On February 2, the American stock indexes finished trading in the green zone. The S&P 500 climbed 1.39% to 3826 points, the Dow Jones rose 1.57% and the NASDAQ rose 1.56%. The news background did not contain new drivers of movement, but risk appetite was increased due to the decrease in fears of an overbought market. All 11 sectors closed in positive territory. The finance sector-led growth with 2.46%, driven by a rebound in Treasury yields.
Uber (UBER: + 7%) today announced it has acquired the liquor delivery service Drizly for $1.1 billion in company stock and cash.
Pfizer’s revenue (PFE: -2.3%) beat expectations, although EPS was weaker than consensus. The 2021 revenue forecast assumes strong sales of coronavirus vaccines.
Results of oil giant BP (BP: -6.6%) were worse than expected in various segments, dividends were reduced by 50%.
Today, world stock exchanges are showing mostly positive dynamics. The fight against the coronavirus remains in focus and the news on this front is mostly positive. The attention of international investors was attracted by the results of tests of the Russian vaccine Sputnik V, which revealed its high efficiency. In addition, the University of Oxford has published encouraging research results that indicate that the AstraZeneca vaccine not only prevents coronavirus disease but also reduces its spread by two-thirds. This is the first study to document that vaccine proliferation will lead to a rapid decline in disease incidence. In the United States, more than 7% of the population has already received the first dose of the vaccine, and the daily incidence of COVID-19 has rolled back to November levels.
Quarterly results were published by 43% of companies in the S&P 500. At present, aggregate net income for the fourth quarter is expected to show growth YoY, while in October it was forecast to decline by 13% YoY. This signals that companies’ financials are showing an unexpectedly fast recovery. However, the optimistic expectations have already been partially taken into account in the quotes, as evidenced by the increase in the S&P 500 by 17% over the past three months.
The Freedom Finance Sentiment Index remains at 68 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 slowly diminishing with the prospect of mass vaccinations.
Technically, the S&P 500 is still bullish in the medium term. The broader market index has continued to rebound from the 50-day moving average, but the strength of this impulse is fading. In the short term, consolidation is likely, as the RSI indicator is in the neutral zone and indicates the equality of forces between the bulls and bears, while the MACD indicator remains in negative territory.
Today Top Movers
Sundial Growers Inc (SNDL) stock moved up 8.65 percent to $1.13 in the pre-market trading. The firm recently revealed the closing of its US$100 million registered offering.
AMC Entertainment Holdings Inc (AMC) stock ascended 8.44% at $8.48 in the pre-market trading today.
Naked Brand Group Ltd (NAKD) an apparel manufacturing company, soared about 12.07% at $1.02 in pre-market trading Wednesday following the declaration of closing $50 million registered direct offering priced at-the-market.
Cps Technologies (CPSH) share price jumped 21.75% to $8.45 during the early morning trading session on Wednesday. The company recently declared receipt of a purchase order for HybridTech Armor© Panels to be installed as the strike face of advanced ballistic shields to support U.S. Navy CVN class ships.
Top Upgrades & Downgrades
Oppenheimer turned bullish on NXP Semiconductors N.V. (NXPI), upgrading the stock to “Outperform” and assigning a $210.0 price target, representing a potential downside of 18.5% from Tuesday’s close.
Nucor Corporation (NUE) has won the favor of Credit Suisse’s equity research team. The firm upgraded the shares from Neutral to Outperform and moved their price target to $63.0, suggesting a 24.85% additional upside for the stock.
Steel Dynamics Inc. (STLD) received an upgrade from analysts at Credit Suisse, who also set their one-year price target on the stock to $52.0. They changed their rating on STLD to Outperform from Neutral in a recently issued research note.
Earlier Tuesday Credit Suisse reduced its rating on SBA Communications Corporation (SBAC) stock to Neutral from Outperform and assigned the price target to $291.0. With shares trading at around $281.90, the Wall Street firm thinks SBA Communications Corporation’s stock could add than 3.23%.
JPMorgan analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for Centennial Resource Development Inc. (CDEV) has been changed to Underweight from Neutral.
Analysts at JPMorgan downgraded Cabot Oil & Gas Corporation (COG)’s stock to Neutral from Overweight Wednesday.
Latest Insider Activity
Moderna Inc. (MRNA) Andres Juan announced the sale of shares taking place on Feb 01 at $172.99 for some 5,000 shares. The total came to more than $0.86 million.
Visa Inc. (V) CHAIRMAN & CEO KELLY ALFRED F JR sold on Jan 29 a total of 163,112 shares at $197.73 on average. The insider’s sale generated proceeds of almost $1.78 million.
Surgalign Holdings Inc. (SRGA) Director STOLPER MARK declared the purchase of shares taking place on Feb 01 at $1.50 for some 16,667 shares. The transaction amount was around $25001.0.
Outlook Therapeutics Inc. (OTLK) Director Sukhtian Ghiath M. bought on Feb 02 a total of 10,820,630 shares at $1.00 on average. The purchase cost the insider an estimated $8.36 million.
Top US earnings releases scheduled for today include Boston Scientific Corporation (NYSE: BSX). It will announce its Dec 2020 financial results. The company is expected to report earnings of $0.31 per share from revenues of $2.83B in the three-month period.
Analysts expect AbbVie Inc. (NYSE: ABBV) to report a net income (adjusted) of $2.85 per share when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Dec 2020 is predicted to come in at $13.7B.
eBay Inc. (EBAY), due to announce earnings after the market closes today, is expected to report earnings of $0.83 per share from revenues of $2.7B recently concluded three-month period.