In Asia Pacific this morning, the week got off to a shaky start. The Nikkei 225 lost 0.5% in Tokyo, while the KOSPI gained 0.3% in Seoul, the ASX200 around 0.4% in Sydney and the SENSEX was up 0.5% in India. In China, while Shanghai gained 1%, Hong Kong returned -0.8%. European leading indicators are moderately bullish, with the CAC40 starting the session up 0.6% at 7,286 points.
Today's economic highlights
There will be no major macroeconomic indicators today. Full agenda here.
The dollar stabilizes at around 0.9321 EUR and 0.7987 GBP. The ounce of gold is trading around 1925 USD. Oil is stable, with North Sea Brent at 90.21 USD a barrel and US light crude WTI at 86.42 USD. The yield on 10-year US debt rises to 4.29%. Bitcoin rises to 25,600 USD.
In corporate news:
- Tesla climbs 6.3% in pre-market trading, with Morgan Stanley upgrading its "in-line weighting" to "overweight" on the automaker due to the potential of its Dojo supercomputer, designed to power artificial intelligence (AI) models for autonomous vehicles. The intermediary believes it gives Tesla an "asymmetric advantage" and could boost the group's market capitalization by almost $600 billion, representing a potential upside of 76% and a price target of $400.
- Meta Platforms is working on a new artificial intelligence (AI) system intended to be as powerful as the most advanced model proposed by OpenAI, the creator of ChatGPT, the Wall Street Journal reported on Sunday.
- Boeing gained 1% in pre-market trading, as the White House announced that the aircraft manufacturer was close to signing an agreement with Vietnam Airlines for an order of 50 Boeing 737 Max jets worth $7.8 billion.
- Alibaba, whose shares were down 3% on the Hong Kong Stock Exchange on Monday, could be volatile in New York after the surprise announcement that the group's former CEO, Daniel Zhang, is leaving to head the cloud computing arm, which is to be spun off next year. Analysts are divided on the impact of this departure, with some believing it offers the Chinese e-commerce giant an opportunity to "wipe the slate clean", and others that it could weigh on the share price in the short term.
- JM Smucker, the maker of Jif peanut butter, is close to signing a deal to buy Hostess Brands, the owner of Twinkies cupcakes, for nearly $5 billion. Hostess Brands jumped 6.7% in pre-market trading.
- Goodyear Tire & Rubber gave up around 1% in after-hours trading after announcing a plan to cut 1,200 jobs in Europe, the Middle East and Africa.
Analyst recommendations:
- Amcor plc: Zacks maintains a neutral recommendation with a reduced target price of $9.75.
- Bank of america: Odeon Capital Group LLC maintains a hold recommendation with a reduced target price of $28.
- Broadcom: Bernstein maintains its outperform rating and raises the target price from USD 875 to USD 1000.
- Church & dwight: Evercore ISI maintains its in-line recommendation with a target price increase from USD 100 to USD 105.
- Eqt corp: Truist Securities maintains a hold recommendation with a revised target price of USD 39.
- Equinix: Zacks maintains a neutral recommendation with a reduced target price of USD 822.
- Equity residential: Evercore ISI maintains its outperform rating with a reduced target price of $70.
- General motors c: Zacks maintains its outperform rating with a reduced target price of USD 34.
- Halliburton: Piper Sandler & Co maintains its overweight rating with a target price raised from 46 to USD 56.
- Ingersoll-rand: Zacks maintains its outperform rating with a target price raised from 79 to USD 80.
- International paper: Sadif Investment Analytics maintains its hold recommendation on the stock with a revised target price of USD 30.
- Intuit: Piper Sandler & Co upgrades to overweight from neutral. PT up 21% to USD 642.
- Kenvue: Deutsche Bank maintains its hold recommendation with a target price of USD 27.
- Kraft heinz: Sadif Investment Analytics maintains its buy recommendation on the stock with a revised target price of USD 39.
- Kroger: JP Morgan downgrades to neutral from overweight. PT reduced from USD 56 to USD 54.
- M&t bank corp: RBC Capital downgrades to hold from outperform. PT reduced by 8.6% to USD 160.
- Marvell technology: Zacks maintains a neutral recommendation on the stock with a reduced target price of $59.
- Procter & Gamble: Evercore ISI maintains its outperform rating with a slightly reduced target price of $174.
- Transunion: Sadif Investment Analytics maintains its hold recommendation on the stock with a revised target price of USD 78
- Zebra technology: Sadif Investment Analytics maintains its strong buy recommendation on the stock with a reduced target price from USD 309 to USD 431.