CNBC Pro: What one tech fund manager is expecting from Apple and Alphabet earnings this week
Microsoft issued a disappointing revenue forecast last week, but its stock has since increased. What does that mean for the opposite Big Tech firms set to report earnings?
Tech fund manager Jeremy Gleeson, who manages the £1.1 billion ($1.5 billion) AXA Framlington Global Technology Fund, said there was enough bad news in Microsoft’s earnings to “spook” investors into selling the stock.
Nonetheless, the incontrovertible fact that the stock is up by greater than 2% subsequently is an “encouraging” sign for the remaining of Big Tech’s earnings, Gleeson told CNBC’s “Squawk Box Europe”.
He shared his thoughts on what to anticipate from Apple and Alphabet this week.
CNBC Pro subscribers can read more here.
— Ganesh Rao
IMF raises global growth forecast for the 12 months
The International Monetary Fund hiked its global growth projection to 2.9% for 2023 as a result of better-than-expected domestic aspects in several countries, reminiscent of the US and China’s reopening.
China’s reopening of its economy after strict Covid lockdown is anticipated to contribute to higher global growth.
Nonetheless, the IMF cautioned that higher rates of interest and Russia’s invasion of Ukraine will still weigh on activity. China’s reopening could also still stall which can dampen the outlook, it added.
The revision would register a 0.2% improvement from the IMF”s previous forecast in October, but still marks a fall from an expansion of three.4% in 2022.
—Silvia Amaro, Lee Ying Shan
BYD shares jump 3.84% on expectations of stellar annual earnings
Shares of Chinese EV maker BYD rose 3.84% after the corporate announced its expectations of a record year-on-year profit.
In an exchange filing, BYD forecasts their net profit for 2022 to extend from 1.25 billion yuan ($185.5 million) to as much as 16.3 billion yuan, marking around a 1,200% hike in comparison with 2021.
The projection of a stellar growth is supported by the brand new energy vehicle industry, which BYD stated has been “experiencing continued explosive growth.”
“The Company has overcome the shock of a fancy and difficult external environment and various unexpected aspects to attain such a powerful year-on-year growth in latest energy vehicle sales,” the report further stated.
—Lee Ying Shan
China’s official manufacturing PMI rebounds
China’s official manufacturing purchasing managers’ index (PMI) posted an expansion for the primary time since October 2022, in line with the National Bureau of Statistics.
China’s manufacturing activity for January got here in at 50.1, above the 50-point threshold separating growth from contraction.
The reading beats Reuters’ forecasts of 49.8, and stands higher than December’s figure of 47.
Similarly, China’s non-manufacturing PMI, which comprise of the services, catering and construction sector, rose to 54.5 from 41.6 in December.
—Lee Ying Shan
Samsung shares drop after posting 69% plunge in profits
Samsung Electronics recorded a steep 69% decline in profits to 4.3 trillion won ($3.49 billion) on Tuesday on the back of a slump in demand for consumer electronics.
“Demand for smartphones remained sluggish with the mass market contracting sharply as a result of continued inflation and geopolitical instability,” Samsung’s earnings release stated.
Samsung’s shares last traded down 3%.
—Lee Ying Shan
Adani Group founder and chairman’s net value falls $36 billion
Adani Group founder and chairman Gautam Adani’s net value fell by $36 billion year-to-date as of Monday’s market close, in line with the Bloomberg Billionaires Index.
Adani, the richest man in Asia and once second only to Elon Musk, fell out of the world’s top 10 richest to eleventh place on the Bloomberg’s Billionaire Index, as of Monday’s close.
His net value peaked at $150 billion on Sept. 20, 2022, before falling to $84.4 billion as of Monday’s close, in line with the index.
Adani Enterprises’ stock price stays greater than 25% lower month-to-date, Refinitiv data showed. It proceeded with a secondary share sale value $2.5 billion, which was overshadowed by a rout that worn out a complete of $65 billion as of Monday’s close.
CNBC Pro: Can Chinese stocks rally further? One investment bank thinks so — and names its top stock picks
The recovery in Chinese stocks gained steam on Monday, as China’s benchmark index got here inside striking distance of a bull market.
Bernstein’s analysts imagine the rally has further to go and reveal their top stocks to play it.
Pro subscribers can read more here.
— Zavier Ong
South Korea’s December industrial output plunges, misses forecast
South Korea’s factory output for December fell 7.3%, marking its worst annualized reading in greater than two and a half years since May 2020’s figure of a 9.6% plunge.
The reading was steeper than Reuters’ expectations of a 5.1% drop, in addition to November’s 3.4% decline.
—Lee Ying Shan
Stocks close lower Monday, Dow falls greater than 250 points
Stocks closed lower Monday, with the Dow Jones Industrial Average snapping a six-day win streak.
The Dow declined 260.99 points, or 0.77%, to 33,717.09. The S&P 500 fell 1.3% to 4,017.77. The Nasdaq Composite dropped by 1.96% to 11,393.81.
— Sarah Min
Time to sell Tesla, say technician Carter Price
Tesla‘s stock has been on a “wild ride” and it is time to sell, in line with Carter Price, CEO and Founding father of Carter Braxton Price Charting.
Shares of the electric-vehicle maker have surged 38% because the start of the 12 months, following last 12 months’s 65% plunge. Last week, Tesla reported record revenue and an earnings beat. CEO Elon Musk also said the corporate was heading in the right direction to potentially produce 2 million vehicles this 12 months.
“It just feels a bit of bit crowded, steep; too far, too fast,” Price said on CNBC’s “The Exchange.” The name can be essentially the most lively in the choices market, he identified.
“It’s a rally to a difficult level,” he added. “”The play here, for those who are long, is to exit and with latest money, I can be short.”
Tesla’s year-to-date rally
Don’t count on this early 2023 rally, says JPMorgan’s Kolanovic
Investors should fade the early 2023 rally, warned JPMorgan’s top market strategist Marko Kolanovic.
The primary quarter will likely mark a turning point for the market – and its upward trajectory probably won’t proceed, he said.
“The elemental confirmation for the subsequent leg higher may not come,” Kolanovic said in a Monday note to investors. “And as an alternative markets could encounter an air-pocket of weaker earnings and activity as they move through Q2 and Q3.”
He anticipates that the backdrop for corporate profits will begin to turn lower as pricing power reverses.
The strategist’s comments arrive as stocks take a breather from their latest run. Still, the S&P 500 is up greater than 5% for the 12 months, while the Nasdaq Composite has bounced greater than 9%. The Dow Jones Industrial Average is up about 2.3% in 2023.
Kolanovic also foresees a “postponement somewhat than fading of recession risk.” Though U.S. gross domestic product rose at an annualized pace of two.9% within the fourth quarter, there’s weakness underlying that headline number, “as private demand printed its weakest growth because the start of the recovery,” the strategist said.
“A weak trajectory for US domestic demand keeps recession risk elevated, whilst the tightness in labor markets postpones this recession risk,” Kolanovic wrote. “Meanwhile, restrictive real policy rates represent an ongoing headwind, keeping the chance of a recession later within the 12 months high.”
–Darla Mercado
