Mid-Morning Look: January 23, 2024

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Mid-Morning Look

Tuesday, January 23, 2024





DJ Industrials




S&P 500








Russell 2000






U.S. stocks are mixed a day after the S&P closed at a record high for a 2nd straight day and the Dow Jones Industrial Average posted its first close above the 38,000 level ever in a continuous market rally spanning three straight months now, as investors remain bullish on prospects of aggressive rate cuts in 2024 to keep the economy surging. The Smallcap Russell 200 outperforms large caps for a second day after underperformance in 2023. Treasury yield a little bounce today with the 10-yr topping 4.14% and the dollar edges higher. A handful of Dow components reporting earnings today with VZ shares jumping on results, sub adds, and FCF results, while JNJ drops on its results and MMM tumbles on lower guidance. Earnings tonight in tech for NFLX and TXN. In data, the Richmond Fed composite manufacturing index -15 in Jan vs -11 in December and manufacturing shipments index -15 in Jan vs -17 in December (mkts await GDP and CE inflation data later this week). In non-earnings stock news, TKO shares jumped after saying NFLX will be the new home for “WWE Raw” in 2025, its first Live sporting event. US listed China stocks rally on a bevy of headlines (see below).






WTI Crude















10-Year Note




Sector Movers Today

  • In Consumer Staples: PG raises bottom end of core FY24 EPS view to $6.37-$6.43 from prior $6.25-$6.43 view (est. $6.41) while sales are still expected to rise 2% to 4% from FY23; said Q2 organic sales rose 4% from the prior-year period while earnings fell 12% to $3.47 billion, or $1.40 a share (due in part to $1.3B charge for Gillette business). Beauty stocks EL, ELF, ULTA active after PG noted weak demand for its beauty and personal-care products in major market China.
  • In Solar: ENPH upgraded from Hold to Buy at Truist and raise tgt to $145 from $85 saying sees downside risks largely priced in at this point with the stock down 50% in 2023 vs S&P +24% on headwinds in both US and European markets and upgraded NOVA to Buy from Hold saying the co changed tone in the company’s Q3 earnings report, throttling down growth expectations in favor of eliminating corporate capital needs for this year.
  • In Media: TKO shares jumped after saying NFLX will be the new home for “WWE Raw” in 2025, its first Live sporting event. SIRI downgraded from Equal Weight to Underweight at Wells Fargo and trim tgt to $4.50 saying with the firm’s adj. EBITDA growth est. of -5% y/y in ’24 + no buyback, it thinks SIRI will trade towards the lower end of its valuation range. NFLX said Scott Stuber, head of films, will leave the streaming service pioneer in March to start his own media company.
  • In China news: gaming names TCEHY, NTES rallied after reports China regulators have appeared to backpedal from its plan to reduce how much money people spend on online video games after the proposal tanked video gaming company stocks – NYT reported http://tinyurl.com/262c5mwc. Separately, BABA shares got a bounce after the NY Times reported that Jack Ma has been buying shares in the tech giant he Co-founded as its stock has plunged. http://tinyurl.com/y2zn6dpm . Lastly, China stocks got a bump overnight after Bloomberg reported China is considering a stock market rescue package of ~$280B.



  • AA +8%; and CENX rise after EU members are considering an embargo on Russian aluminum as part of the 13th package of sanctions, Politico reported on Jan. 23, citing unnamed EU diplomats,
  • BABA +7%; shares got a bounce after the NY Times reported that Jack Ma has been buying shares in the tech giant he Co-founded as its stock has plunged. http://tinyurl.com/y2zn6dpm
  • HAL +3%; Q4 adj EPS $0.86 vs. est. $0.80; Q4 revs rose 2.7% y/y to $5.74B vs. est. $5.78B; Q4 cash flow from operations $1.4B; free cash flow $1.1B; boosts qtrly div to 17c-shr from 16c. International revenue rose 10% to $3.3B in the reported quarter y/y, while revenue from North America fell 7.7% to $2.4B.
  • RTX +8%; reported Q2 adj EPS $1.29 while revenue increased 10% to $19.93B (vs. est. $1.24/$19.74B) on higher FY24 guide but cuts its FY25 adj annual sales view.
  • TKO +18%; shares jumped after saying NFLX will be the new home for “WWE Raw” in 2025.
  • UAL +6%; shares jump as Q4 adj EPS $2.00 tops est. $1.69 on better revs $13.6B vs est. $13.541B; CASM -0.1%, CASM-EX +4.9% y/y; says last two weeks of Dec busiest travel period in history flying 8.2Mm customers; guidance for FY adj profit midpoint above consensus.
  • VZ +5%; guided 2024 adj EPS to be between $4.50-$4.70, the midpoint of which was higher than estimates of $4.59 after saying added 449,000 net monthly bill-paying wireless phone subscribers in Q4, more than estimates of 223,800 additions, and said FY FCF reported at $18.7B, up from $14.1B in 2022.
  • WOLF +5%; after announcing an expanded and extended Multi-Year Silicon Carbide (SiC) 150mm Wafer Supply Agreement with Infineon originally signed in February 2018.



  • COIN -4%; was downgraded to Underweight from Neutral at JP Morgan saying they see potential for bitcoin ETF enthusiasm to deflate further; said finds spot Bitcoin ETFs flows-to-date as "underwhelming versus the lofty expectations" established in the run-up to their approval.
  • DHI -8%; Q1 mixed as EPS $2.82 vs. est. $2.88 and Q1 revs $7.7B vs. est. $7.59B; Wedbush noted GAAP gross margin of 22.9% was 100bp lower y/y and missed consensus at 24.8%, while orders were 35% higher y/y versus Wedbush’s +40% forecast and consensus at +36%.
  • JNJ -2%; Q4 adj EPS $2.29 vs. est. $2.28; Q4 revenue $21.4B vs. est. $20.99B; backs FY24 adjusted EPS view $10.55-$10.75 (est. $10.67) and backs FY24 operational sales growth view of 5.0%-6.0% vs. est. $87.97B. Separately, JNJ agreed to pay about $700M to settle an investigation into the marketing of its talcum-based baby powder.
  • LOGI -11%; raised its outlook, though it still expects sales to fall in the current year amid a downturn in spending.
  • MMM -6%; after lower FY guidance; Q4 adj EPS $2.42 vs. est. $2.31; Q4 revs $7.69B vs. est. $7.7B; guides Q1 EPS $2.00-$2.15 vs. est. $2.11 and Q1 revs $7.6B vs. est. $7.89B as sees Q1 macroeconomic trends similar to Q4; sees FY adj EPS $9.35-$9.75 vs. consensus of $9.81.
  • VRM -40%; said it would wind down its used-vehicle ecommerce business and cut about 800 employees, stop transactions on its website for buying and selling used cars and sell its current inventory.


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

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