeing rose after announcing a new $6.8 billion order from Qatar Airways for GE9X engines as part of its global launch order of up to 50 Boeing 777-8 Freighters. The commitment, which includes 34 firm 777-8 orders and an additional 16 purchase right options, also includes GE90 engines for an additional order of two Boeing 777 Freighters.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MRNA | MODERNA INC. | 169.33 | +9.86 | +6.18% |
Moderna also rose after the Food and Drug Administration fully cleared is COVID-19 use for individuals 18 and over. Prior to, the vaccine was being administered via emergency use classification.
Deal-making was active Monday with Sony Interactive announcing plans to buy Bungie, the maker of the Halo and Destiny titles, for $3.6 billion. This follows Microsoft’s $69 billion purchase of Activision.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SONY | SONY GROUP CORP. | 111.63 | +4.78 | +4.47% |
| MSFT | MICROSOFT CORP. | 310.98 | +2.72 | +0.88% |
| ATVI | ACTIVISION BLIZZARD INC. | 79.01 | -0.13 | -0.16% |
Also, Citrix Systems confirming it will go private in a deal valued at $16.5 billion as Evergreen Coast Capital Corporation, an affiliate of Elliott Investment Management L.P and Vista Equity Partners, acquire the company.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CTXS | CITRIX SYSTEMS INC. | 101.94 | -3.61 | -3.42% |
Blackberry is selling the majority of its patents tied to a legacy smartphone arm for $600 million to Catapult IP Innovations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BB | BLACKBERRY LTD. | 8.22 | +0.35 | +4.44% |
And J.B. Hunt Transport Services Inc is buying Bassett Furniture Industries, Inc.’s Zenith Freight Lines, in a deal valued at $87 million.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JBHT | J.B. HUNT TRANSPORT SERVICES INC. | 192.54 | +0.64 | +0.33% |
| BSET | BASSETT FURN | 18.56 | +4.62 | +33.14% |
In earnings news, Cirrus Logic and NXP Semiconductor are set to report on Monday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CRUS | CIRRUS LOGIC INC. | 89.44 | +4.19 | +4.92% |
| NXP | NUVEEN SEL T-F P 3 FD | 15.13 | +0.05 | +0.33% |
Later in the week tech will be in focus with Amazon, Google, and Meta Platforms, formerly Facebook, set to report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 2,991.47 | +111.91 | +3.89% |
| GOOGL | ALPHABET INC. | 2,706.07 | +39.05 | +1.46% |
| FB | META PLATFORMS INC. | 313.26 | +11.55 | +3.83% |
Sony Pictures’ “Spider-Man: No Way Home” grossed $11 million over the weekend, according to studio estimates Sunday, bringing its domestic total to $735.9 million. The Marvel hit has accounted for a huge percentage of the month’s ticket sales.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SONY | SONY GROUP CORP. | 111.63 | +4.78 | +4.47% |
In commodities, oil hovered around the $87 per barrel level ahead of OPEC’s meeting this week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND L.P. | 62.47 | +0.51 | +0.82% |
DRUGMAKERS RAISED PRICES BY 6.6% ON AVERAGE EARLY THIS YEAR
Asian stocks followed Wall Street higher Monday at the start of a week when China, South Korea and Southeast Asian markets will close for the Lunar New Year holiday.
CATHIE WOOD’S ARK FACES LOYALTY TEST AFTER TECH-STOCK ROUT
The major cryptocurrencies – Bitcoin, Ethereum and Dogecoin were all down.
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The Associated Press contributed to this report.
