Equity markets always seem to be stuck on that damn tipping point, the one right between the moment when everything can go wrong and the moment when everything can go right again. Yesterday, the three main indexes ended in the green, but without much conviction. Low-risk profiles led gains: Healthcare in particular. Also worth noting are the very good March sales of Costco Wholesale, which supported the consumer segment.

Investors are concerned by the economic and political turmoil and the return of more hawkish central bank policies. However, buoyant macroeconomic statistics feed risk appetite. In this context, the results and forecasts of listed companies at the end of the first quarter could well have a decisive role. And it starts next week, with a slew of U.S. financial stocks like JPMorgan Chase and BlackRock on Wednesday or Morgan Stanley, Citigroup, Goldman Sachs and Wells Fargo on Thursday.

Today, there is no major macroeconomic indicators today and no central banker speeches scheduled to stir up trouble. The latest news still revolves around the war in Ukraine. Europeans have opted for an import ban on Russian coal. Apparently, there have been intense discussions to go beyond that and include oil and gas in the sanctions, but there is no consensus. At the same time, NATO is preparing to deliver heavy weaponry to Ukraine. There is no direct confrontation with Russia, but such an escalation has not been seen since the Cold War.

 

Economic highlights of the day:

This Friday, there is not much to look at other than the February US wholesale inventories.

The dollar is slightly up to EUR 0.9225. Gold is rising to USD 1939. Oil retreats again with North Sea Brent a USD 100.1 a barrel and US WTI light crude at USD 95.97. US 10-year debt yields rise to 2.66% over 10 years. Bitcoin is steady at USD 43,350 a unit.

 

On markets:

The Boeing Company shares are down 1.6%. According to news reports, a DHL-chartered Boeing 757 broke in half in Costa Rica during an emergency landing after reporting a failure of its hydraulic systems shortly after takeoff from San Jose Airport.

Low-cost carrier Spirit Airlines (+1%, to $26.8) announced it would enter into discussions with JetBlue Airways (-1.2%) about its $3.6 billion takeover offer. JetBlue's $33-per-share offer appears "superior" to the $2.9 billion offer filed by Frontier Holding (-0.3%) in February, Spirit Airlines said.

-Amazon (-1.1%) announced its intention to file a lawsuit to oppose the creation of the first union in the history of the group in the United States, validated by a vote of employees last week in New York.

-Tesla (-1.5%) will recall 128,000 vehicles in China due to a manufacturing defect in the engine's power supply, the Chinese market authority announced, quoted by AFP.

 

Analyst recommendations:

  • Aerojet Rocketdyne Holdings: DA Davidson starts at buy/add with $49 price target
  • C.H. Robinson: J.P. Morgan raised its recommendation to overweight from neutral. PT up 16% to $117.
  • Constellation Brands: DA Davidson lowers price target for constellation brands to $269 from $277, maintains buy rating
  • Dover: Barclays downgrades to equal-weight from overweight. PT up 3.6% to $160.
  • Essential Utilities: HSBC downgrades to hold from buy. PT up 1.3% to $53.
  • Intertek: HSBC upgrades from buy to hold targeting GBp 5700.
  • MGM Resorts: Deutsche Bank adjusts price target to $52 from $54, maintains buy rating.
  • Mondi: Morgan Stanley moves from Overweight to Equal-weight with a target of GBp 1500.
  • Procter & Gamble: Raymond James reinstated coverage with a recommendation of outperform. PT up 10% to $175.
  • Target: Gordon Haskett upgrades target corp. to buy from hold; price target is $300.
  • Terex: Baird downgrades to neutral from outperform. PT up 32% to $44.
  • The Cooper Companies: Needham initiates coverage at Hold.
  • The Goldman Sachs Group: Autonomous Research adjusts price target to $440 from $515, maintains outperform rating.
  • Union Pacific: BofA Securities downgrades union pacific to neutral from buy; price target is $258
  • United Parcel Service: BofA Securities downgrades united parcel service to neutral from buy; price target is $204.
  • Virtus Investment: Morgan Stanley downgrades to underweight from overweight. PT up 9.9% to $240.
  • Walmart: DA Davidson raises price target to $171 from $168, maintains buy rating.