January job data was released this morning and came in much higher than expected. The US economy added 353,000 jobs last month, compared to 333,000 in December, and way above the Bloomberg consensus of 180,000. In January, the unemployment rate was 3.7 percent for the third month in a row, while 3.8% was expected. Average hourly earnings also came in much higher than expected. This means that the US job market is very resilient and that inflation isn't as tamed as some investors would like to think. The data is good news for the economy, but it does take investors further away from rate cuts. Futures on the Nasdaq 100, the S&P 500 and the Dow Jones were up by 1%, 0.6% and 0.1%, respectively, before the announcement. They quickly fell to +0.4% for the Nasdaq, +0.2% for the S&P500 and -0.2% for the Dow Jones after the release, before coming up a bit. It seems that investors aren't sure what to think about that.

Meanwhile, the NYSE can count on its technology stocks. Yesterday, Wall Street bounced back quite vigorously, while Europe remained at a standstill. The warning shot fired at Alphabet (-7% on Wednesday) didn't have an aftermath, and investors even found two new reasons to get excited yesterday. Amazon exceeded expectations to such an extent that its stock gained 7% post-trade last night in the wake of its results. But it's Meta Platforms that's in the spotlight, with its shares soaring 15% at the same time, thanks to higher-than-expected earnings and an unexpected shareholder pampering program: $50 billion in share buybacks and dividends. This confirms the return of the Instagram and Facebook owner to investors’ good graces, after it was deemed a pariah for betting on the wrong metaverse horse. The press is even starting to speak well of Mark Zuckerberg again, which shows just how far we've come since the share plunged 64% in 2022. Meta has rallied 194% in the last year, and should find itself tonight leading a gain of around 25% in 2024.

Apple, on the other hand, is a little shaky. Unlike its two peers, its earnings report failed to impress, with the stock losing 3% in after-hours trading. The company's alleged lag in artificial intelligence and poor sales in China continue to weigh on the stock. Apple has lost some of its sheen, it has to be said, but investors can't yet tell whether the company is simply stuck in a rut or whether a deeper evil threatens it.

The support of American technology is all the more important for the market at a time when other driving forces are at a standstill. Clearly, the latest attempt to turn around the Chinese market was a fluke. In fact, things are getting tougher this morning for local indices, as fears of margin calls mount. Elsewhere in the Asia-Pacific region, Tokyo ended the week moderately higher, but it's party time in South Korea (+2.8% for the KOSPI) and to a lesser extent in Australia and India, where we're still gaining over 1%. Europe is in the green, with the EuroStoxx 50 up 0.4%. 

Economic highlights of the day:

In the United States, February employment figures, durable goods orders and the University of Michigan confidence index are on the agenda. 

The dollar is worth EUR 0.9192 and GBP 0.7839. The ounce of gold has risen to USD 2054. Oil continues to fall, with Brent North Sea crude at USD 78.61 a barrel and WTI US light crude at USD 73.72. The yield on 10-year US debt falls to 3.89%. Bitcoin trades at USD 43,000.

In corporate news:

  • Apple reported disappointing sales in China for the October-December period on Thursday, overshadowing overall sales and revenues that exceeded Wall Street expectations for the quarter. The share price is down 2.4% in pre-market trading.
  • Exxon Mobil urged activist investors on Thursday to drop a climate proposal that the oil giant did not wish to put to the vote at its annual general meeting in May. On Friday, the group posted a better-than-expected profit of $36 billion for 2023, boosted by trading activities and rising oil and gas production. The stock gained 1.5% before the opening.
  • Chevron announced on Friday a sharp drop in earnings to $21.3 billion for 2023, as revenues from oil production and refining fell. Chevron nevertheless announced that it would increase its dividend by 8% as a sign of confidence. The stock gained 1.6% before the opening.
  • Tesla will recall 2.2 million vehicles in the United States - almost all its cars in the country - because of incorrect font sizes on warning lights, the National Highway Traffic Safety Administration (NHTSA) announced on Friday. The stock loses 1% before the opening.
  • Intel loses 1.3% in pre-market trading after the Wall Street Journal reports that the semiconductor group expects a delay in its $20 billion chip production project in Ohio, citing a slowdown in the market.
  • Microchip Technology - The chipmaker announced on Thursday evening that it expected sales for the current quarter to fall short of Wall Street expectations, against a backdrop of weak demand from customers who are clearing excess inventory. The share price fell by more than 3% in after-hours trading.
  • Mattel - Activist investor Barington Capital called on the American toymaker in a letter Thursday to implement major changes, including seeking alternative strategies for the Fisher-Price and American Girl brands and separating the role of CEO from that of chairman.
  • Cigna - The health insurer raised its 2024 earnings forecast on Friday after lower-than-expected medical costs and strong demand in its pharmacy benefit management unit helped it beat fourth-quarter profit estimates. The stock gained 4.1% before the opening.
  • Thermo Fisher Scientific - The UK competition regulator said on Friday that it was reviewing the group's $3.1 billion deal to buy biotech company Olink Holding.
  • Regeneron- The drugmaker beat consensus in the fourth quarter on Friday. Sales for the quarter reached $3.43 billion, against a consensus of $3.29 billion.
  • Clorox climbs 6.7% in after-hours trading as the cleaning products manufacturer raises its annual sales and earnings forecasts.

