The American stock market finished trading with a slight loss on January 26. By the end of the session, the S & P 500 index dropped by 0.15% to 3850 points. NASDAQ and Dow Jones were down 0.07%. The news background stayed mostly calm, so the market showed weak dynamics. The energy sector fell 2.12% despite stable oil prices. The real estate sector became the leader in growth with a result of + 1.14% thanks to the continued favorable macroeconomic conditions in the housing market.
Company news
President Biden plans to transfer American officials to American-made electric cars. Against this background, shares of Workhorse (WKHS: + 30.2%), Lordstown (RIDE: + 14%), Nikola (NKLA: + 23.6%) and others rose.
Beyond Meat (BYND: + 17.7%) has partnered with PepsiCo (PEP: + 1.2%) to co-manufacture and market plant-based meat substitute products.
Johnson & Johnson (JNJ: + 2.7%) quarterly report better than expected. The company also announced that the test results for its vaccine will be released in early February.
There are various dynamics in the global stock markets today. Pfizer and Moderna have both agreed to sell the US government 100 million additional doses of vaccine. Considering this order, the total volume of purchases will amount to 600 million. Over 300 million people can be vaccinated against coronavirus with just that amount. The number of hospitalized with COVID-19 in the United States fell to 108 thousand, which is in line with mid-December levels. The morbidity trend on a daily basis is on the decline. This allows the states to slowly remove barriers, which support investor confidence.
The companies’ quarterly results and market reactions to them are still mixed. However, Microsoft’s report was strong, so the tech sector has the potential to become a growth engine for the broader market today.
Economic news
December durable goods base order data will be released this Wednesday. After increasing by 0.4% a month earlier, the indicator is expected to grow by 0.5% against the value in November. Note that basic orders do not include vehicles (cars, airplanes, etc.), and it is this group of products that may show the weakest dynamics against the background of continuing problems with orders from Boeing.
Technical picture
Technical analysis suggests that there is an upward tendency in the medium term for the S&P 500. The broad market index reached a new all-time high yesterday, but met selling pressure and failed to gain a foothold above 3860 points. The upper border of the equidistant channel in the area of 3865-3870 points is still a serious resistance. After a short-term consolidation, the upward movement is likely to continue.
Today Top Movers
Virgin Galactic Holdings Inc (SPCE) share price jumped 11.65% to $46.95 during the early morning trading session on Wednesday. SPCE has found itself making more headlines recently as billionaire rocketman, Richard Branson, gets closer to achieving his dream of taking tourists to the stars.
Digital Ally Inc (DGLY) grew over 14.18% at $3.14 in pre-market trading today.
Moderna Inc (MRNA) stock moved up 1.49 percent to $154.19 in the pre-market trading after the firm provided a supply update for the Moderna COVID-19 Vaccine.
Romeo Power Inc (RMO) gained 9.52% and closed at $20.25 on Tuesday January 26, 2021.
Top Upgrades & Downgrades
KeyBanc turned bullish on Dycom Industries Inc. (DY), upgrading the stock to “Overweight” and assigning a $104.0 price target, representing a potential downside of 18.3% from Tuesday’s close.
3M Company (MMM) has won the favor of JPMorgan’s equity research team. The firm upgraded the shares from Neutral to Overweight and moved their price target to $205, suggesting 16.51% additional upside for the stock.
The Wendy’s Company (WEN) received an upgrade from analysts at Deutsche Bank, who also set their one-year price target on the stock to $25. They changed their rating on WEN to Buy from Hold in a recently issued research note.
Earlier Wednesday KeyBanc reduced its rating on Visa Inc. (V) stock to Sector Weight from Overweight.
KeyBanc analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for MasTec Inc. (MTZ) has been changed to Sector Weight from Overweight.
Analysts at KeyBanc downgraded Mastercard Incorporated (MA)’s stock to Sector Weight from Overweight Wednesday.
Latest Insider Activity
United States Antimony Corporation (UAMY) 10% Owner Reed Kenneth M announced the sale of shares taking place on Jan 26 at $0.98 for some 540,275 shares. The total came to more than $0.53 million.
Sorrento Therapeutics Inc. (SRNE) Director Followwill Dorman sold on Dec 16 a total of 2,130 shares at $7.14 on average. The insider’s sale generated proceeds of almost $7135.0.
Harbor Custom Development Inc. (HCDI) Director SWETS LARRY G JR declared the purchase of shares taking place on Jan 15 at $3.00 for some 35,000 shares. The transaction amount was around $0.1 million.
Urban One Inc. (UONE) 10% Owner SEMLER ERIC bought on Jan 19 a total 2,221,197 shares at $4.15 on average. The purchase cost the insider an estimated $829,170.
Important Earnings
Top US earnings releases scheduled for today include Tesla Inc. (NASDAQ: TSLA). It will announce its Dec 2020 financial results. The company is expected to report earnings of $1.01 per share from revenues of $10.32B in the three-month period.
Analysts expect Facebook Inc. (NASDAQ: FB) to report a net income (adjusted) of $3.22 per share when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Dec 2020 is predicted to come in at $26.43B.
Apple Inc. (AAPL), due to announce earnings after the market closes today, is expected to report earnings of $1.41 per share from revenues of $103.28B recently concluded three-month period.
