On February 1, the American stock exchanges finished trading in the green zone. The S&P 500 Index climbed 1.61% to 3774 points, the Dow Jones added 0.76% and the NASDAQ rose 2.55%. Fears about the impact of short squeezes on the market have slightly subsided, and quarterly reports and macro statistics returned to the focus of investors’ attention. The cyclical consumer goods sector topped the broader market, gaining 2.77% on positive gains from Amazon and Tesla. The tech sector also outperformed the market, adding 2.51%.
Corporate Details
Ford (F: + 2.9%) announced a strategic partnership with Google (GOOGL: + 3.6%) for EV software.
ON Semiconductor (ON: + 6.4%) came out better than expected, mainly driven by the automotive components segment.
Virgin Galactic (SPCE: + 21.5%) announced plans to test launch its SpaceShipTwo Unity rocket after February 13.
Today world stock exchanges are showing positive dynamics. Recovery of quotations after a sharp drop last week continues. President Biden discussed with a group of Republicans the stimulus package. Negotiations have made little progress, but GOP officials said Biden is willing to make concessions on some points of the program. The president has not yet rejected the possibility of a “reconciliation” procedure, through which a package of $ 1.9 trillion can be passed through a simplified vote in Congress, even without the support of the Republicans.
Concerns about the impact of short squeezes on the market were largely eliminated by the comments of investment banks, which noted the presence of numerous factors favorable for the development of an upward trend, including a strong reporting season. Due to the effect of inflated expectations, the shares of many reported companies corrected, but a positive reaction may follow with some delay.
The Freedom Finance Sentiment Index remains at 68 out of 100. The index reflects market participants’ hope for a global economic recovery in 2021. Concerns about the negative impact of the coronavirus pandemic are gradually diminishing thanks to the prospect of mass vaccinations.
Technical picture
Technically, the S&P 500 is still bullish in the medium term. The day before, the broad market index bounced off the 50-day moving average, at the level of which buying activity intensified. 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”.
Today Top Movers
Prothena Corporation plc (PRTA) share price jumped 29.55% to $14.25 during the early morning trading session on Tuesday after declaring confirmatory phase 3 AFFIRM-AL study of Birtamimab in mayo Stage IV Patients with AL Amyloidosis under SPA Agreement with FDA.
Nio Inc (NIO) stock ascended 1.09% at $57.61 in the pre-market trading today. after the company provides January 2021 Delivery update.
GoPro Inc (GPRO) gained over 8.17% at $11.39 in pre-market trading on Tuesday. ahead of its earnings scheduled on 4 Feb.
Virgin Galactic Holdings Inc (SPCE) grew over 10.04% at $59.19 in pre-market trading today. The company recently revealed the date of its new flight window for a rocket-powered test flight of its SpaceShipTwo Unity.
Top Upgrades & Downgrades
Evercore ISI Group turned bullish on TETRA Technologies Inc. (TTI), upgrading the stock to “Outperform” and assigning a $3.0 price target.
Dell Technologies Inc. (DELL) has won the favor of B of A Securities’ equity research team. The firm upgraded the shares from Neutral to Buy and moved their price target to $80.0, suggesting 29.73% additional upside for the stock.
Rio Tinto Group (RIO) received an upgrade from analysts at Credit Suisse. They changed their rating on RIO to Outperform from Neutral in a recently issued research note.
Earlier Tuesday Piper Sandler reduced its rating on argenx SE (ARGX) stock to Neutral from Overweight and assigned the price target to $303.
Cowen analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for Limelight Networks Inc. (LLNW) has been changed to Market Perform from Outperform and the new price target is set at $4.75.
Analysts at Compass Point downgraded Hilltop Holdings Inc. (HTH)’s stock to Neutral from Buy Thursday.
Latest Insider Activity
Inovio Pharmaceuticals Inc. (INO) Chief Operating Officer Shea Jacqueline Elizabeth announced the sale of shares taking place on Jan 28 at $12.04 for some 16,713 shares. The total came to more than $0.2 million.
DuPont de Nemours Inc. (DD) President, T&I Stone Randy Lee sold on Jan 28 a total of 30,622 shares at $79.97 on average. The insider’s sale generated proceeds of almost $0.25 million.
VYNE Therapeutics Inc. (VYNE) 10% Owner PERCEPTIVE ADVISORS LLC declared the purchase of shares taking place on Jan 28 at $2.37 for some 4,219,409 shares. The transaction amount was around $10.0 million.
Alcoa Corporation (AA) Director Nevels James E bought on Jan 27 a total 32,336 shares at $17.50 on average. The purchase cost the insider an estimated $7,000.
Important Earnings
Top US earnings releases scheduled for today include Pfizer Inc. (NYSE: PFE). It will announce its Dec 2020 financial results. The company is expected to report earnings of $0.48 per share from revenues of $11.43B in the three-month period.
Analysts expect Alibaba Group Holding Limited (NYSE: BABA) to report a net income (adjusted) of $3.25 per share when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Dec 2020 is predicted to come in at $33.35B.
Amazon.com Inc. (AMZN), due to announce earnings after the market closes today, is expected to report earnings of $7.23 per share from revenues of $119.7B recently concluded three-month period.
