Electric vehicle stocks experienced a significant rally, with Lucid (LCID, Financial) leading the charge with a remarkable 28% gain, breaking a three-day losing streak. The sector, which had been under pressure due to investor skepticism and a pivot towards traditional automakers like Honda (HMC) and Toyota (TM), saw a turnaround despite recent challenges. Hertz's (HTZ) decision to reduce its EV fleet and Tesla's (TSLA, Financial) largest daily price drop in over a year after missing Q4 expectations contributed to the earlier downturn. However, shares of Lucid (LCID), Fisker (FSR, Financial), and Rivian (RIVN, Financial) have shown signs of recovery from their recent lows.
Advanced Micro Devices (AMD, Financial) is poised to report its fourth-quarter earnings, with expectations of a year-over-year increase in revenue and earnings per share. Despite the anticipation of results in line with expectations, the company's guidance for the first quarter may fall short of market estimates, following Intel's (INTC) weak report. The focus is on the demand for AMD's MI300 AI chips, with the company expected to surpass its prior sales forecast for 2024, competing with Nvidia (NVDA, Financial) in the AI chip market.
Karuna Therapeutics' (KRTX, Financial) lead drug, KarXT, has been highlighted as the most anticipated drug of the year by Evaluate Vantage. With a sales target of $2.8 billion by 2028, KarXT is expected to be a significant addition to the Bristol Myers Squibb (BMY, Financial) portfolio. Eli Lilly's (LLY, Financial) Alzheimer's therapy, donanemab, follows closely behind in the rankings, with a sales target of $2.2 billion by 2028.
Albertsons (ACI, Financial) saw a slight decline as Amazon (AMZN, Financial) and iRobot (IRBT, Financial) mutually terminated their deal amidst regulatory challenges. The market is closely watching the Federal Trade Commission's decision on the proposed $25 billion sale of Albertsons to Kroger (KR, Financial), with recent legal actions against similar mergers raising concerns among M&A investors.
The U.S. Treasury Department has reduced its borrowing estimate for the first quarter, signaling a lower borrowing need due to higher net fiscal flows and a higher beginning of quarter cash balance. This announcement comes as the markets anticipate a busy week with the Federal Reserve's policy meeting and earnings reports from major tech companies.
3M (MMM, Financial) reported that its $6 billion settlement for the combat arms earplugs litigation is on track, with claimant participation expected to exceed the required threshold. The settlement is a significant step in resolving the lawsuits alleging hearing loss and tinnitus from the company's earplugs.
Quality stocks, as identified by UBS analysts, are slightly expensive but have shown strong performance. The list includes BYD Company (BYDDF, Financial), Michelin (MGDDF, Financial), First Citizens BancShares (FCNCA, Financial), Fortive Corp (FTV, Financial), and others, with Amazon (AMZN, Financial) also featured for its positive earnings momentum and reasonable value.
Coinbase Global (COIN, Financial) stock rose in response to a surge in bitcoin prices, which also lifted other cryptocurrency-related stocks. Despite a challenging start to the year, Coinbase has seen a significant increase in its share price compared to the previous year.
Shares of Tesla (TSLA, Financial) are among the most oversold on Wall Street, with an RSI reading indicating a potential rebound. The list of oversold stocks includes Newmont Corporation (NEM, Financial), ZTO Express (Cayman) Inc. (ZTO, Financial), and others.
UPS (UPS, Financial) is set to announce its Q4 earnings, with expectations of a decline in EPS and revenue year-over-year. The company has a history of beating EPS estimates and will be closely watched by investors.
Archer Daniels Midland (ADM, Financial) saw its shares increase after addressing concerns regarding its financial results compilation. Despite a recent accounting probe, the company expects strong adjusted earnings and has increased its dividend.
BoFA Securities provided insights into positioning for potential earnings surprises using options for Russell 1000 stocks reporting this week. The report identifies opportunities based on historical option costs, proprietary positioning metrics, and analyst estimates.
Pfizer (PFE, Financial) is set to release its Q4 results amid pressure on its earnings outlook due to challenges to its COVID-19 franchise. The company's guidance has been below consensus, and Wall Street has taken a bearish view, with several downgrades in recent months.
Main Street Capital (MAIN, Financial) saw a slight decline after a six-day winning streak, with investors anticipating its Q4 earnings report. The company has seen strong performance and is expected to report near-record net investment income.
Microsoft (MSFT, Financial) is expected to deliver the most critical earnings report this season, with a focus on its AI initiatives and cloud deal flow. The company's earnings will be a key indicator of AI spending and cloud momentum.
ZIM Integrated Shipping (ZIM, Financial) received an upgrade from Jefferies, with expectations of significant cash generation and a positive outlook for the freight market. The geopolitical situation in the Red Sea is contributing to the company's revaluation potential.
Alphabet (GOOG, Financial) is preparing to report its fourth-quarter results, with investors keen on the performance of its cloud unit and developments in artificial intelligence. The company's cloud growth has been a concern, but its AI efforts are closely monitored.
Baker Hughes (BKR, Financial) was downgraded by Wolfe Research due to concerns about revenue deceleration in its Industrial & Energy Technology business. The downgrade comes amid geopolitical risks and a slowdown in global LNG project decisions.
Berkshire Hathaway (BRK.B) shares ended a seven-day winning streak, with investors considering the company's strong start to the year and its overall performance. Analysts and the Quant Rating system provide varied perspectives on the stock's outlook.