Analyst recommendations:

  • Alphabet Inc.: Phillip Securities upgrades to accumulate from buy with a price target raised from USD 144 to USD 154.
  • Corteva, Inc.: BNP Paribas Exane upgrades to neutral from underperform with a price target raised from USD 50 to USD 53.
  • Microsoft Corporation: Phillip Securities upgrades to accumulate from dropped coverage with a price target raised from USD 372 to USD 450.
  • Starbucks Corporation: President Capital Management Corp downgrades to neutral from buy with a price target reduced from USD 118 to USD 103.
  • Tractor Supply Company: Raymond James upgrades to outperform from strong buy with a price target raised from USD 230 to USD 250.
  • Vertex Pharmaceuticals Incorporated: Bernstein downgrades to market perform from outperform with a target price of USD 450.
  • Wec Energy Group, Inc.: JP Morgan downgrades to underweight from neutral with a price target reduced from USD 90 to USD 84.
  • Advanced Micro Devices, Inc.: DZ Bank AG Research maintains its buy recommendation and raises the target price from USD 145 to USD 200.
  • Amazon.com, Inc.: JMP Securities maintains its market outperform recommendation and raises the target price from USD 175 to USD 225. Fubon Securities maintains its buy recommendation and raises the target price from USD 154 to USD 190.
  • Atlassian Corporation: BMO Capital Markets maintains its market perform recommendation and raises the target price from USD 190 to USD 255.
  • Ball Corporation: Baird maintains a neutral recommendation with a price target raised from USD 50 to USD 62.
  • Corteva, Inc.: Wells Fargo maintains its overweight recommendation and raises the target price from USD 54 to USD 65.
  • Etsy, Inc.: Citigroup remains neutral recommendation with a price target raised from USD 60 to USD 73.
  • Meta Platforms, Inc.: Morgan Stanley maintains its overweight rating and raises the target price from USD 375 to USD 550. Bernstein maintains its outperform recommendation and raises the target price from USD 435 to USD 535. Morningstar upgrades to hold from sell with a price target raised from USD 322 to USD 400.
  • Microsoft Corporation: Phillip Securities upgrades to accumulate from dropped coverage with a price target raised from USD 372 to USD 450.
  • Parker-Hannifin Corporation: Citigroup remains neutral recommendation with a price target raised from USD 425 to USD 545. Baird maintains its outperform rating and raises the target price from USD 480 to USD 622.
  • Revvity, Inc.: Jefferies maintains its hold recommendation with a price target raised from USD 87 to USD 108.
  • The Clorox Company: HSBC maintains its hold recommendation and raises the target price from USD 133 to USD 164. Jefferies maintains its underperform recommendation and raises the target price from USD 117 to USD 145. Evercore ISI maintains its underperform recommendation and raises the target price from USD 120 to USD 145.
  • Tractor Supply Company: Citigroup remains neutral recommendation with a price target raised from USD 195 to USD 235.
  • Associated British Foods Plc: Morgan Stanley downgrades to equalwt from overwt with a price target raised from GBX 2220 to GBX 2500.
  • Close Brothers Group Plc: RBC Capital downgrades to sector perform from outperform with a price target reduced from GBX 800 to GBX 650.
  • Compass Group Plc: BNP Paribas Exane downgrades to neutral from outperform with a price target reduced from GBX 2345 to GBX 2300.
  • Easyjet Plc: Barclays upgrades to overweight from equalweight with a price target raised from GBP 4.50 to GBP 7.
  • J Sainsbury Plc: Morgan Stanley upgrades to equalwt from underwt with a price target raised from GBX 250 to GBX 290.
  • Kingfisher Plc: Morgan Stanley downgrades to underweight from equal weight with a price target reduced from GBX 255 to GBX 233.
  • Smiths Group Plc: Morningstar drops coverage on the stock.
  • Easyjet Plc: Barclays upgrades to overweight from equalweight with a price target raised from GBP 4.50 to GBP 7.
  • Standard Chartered Plc: Barclays maintains its equalweight recommendation and reduces the target price from 8.50 to GBP 6.50.
  • Wise Plc: Jefferies upgrades to buy from hold with a price target raised from GBX 717 to GBX 1024.
  • Wizz Air Holdings Plc: Barclays upgrades to equalweight from underweight with a price target raised from GBP 17.50 to GBP 22.
  • Shopify Inc.: Wells Fargo maintains its overweight rating and raises the target price from USD 70 to USD 90.